This document discusses next generation intermodal transportation and the benefits of increased collaboration between shippers and carriers. It contrasts a traditional "Gen 1" approach that focuses only on cost with a newer "Gen 2" approach enabled by better communication and consideration of service levels. By working together across transportation networks, shippers can access more intermodal options and carriers can gain more efficient load utilization, benefiting both parties.

1. Next Generation Intermodal
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2. Question and Answer
Is your company using intermodal?
A. Import freight only
B. Inbound to DC
C. DC to DC transfers
D. All of the Above
E. What is Intermodal?
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3. 2

4. Who is Using Intermodal Today?
The leading value retailer And, time‐sensitive shippers
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5. What is Intermodal?
The combination
of rail, truck and
sea transportation
into a single cost-
saving solution
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6. What is an intermodal lift?
State of the art
lift equipment
adds reliability
and speed to
your supply
chain.
WATCH
VIDEO
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7. 6

8. U.S. Rail Intermodal Growth
US Rail Intermodal Traffic 1980 – 2010
UNITS
Millions
12
10
8
6
4
2
0
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2009
YEAR
Source: Journal of Commerce 2008; American Association of Railroads 7

9. Supply Chain Strategic Advantage
Transportation LOGISTICS COST BREAKDOWN
is generally the
greatest cost in 50%
the supply Focus on Transportation
chain. Collaboration to reduce costs
and increase capacity.
22%
10%
8%
4%
3% 2% 1%
Transportation Inventory Labor Customer Rent Admin Supplies Other
Source: Establish, Inc/Herbert W. Davis and Company 2006 Database 8

10. Intermodal Benefits
Shippers and carriers benefit when
converting over‐the‐road freight to
intermodal.
Carriers Shippers
Reduces operating costs & fuel 15‐20% more transportation
savings
Reduces capital need
Increased capacity
Reduces impact of CSA and Hours
of Service regulation Greener way to ship
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11. Question and Answer
In your estimation, what is the potential
growth of intermodal transportation in the
next 10 years?
A. Less than 10%
B. 11‐25%
C. 25‐50%
D. Greater than 50%
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12. Significant Opportunity for Further Conversion
Converting additional 7‐11
UNITS 11 M
million units will save Millions
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shippers $3-5 billion
while securing additional 8
capacity. 6
4
3.5 M
UP
2
BNSF
Current OTR that
IMDL fits IMDL
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13. Why Hasn’t More Savings Been Realized?
“That’s for
“We tried railroads, not
that once in trucking
1989.” companies.”
“Multi‐stop freight
won’t work with
intermodal.”
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14. Gen 1
INTERMODAL
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15. Gen 1 Characteristics
Gen 1 - Bid
Emphasis on lowest cost and fewest dray
miles without consideration to rail
provider, train frequency and expedited
service.
Gen 1 - Communication
Limited communication between shipper’s
transportation group and its carriers.
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16. Gen 1 Example | Southern Cal to North Carolina
Use an interline
intermodal service to Memphis Charlotte
get as close to your
door as possible Atlanta
BNSF
CSX
Rail Miles 3,377
Truck Miles 100
Origin pickup Truck to LA Ramp 8 hrs
Rail Interchanges
or train changes 2 Rail Route BNSF – Memphis
CSX – Charlotte 157 hrs
Estimated Savings
versus OTR 20% Destination Dray Truck to Door 6 hrs
Total 7 days
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17. Gen 1 Characteristics
Gen 1 ‐ TMS Systems
Not able to differentiate intermodal
service levels when system allows for one
mode per lane
Gen 1 ‐ Pickup/Delivery
Requirements
Apply standard rules around pickup delivery
times and transit requirements
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18. Gen 1 Freight Types
Poor collaboration limits intermodal to only a few
freight types.
Inbound Long Haul Transcon
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19. Gen 1 Intermodal Networks
In Gen 1
Intermodal, there BNSF CSX
is little emphasis
on which rail
carriers and ramps
used
Union Pacific Norfolk Southern
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20. Gen 2
INTERMODAL
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21. The Power of Collaboration
“Although we were new, we
worked with JB Hunt and BNSF
Railway, two of the best in the
business”
Jeff Brady,
Outbound Transportation Manager,
PETCO
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22. Gen 2 Intermodal Leverages Density
Next
PACIFIC
Generation NORTHWEST
Intermodal
capitalizes on ST PAUL
high‐density NORTHERN
CALIFORNIA
CHICAGO NEW YORK
lanes with non‐ FRESNO
DENVER
KANSAS CITY
OHIO VALLEY PENNSYLVANIA
stop train SOUTHERN
CALIFORNIA
service. MEMPHIS
ATLANTA
DFW
MIAMI
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23. Gen 2 Bids
Gen 2 Bids consider
multiple service options.
Best Intermodal price with
corresponding service
Best Intermodal service with
corresponding price
Request rail carriers, rail
ramps, service levels and
frequency of service
Allow Intermodal bids for all
lanes
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24. Question and Answer
You’re shipping a full truckload from Los
Angeles to Charlotte, North Carolina. How many
intermodal options are available?
A. 1
B. 2
C. 3
D. 4
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25. Gen 2 Example | Southern Cal to North Carolina
Use a single premium
(value) intermodal
service plus a dray to Standard
Charlotte
get faster more reliable
service. Atlanta
Rail
Truck
Rail Miles 2,567
Truck Miles 353
Rail Interchanges Origin pickup Truck to LA Ramp 8 hrs
or train changes 0
Rail Route BNSF – Atlanta (premium) 107 hrs
Estimated
savings versus Destination Dray Truck to Door 10 hrs
OTR 15‐20%
Total 5 ½ days
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26. Gen 2 Example | Southern Cal to North Carolina
Use a single expedited
intermodal service
plus a dray to get Expedited
Charlotte
faster more reliable
Atlanta
service.
Rail
Truck
Rail Miles 2,567
Truck Miles 353
Rail Interchanges Origin pickup Truck to LA Ramp 8 hrs
or train changes 0
Estimated Rail Route BNSF – Atlanta (Expedited) 90 hours
savings versus
OTR 5‐15% Destination Dray Truck to Door 10 hrs
Total 4 ½ days
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27. Gen 2 Example | Southern Cal to North Carolina
Use a single
expedited intermodal
service plus a dray to Expedited
Charlotte
get faster more Memphis
reliable service.
Rail
Truck
Rail Miles 2,090
Truck Miles 670
Rail Interchanges Origin pickup Truck to LA Ramp 8 hrs
or train changes 0
Estimated Rail Route BNSF – Memphis (Expedited) 80 hours
savings versus
OTR 5‐10% Destination Dray Truck to Door 14 hrs
Total 4 ¼ days
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28. Recap - Intermodal Transit Solutions
There are a variety of
Intermodal Solutions
from Southern California
to North Carolina.
ROUTE RAIL MILES TRUCK MILES TRANSIT SAVINGS
BNSF (Expedited) to Memphis + Truck 2,090 670 4 ¼ days 5% ‐ 10%
BNSF (Expedited) to Atlanta + Truck 2,567 353 4 ½ days 5% ‐ 15%
Gen 2
INTERMODAL
BNSF (Standard) to Atlanta + Truck 2,567 353 5 ½ days 15% ‐ 20%
BNSF to Memphis – CSX to Charlotte + Truck 3,377 100 7 days 20%
NOTE: Single driver transit from LA to Charlotte is 4‐5 days
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29. Gen 2 TMS & Bid Characteristics
Intermodal TMS Capabilities
Allow for OTR and Intermodal solutions
in each lane
Accommodate multiple Intermodal
service levels in each lane
Transit and Pickup and Delivery
Requirements
Communicate specific pickup and
delivery requirements for each lane
Assign pick‐up and delivery
requirements customized for each DC
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30. Midwest to Southern California
When you consider
frequency, it’s clear ‐ Rail
Memphis and Kansas Kansas City
St. Louis
Truck
Hub
City offer more Origin
options to Southern Southern
California
California.
Memphis
Dray to Hub Premium Rail Expedited Rail Frequency
St Louis to So Cal 100 4.8 days Not Available 3 days/week
KC to So Cal 200 2.8 days 2.4 days 5 ‐ 6 days/week
Memphis to So Cal 200 3.7 days 3.4 days 6 days/week
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31. Question and Answer
What’s the best way to drive collaboration in
the Transportation space?
A. Collaborate through carriers
B. Collaborate through carriers and
intermediaries
C. Collaborate directly with Carriers
and Railways
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32. Best in Class Collaboration
We each have a role to play.
Carrier Shipper BNSF
Reconsiders shipping Provides analysis on the best
Broadens TMS to provide
requirements to allow for lanes for conversion
optimal solutions for all
customer needs more capacity and cost‐saving
service
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33. Collaborative Successes!
Shippers have saved
BNSF
$40 million and locked SYSTEM FITS
in long‐term capacity EASTERN
U.S.
while converting over
WESTERN U.S.
50,000 OTR loads to Non Fits
intermodal.
Jan 2010 through April 2011
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