Canadian rail networks prepare for shut down
NewsAs Canada heads towards a nationwide rail strike CN and CPKC have stopped accepting certain cargo types as they prepare their Canadian networks for a full shutdown.
Universal Logistics Holdings, Inc. has entered the rail terminal services market by acquiring the Parsec group of companies.
The Parsec group of companies consists of Parsec LLC, Parsec Intermodal of Canada ULC, and OB Leasing LLC.
Universal Logistics is a holding company whose subsidiaries provide transportation and logistics services throughout the United States and in Mexico, Canada and Colombia. These include contract logistics, trucking and intermodal services. Universal purchased Parsec’s business for a cash price of US$193.6m.
Parsec provides terminal management services to Class I, regional and short line railroads. It has over 2,000 employees and provides services to over 20 rail yards in the US and Canada. Sites include Canadian Pacific Kansas City’s (CPKC) Bensenville and Schiller Park terminals in Chicago, Norfolk Southern’s Columbus, Ohio and Austell, Georgia facilities and Canadian National (CN) terminals in Chicago, Memphis and New Orleans.
“Parsec specialises in time-sensitive, container lift on and lift off services ensuring efficient and reliable operations at some of the most complex rail yards across the country. Among other services, Parsec also provides crane and intermodal equipment repair, drayage, and container and chassis stacking. For the trailing-twelve months ended August 31, 2024, Parsec reported total operating revenues of $230.2m. Parsec will operate within Universal’s contract logistics segment, and the transaction is expected to be immediately accretive,” Universal Logistics said in a statement.
“I am extremely excited to welcome Parsec to the Universal family of companies,” said Universal’s CEO Tim Phillips. “This is an exciting opportunity to build on Parsec’s long-standing customer relationships and further diversify our contract logistics service offering. Partnering with the railroads for over 35 years, Parsec is a go-to service provider offering rail yard terminal solutions. This strategic acquisition further enhances our value-added service offering, and provides Universal a meaningful presence in the rail terminal services space. On an annualized basis, the acquisition of Parsec is expected to boost Universal’s contract logistics segment revenues to over $1 billion.”
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