Posts Tagged “Union Pacific”
Union Pacific Railroad announced recently the acquisition of Railex LLC’s refrigerated and cold storage distribution assets in Delano, CA, Wallula, WA, and Rotterdam, NY. Terms were not disclosed, and the acquisition does not include Railex Wine Services LLC.
Railex, a refrigerated rail service and third-party logistics leader, plays a key role in Union Pacific’s Food Network transporting fruits, vegetables and other temperature-sensitive cargo across the United States.
“The Railex team developed a fantastic business changing how fresh food arrives on America’s tables, offering food shippers fast, reliable door-to-door rail based transportation solutions,” Brad Thrasher, vice president and general manager of agricultural products for UP, said in a press release. “The integration of their highly efficient cross dock facilities and logistics capabilities into Union Pacific’s broader food network allows us to offer our customers increased access to a wider range of capacity and service solutions in a rail-centric cold chain.”
Union Pacific, based in Omaha, NE, food trains directly serve Railex’s Delano and Wallula facilities, located in the heart of major agricultural-production regions. The food train network provides a fast and reliable service from these growing regions to the Midwest consumer base via Chicago and further into the heart of the Northeast region via the CSX. Railex will continue managing facilities during the transition and integration of its operations with Union Pacific.
In an Aug. 24, 2016 post, HaulProduce.com rported the following:
Even refrigerated carriers have their challenges hauling fresh produce, but it is an awesome mountain for rail entities, which is why there have been so many failures over the years. Now we hear Railex LLC is ending service to the Southeast, although it claims it will be back one day.
The rail logistics transporter, based in Riverhead, NY, ceased operations in Jacksonville, FL August 13th with its refrigerated perishables. Rumors of the closing had been circulating since July. The company apparently felt it was in its best interest to reassess the Southeast receiving location and close the Jacksonville location…..Paul Esposito, executive vice president of corporate affairs said. “The transit times were two days longer than what we had planned and what our customers expected. Now, two years later, during the peak summer season, with transit variabilities as well as the decline in truck rates, we find it difficult to sustain any significant volume into the area.”
To read the entire post from last August, click on “Sections” and then click on “News,” then scroll down to the 8/24/16 post.
Even refrigerated carriers have their challenges hauling fresh produce, but it is an awesome mountain for rail entities, which is why there have been so many failures over the years.
Now we hear Railex LLC is ending service to the Southeast. although it claims it will be back one day.
The rail logistics transporter, based in Riverhead, NY, ceased operations in Jacksonville, Fla. August 13th with its refrigerated perishables..
Rumors of the closing had been circulating since July. The company apparently felt it was in its best interest to reassess the Southeast receiving location and close the Jacksonville location. Railex was unable to properly structure its operations at the Jacksonville facility that was too small. The company was operating with a short-term lease.
Railex is working with the Union Pacific and CSX railroads to find a service plan allowing timely deliveries to Southeastern customers through a different location. Railex is hoping to negotiate a service agreement within the coming months.
The Jacksonville location was intended to be a temporary solution to satisfy customers that had long demanded Southeastern service.
“For various reasons beyond our control, Railex could not run the traditional unit-type train service into Jacksonville,” Paul Esposito, executive vice president of corporate affairs said. “The transit times were two days longer than what we had planned and what our customers expected. Now, two years later, during the peak summer season, with transit variabilities as well as the decline in truck rates, we find it difficult to sustain any significant volume into the area.”
The carrier transported apples, carrots, onions, potatoes and wine to receivers via 64-foot refrigerated railcars.
Railex ships from Delano, CA, and Wallula, WA., and unloads and distributes at a Rotterdam, N.Y., refrigerated warehouse near Schenectady, N.Y.
The company opened the Jacksonville location in June 2014.
Rail companies have a history of basing their rates to a significant degree, on truck rates.
Cold 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.
by Giumarra Companies
LOS ANGELES – As part of its effort to explore alternate transportation methods, Giumarra announces its first load of product delivered by railroad: watermelons.
Giumarra Nogales shipped watermelons grown in Hermosillo, Sonora, Mexico to Jessup, Maryland by 50-foot refrigerated railcar in May. This marks the first time in decades produce grown in Mexico was shipped via train.
By working with Nogales-based Pacific Brokerage, Giumarra coordinated a full shipment of the melons, which arrived at their destination in good condition. One railcar will fit up to three truckloads of product.
“Although our delivery had a few challenges, we feel the overall success of the trip demonstrates that watermelons are sturdy enough to handle rail shipment, and it may be a viable option for us in the future,” says Gil Munguia, division manager of Giumarra Nogales.
Giumarra’s Cesar Pacheco, sales manager of Giumarra Nogales, worked with J.B. Manson of Pacific Brokerage for over three years to seek a railroad company that wanted to be involved with the project. Their efforts found traction with the state of Arizona’s “Arizona/Mexico Commission” and the Port of Tucson.
Through the efforts of Mr. Pacheco and Mr. Manson, Union Pacific and CSX Corporation agreed to participate in a pilot program with Giumarra.
“With the success of our first run, we hope to push skepticism to the side and grab the attention of the railroads for future projects,” says Mr. Pacheco. “We can move one ton of cargo more than 500 miles on a single gallon of diesel using rail. We believe this will help minimize the carbon footprint of long-haul shipping.”
Giumarra plans to ship honeydew melons, winter squash, and cucumbers within the rail pilot program. The next planned shipment is headed for Chicago, Illinois on a 64-foot railcar.