Rail isn’t easy. But with the right partners, it can be easier.
“LET’S FACE REALITY, RAIL IS NOT EASY…”
This was said to me by a former industry peer in an executive brainstorming session. It resonates as one of the industry's biggest challenges over the last 20 years. The benefits of rail are undeniable.
Connecting customers, developers and communities to freight rail can be a real challenge but is worth the effort.
Keep reading for four keys to implement rail into your network.
GROWING RAIL CARLOADS IS HARD WORK...
There are three ways to grow rail carloads.
Grow with existing customers
Bring new customers to your railroad
Capture a multimodal truck/rail combination, a.k.a. a transload customer
With 50 years of experience in the rail business, we know that short of a client gaining share in their current business lines, more than 90% of established rail customers do not have existing truck traffic moving that could convert to rail. This leaves converting non-rail customers to rail by adjusting their supply chains accordingly. The solution is to have a capable rail industrial development program to locate on rail and a premier Transload program if one doesn’t have a direct rail connection.
IT’S ABOUT THE CUSTOMER…
This is true for most service industries, but unfortunately, not as common in railroading. Listen to analysts on an industry earnings call and you will hear questions about Operating Ratio, Precision Scheduled Railroading, Earnings per share, Trip Plan Compliance and other internally focused metrics which miss the perspective of the customer.
The service industry is about the customer… customers have choices. They can design their supply chains with or without rail. They can design their supply chains with or without you. So, advocacy becomes critical to growing the sector.
MY CLASS 1 RAILROAD DOESN’T HELP ME…
The Class 1 railroads control over 95% of the rail freight across the North American freight rail network. To the 600+ short line and regional railroads and to all of the shippers, the Class 1s can unintentionally seem indifferent to a partner railroad’s abilities and needs. To create a true partnership, the Class 1 needs to have a reason to work with you, and you need to have access to the right people. Even then, they may still have most of the leverage in the relationship. As your advocate, we help you ask the right questions, make the right contacts and navigate processes so you gain the power needed to accomplish your rail goals.
HOPE IS NOT A PLAN…
Strategy is often defined as a series of tactics or intended actions designed to accomplish a specific goal or outcome. An unbiased situation assessment is often the most crucial element of executing a strategy – knowing where you are today; your strengths, weaknesses, opportunities and challenges, and how and where to move given those data points. Developing and implementing a winning rail strategy is a significant challenge given the variables and stakeholders and partners whose motivations are often not known. Having a well thought out strategy before you start your rail journey is crucial for success.
WHERE DO YOU GO FROM HERE?
Rail is complex but doesn’t have to be overwhelming. Whether you’re looking to grow your rail portfolio, being a heard and valued customer or developing your rail approach for wins, having the right experience, expertise and people at your side with a proven plan makes all the difference. We specialize in bridging the gap between railroads and clients to drive real, sustainable results.
Are you looking to make a change in your approach? Are you not being seen as the type of company you are or should be? Are you struggling to do more? Are you not being heard? Rail isn’t easy, but with the right people in your corner, it can at least be easier. With decades of industry knowledge, we know what works – and what doesn’t. Reach out today to see how we can help.