Railex eyes expansion into southeastern and central United States
by Joel Gebet | March 31, 2010
Railex LLC is looking to expand service into the southeastern and central
Paul Esposito, Railex's Northeast division and corporate logistics vice
president, made the announcement March 26 during an Internet-based
presentation by the firm, which is a division of Riverhead, NY-based ADS
"We have plans to expand Railex into the Southeast and into the Central
portion of the United States, and ultimately into Texas and to export," Mr.
Railex currently operates four weekly refrigerated, temperature-controlled
unit trains that depart from its West Coast terminals and terminate on the
East Coast at its terminal in Schenectady, NY. Two of the trains depart from
its Wallula, WA, freight forward distribution terminal, and the remaining two
depart from its freight forward distribution terminal in Delano, CA.
Railex offers guaranteed five-day service from both the Delano and Wallula
terminals to Schenectady, which is located just west of Albany, NY.
Although Railex has "struggled through the economy like other industries
have," Mr. Esposito said that the firm still has "some very, very aggressive
growth programs. It is our hope and our goal to at least be into the
southeastern section of the United States by either late this year or early next
While he did not mention specific cities, Mr. Esposito said that Railex was
looking at "getting into southern Georgia or northern Florida."
He said that Railex is also "currently in negotiations and looking at services
into the Central portion of the United States, either in Chicago, St. Louis or
In the Southeast, Mr. Esposito said that the firm is "looking at areas for the
first time that are in preset locations for trying to design rail infrastructure."
He added that the time it would take to get a new terminal up and running
would "depend on how much work needs to be done" at the site that is
chosen "and how quickly we can move in."
Railex has positioned itself "as a land bridge to fill any need for any customer
that needs to move refrigerated product," he noted. "We assist our customers
in shaving time off exported goods that need to get to Europe, Dubai, South
Africa and South America, and have been able to shave 13 to 19 days off of
their transit time."
The Railex executive also said that it has started marketing itself to
"industries other than produce," he added. "The produce industry alone,
because of our background, has assisted us in having four trains sustainable
out of our areas. Now is the time to expand that distribution model into
manufactured goods, into the seafood industry, the wine and beverage
industry, and any other refrigerated commodity."