UP purchases Railex reefer distribution assets

Omaha, Neb.-based Class I railway Union Pacific has acquired the refrigerated and cold storage distribution assets of Railex LLC in Delano, Calif.; Wallula, Wash.; and Rotterdam, N.Y.    In a move toward vertical integration of its refrigerated cargo services, Union Pacific Railroad (UP) said it has acquired the refrigerated and cold storage distribution assets of Railex LLC in Delano, Calif.; Wallula, Wash.; and Rotterdam, N.Y.
   The Omaha, Neb.-based Class I railway noted the acquisition, financial terms of which were not disclosed, does not include subsidiary Railex Wine Services LLC.
   Railex is a refrigerated rail service and third-party logistics provider. The company plays a key role in UP’s food transportation network, according to the railroad.
   UP food trains directly serve Railex’s Delano and Wallula facilities, transporting fruits, vegetables and other temperature-sensitive cargo across the United States. The railway said Railex will continue managing facilities during the transition and integration of its operations with Union Pacific.
   “The Railex team developed a fantastic business changing how fresh food arrives on America’s tables, offering food shippers fast, reliable door-to-door rail based transportation solutions,” said Brad Thrasher, vice president and general manager of agricultural products at UP.
   “The integration of their highly efficient cross dock facilities and logistics capabilities into Union Pacific’s broader food network allows us to offer our customers increased access to a wider range of capacity and service solutions in a rail-centric cold chain.”