22 DC VELOCITY NOVEMBER 2013 www.dcvelocity.com
newsworthy
After nearly three years of effort and a fair amount of frustration, three intermodal veterans will come to market in
early spring with a rail intermodal service to support the
long-haul movement of fresh produce.
Dubbed “Tiger Cool Express LLC,” the company will
launch with funding from Tiger Infrastructure Partners, a
middle-market private equity concern. Tom Finkbiner, a
long-time intermodal executive, will serve as CEO.
Theodore Prince, a veteran carrier executive and consultant, will be COO. Tom Shurstad, who was president of
intermodal service provider Pacer International among
other high-level posts, will be commercial officer. The company was finalizing negotiations with rail partners as DC
VELOCITY went to press.
In late 2010, the three created a transport initiative code-named “New Cool Venture” that would use a mix of intermodal containers and boxcars to move perishable produce,
depending on product type. Higher-density produce items
like carrots and grapefruit with generally longer shelf lives
would move in boxcars, which have 7,700 cubic feet of
capacity and carry 186,000 pounds of cargo, roughly equal
to four truckload trailers. Lighter-density items with shorter shelf lives, like lettuce and grapes, would move in faster,
double-stack containers.
The program will follow the growing seasons in various
geographies. For example, when the season ends in
California, the service would support agricultural regions
in Florida, Mexico, and elsewhere. In separate interviews in
January, Finkbiner and Prince said the service plays to
intermodal’s strengths, namely supporting a seasonal business where shipments move over long-haul irregular routes.
The venture would offer linehaul rates that are as much as
20 percent cheaper than truck transport and with lower fuel
surcharges than truckers would impose.
In the January interviews, Prince and Finkbiner said the
service has the potential to convert tens of thousands of
truckloads of produce—virtually all of which are handled
by small independent carriers—to the rails. Prince said at
the time that there are 30,000 truck trailers of perishables
moving off the West Coast and traveling up to 2,000 miles,
longer distances ideally suited for intermodal transport.
The executives said the program would give shippers and
retailers a viable alternative to over-the-road transport,
which has a near-monopoly over the long-haul produce
market; intermodal, by contrast, has an estimated 2 percent
share, according to Finkbiner.
In an Oct. 23 statement, Finkbiner said “there has been
increased interest—but limited alternatives—in transconti-
nental intermodal transport of fresh produce that is quick,
safe, and environmentally sustainable.”
Getting the program to this point has not been easy. The
venture lacked the funding needed to support an extensive
infrastructure and procure specialized equipment. Another
obstacle was the reluctance of rail intermodal executives
comfortable operating in the traditional dry van space to
expand into the more operationally risky perishables cate-
gory. A third was overcoming the concerns of mega-retail-
ers that have snatched away buying power for produce from
traditional wholesalers; Finkbiner said the retailers were
worried about service consistency and wanted to see the
infrastructure in place before making any large volume
commitments.
As a result, the executives have spent much of the past
two years in conversation mode. But as Prince noted, “the
big change is that we are funded, are hiring people [and]
obtaining equipment, and have a start date. It’s now real.” ;
Intermodal service for fresh produce to get rolling this spring
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newsmakers
