Business is hot for Cold Train
QUINCY - A year after it began, the Cold Train is hot.
Cold Train's refrigerated intermodal train service at the Port of
Quincy increased shipments and added new equipment, company
officials say. Cold Train added 40 more containers to its
inventory, increasing the figure from 70 to 110.
"Business has done very well over the course of a year," said the
Overland Park, Kansas-based company owner Chris Mnichowski.
QUINCY - A year after it began, the Cold Train is hot.
Cold Train's refrigerated intermodal train service at the Port of Quincy increased shipments and added new equipment, company officials say. Cold Train added 40 more containers to its inventory, increasing the figure from 70 to 110.
"Business has done very well over the course of a year," said the Overland Park, Kansas-based company owner Chris Mnichowski. "I would say we have strong support from the customer base in the Columbia Basin and additionally from the Great Lakes area to the Chicago area."
The company hopes to acquire another 70 containers in 2011 and bring them on for the next peak season.
Cold Train was originally started as a division of Rail Logistics. In the past year, the company became a standalone company and is no longer part of Rail Logistics.
Loads coming from both directions, from Quincy and Chicago, are now completely balanced.
"It's a pretty big milestone for us," Mnichowski said. "That's what's critical to adding more equipment, is obtaining balance."
The company added its own truck line this past year to move the rail cars, adding more drivers and tractors.
When Cold Train first started in Quincy, between five to seven jobs were created, with a total impact of about 25 jobs.
The direct and indirect job impacts include positions with the Port of Quincy, vendors and the company's freight drivers.
In all, the figure probably doubles to 50 employees, including the company's Chicago location, said Steve Lawson, vice-president of Cold Train Intermodal.
"It's a pretty significant impact in the community," Lawson added.
Another big piece of news is the start of test runs in the next few months from Quincy to Chicago, to Atlanta and Jacksonville.
Cold Train currently brings loads from the Port of Quincy to the Port of Chicago.
"Locally, within the Pacific Northwest area, we will also be looking to take products in and out of Portland," Mnichowski said. The Portland service occurs as the program continues to grow.
He believes what helped the business was the ability to show companies what they were doing on a consistent basis.
He compared people of the Columbia Basin to those from Missouri, the "Show Me State," because showing the service's benefits was critical.
"When we told them we were able to provide the business, we've done it," Mnichowski said.
Lawson said the customer base is realizing the sustainability of what they've done.
Mnichowski said the company has strong proponents with Burlington-Northern and the Port of Quincy.
"They have been supportive of our program and continue to do so," he commented. "We are thankful for the business partnership we have with them and with the Port of Quincy. We consider Burlington-Northern and the Port of Quincy strategic partners. I think they have shown Quincy and the Columbia Basin they are a strong supporter of business and conversion of truck to rail."
Upcoming changes to the federal Mobile Carrier Safety Act for truck drivers reduce truck driving hours from 11 hours to 10 hours daily.
The hour reduction is expected to result in more business for the Cold Train.
Mnichowski explained the new rules further restrict capacity within the trucking industry, and are expected to benefit the Cold Train model.
After a year of business, the company reached balance, moving freight both directions, Lawson said.
"We haven't shipped an empty container in over a month," he said in part. "Balance paves the way for us to invest in more equipment. The next thing is being able to move shipments into the southeast."
Port of Quincy Commission President Curt Morris said Cold Train furthered the port's goal of being an intermodal facility.
Last April, no containers were being shipped, he explained.
Last week, Morris estimates the company handled 80 loaded lifts.
"It's growing about as fast as we hoped it would grow," Morris said.
The port recently bought a second lift for about $650,000.
"It made it to where we're covered for the redundancy everyone is after and could probably double the size," he commented.
The lift, a reach stacker, can conceivably reach across one track to pick up another container on another track.
The other lift moved straight up and down, which didn't allow it to reach across a track to pick up containers.
"I think they're right on track," Morris said. "It shows that we do have the capacity to serve not only Cold Train but other distribution facilities. Going from zero to 80 a week is pretty good."