Transportation Management Railroads

Transportation Management Railroads. [image].

Transportation Management. TYPES OF CARRIERS.

Transportation Management. TYPES OF CARRIERS For-hire Provides services to the public & charges a fee for the service Private Carriers Provides a service to the industry or a company that owns or leases the vehicles, but does not charge a fee..

Transportation Management. NUMBER OF CARRIERS.

Transportation Management. NUMBER OF CARRIERS The rail industry consists of a small number of very large carriers, and they serve somewhat different market areas. This is so because of the large capital outlays and fixed costs required, which acts as a barriers to entry..

Transportation Management. MARKET STRUCTURE (commodities hauled).

Transportation Management. Commodities Hauled Railroads carry large quantities (high-volume) of heavy-weight, low-value commodities. Coal Farm Products Chemicals Transportation Equipment.

Transportation Management. Coal 43.8 percent of the total tonnage transported in 1996, the primary haulers of coal. Coal is an alternative energy source that will probably continue to be an important commodity shipped by the railroads..

Transportation Management. Farm Products Farm products constitute the second largest commodity group hauled by railroads. Chemicals Hazardous materials are transported in specially designed tank cars..

Transportation Management. Chemicals The railroads, in comparison with highway movements, safely transport chemicals, and this safety has been steadily increasing for years. This type of long-haul bulk material is ideally suited for rail movement.

Transportation Management. Transportation Equipment Transportation equipment carloadings, which are linked to the relative health of the domestic automobile industry, have increased to more than five percent of total carloadings, an increase of more than 40 percent since 1982..

Transportation Management. Transportation Equipment The railroad are still an ideal mode of transport for many different types of goods, high-value merchandise and raw materials alike..

Transportation Management. CARLOAD EQUIPMENT.

Transportation Management. Carload is the basic unit of measurement of freight handling by the railroads. A carload can vary in size and capacity depending on the type of car being used. The carrying capacity of a new or rebuilt car could easily exceed 100 ton..

Transportation Management. Generalized car types: Boxcar(plain): Standardized roofed freight car with sliding doors on the side used for general commodities. Boxcar(equipped): Specially modified boxcar used for specialized merchandise, such as automobile parts.

Transportation Management. Generalized car types: Hopper car: A freight car with the floor sloping to one or more hinged doors used for discharging bulk materials Covered hopper: A hopper car with a roof designed to transport bulk commodities that need protection from the elements, like rain..

Transportation Management. Generalized car types: Flatcar: A freight car with no top or sides used, for instance, building materials. Refrigerator car: A freight car to which refrigeration equipment has been added for controlled temperature.

Transportation Management. Generalized car types: Gondola: A freight car with no top, a flat bottom, and fixed sides used primarily for hauling bulk commodities Tank car: Specialized car used for the transport of liquids and gases.

Transportation Management. Boxcar.

Transportation Management. Hopper Car. [image].

Transportation Management. Covered Hopper Car. [image] iiiii%i.

Transportation Management. Flatcar.

Transportation Management. Refrigerator Car. [image].

Transportation Management. Gondola.

Transportation Management. Tank car.

Transportation Management. COMPETITION.

Transportation Management. COMPETITION Railroads were the dominant mode of transportation prior to World War II The railways must compete with the other modes of transportation that have either evolved or matured since the 1920s..

Transportation Management. The railroads compete with pipelines and internal water carriers domestically for large quantities of heavy-weight, low-value commodities domestically. The rail industry is faced with intense intermodal and intramodal competition.

Transportation Management. GENERAL SERVICE CHARACTERISTICS.

Transportation Management. Strengths A large carrying capacity enables the railroads to handle large-volume movements of low-value commodities over long distances. Although pipelines compete directly with the railroads, they are restricted largely to the movements of liquid and gas. Railroad can handle almost any type of commodity by changing the hauling cars..

Transportation Management. Strengths Liability for loss and damage is usually assumed by the railroads. Steel wheel on steel rail Comparatively high percentage of goods damaged in transit.(~3%).

Transportation Management. Strengths Incidence of loss is usually higher than on other modes because of the high degree of multiple handlings. New Technologies to prevent the cargo damaged – multilevel suspension systems and end-of-car cushioning devices.

Transportation Management. Constraints Railroads are constrained by fixed rights-of-way and therefore provide differing degrees of service completeness. For example, if both shipper and receiver possess rail sidings, then door-to-door service can be provided. However, if no sidings are available, the movement of goods must be completed by some other mode..

Transportation Management. Constraints If line-haul mileage continues to decline, the industry will become less service-complete and even more dependent on other modes of transportation for completion of many types of moves..

Transportation Management. Service Innovations Piggyback traffic – TOFC & COFC TOFC – Trailer-on-flatcar, on-time deliveries, regularly scheduled departures, and fuel efficiency are the potential. Also simplified their billing procedures and made their computers accessible to customers for service innovations..

Transportation Management. Service Innovations Piggyback traffic – TOFC & COFC COFC – container-on-flatcar A container does not have the wheels and must therefore be placed on a flatbed truck for ramp-to-door delivery..

Transportation Management. Service Innovations Unit train – specializes in the transport of only one commodity, usually coal or grain, from origin to destination. Many times the shipper owns cars, and the train is, in effect, rented to the shipper for a particular period of time..

Transportation Management. COST STRUCTURE.

Transportation Management. Cost Structure Fixed Costs The railroads, along with the pipelines, are the only modes that own and maintain their own network and terminals. Therefore, there are a large proportion of indirect fixed costs..

Transportation Management. Cost Structure Fixed Costs Mostly operation, maintenance and ownership of rights-of-way, which are not found in other modes(excluding pipelines). Extensive investment in private terminal facilities Freight yards, which trains are sorted and assembled Terminal areas & sidings, where shippers and connecting railroads are serviced..

Transportation Management. Cost Structure Fixed Costs Freight cars and other equipment. motors can use free of right-of-way, because they don’t need to build roads. Maintenance of Rights-of-way, structures and equipment.

Transportation Management. Cost Structure Variable Costs Labor cost is the largest single element of variable costs for railroads. Fuel and power costs are the next largest group of variable costs..

QUESTIONS & ANSWERS. Transportation Management.

Transportation Management. Source: Management of Transportation by Bardi, Coyle & Novack.