Posts Tagged “BNSF Railway”
Nearly three months ago Haulproduce.com reported that refrigerated rail service McKay TransCold LLC of Eden, MN had closed its doors. Now it has been learned TransCold Logistics LLC, parent company McKay TransCold LLC has filed for Chapter 7 bankruptcy liquidation with debts of about $7 million.
The refrigerated rail service was launched in May 2014.
McKay TransCold worked with BNSF Railway to operate the TransCold Logistics hub-to-hub, dedicated refrigerated boxcar train between Selma, CA and Wilmington, IL. The operation began with two trains pulling 50 refrigerated boxcars in each direction, making the trip in four days.
It offered cold storage in California and as of September 2014 was still planning to add cold storage services in Illinois.
The company posted $2.47 million in gross revenue for 2012, according to court documents. In 2013 gross revenue dropped to about $533,000. In 2014 they climbed back to $5.23 million.
The company has a total of secured claims of $865,533, all owed to Marquette Transportation Finance, Minneapolis. Its total unsecured debt is about $5.9 million.
The top five unsecured debts are:
**** BNSF Railway Co., Chicago, $3.37 million;
**** KLLM Transport Services LLC, Birmingham, Ala., $735,486;
**** National Carriers Inc., Kansas City, Mo., $519,918;
**** Werner Enterprises Inc., Chicago, $384,830;
****NLCS-Wilmington, Ill., $235,945.
The first produce train service to fold in 2014 was 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.