Between the Wharf and the Warehouse What's Next?

Transcription

1 Between the Wharf and the Warehouse What's Next? Chris Osen (Panel Moderator) Vice President of Supply Chain, MeadWestvaco Adam Bridges Vice President of Marketing and New Business Development, TRAC Intermodal John Gray Sr. Vice President, Policy and Economics, Association of American Railroads Brian Jones Vice President Claims, Insurance & Regulatory, ZIM American Integrated Shipping Svcs Boyd Stephenson Representative from American Trucking Association

2 Supply Chain Example Warehouse: * Inventories * Rail Served * Off Port/Near Port Truck - Van: * Capacity - Drivers/Equip * HOS, CSA, * Highway Funding * Fuel Costs Warehouse 27% Rail 27% Truck - Van 19% Container Dray 27% Rail: * Boxcar availability * IM Infrastructure Container Dray: * Clean trucks * Chassis model * Weight limits * Fuel Costs Environmental Geopolitical Global Economies

3 Changes in Providing Chassis in the Container Industry Ocean carriers focusing on cost rationalizing and focusing on core business Third party equipment providers better suited to bring efficiency to chassis operations over time No single uniform solution adopted by all carriers New opportunities for direct contracting between OTI s, BCO s and equipment providers

4 About TRAC TRAC is an Intermodal chassis pool manager and equipment provider for domestic and international shippers World s largest Marine and Domestic chassis provider (260,000) Operating throughout North America Network of chassis pools and depots at the freight Supplier to Steamship Lines, Rails, Motor Carriers, Shippers, & Terminal Operators Flexible solutions from leases to integrated operations

5 Chassis Market In Transition Steamship lines exit chassis ownership 10% 5% 5% Leasing Co (70%) Motor Carriers (10%) ~50% today 10% Shippers (10%) 70% SSLs (5%) Ports (5%) Terms of sales are changing driving product innovation and quality

6 TRAC Partners Include TRAC has over 2,400 Motor Carrier Customers

7 Solutions Are In The Market Lease Pool Equipment Nation Wide Availability Fleet Management & Maintenance $250m Insurance Coverage Incremental Capacity Flexible Billing Solutions Street logistics New customers bring new needs and new ideas to the market

8 Keys To Smooth Transition Chassis Market Scalable for block sales Asset supply Support seasonality & growth Management M&R and Fleet Management Data Management Billing Hosting Rails, Ports, Depots, Drop Lots, Swaps Innovation Bundled services 5/16/2012 Driving 9:29 AMEfficiency, Safety & Compliance

9 Key Messages The supply chain is healthy Competition is vibrant Equipment efficiency is improving Equipment quality is improving Innovation & collaboration is accelerating

10 U.S. Freight Railroad Capital Spending ($ Billions) Data are for Class I railroads. e estimate Source: AAR

11 Major Rail Served Ports Greater Than 1 Million Rail Tons Annually SLIDE 11 ASSOCIATION OF AMERICAN RAILROADS

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13 Some Major Recent and Underway Intermodal Corridor and Terminal Projects SLIDE 13 ASSOCIATION OF AMERICAN RAILROADS

14 Important characteristics of the intermodal network Must accommodate both domestic and international business Focused around high volume origin destination pairs At its best when operated as single origin to destination trains. Cost control and service reliability is critical.

15 Characteristics of newer generation of intermodal terminals Usually located outside immediate urban areas Easily accessible to strong highway network, which allows rail corridor volumes to be maximized Designed to accommodate adjacent distribution/production centers Future growth land available Minimization of on terminal vehicle movements

16 Characteristics of strong intermodal corridors Capacity sufficient to keep trains moving/avoid congestion delays Sufficient length to compete with truck service/cost Sufficient density to keep costs competitive Strong highway feeder system at each end at intermediate terminals.

17 Summary The supply chain is healthy Competition is vibrant Equipment efficiency is improving Equipment quality is improving Innovation & collaboration is accelerating

18 THANK YOU