BY MARK B. SOLOMON, SENIOR EDITOR
MOTOR FREIGHT
IN AN EPISODE OF THE TV SERIES “MAD MEN,” A
chronicle of the 1960s New York advertising world through
the eyes of a fictitious agency, the daughter of one of the
partners pleads with him to invest in a wondrous idea
called “refrigerated transportation.” Imagine a world, she
tells him in early 1968, where fresh and frozen foods can be
transported door to door by trucks over thousands of miles
without spoiling.
If ever in this business there were a case of art imitating
life, this is it. With the advent of superior refrigeration systems and more powerful and efficient diesel engines, long-haul refrigerated, or reefer, trucking took off in the early
1970s. It created new choices for consumers, new markets
for shippers, and a new industry—and virtual monopoly—
for carriers. It has been that way for nearly a half century.
But the last few years have shown that railroads are more
than willing to jump into the truckers’ traditional sandbox.
The rails, knowing truck shippers are concerned about volatile fuel costs, increased regulatory pressure, and capacity
availability, among other things, have aggressively pushed
into domestic intermodal services; this has resulted in the
conversion of millions of trailers from the highways to the
tracks. In the past year or so, rails have shortened their
intermodal lengths of haul, encroaching even further into
what has been truckers’ sovereign territory.
Now, rails are eyeing a bigger slice of transport’s cold
chain, a business they’ve been involved in for years, albeit
in a modest way. By using intermodal for most of the total
move, operators are looking to underprice end-to-end
truck transport by 10 to 15 percent on produce shipments
moving from farm to market. How well the rails and their
partners execute could, over time, reshape a market still
controlled by truck; by some estimates, only 2 percent of
U.S. long-haul produce traffic moves via intermodal.
Sometime in May, a service will launch that its backers said will put a new spin on the reefer transport tale.
Dubbed “TransCold Express,” the service calls for BNSF
Railway to operate dedicated weekly trains linking specially designed “food parks” in Wilmington, Ill., about 60
miles southwest of Chicago, with Selma, Calif., a town 20
miles south of Fresno that’s known as the world’s “raisin
capital.” Heading west, a BNSF train will pull refrigerated
and frozen food products such as meats and cheeses in 50
72-foot specialized boxcars, each one capable of holding
the equivalent of four trailerloads of palletized cargo.
Coming east, another BNSF train of identical size will carry
produce shipments from California’s Central Valley to the
Midwest. Each train will initially operate on Wednesday
and take four days to traverse the 2,220 miles between
hubs.
Will a rail-truck hybrid model challenge truckers’ dominance?
A new pairing for
refrigerated transport
transportationreport
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