Since April 30th, 2013, there have been 3 announcements regarding the expansion and start up of refrigerated unit train services.
1) April 30, 2013 Railex will build a new southeast distribution center in Florida, the Florida Times Union reports and will offer service between an existing warehouse in Rotterdam, NY and Jacksonville, FL. on the CSX. This expansion complements the existing Railex scheduled weekly service from Washington and California to Rotterdam.
2) August 14, 2013 The Tampa Port Authority announced the development of an on dock trans load and rail served facility connecting the port to the Midwest with Green Express. The new Green Express service will be operated by CSX Transportation, who will provide 2 dedicated express trains per week connecting Tampa and the Kingsbury, IN./Chicago. The Green Express train will haul both refrigerated and dry products.
3) August 29, 2013 McKay Transcold, LLC announced the launch of the TransCold Express, a dedicated refrigerated unit train on the BNSF Railway offering bi-directional service between the CA. Central Valley and the Midwest. Service is anticipated to start in the first quarter of 2014.
Why so much activity in the refrigerated box car/trans load space:
a) Capacity: One 72′ reefer box car converts to 3.5 to 4 truckloads
b) Cost: Box car economics, cost savings vs. over the road.
c) Service: Scheduled predictable transit time
d) Value add: Forward Warehousing, re-packing, re-labeling, Trans load DC’s acting as mixing centers.
e) Sustainability: Box car yields a lower carbon footprint than over the road.
f) Risk Management: Another option for shippers and receivers to combat driver shortages and driver productivity losses due to unfavorable driver demographics, driver turnover, CSA regulations, HOS rules, etc.
Announcement: Like the railroads, this blog will now be published weekly.
Would like to hear your comments
Joe Lombardo (NGNF) nice guy, no freight