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December 2007
Produced by the National Center for Intermodal Transportation and the Foundation for Intermodal Research and Education, the report is based on interviews with key transportation, government and association leaders. Finkbiner, who chairs the University of Denver’s Intermodal Transportation Institute, previously served as president of Pacer Stacktrain and vice president of intermodal for Norfolk Southern Railway. A principal consultant for T. Prince and Associates L.L.C., Prince previously was VP of intermodal and international for Kansas City Southern, chief operating officer for the North American services of “K” Line and senior VP of intermodal management for Optimization Alternatives Ltd.
Declining imports from Asia and sluggish domestic traffic demand took a toll on third-quarter intermodal volume, which decreased 2.2 percent compared with third-quarter 2006’s total. But overall, intermodal volume “held its own” in the quarter, according to the Intermodal Association of North America’s (IANA) quarterly intermodal market report. Total North American volume reached the second-highest level ever at 3,618,617 units, trailing only third-quarter 2006’s 3,699,544 units. Domestic container volume jumped 10 percent to 919,085 units and all domestic equipment inched up 0.1 percent to 1.4 million units compared with third-quarter 2006 totals. The domestic gains helped offset a 13.5 percent decrease in trailers to 526,887 units and 3.7 percent decline in international container volume to 2.2 million units. Domestic traffic gains were achieved at a time when “long-haul truck capacity was abundant, retail sales ... were weak and key industries, such as construction, were slumping,” said Thomas Malloy, IANA vice president of member services and business development, in a prepared statement. Through 2007’s first nine months, total intermodal volume decreased 0.9 percent to 10.6 million units compared with volume handled during the same 2006 period.
The key tunnel portion of Norfolk Southern Railway’s Heartland Corridor project is under way. In late October, crews began raising vertical clearances in some of the 28 tunnels on the intermodal route between the port of Hampton Roads, Va., and Chicago, launching a three-year engineering project aimed at increasing the corridor’s freight capacity. When the project is completed in early 2010, NS will operate double-stack trains along the corridor through Virginia, West Virginia and Ohio, and shave about 200 miles off an existing intermodal route between the East Coast and Midwest. Currently, double-stack trains head to Midwestern points via Harrisburg, Pa., or Knoxville, Tenn. Crews will raise tunnel clearances by lowering track, notching corners into an arched roof or installing a new roof. Tunnel lengths range from 174 feet to 3,302 feet. Early next year, work will begin on three other tunnels in Virginia and eight tunnels in southern West Virginia. Remaining tunnels will be modified in two additional phases. The Heartland Corridor project also calls for increasing overhead clearances on seven railroad bridges, three overhead bridges, three rail signals and three sets of overhead wires; completing other upgrades; and constructing intermodal terminals in Columbus, Ohio, Prichard, W.Va., and the Roanoke, Va., area. NS, the states of Virginia, Ohio and West Virginia, and federal government formed a public-private partnership to fund the project. The federal government has authorized $95 million toward the $151 million cost of tunnel clearances; Virginia has appropriated $22.4 million for terminal construction and clearances for the four tunnels in the state; West Virginia has enacted legislation to provide funding for rail intermodal projects, which first will be applied to development of the Prichard terminal; and Ohio is contributing $836,355 to fund the majority of the total cost to raise overhead obstructions in the state.
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