Earlier this week, Novi, Mich.-based Lineage Logistics, the largest global temperature-controlled industrial REIT and logistics services provider, announced it acquired Reisterstown, Md.-based Cryo-Trans, the leading provider of refrigerated and insulated railcars and rail management solutions, in what it called an “industry first partnership” focused on establishing a comprehensive and seamlessly integrated supply chain solution for food and beverage shippers.
Lineage did not disclose financial terms of the acquisition, but a Bloomberg report noted that the transaction values Cryo-Trans at more than $500 million.
Lineage said that Cryo-Trans manages more than 40,000 annual rail shipments and owns more than 2,200 refrigerated and insulated railcars, which comprise the largest private fleet of its kind in North America. And going back to when Cryo-Trans designed its first temperature-controlled railcar in 1985, it has collaborated with customers to develop sustainable and cost-efficient long-haul rail transportation solutions, as well as leverage its proprietary rail management programs to become a trusted rail management partner, and provide real-time information and visibility used to track, trace, and expedite railcar shipments throughout North America.
“Welcoming the dynamic team from Cryo-Trans further diversifies Lineage’s comprehensive suite of multi-modal services and creates a unique, under-one-roof solution for our customers in which warehousing and transportation are seamlessly integrated,” said Greg Lehmkuhl, Lineage’s President & CEO, in a statement. “Combining our leading facility footprint, a railcar network and data-driven transportation management systems enables us to further optimize freight, create greater efficiencies, generate unprecedented supply chain visibility and provide a new ease of doing business for our customers.”
A Lineage Logistics spokesman told LM that this move into rail is part of the company’s effort to be a one-stop-shop for its customers and to eliminate waste within the supply chain.
“We are constantly working to provide added value to customers and given roughly 90% of Cryo-Trans customers are part of Lineage’s network, we saw great alignment,” he said.
As for the benefits this acquisition will provide for Lineage customers, the spokesman explained that by replacing some trucking capacity with rail, customers may reduce transport costs by 15% to 40%, depending on the shipment size and distance traveled. And he also pointed out that Cryo-Trans’s proprietary rail management programs will provide real-time information and visibility to track, trace and expedite railcar shipments anywhere in North America.
“This industry-first partnership combines Lineage’s leading facility footprint, a railcar network and data-driven transportation management systems enables us to further optimize freight, create greater efficiencies, generate unprecedented supply chain visibility and provide a new ease of doing business for our customers,” the spokesman said.
Herman Haksteen, Cryo-Trans CEO, said in a statement that Cryo-Trans is honored to bring its rail experience and premium railcars to Lineage.
“Together we will continue to execute on the Cryo-Trans mission of ‘protecting today’s perishables for tomorrow,’ and we are excited to join Lineage in living their purpose to transform the food supply chain by introducing a new, one-of-a-kind end-to-end supply chain solution to the industry,” he said.
With the largest global network of temperature-controlled warehouses, Lineage has more than 330 strategically located facilities comprised of almost 2 billion cubic feet of capacity across 15 countries in North America, Europe, Asia, Australia, New Zealand, and South America. And it provides a wide range of transportation services, including less-than-truckload (LTL) consolidation, managed transportation, on-demand transport, port logistics, customs brokerage, import/export, drayage, last-mile delivery and related value-added services.
About the Author
Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman