INTERMODAL\\\ >> 1 4


served by international


air cargo carriers Cathay, Pacific, Cargolux, Emirates and Etihad.


Westward Ho!


The US West offers good examples of intermodal. One is Union Pacific (UP) and its activity at Arizona’s Port of Tucson, which serves as a rail gateway to Mexico, especially cargo from central and northern Mexico. “We have customers that bring


material up from Mexico in boxcar and then transload into truck for distribution regionally,” says Mike Levin, Port of Tucson executive vice president. The port completed a $5


million expansion in 2016 of its rail infrastructure and container export facility. During that year, liſts totaled 16,189, which held steady compared to 2015. BNSF has its eye on Mexico.


Beginning in 2016, the railway partnered with Kansas City Southern (KCS)


to offer an


intermodal service connecting Chicago and Dallas/Fort Worth with Toluca, San Luis Potosí, and Monterrey, Mexico. In that same


“The economy began to pick up in 2016, so we saw some customers’ volume pick up.”


-- Jim Hutcheson, Port of Huntsville


year, BNSF Railway also launched intermodal service between the Pacific Northwest and Texas. Third party logistic operators


are also investing in intermodal. In February, Yusen Logistics opened its 53,820 sq. ſt. Bajio Logistics Center near Celaya, Mexico to provide services to its automotive customers, including OEMs and tier 1 and tier 2 suppliers. The facility offers rail and


intermodal transportation to meet the demands of automotive customers. Adriene Bailey, senior vice president and general manager of Yusen Logistics’


“When we talk to freight forwarders,


their interests are broader than just an airport or intermodal facility.”


-- David Whitaker, Columbus Regional Airport Facility


transportation group, explains that the Bajio Logistics Center can cater to shippers who want cargo delivered in a specific order. “We built that container yard


for shippers who need that kind of precision to stage their freight as it’s coming in,” she says.


port as does HomeGoods. “We try to position ourselves as


being a regional asset so that when companies are looking to establish e-commerce fulfillment sites, the Tucson region is more viable for companies like that,” Levin says. Levin reveals the Port of Tucson


Think Together. Move Together. Success Together.


by Amazon and Walmart that use the Port of Tucson for that purpose. Target has a DC near the


When Communications


ARE ON THE LINE...


...trust Yusen Logistics to keep you updated. We offer seamless intermodal service across all North American markets with more truck competitive lanes than the competition, service with every major rail carrier, and direct access to the largest container fleet in the industry. We’re always there to answer your call.


www.yusen-logistics.com 800.414.3895


Issue 6 2017 - FBJNA


“The speed by which we are able to get shipments in and turn them back out keeps us competitive.”


-- Jana Kuner, Port of Huntsville BNSF is also looking at how to


sequence freight at its intermodal facilities based on when the customer needs the merchandise. The railway is piloting this cargo priority system on 35 lanes in key markets.


E-commerce


E-commerce has enormous growth potential for intermodal and rail transport, as exemplified


spoke with HomeGoods about serving as a distribution asset for the company. “We like to think [the Port of Tucson] was a component of their decision to locate in the region,” he says. “Regardless of whether they use it, it is available to them.”


around the country. “At this point, I don’t see much e-commerce freight coming,” he says. “It will probably start on the air cargo side first.” BNSF Railway studies how


While the Port of Huntsville


doesn’t serve any e-commerce centers by rail, such use could evolve as e-commerce retailers create more last-mile facilities


to serve the e-commerce community. “Obviously, they want to have 24/7 visibility into tracking shipments because the consumer kind of has that expectation,” Casas says. To help build transparency regarding where their shipment


15


is in the supply chain, BNSF gives an estimated time of notification (ETN) that alerts customers 24 hours before a train arrives at one of


its facilities. This allows


customers to hit the ideal delivery window. BNSF has issued ETNs for about a year. “They’re running on such timed


inventories and tight timelines,” Casas says. “If shipments arrive too early, eve ry t hing is


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