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SEPTEMBER 2005

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COVER STORY:
INFRASTRUCTURE REPORT 2005



Intermodal Central to Movement's Future

    Where's the growth? One statistic from the Association of American Railroads tells all: In June 2005, freight carloads rose 0.1 percent or by 2,245 carloads, while intermodal traffic rose by 4 percent or 42,134 trailers and containers — for a grand total of more than 1.1 million intermodal units for the month and 5.67 million intermodal units for the first six months of the year, a 6.2 percent rise over the same period in 2004.
      Users of the West Coast ports can certainly attest to the volume increase, and the laying down of double track between the West Coast and Chicago by Union Pacific and BNSF has been proceeding apace. Union Pacific is investing $1.3 billion in track improvements, part of a $2-billion physical plant budget. In addition, the company plans to acquire 315 new locomotives and over 4,000 railcars through short or long-term leases. In late July, The Wall Street Journal reported that CSX would soon be announcing new track and other capital projects.
      The demand crush prompted Surface Transportation Board Chairman Roger Nober in June to ask the nation's seven largest railroads to report within 30 days on their plans to meet demand during the "fall peak" this year. A major part of the information he sought was not only operational steps, but capital plans for increasing capacity and improving infrastructure.
      One small step was taken last fall when Union Pacific and CN implemented a new protocol to smooth out handoffs of freight traveling from one railroad's hands to the other's at six key exchange points in Superior, Wis.; Chicago; Salem, Ill.; Memphis, Tenn.; Baton Rouge, La. and, via Burlington Northern Santa Fe, Vancouver, B.C.
      New truck driver hours regulations in 2004 have caused companies to re-think how they manage their short- and long-haul loads. There is also a trend toward better coordination with shortline railroad partners, so that the majors can better concentrate on long-haul.
     
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