Networking opportunity: NS and 10 New York short lines to jointly test market ‘single-line’ moves
The event at the Marriott RiverCenter drew 1,500 people vs. 1,128 registered for last year's Baltimore conference, as well as more than 400 railroad attendees and a record number of supplier representatives. The exhibitors I talked to were ecstatic about the turnout and the exposure for their booth while the short liners I chatted with were more than satisfied with the information and networking opportunities they obtained.
How’s this for a networking opportunity: a Class I and 10 New York short lines sharing their capacity to market short-haul moves as a single-line transportation service to shippers. During his presentation May 5 in San Antonio, Norfolk Southern Corp. Executive Vice President and Chief Marketing Officer Don Seale talked about doing just that.
NS and the ASLRRA have developed a pilot project called “Empire Link” under which the Class I and 10 short lines will test the single-line marketing waters between Binghamton and Silver Springs, N.Y. Any short line can market a move — originating or terminating on their line — that involves another short line or two and NS as the bridge carrier.
NS initially would provide all the equipment (the short lines would have the option to use their own) and rates would involve a series of per-car charges based on the commodity, such as salt or paper.
A “commercial approach,” Empire Link grew out of a review by NS and the ASLRRA to “see what we could do with a cluster of short lines” in New York, Seale told me by phone May 13. The Class I and association will conduct the pilot for about a year and “adjust and tweak it as we go,” he said.
“At the end, we’ll see what we got out of it and if there are other applications for it on our system,” said Seale.
What they’ve got is a novel — and I think workable — plan. Seale is fairly certain that no other Class I and group of short lines have attempted this before. Class Is and short lines talk often of developing better, mutually beneficial working relationships and this is a prime example of how to do it.
I’ll write more about Empire Link in our June issue.
Posted by: 
Jeff Stagl | Date posted: 5/13/2008
Comments
Posted by James C. Sanchez on 5/17/2008 7:13:50 AM
I think this is an excellent idea. There is a huge short haul freight market that the class 1 railroads seldom participate in. It sounds like a win win for everyone involved. Better asset utilization and new revenue for the NS, the potential for less trucks on the roads for the communities, a lower cost shipping option for industries, and of course new business opportunities for New York states short lines. Way to go NS. Imagine something like this in California or Texas, maybe other roads like BNSF or UP that only focus on long hauls could learn from this.
Posted by Chop Hardenbergh on 5/21/2008 12:20:48 PM
The newly-announced Patriot Corridor in Massachusetts could perform a similar role for New England's many short lines. If NS and the New York short lines can make a success of this over the next year, I nominate the NS-Pam Am Patriot Corridor as the next "test market."
Posted by James Mattsen on 5/23/2008 2:42:09 PM
This is a really good idea. I wonder if short lines in Pennsylvania could be added to the program after the year pilot.
