Your SlideShare is downloading. ×
So You Want to Ship by Rail?
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

So You Want to Ship by Rail?

562
views

Published on

Presented by Grace Kung, BNSF

Presented by Grace Kung, BNSF

Published in: Business

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
562
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
26
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12 Thank you for coming today and welcome. This is our seventh year of hosting these symposiums We are really glad to be here today. At BNSF we get a lot from these meetings and we hope you do as well While I am saying thank you, I would like to take a minute to say thank you for your business as well. We do not say that often enough and it is important that you know that we appreciate your business and when you choose us as your carrier, we do not take that responsibility lightly.
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12 KCS Missing Route Miles 1833 – 380 miles 1860 – 30,000 miles 1916 – 254,000 miles (peak) In the east, rail connected cities, in the west many cities were built around the rail. Never be another Class I railroad “built” “ Porter’s model” – barriers to entry 2003 – First time ever that intermodal produced more rail revenue than coal BNSF Network – strong west coast franchise – good for globalization and China growth.
  • 2007 Railway Template 05/11/12 When will the growth return? No one knows for sure. However, the forces that have been stimulating growth in transportation over the years, still exist. The only thing that has changed is the slow down in the US economy, which is a temporary condition. The external forces that have been stimulating industry growth over the years, still continue, such as: driver shortages, highway congestion, fuel prices, and rail capacity, and developing environmental solutions – among others.
  • 2007 Railway Template 05/11/12 Association of American Railroads (AAR) Formed to bring unity to a large group of separately owned and managed rail companies across the United States. Its purpose is to "protect and advance the railroad industry under private ownership and management, to enable them better to handle their own affairs on a permanent basis." Prior to the AAR, there were over 100 local time zones around the country, and over 20 different rail gauges (the distance between rails) ranging from two to six feet. There was also no fixed standard for the various types of freight cars owned by the many railroads. Department of Transportation (DOT) Created by an Act of Congress in 1966; formally activated early in 1967. Responsible for developing a national transportation system adequate for economic growth and stability, the welfare of the people, and national security. The Office of the Secretary of Transportation formulates overall policy, allocates resources, and proposes and coordinates legislation concerning private transportation. Participates in negotiations with foreign governments relating to aviation and maritime matters. Nine operating administrations report to the DOT. One is the Federal Railroad Administration (FRA). Federal Railroad Administration (FRA) Monitoring and enforcing arm of the DOT, as it relates to the rail industry. Enforces all Federal rail safety regulations including, Hours of Service, mandatory FRA inspection of freight cars and locomotives, and the safe transportation of Hazardous Materials. The Surface Transportation Board (STB) Established January 1, 1996, the STB picked up several functions previously handled by the Interstate Commerce Commission (ICC), which was terminated on December 31, 1995. General responsibilities include railroad rate and service issues, mergers, line sales, line construction, line abandonments and labor matters related thereto. Also regulates trucking, ocean shipping, intercity passenger bus and certain pipeline matters. Unlike the ICC, the STB is also more of a watchdog organization, intervening when shippers and carriers cannot resolve an issue. US. Customs Oldest Law Enforcement Agency in the country. Established in 1789 as the Revenue Cutter Service and serving the only mode of transportation at the time, it was the sole collector of revenue for the new government until the inception of the Internal Revenue Service in the early 1900's. Collect tariffs and customs duties on goods imported into the United States from overseas, as well as to enforce control over what products are allowed in the country.
  • 2007 Railway Template 05/11/12 Thank you for coming today and welcome. This is our seventh year of hosting these symposiums We are really glad to be here today. At BNSF we get a lot from these meetings and we hope you do as well While I am saying thank you, I would like to take a minute to say thank you for your business as well. We do not say that often enough and it is important that you know that we appreciate your business and when you choose us as your carrier, we do not take that responsibility lightly.
  • 2007 Railway Template 05/11/12 When it comes to shipping, BNSF Railway moves you forward. No matter what you’re transporting or where you’re transporting it, you can rely on our best-in-class services to deliver your goods in the most effective, cost-efficient and environmentally friendly manner. Our vision is to realize the tremendous potential of BNSF Railway by providing transportation services that consistently meet our customers' expectations. So no matter your product, trust in BNSF to help you exceed your shipping goals.
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12 Companies that do not have a rail line into their facilities but can handle/store large quantities at their facilities. A transload facility allows the customer to obtain the cost convenience of using carload. The carload unit goes into a transload facility (direct rail service), where it is moved from the carload into a truck (3+ per carload) and delivered to the customer.
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12
  • 2007 Railway Template 05/11/12 Thank you for coming today and welcome. This is our seventh year of hosting these symposiums We are really glad to be here today. At BNSF we get a lot from these meetings and we hope you do as well While I am saying thank you, I would like to take a minute to say thank you for your business as well. We do not say that often enough and it is important that you know that we appreciate your business and when you choose us as your carrier, we do not take that responsibility lightly.
  • 2007 Railway Template 05/11/12 I often get asked the question, why should we support projects that benefit rail, either passenger or freight? And why do we, as a society need more rail? Because putting more traffic on rail is an important part in bridging the funding gap I mentioned earlier. Railroads can provide even more significant value to our society in the future. Here’s why: First, rail is the most environmentally friendly way to move a ton of freight, thus reducing greenhouse gasses. Second, rail is the most fuel-efficient mode, reducing our dependence on foreign oil. Third, rail is the most effective way to reduce congestion on our nation’s highways, thus reducing both greenhouse gasses and lowering our dependence on foreign oil. And fourth – rail is perhaps the most cost-efficient form of land transportation available.
  • 2007 Railway Template 05/11/12 In 2003 BNSF paid $1B for 1.4B gallons of fuel This year, we paid $1B for fuel in just the first quarter (Matt Rose – Trains, Sept 2008) We’re able to recover much, but not all of it in fuel surcharges All total, the rail industry spent about $5B in fuel in 2003 This year, that figure will go to $18B By comparison, the airlines have gone from spending $18B on fuel to $60B Trucking is spending $130B, three times what it was five years ago
  • 2007 Railway Template 05/11/12 Thank you for coming today and welcome. This is our seventh year of hosting these symposiums We are really glad to be here today. At BNSF we get a lot from these meetings and we hope you do as well While I am saying thank you, I would like to take a minute to say thank you for your business as well. We do not say that often enough and it is important that you know that we appreciate your business and when you choose us as your carrier, we do not take that responsibility lightly.
  • 2007 Railway Template 05/11/12 Thank you for coming today and welcome. This is our seventh year of hosting these symposiums We are really glad to be here today. At BNSF we get a lot from these meetings and we hope you do as well While I am saying thank you, I would like to take a minute to say thank you for your business as well. We do not say that often enough and it is important that you know that we appreciate your business and when you choose us as your carrier, we do not take that responsibility lightly.
  • 2007 Railway Template 05/11/12
  • Transcript

    • 1. Replaced title typeBNSF Railway Company and photo Rail 101 & Economic Development Grace Kung Regional Economic Development Mgr April 24, 2012
    • 2. Agenda Industry Overview BNSF Overview Why Rail? Why Economic Development? 2
    • 3. Rail Industry Overview 3
    • 4. Industry OverviewAmerica’s Railroad IndustryRailroads remain the backbone of America’s freight transportation network  U.S. railroads operate over 140,000 miles of track and earn an aggregate freight revenue of nearly $57 billion  In the United States, railroads account for more than 40%* of all freight (more than trucks, boats, barges or planes) *Measured in Ton Miles  70% of all autos produced in America move by rail  30% of all U.S. grain moves by rail  65% of the coal is moved by rail which in turn produces half of America’s electricity  U.S. Railroads move enough:  Wheat to provide every person with a loaf of bread 6 days/week  Concrete to build 45 miles of new highway every dayNorth American railroads form the world’s most efficient and lowest-cost freight network Source: American Association of Railroads (AAR) 4
    • 5. Industry OverviewA key link in the U.S. Supply Chain 71% of Americas GDP is driven by the consumer Seamless network of manufacturers, retailers, distributors, transporters, storage facilities and suppliers Rail delivers everything Americans consume everyday:  Cars and Combines  Clothes and Shoes  Stereos and TVs  Food and Water  Lumber and Steel  Energy and Fuel  … many others, such as bread and cereal 5
    • 6. Industry OverviewTypes of Railroads Class I • Annual revenues in excess of $340M • Operations range from 3,200 to 32,000 miles • Typically concentrate on long-haul, high- density intercity traffic lanes • Seven Class I railroads in North America Regional • Operate at least 350 miles of track • Earn $40 million or more in revenues • 33 Regional railroads Local Linehaul • Operate less than 350 miles of track • Generate less than $40M in operating revenues • 324 local linehaul railroads 6
    • 7. Industry OverviewNorth America Rail Network Over 160,000 miles oftrackOver 165,000 railroademployees BNSF operates morethan 32,000 miles oftrack BNSF CN CP CSX NS UP FXE 7
    • 8. Industry OverviewTransportation Industry Challenges Fuel Efficienc y Environmental Solutions Highway Congestion Challenges Rail Capacity rtage Driver Sho 8
    • 9. Industry OverviewGoverning Bodies of The Rail Industry • Association of American Railroads (AAR) • Department of Transportation (DOT) • Federal Railroad Administration (FRA) • The Surface Transportation Board (STB) • U.S. Customs • Various State and Municipal Agencies • Dept. of Homeland Security 9
    • 10. BNSF Overview 10
    • 11. BNSF Overview“This is BNSF” Video: “This is BNSF” 11
    • 12. BNSF OverviewOur Vision Our vision is to realize the tremendous potential of BNSF Railway by providing transportation services that consistently meet our customers expectations. 12
    • 13. BNSF OverviewBNSF Network
    • 14. BNSF OverviewBNSF: Size and Scope  32,000 route miles in 28 states and two provinces  Approximately 5,800 locomotives and 208,000 freight cars  Employs approximately 38,000 people  Operates an average of 1,400 freight trains per day  Moves one fourth of the nation’s rail freight  Serves all major ports on the West Coast and Gulf of Mexico  If stacked end-to-end, all the intermodal loads shipped with BNSF in one year would reach from Los Angeles to Shanghai 6 times.  Leads rail industry in technological innovation  Has one of the largest computer systems in the world to manage our network operations 24 hours a day 14
    • 15. BNSF OverviewBusiness Unit Breakdown INDUSTRIAL PRODUCTS CONSUMER PRODUCTS COAL AGRICULTURE 15
    • 16. BNSF OverviewIndustrial Products Breakdown Building Materials Plastics Chemicals & Waste MineralsLumber PVC Acids AggregatesWallboard Polypropylene Intermediates CementBricks Polystyrene Caustic Soda ClayRoofing Materials Polyethylene Municipal Waste Sand Food & Beverage Machinery Metals Petroleum ProductsBeer & Wine Construction Equipment Pipe Diesel FuelCanned Goods Farm Equipment Sheet BiodieselFrozen Fish / Meat Transformers Structural AsphaltVegetables Generators Scrap Alcohols & Solvents 16
    • 17. BNSF OverviewCarload Solutions – Direct RailDirect Rail - Primary access to the BNSF Network directly to/froma customer facilityCarload Service – Rail transportation for single or multiple carloads Direct connection into supply chain Excellent for multi-truck quantities of commodities such as canned goods, steel, lumber, paper, etc. (3+ truckloads per car)Unit Train Service – Trainload movements of freight from same origin and destination carrying a single commodity Most efficient service Achieves optimal network velocity 17
    • 18. BNSF OverviewCarload Solutions - TransloadTransload – Access to the BNSF carload network at the mostadvantageous points through premium providersAdvantages Rail accessibility without a large capital investment Access to numerous value-added servicesValue – Added Services Cross docking Storage and forward storing Load consolidation Inventory management To learn more: http://www.bnsf.com/customers/how-can-i-ship/door-to-door-transload/ 18
    • 19. BNSF OverviewConsumer Products Breakdown Domestic and International Intermodal Automotive Clothes Office Products Vehicles Shoes Seasonal Products Parts Personal Accessories Paper Products Beauty Products Toys Furniture Bicycles Electronics Household Appliances Groceries Pet Products Home Décor Items Books Sporting Goods School Supplies 19
    • 20. BNSF Overview Intermodal Services Expedited Trailer Service Domestic Only  Fastest intermodal service in the industry  Averages 700+ miles per day*  Ideal for time-sensitive freight Premium Container Service International and Domestic  Sustainable solution to price sensitive shippers  Averages 400-500+ miles per day*  Competitive daily schedules *Measurement derived from cutoff at origin to availability at destinationService schedules can be found at http://www.bnsf.com/bnsf.was6/siisweb/cntrl 20
    • 21. BNSF OverviewAg Breakdown Grain Bulk Foods Other Grain Products Wheat Sweeteners Oils Barley Syrups Feeds Corn Animal Products Flour Soybeans Starch Specialty Grains Milo Oilseeds & Meals Malt Fertilizer Ethanol 21
    • 22. BNSF OverviewCoal Breakdown Coal Low Sulfur Coal (Powder River Basin) 22
    • 23. Why Rail? 23
    • 24. Why Rail? Key Benefits  Fuel Efficiency – On average, railroads are three or more times more fuel efficient than trucks.  Highway Gridlock Reduction – A typical train takes the freight equivalent of several hundred trucks off our highways.  Cost Efficiency – In general, shippers pay less for shipping freight via rail, rather than other forms of land transportation.  Environmental Friendliness – The EPA estimates that for every ton-mile, locomotives emit roughly one-third the amount of nitrogen oxides and particulates.Source: AAR 24
    • 25. Why Rail?Fuel Efficiency If just 10 percent of the freight that currently moves by truck were diverted to rail, fuel savings would exceed one billion gallons a year 100  Trains move one ton of freight 90 an average of 495 miles on a single 80 gallon of diesel fuel, compared to 70 140 miles for a truck 60 50  Freight trains have increased their 40 fuel efficiency by 80 percent in the last 25 years20 320 120 320 120 320 1 320 120 320 120 320 120 320 1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q 08 05 05 06 06 07 07 08 09 09 10 10 11 1120 Baseline Pessimistic Oil Prices (WTI EST - $/BARREL)Source: Global Insight--February 2008 Forecast and AAR 25
    • 26. Why Rail?Rail is 2-8 times more fuel efficientthan trucks 2.3x Intermodal 4.3x Indust. Prod. 5.5x Ag 8.2x Coal *Based on a 1,500 mile truck haul
    • 27. Railroads can help reducehighway congestion  BNSF is the largest intermodal carrier in the world  Each year, BNSF moves about 4.6 million containers and trailers  One BNSF intermodal train removes more than 280 long- haul trucks from our nation’s highways
    • 28. Why Economic Development? 28
    • 29. Economic Development:Shipping Options:  Transload Facility  Quickest Method  Lease an existing track (private or rail Owned)  Timeline maybe an issue  Rehab an existing track  Can be costly if a new switch is necessary  New track construction  Can be an expensive project 29
    • 30. Economic Development:Transload Option 30
    • 31. Economic Development: 31
    • 32. Economic Development:Ship by Rail: 3 Simple Phases 32
    • 33. Economic Development:Ship by Rail: 3 Simple Phases 33
    • 34. Economic Development:Ship by Rail: 3 Simple Phases 34