intermodal development - transportation · on the waterfront: 1955 “malcom mclean understood that...

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Intermodal Development FHWA│ Talking Freight Webinar │June 19, 2013 Norfolk Southern │ Grant Cothran │[email protected] 757.617.1643

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Page 1: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Intermodal Development

FHWA│ Talking Freight Webinar │June 19, 2013

Norfolk Southern │ Grant Cothran │[email protected] │ 757.617.1643

Page 2: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Big Picture: Working Better Together

• Intermodal transportation – combining the flexibility of road with the dependability of rail – provides cargo owners with a more stable and flexible network.

• To meet changing customer demands, Norfolk Southern Intermodal is expanding its intermodal rail markets, route capacity, equipment fleet and workforce. 50.3%

21.8% 9.5% 7.8% 4.3% 2.7% 2.2% 1.2%

Global Supply Chain Operating Costs

Transportation accounts for more than half of global

supply chain operating costs.

Source: Jones Lang LaSalle

Page 3: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

On the Waterfront: 1955

“Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving freight.”

– Marc Levinson, The Box

\’in·tər·’mō·dəl\ adj [1963] also: multimodal Involving two or more modes of freight transportation, such as ship, rail, and truck, without being repacked.

Page 4: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

1. Material Sourcing

2. Manufacturing Plant

3. Manufacturing Warehouse

4. Retail Distribution Center

5. Retail Point of Purchase

Supply Chain: Transportation Modes

Boxcar

Intermodal Container

Truckload

Intermodal Container

Page 5: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Intermodal Year-to-Date: June 8, 2013

U.S. Class 1 railroads combined have moved 5.5 million containers.

1:100,000 originated containers shown

Source: American Association of Railroads

Page 6: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Intermodal rail services increase

supply to the freight network,

delivering greater flexibility and stability

to cargo owners.

Overburdened by market conditions, over-the-road freight networks are unable to meet customer demands.

Transportation Market Forces

Intermodal Transportation

Increasing Government Regulations Proactive

Customer Contact

Adding Engines & Equipment

Training New Employees

Adding Network Nodes

Expanding Route

Capacity Rising Fuel Prices

Evolving Customer

Needs

Aging Tractor Fleets

Driver Shortages

Increasing Freight

Volumes

Contracted Truck Supply

Intermodal Transportation

Increasing Government Regulations Proactive

Customer Contact

Adding Engines & Equipment

Training New Employees

Adding Network Nodes

Expanding Route

Capacity Rising Fuel Prices

Evolving Customer

Needs

Aging Tractor Fleets

Driver Shortages

Increasing Freight

Volumes

Contracted Truck Supply

Page 7: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Emerging Megaregions

Market with at least 1 Intermodal Terminal

NS Intermodal Service

By 2050, 70% of the world’s population will live within urban areas, forming vast “megaregions.”

By 2050, the U.S. population is projected to reach 400 million, growing by more than 80 million people.

Page 8: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Intermodal: Markets Served

Intermodal Network

Haulage Extensions

Intermodal Terminals

On-Dock Access

Interchange Gateways

Harrisburg

Atlanta

Charlotte

Chicago

Columbus

Detroit

Savannah

Cincinnati Inland Virginia

Norfolk

New Orleans

Memphis

Dallas

Huntsville

Jacksonville

Charleston

Georgetown Kansas City St Louis

Louisville

Baltimore

Greensboro

Toledo

Central Illinois

Scranton Cleveland

Pittsburgh

Boston

Albany Buffalo

Central Florida

New York / New Jersey Bethlehem

Philadelphia

Shreveport

Birmingham

Greencastle

Miami

Page 9: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Door to Ramp Tuscaloosa, AL 35401 to McCalla, AL 35111

45 miles

Ramp to Ramp Birmingham Market: McCalla Intermodal Terminal

to Eastern PA Market: Greencastle Intermodal Terminal

752 miles

Ramp to Door Greencastle, PA 17225

to York PA 17408

57 miles

Partnering for Door-to-Door Service

• Norfolk Southern wholesales its intermodal service to channel partners, who provide freight service from any origin address to any destination by combining the advantages of multiple modes of transportation – ships, trains, and trucks.

Page 10: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

2013 Trend #1: “Nearshoring to Mexico

gains momentum.”

Page 11: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Case Study: Charlotte, NC

Uptown Terminal (until Dec 2013)

Interstate Access

Developable Land

Market Demand

200 acres at CLT

485 within ¼ mile

NS Intermodal Mainline Track

Page 12: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

CLT: Intermodal Terminal Operations Highway Access

Trailer Parking

Market Demand Railroad Mainline

LEED-Designed Ops Buildings

AGS Gates

Equipment Pool & Repair Pad Tracks and

Diesel Lift Cranes

Page 13: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

The Crescent Corridor in NC

Annually in North Carolina: • 392,000 fewer long-haul trucks on highways • $21 million less in congestion costs for motorists • $81 million in logistics savings for businesses • $4.2 million less in highway maintenance costs • 69,000 fewer tons of CO2 released By 2030 in North Carolina: • 7,000 jobs created • $10.5 billion in investment

Page 14: Intermodal Development - Transportation · On the Waterfront: 1955 “Malcom McLean understood that transport companies’ true business was not operating ships or trucks, but moving

Intermodal Development

FHWA│ Talking Freight Webinar │June 19, 2013

Norfolk Southern │ Grant Cothran │[email protected] │ 757.617.1643