Re: Short distance intermodal-NS & AL partner to start new route
Author: FUD
Date: 01-07-2022 - 08:29
Gomer wrote:
>Mythbusters Wrote:
>-------------------------------------------------------
>> Intermodal isn't profitable under 500 miles is a myth.
>
>Why did the CP "Iron Highway" operation between Montreal and Toronto
>and the SP Sprinter train between Marne and Phoenix fall flat on their faces?
I'm gonna suggest:
* When they were done - back when freeways were less congested with truck traffic; volumes have increased.
* How they were marketed - did anybody outside of a select few shippers know they existed?
* How they were operated - as part of an integrated system or as just "run a train and they will come"?
* Terminal time - on a short run, the time to load/unload the box or trailer becomes a significant part of the trip time, and is unproductive; if it takes, cumulatively, 2 hours to get the box on/off the train, that's 1/4 of the time it would take for the truck to drive from Marne to Phoenix, and the train isn't going to make the trip in 6 hours to cover that.
* And of course cost - once the box is on the truck, it's one bill and done; if the train actually costs more, which is possible, then few people will use it; related to how it's marketed, but not exactly the same thing.
A 300-500 mile run can work if heavily supported and marketed, and the pure-truck option is discouraged in some way. Having the state involved, with subsidy and/or marketing and/or strategically increasing the difficulty of trucking, helps. Having a massive driver shortage also helps. Would the railroads have done this without the state being involved?