Railroad Transportation Marketing Logistics Rail Characteristics • Good fuel economy. • Mainly bulk, low-value commodities (coal, stone, lumber), except for finished automobiles. • Poor at public relations – critical need for new managers. • Becoming more competitive with scheduled intermodal service. --J. B. Hunt, UPS. --Steamship land bridges. Rail Characteristics -2 • Average Length of Haul 720 miles (1995) • Average train speed 22 miles per hour (35 miles per hour for priority trains). • Mainly deals in carload freight. Prefer batch processing of cars. Challenges • Railroads prefer unit trains, because switching costs are reduced. • Bulk commodities are diminishing due to reduced manufacturing base. • Railroads are beginning to expand intermodal. Railroad Rolling Stock. Railroad Rolling Stock. Hopper Car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Coal, Stone Hopper Car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Coal, Stone Hopper Car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Boxcar RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Freight similar to truck vans --manufactured goods --auto parts. Boxcar RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Gondola car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Steel, Scrap metal Gondola car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Auto racks RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Automobiles Auto racks RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Tank Car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Chemicals Tank Car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Chemicals Tank Car RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Trailer-onFlatcar (TOFC) RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Trailer-onFlatcar (TOFC) Intermodal RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Covered hopper. RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Agricultural products, Plastic pellets Covered hopper. RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Log car. RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Refrigerator car (reefer) RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Perishable foodstuffs Refrigerator car (reefer) RailroadForums.com Railroad Photo Gallery Railroad Rolling Stock. Flatcar Railroad Picture Archives http://www.rrpicturearchives.net/default.aspx Railroad Rolling Stock. Heavy equipment, large loads. Flatcar Railroad Picture Archives http://www.rrpicturearchives.net/default.aspx Intermodal Transportation • Use of two or more modes in transportation. • Mainly dependent upon containerized shipments. Railroad Intermodal • Initially, railroad shippers were located in urban areas and were served by railroads who had been in the city for years. Railroad Intermodal • Initially, railroad shippers were located in urban areas and were served by railroads who had been in the city for years. • When industry in urban areas closed, railroads often could not gain access to new markets in suburban areas. Suburban Suburban Company Company Suburban Suburban Company Company Suburban Suburban Company Company Suburban Suburban Company Company Suburban Suburban Company Company From: http://freight.railfan.ca/wc/wc36332.jpg Trailer on Flatcar (TOFC) From: http://freight.railfan.ca/wc/wc36332.jpg From: http://freight.railfan.ca/wc/wc36170.jpg Container on Flatcar (COFC) From: http://freight.railfan.ca/wc/wc36170.jpg Double-stack intermodal train. From: http://www.finnmoller.dk/rail-usa/up-ne/up4360-4394-9740-9503-chapell-01.htm From Triple Crown Services web site http://www.triplecrownsvc.com/Bimodal.html From Triple Crown Services web site http://www.triplecrownsvc.com/Bimodal.html From Triple Crown Services web site http://www.triplecrownsvc.com/Bimodal.html From Triple Crown Services web site http://www.triplecrownsvc.com/Bimodal.html Malcolm McLean • “…arguably one of the greatest contributors to the growth of the world economy in the 20th century. In an editorial on his death, the Baltimore Sun stated that "he ranks next to Robert Fulton as the greatest revolutionary in the history of maritime trade." Forbes Magazine called him "one of the few men who changed the world.” --United States Commissioner of Customs, Robert C. Bonner before the Center for Strategic and International Studies, Washington, D.C., January 17, 2002. From: International Organization for Standardization website http://www.iso.ch/iso/en/commcentre/news/malcolmmclean.html Most International Shipping Involves Use of Containers Most International Shipping Involves Use of Containers Most International Shipping Involves Use of Containers Most International Shipping Involves Use of Containers Most International Shipping Involves Use of Containers • Standard container sizes: – – – – 8 x 8 x 10 feet. 20 feet. 30 feet. 40 feet. Most International Shipping Involves Use of Containers • Advantages – Protection reduces loss, damage. – Standardization helps automation reduce labor costs. – Easily stored, transported – Can serve as temporary storage facilities • Disadvantages – Suitable ports not always available. – Capitalization for containers, handling and transport equipment. Rail Land Bridge Containers transloaded and transported by rail. Placed again on Container ship Container ship Arrives on coast