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How can a Short Line get into the intermodal Buisness?
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The best scenario for a shortline to expand into the intermodal market is if it has at least one end point where there is already an established intermodal terminal. If such exists, then the shortline can basically run their own trains of intermodal equipment without the restrictions of the connecting Class I. Some observations: <br /> <br />1. An existing intermodal terminal has it's own lift on lift off equipment, so the terminal operator can take care of loading and unloading containers and trailers onto whatever suitable rail cars the shortline can provide. No need for expensive infrastructure development on the part of the shortline. And many localities have or are planning development of their own small intermodal terminals as part of an economic development plan, so it may be your locale can provide the transload logistics. <br /> <br />2. As per #1 above, the shortline probably does need either a ramp at the other end, or come up with a way to load into containers or trailers as they sit on the railcar. The Southern a few years back would have two 20' containers placed on opposite ends of a 60' flatcar with the container doors facing into the center of the railcar. They then put down some planks and then would load into the containers by driving the forklift onto the flatcar from the side dock. That's one reason I see promise in the development of the articulated 125' flat car based on the Trinity articulated auto rack base, wherein two 40' to 53' containers could be loaded into the same way by a shortline. <br /> <br />3. About a decade ago, the Camas Prairie railroad (while still co-owned by UP and BN) ran a single 5 pack double stack car a couple times a week from the Port of Lewiston to Seattle over BN as part of a mixed freight consist. One of the problems that arose was that unholy need of BN to shunt the double stack through the hump yard at Pasco, rather than allowing the double stack car to be separated onto a siding and added to the next Seattle bound mixed or intermodal consist. This action caused damage to the product in the containers, and the shipper eventually switched to COB. As has been pointed out, once you place your load into the hands of the Class I you have no say over the operational aspects nor the rates applied therein. <br /> <br />4. From by dealings with RailRunner a few years back, it is financially possible for a shortline to lease bi-modal equipment and use that for containers and trailers, as long as the utilization is relatively high. Because of the low modal transfer costs of bi-modal equipment, the shortline could run COBC (Container On Bi-modal Chassis) from source to terminal, wherein the COBC's could be broken up into rubber tire transfer to the lift on lift off area. You wouldn't even need a direct connection to the intermodal terminal then, just a proximity to it.
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