A Michigan-based company has acquired the operator of a refrigerated intermodal rail service, known as ColdTrain, and plans to at least triple Rail Logistics’ container fleet over the next five years.
Federated Railways’ acquisition of Rail Logistics, which it will rebrand Federated Cold Train, is the latest sign that investors are seeing growing potential in the shipment of refrigerated goods via container and boxcar. CEO and President Steve Lawson, along with the rest of the management team and staff, will remain unchanged, and Federated Cold Train will stay at its headquarters in Overland Park, Kan. Federated Railways is an affiliate of Federated Capital Corporation, a private equity company involved in various industries, including transportation, technology services and real estate.
“The addition of Cold Train to our portfolio of service and asset-based companies will allow Federated Capital Corporation to add the fast growing ‘domestic intermodal’ sector to its freight rail transportation portfolio,” FCC President Louis Ferris said in a news release. “This is important as many shippers and receivers are looking for door-to-door intermodal logistics solutions that decrease cost, increase efficiency and reduce the carbon footprint.”
Lawson said the acquisition will give Federated Cold Train the resources needed to achieve the company’s “goal of becoming the largest asset-based temperature-controlled domestic pure intermodal carrier.” The company plans to add at least 1,000 containers, bringing its fleet to 1,400 containers.
Federated Cold Train, which introduced domestic reefer containers for intermodal use in 2010 from Quincy, Wash., to Chicago, last fall added service between Portland, Ore., and Chicago and to 17 intermodal points in the Northeast, mid-Atlantic and Southeast.