Rail Intermodal Growth

[greyhounds]

This is from the USDA "Movement Report" of July 10, 2008 - Figures are compareable season to date volumes for the growing season for each commodity.  Central California origins of Fresh Fruits and Vegetables, TOFC loadings...

Lettuce (Iceberg, Romaine and "Other)                                                                       Last year=0 loads,  This year=1,538 loads

Oranges                                                                                                                Last year=2,493 loads, This year=4,142 loads

Carrots                                                                                                                 Last year=1,158 loads, This year=1,747 loads

Broccoli                                                                                                                 Last year=0 loads,  This year=480 loads

This long haul business with a huge growth potential.  Got to like it!

For decades these movements have been dominated by independent truckers (due, in large part, to past government economic regulation of the railroads but not the truckers.

A block to the growth is that the railroads know how to market to big truckers like JB Hunt, but no one has figured out how to sell the independents on using rail.  Since the truckers own the reefer trailers needed to move the lettuce, someone needs to figure a way to: 1) get the independent truckers to use rail, or 2) acquire refrigerated intermodal equipment.