Posts Tagged “CSX”
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.
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.
Port Everglades has begun construction of an intermodal rail facility , which handles almost half of the fresh produce entering Florida by ship. Crews from Jacksonville-based Florida East Coast Railway are installing tracks and crane pads for the intermodal container transfer facility at the Fort Lauderdale, Fla., port.
The $73 million, 43-acre rail operation is scheduled to open this summer and will be used to transfer domestic and international shipping containers between ship and rail. The operation, at the Southport container cargo area, replaces a 12-acre intermodal yard that is several miles from the port. The road leading to the facility is being paved and workers are constructing buildings.
The facility will allow the railroad to assemble 9,000-foot unit trains without blocking city streets. When finished, cargo can move through the port to and from Atlanta and Charlotte, N.C., in two days and to Nashville, TN, and Memphis, in three days.
The railroad’s connections to CSX and Norfolk Southern railroads should also allow rail service to 70 percent of the U.S. population within four days. At this point it isn’t known how much produce will go through the port.
During fiscal year 2013, the port handled 928,000 TEU (20-foot equivalent units). Of those, refrigerated cargos accounted for 134,597 TEUS or 15 percent of volume, with imports constituting 75 percent of refrigerated container movement.