Rail Logistics, which owns and operates the "Cold Train" express refrigerated intermodal service on the BNSF Railway network between the Pacific Northwest and Chicago, has been acquired by Federated Capital Corp., a private investment, leasing and financial management firm based in Farmington Hills, Mich.
Federated Capitol also owns the Great Lakes Central Railroad, a shortline freight railroad with 400 miles of track in Michigan, and Federated Railcar, Inc., a leassor of refurbished passenger cars.
The new subsidiary will be called Federated Cold Train, LLC, and will do business as "Cold Train." The company will maintain its current management and staff, including President and Chief Executive Officer Steve Lawson, and its current headquarters in Overland Park, Kan., the companies announced.
Privately held Rail Logistics has operated the "Cold Train" and associated truck deliveries for four years between Quincy, Wash., and Chicago. Service is six times per week. Last year, the company added a similar refrigerated container service from Portland, Ore. In addition to hauling fresh produce and frozen foods from the West Coast, Rail Logistics also is able to fill some of its equipment on the return leg with perishable foods and some dry goods from the Midwest and East Coast.
The company ships about 750 temperature-controlled containers per month from Washington to 20 states and Toronto using a fleet of more than 400 53-foot containers, and it expects volume to increase this year.
As March's magazine feature "Refrigerated rail heats up
" (pp. 34-42) shows, refrigerated, door-to-door rail services are growing in response to shipper demand and trucking constraints.
Federated Capital will enable the "Cold Train" expand faster than it could on its own, it said.
The company said it plans to add a minimum of 1,000 containers to the "Cold Train" fleet over the next five years. Railex had previously planned to invest in an additional 100 containers this year.
"We are excited about becoming part of the Federated group of companies, and with Federated's resources behind 'Cold Train,' we will have the capital necessary to keep pace with the continued increasing demand as we move toward our goal of becoming the largest asset-based temperature controlled domestic pure intermodal carrier," Lawson said.