Refrigerated unit train logistics costs reached an all-time high in 2005, according to the 17th Annual State of Logistics Report, a result of soaring fuel costs, strained capacity, driver shortages and the costs of meeting security requirements. The survey was released by the Council of Supply Chain Management Professionals (CSCMP) and I was fortunate enough to see Rosalyn Wilson present the report, Embracing Security as a Core Business Function, for the New York City chapter of CSCMP last month. Wilson, a consultant for Reality Based IT Services, produced the report and worked with the late Bob Delaney, the original author of the report, since 1994.
Wilson painted a bleak picture of the U.S. LTL cold train logistics refrigerated transportation landscape, pointing out that logistics costs rose from 8.8 percent to 9.5 percent of the nominal gross domestic product.
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Railex, LLC refrigerated freight, transports produce and other products by rail from coast to coast shipping. This new facility and accompanying track will haul produce from California to the Northwest and East Coast Railex broke ground in March of this year on their 200,000 square foot location - which will create 300 new Jobs and according to the KEDC, represents a $32 million capital investment.
Railex refrigerated transportation is boasting that this new line will enable the company to "ship 400 truckloads equivalent, weekly, coast to coast in just five days." Not only is Railex refrigerated rail transportation boosting Kern's economy with the building of this new facility and the creation of new Jobs, but they are enabling a major boost in our agricultural market by eliminating any loss of funds due to spoilage caused by a lengthy transport.
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Railex refrigerated unit train has succeeded in landing just about every major grocer as a customer. Golub, operator of the Price Chopper supermarket chain, uses it, as does Hannaford Bros. Co., Wal-Mart and Sysco Foods. Other customers are Wegmans, a Rochester-based supermarket chain, and Stop & Shop Supermarkets, based in the Boston suburb of Quincy, Mass.A&P, Giant Foods, C&S Wholesale Grocers Inc
Finding regular ltl cold train cargo for the return trip could make the service even more competitive, said Hans, the D. Brickman vice president.
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According to Railex's refrigerated rail transportation web site, railexusa.com, the unit train, which is moved across the country by the Union Pacific Railroad and CSX Transportation, will always remain intact, which will avoid shifting of products and potential time delays. The train, which is loaded in 36 hours, departs Washington state on Thursday and arrives in New York on Tuesday, where it is unloaded in 24 hours and sent back to Wallula.Since there are 110 cars in the system, while the first train is on its way back, another train will be departing Washington to start the process all over again.
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