1 / 23

Central Indiana Intermodal Service

Central Indiana Intermodal Service. Growth and Network Expansion Opportunities for BNSF February 12, 2008. Indiana’s Intermodal Team. Here to make the case for run-through service to CSX Avon State: IEDC Ports of Indiana INDOT Regional Indy Partnership Conexus Indiana. Industry:

lana
Download Presentation

Central Indiana Intermodal Service

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Central Indiana Intermodal Service Growth and Network Expansion Opportunities for BNSF February 12, 2008

  2. Indiana’s Intermodal Team Here to make the case for run-through service to CSX Avon State: • IEDC • Ports of Indiana • INDOT Regional • Indy Partnership • Conexus Indiana • Industry: • Browning Investments • Duke Realty Corporation • TJX Corporation 4

  3. Goal: Enhance Accessto Global Markets Indiana recognizes: • Intermodal connections are keyto global competitiveness • Intermodal logistics parks arethe trade hubs of the future • West Coast connection critical to Indiana • BNSF is the premier intermodal carrier and the preferred service provider 5

  4. Value Proposition for BNSFOpportunity for growth Run-through service from LA/LB ports to CSX Avon Yard benefits BNSF: • Significant growth of headhaul & backhaul volume • Minimal CAPEX and operating risk • “Plug and play” logistics park located in a premier distribution location • Complements existing network & Chicago ramps Avon provides strategic advantage for BNSF 6

  5. Proposed Service Solution Run-through service to Avon from LA • Connect to CSX in St. Louis • Possible mix with domestic (Clovis) • 5-day a week frequency in both directions Key Assumptions: • Economics work for carriers & shippers • CSX agrees to trackage & terminal deals • Operational issues are manageable 7

  6. Growth Drivers for BNSF Central Indiana: Best location to serve greatest number of consumers, producers & exporters • Median center of U.S. population • Same-day delivery to over 50% of U.S. population • Heart of manufacturing, agriculture, hardwood production • 15% of U.S. freight by value touches Indiana • 12% by tonnage • Indiana ranks 2nd in pass-thru tonnage, 5th overall • Least congested infrastructure • 5.3% peak congestion vs. 15.3% national average • “Major Moves” fully funds 10-year transportation plan 8

  7. Indiana: The OptimalDistribution Location Median Center of U.S. Population

  8. Distribution Growth Forecast

  9. Distribution Growth Forecast

  10. Indiana: Export &Manufacturing Powerhouse • Exports totaled $22.6 billion in 2006 • 1st in automotive manufacturing growth • 3rd in car/truck production by 2011 • 1st in manufacturing output per capita • 1st in value-added manufacturing • Honda building newest assembly plant in Greensburg, IN. • Only state with 2 Toyota production sites

  11. Indiana’s Manufacturing & Logistics Economy Source: PCRD using CEW data provided by the Indiana Business Research Center (IBRC)

  12. Indiana: Epicenterof U.S. Manufacturing 14

  13. Indiana: Automotive Centerof North America • Car/truck assembly plants within650 milesof Indianapolis • 84% ofNorth Americanauto production

  14. Manufacturing Locations

  15. Distribution Center Locations

  16. Recent Large BusinessInvestments in Indiana

  17. Intermodal FreightFlow Study Browning-Duke commissioned studyto estimate baseline internationalintermodal flows to Central Indiana • Conservative methodology combined best available data sources (Customs/US Census,Reebie Transearch) Findings: • 80% of Central Indiana’s containerized imports move through West Coast ports (predominantly LA/LB) • 150K-200K annual inbound (drayage) loads • Estimated value $5.5 billion • Likely a low figure based on pro-rata share of U.S. imports • Tremendous backhaul growth opportunities • 300K-400K annual two-way lift potential • Volume easily supports 5-day/week service 19

  18. CSX Avon Yard Located in heart of state’s largest distribution submarket • IM ramp can handle 100K annual lifts today • Current volume is approx. 30K lifts • Expansion to 300K lifts with modest CAPEX • Adjacent to AllPoints Midwest 930-acre (expandable)world class logistics park • 12 million sq. ft of DC/light industrial space • Hendricks County has absorbed DC space faster than Alliance; 25M feet in 15 years 20

  19. CSX Yard AllPoints Midwest Hendricks County, IN World-Class Trade Infrastructure

  20. Indiana Proposal • “Take or Pay Train” arrangement - Minimize risk to BNSF • Conexus Indiana will organize Shippers Alliance & market service • Improvements to CSX Avon facility - Developers, local governments alreadyjointly planning improvements with CSX • State/Ports of Indiana support - Potential Incentives, Financing, Foreign-Trade Zone 22

  21. Going Forward • BNSF reaction • Commitment to evaluate concept • Plans for future dialogue • How do we move forward? Proposed Next Step: • BNSF invited to Indiana for meetingswith key leaders and tour of region

More Related