Posts Tagged “Transcold Express”
In sort of a flashback to the ’70s it seems history is repeating itself as a lot of hoopla is taking place about the rail industry getting more serious about hauling fresh produce – and competing with trucks. In the short run it seems not to have worked out that well — at least for some.
The latest example is McKay TransCold of Minneapolis, which closed its doors November 1st, after launching a new refrigerated boxcar service last June. Known as Transcold Express, it had weekly runs between Selma, CA and Wilmington, IL. However, the company had problems with its cross dock operation in Wilmington, where it had spent monies on significant upgrades of the facility. Unable to find additional investors to continue operations, the company decided to call it quits.
Another short lived example of a foray into the rail perishables business is the Cold Train Express Intermodal service that suspended service last summer. Cold Train saw its on time service on BNSF’s Northern Corridor plummet from 90 percent in November 2013 to only 5% percent last April. Cold Train said the reason relates to soaring oil and coal shipments by rail. For example, the Northern Corridor of BNSF saw tank car shipments increase from 20,000 three years to over 400,000 this year. Unlike it’s southern routes, which has two sets of tracks, the northern route has only one set of rail tracks.
Meanwhile, Railex, which started a rail service a few years ago, seems to be doing better than anyone, with it’s coast-to-coast service. Another service, Tiger Cool Express LLC, also remains in business, but we hear little about it.
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 continuing to worsen and increasing government regulations on the trucking industry – which in theory is supposed to be deregulated.