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March 2005 |
In The News | ||
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In This Issue In the News Intermodal Challenges/Opportunity CSX Fights DC Hazmat Ban Logistics Challenges Continue BNSF to Build LA Facility
Contact Us: RailForce, Inc.
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Current news stories follow the railroad industry as it
balances record breaking demand and the opportunity for strong growth with
the challenges of meeting these demands and the potential for regulatory
changes as hazardous materials transportation and safety issues gain
national attention.
Experts are predicting continued growth and strong demand for rail transportation, especially intermodal and energy transportation. The media has called the economic climate "the new gold rush" as the Class I railroads are investing in new employees, lines and equipment as quickly as they can be hired, built and produced. UP, focusing on improved network efficiency and velocity, is expecting volume growths of 1% to 2%. BNSF is seeking to shore up their share of the intermodal traffic through an agreement to build a new facility in partnership with the Port of Los Angeles Harbor Commisioners. With capacity tight and fuel prices creating
fluctuations in pricing, shippers have faced challenges in managing
logistics and budgeting. Analysts expect these challenges to continue.
Increasing prices, and according to some, decreasing service are enough of
a concern to some small markets that legislation may be introduced that
would make it easier for customers to challenge rail rates under antitrust
laws. Potential regulatory actions may also stem from safety concerns and
fears of terrorist attacks against hazmat carriers. CSX has challenged the
legality of a Washington DC ban against the transport of certain materials
within city limits, a battle which is certain to set precedent for hazmat
transportation policy in other areas. Railroads and related industries
continue to balance great potential growth and industry defining
challenges. |
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Intermodal Demand Creates Challenges and Opportunity | ||
| Intermodal rail volumes are expected to remain strong through out 2005. Recent surges in intermodal shipping are driving the successes and failures of the nation's Class I railroads. A recent USNews.com article takes an in depth look at these issues, focusing on the different strategies and positions of BNSF and UP. More.. | |||
| CSX Fights Washington DC Hazmat Ban | |||
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CSX Corp. sued the District of Columbia, challenging
the city's new law banning hazardous shipments within two miles of the
U.S. Capitol. In a U.S. District Court filing, CSX asked that the law be
declared unconstitutional on grounds that it impedes interstate commerce.
The law is meant to protect the city against a terrorist attack. But CSX
said in the filing that as a 'common carrier' it is required by federal
law to transport the banned materials. To comply with the common carrier
law and to attempt to comply with the Washington, D.C. ordinance would not
only impose an unreasonable burden on interstate commerce, it would
increase risk to other communities by dramatically adding to the miles and
the hours these materials spend in other communities.
More... |
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| Shippers Face Logistics Obstacles | |||
| Capacity
shortages, fluctuating fuel costs, and continuing strong demand are
expected to challenge chippers throughout 2005. Purchasing Magazine Online
summarized the options for shippers in a January 2005 article, suggesting
that the trend toward increased rates in all transportation modes will
continue to increase. More... |
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BNSF To Build LA Intermodal
Facility BNSF Railway
Company has announced that it was selected by the Port of Los Angeles
Board of Harbor Commissioners to begin discussions on a new intermodal
container transfer facility about five miles north of the Port.
More... |
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| We Want To Hear From You | |||
| Has this newsletter been helpful? Are there more topics that you would like to see covered? We are here to serve the railroad community, so send us your ideas, concerns or suggestions. | |||