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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 United States.

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 Management.

"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. Esposito said.

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 year."

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 Memphis."

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."