Produce by Rail Showing Mixed Results as Trucks Still Haul 95% of Products

Produce by Rail Showing Mixed Results as Trucks Still Haul 95% of Products

DSCN4370Cold Train Express Intermodal Service suspended service this summer due to rail congestion, while two new refrigerated rail services were just getting started.

McKay TransCold based in Minneapolis began last June offering a refrigerated, dedicated boxcar unit train known as Transcold Express, which runs each week between Selma, CA and  Wilmington, IL.   Meanwhile, Tiger Cool Express LLC, Overland Park, KS  launched intermodal services from multiple locations in southern California to destinations in the Midwest and East Coast in February.  In a press release Cold Train reported that on-time deliveries for shipments on BNSF’s Northern Corridor fell from more than 90% in November to less than 5% in April due to surging more oil and coal shipments.

Meanwhile,  the problems on BNSF’s northern lines reportedly  has had little effect on the southern BNSF and Union Pacific rail routes.

Tiger Cool Express, reported rail shipments of oil from North Dakota on BNSF’s Northern Corridor have increased from 20,000 tank cars three years ago to more than 400,000 this year.  And unlike major southern rail routes in the U.S., that northern route doesn’t have two different tracks.

Produce is viewed by some in the rail industry as the last long-haul, $100 billion market that intermodal has yet to penetrate.    Still, over 95 percent  of fresh produce is delivered by truck in the U.S..   Rail officials are counting on trucks supplies tightening, with the driver shortage continue to worsen.