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ROADBLOCKS CHANGE THE PACE FOR INTERMODAL LEADERS

intermodal

ROADBLOCKS CHANGE THE PACE FOR INTERMODAL LEADERS

This year presented new challenges and literal roadblocks for the intermodal industry. From the blindsiding pandemic to the fluid political and regulatory climate, intermodal operations were tested without much of a warning. For some companies, the pandemic forced internal process changes, while proactive preparations proved beneficial for others. More importantly, the lessons taken from 2020’s unique disruptions will ultimately reveal which companies learned how to adapt for the future and which ones still have work to do post-pandemic.

Beyond adaption and predictions, collaboration for intermodalism is critical. Companies such as Consolidated Chassis Management continue to keep safe connectivity part of the foundation of its intermodal operations. Without this critical element, the success of any intermodal process is compromised.

“At the core, the entire intermodal system requires that we collaborate and connect,” explains Mike Wilson, CEO of Consolidated Chassis Management. “We witnessed the importance of working together at the onset of the coronavirus, but as the crisis levels off, we can see that organizations are moving back into their silos. This diminishes the impact that seamless, well-connected intermodalism can have on the supply chain.

“In chassis specifically, we look to optimize collaboration through interoperability, but the problem is systemic, and all supply chain stakeholders need to look to balance commercial interests with optimized supply chain fluidity.”

As all parts of the supply chain work to accommodate the “new normal” and future disruptions, Wilson further reiterates the importance of communication and sharing of information, particularly for upcoming peak seasons that require specific assets. This as well requires a proactive approach to gathering accurate and timely data and the specific needs of every part of the operation.

“Dislocation of assets becomes a significant challenge and some parts of the supply chain end up scrambling to source assets, whether it be containers or chassis, to accommodate surges or a new market demand,” Wilson says. “We must minimize inefficiencies and redundancies while maximizing utilization and availability for everyone operating in the supply chain. That means working together to meet the needs of the industry.”

He cites as an example of the timely sharing of data “so that logistics and equipment providers throughout the supply chain can plan accordingly, rearranging inventory and reallocating resources.”

Every part of the process is critical to the next step–whether that be the technology utilized to track or the equipment needed. When one part of the supply chain is delayed, every part of the supply chain feels it. Although it is difficult to predict every possible delay, there are more than enough resources and lessons from the past that all industry players can tap into and prepare with.

This means that last-minute changes must be prepared for before they happen. One example is revised schedules for ocean carriers. Wilson explained at the time when these schedules unexpectedly shifted, chassis and other equipment providers were forced to evaluate the state of their inventory. He cites the prompt notice of the changes for the success of planning initiatives.

“Open communication and sharing of information are great steps,” Wilson says. “Data sharing is critical to meticulously planning, minimizing waste, and streamlining processes. We must minimize inefficiencies and redundancies while maximizing utilization and availability for everyone operating in the supply chain.”

Technology goes together with collaboration and planning measures, especially in the current trading landscape. The important thing to keep in mind when utilizing the solutions offered by technology, however, is that the human element is equally important. Simply put, we need the combination of experienced team members and the appropriate technology to address the nuanced aspects of this business. To that end, identifying the right technology is critical. There is no “one-size-fits-all” technology approach.

“We still need to consistently look at our technological solutions to ensure they do not cause disruptions or generate new manual tasks that are solely performed to support a new function for the technology being adopted,” Wilson advises. “All stakeholders within the supply chain benefit from adopting technology that will integrate easily with other platforms whether it is an internal or external application. We need to pursue technologies that enhance and synergize with existing programs. Not only do we need experts with experience and knowledge to guide customers in a way that technology often can’t, but we also need to allow for ‘exceptions’ and swift, agile unexpected adjustments that cannot be left to technology alone.”

Automation is another factor intermodal players can tap into for successful navigation of fluid regulations and market dynamics. CCM offers intermodal providers a unique and effective solution for capturing unexpected costs while maximizing information available. When it comes to regulations, manual processes can hinder rather than help.

“When looking to navigate regulations and compliance issues, I would turn to automation as often as possible to take the manual process out of it wherever you can,” Wilson says. “CCM has a new M&R (MandR) system for intermodal equipment and one of the features we have built in addresses tax regulations.  Vendors, mechanics and intermodal asset owners do not have to worry about tax rates. We have a process whereby we get automatic updates for each state, push to our system, and it automatically updates. Users never have to worry. Wherever you can apply a strategy like this, do it.”

To put this all together, communication and utilizing the right resources are the common themes found for successfully operating in the intermodal sector, regardless of the market challenges and level of disruption. From post-pandemic environments to the constantly changing regulatory system, strategizing to ensure all parts of the supply chain are considered will make or break operations. In some cases, this includes competitors and partners alike.

Wilson concludes the conversation by adding: “It is important to remember that often, your biggest competitor can also be your biggest collaborator, especially in this industry. Working in collaboration with your competitors as well as other stakeholders is, after all, what intermodalism is all about.”

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Mike Wilson is the chief executive officer of Consolidated Chassis Management.  Prior to joining CCM, he was senior vice president of Business Operations for Hamburg Süd, where he was responsible for all marine and terminal operations, equipment and intermodal, finance and accounting, information technology, human resources and administration. Mr. Wilson has 39 years of experience in international shipping, and his past duties have included senior positions in logistics, operations and customer service, covering a geographical scope that includes North America, Europe, Central America, the Caribbean and North Coast of South America. He received the 2018 Connie Award for his significant contributions to the evolution of containerized shipping and intermodalism. 

Union Pacific Plans New Texas Rail Yard

Spring, TX – The Union Pacific Railroad has said it will move forward with plans for a new rail yard in Robertson County, Texas, “that will strengthen Texas as a national freight transportation hub, create jobs and deliver significant economic stimulus to the region.”

 

The facility, known as a classification yard, will function by sorting rail cars by destination on separate tracks from inbound trains to make multiple outbound trains. 

Outbound trains will be fueled, inspected by a mechanical crew, and then depart to local and regional destinations.

 

Seven different Union Pacific rail lines converge in Southern Robertson County, connecting the markets of Dallas/Fort Worth, Houston, Austin, San Antonio, the Gulf Coast and the rest of East Texas.

 

Texas “is experiencing exponential population growth, resulting in increased demand for building materials and consumer goods,” the company said. “The Union Pacific’s new rail facility will help meet the region’s growing freight transportation needs while taking over-the-road trucks off the highways.

 

One Union Pacific train can carry the same freight as up to 280 trucks, and, according to EPA data, trains are four times more fuel efficient than trucks.

 

10/07/2014

New Orleans Plans Improvements at Intermodal Terminal

New Orleans, LA – The Port of New Orleans awarded a $13.3 million contract to Metairie-based Hardrock Construction for improvements to the Mississippi River Intermodal Terminal.

The 12-acre project is intended to upgrade the terminal, improving the movement of marine and rail cargo at the port while also reducing its carbon footprint.

The current project includes constructing a rail yard with 10,000 linear feet of track and five-acres of heavy-duty paving to be used for the efficient transfer of containers. The scope of the contract includes electrical, drainage and utility work, along with the installation of new water feeds to additional hydrants.

Existing rail lines currently moving cargo will be removed upon completion of the new tracks so intermodal service at the Napoleon Avenue Container Terminal will not be interrupted.

The port received a $16.7 million Transportation Investment Generating Economic Recovery (TIGER) grant for the project in 2012, after state and city politicians expressed their support for it to the US Department of Transportation.

The total cost of the project, with the addition of new terminal equipment and engineering services, is expected to reach $21 million.

Port officials expect the project to be completed by February 2016.

08/25/2014

Union Pacific Christens New Intermodal Terminal

Santa Teresa, NM – Officials from the Union Pacific Railroad and the State of New Mexico were on-hand recently to officially christen the rail carrier’s new $400 million, 300-acre rail facility in Santa Teresa.

The facility sits on a 2,200 tract of land purchased by the UP and is located near the city’s three industrial parks and the Santa Teresa port of entry.

The new terminal includes one of Union Pacific’s largest fueling facilities and the railroad’s largest intermodal freight terminal along the US-Mexico border.

The high-tech intermodal terminal opened April 1 and is expected to process more than 170,000 freight containers this year. It is to be expanded in future years to eventually handle 700,000 containers a year.

Union Pacific generated about $4 billion in intermodal business last year — 20 percent of its total freight sales of $20.7 billion.

The state Legislature’s passage of a bill exempting Union Pacific from paying locomotive fuel tax was a key piece to get Union Pacific to build the facility, officials said. That bill was signed by New Mexico Gov. Susana Martinez in March 2011. Construction began in the summer of that year.

A series of land swaps between the state, the federal government, and the Union Pacific allowed the railroad to acquire the 2,200 acres in Santa Teresa, most of it owned by the Bureau of Land Management, according to the New Mexico Public Regulation Commission.

06/17/2014