DOWNERS GROVE, Ill. – Roadrunner Transportation Systems has sold its intermodal business to Universal Logistics Holdings for $51 million in cash.
A soft intermodal market, effects of Hurricane Dorian, and a malware attack were reasons for the sale, Michael Gettle, Roadrunner’s chief operating officer, told an investors’ conference call.
Roadrunner has provided drayage services between rail ramps, ocean ports, and shipping docks through 23 U. S. terminals. It’s also a less-than-truckload carrier and third-party logistics company.
On 2019 third quarter revenues of $459.1 million, Roadrunner’s net loss was $97.8 million, officials say, with the malware attack and the recent General Motors strike affecting margin by $6 million.
This is unfortunate, but hopefully the new owner can make the business work.
We badly need a robust LCL/LTL system. If we don’t have that, then the only traffic on the railroads will devolve to unit trains hauling specified commodities and the like.
The above comments are genetic in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Move along, this is not the disclaimer you were looking for.
Those revenues are nothing to sniff at. Clearly there is customer interest in such a service.