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Cool Cargoes October 2015

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COOL CARGOES 18 THE JOURNAL OF COMMERCE OCTOBER 2015 Q&A CC: Lineage Logistics is in the midst of aggressive expansion. How is the com- pany responding to new marketplace demands, and how is this influencing the overall growth strategy? LOBO: Our primary concern is meeting the needs of current and potential customers. We base our investment decisions to acquire companies and build new facilities on how they will help us serve customers. Right now, customers are asking us to find new ways to optimize storage and transportation costs, better manage energy use and reduce environmental impact. The bottom line is that we aim to be the single source for our customers' logistics services. Another important part of our expan- sion efforts focuses on ports. Our cold storage facilities adjacent to the Port of Long Beach and Port of Charleston are under construction. When completed, Lin- eage will have strategic locations at five of the top 10 port facilities in the country. CC: What capabilities does Lineage Logistics offer within the "four walls" of its cold storage facilities to provide customers with premium service? For example, multiple temperature zones, energy efficiency, automation, etc.? LOBO: One of our fastest-growing capa- bilities is High Pressure Processing, which is a post-packaging, non-thermal pas- teurization method that kills potentially harmful micro-organisms and extends product shelf life. It drastically reduces overall microbiological contaminants, such as Listeria, E. coli, Salmonella, lactic acid bacteria, yeast and mold, by using elevated hydrostatic pressures of up to 87,000 psi. Lineage expects imple - mentation of new HPP machines to be completed in Allentown, Pennsylvania, by the end of 2015 and in Mira Loma, Cali- fornia, during 2016. CC: Food handling is becoming more regulated under the U.S. Food and Drug Administration's Food Safety Modern- ization Act. How is Lineage Logistics complying with the new rules? How important is certification under the Safe Quality Food Initiative? LOBO: We need to be committed to ensur- ing that effective food safety controls are in place, so recalls and other food safety issues do not tarnish our customers' brands and our brand. So we're working hard to have all of our facilities SQFI- certified. We have 12 locations certified, expect at least seven more in the next year and plan to have all of our facilities certi- fied by 2020. In addition to SQFI cer tification, Lineage is rev iew ing new tech nolo - gies and best practices to meet specific FSMA regulations. These technologies will enable us to better manage risk through product tracking and tracing in the extended supply chain, as well as address the requirements for sharing and maintaining regulatory, audit and insur- ance documentation. LINEAGE LOGISTICS "WHEN COMPLETED, LINEAGE WILL HAVE STRATEGIC LOCATIONS AT FIVE OF THE TOP 10 PORT FACILITIES IN THE COUNTRY." Lineage Logistics is the second-largest warehousing and logistics provider in the U.S., with 112 facilities and more than 600 million cubic feet of space. Diogo Lobo, vice president of international logistics, recently shared his perspective on where the company and cold chain logistics industry is heading and how Lineage, which was formed in April 2012 by Bay Grove Capital, is addressing the needs of its food shipper clients. By Lara L. Sowinski Diogo Lobo

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