Eric Joiner's Freightdawg.com - The Logistics and Supply Chain Blog!

CSX: Tomorrow Moves Project

One of the cool things about Freightdawg is that I get to meet a lot of people in our industry.   This includes the PR and marketing folks at various transportation companies.   I have followed CSX Railroad for some time, not only for their transportation services in the US, but also their very forward thinking marketing on the Green value of railroad shipping. 

 CSX may be the vanguard for the industry on this topic.  At least they have made the effort to spend the money to advertise on TV, Internet and in print on the economic and environmental aspects of rail transportation.  Every railroad from short line to class 1 benefits from that message.  

I was recently invited by CSX to participate as a judge in a very cool contest called the "How Tomorrow Moves" project.   This contest awarded prizes to contestants who best described  CSX's message of how to protect the environment.  Winning contestants would win $5000.00.  Not bad for a 200 word submission!   

Thousands of entries were ranked by followers of CSX on Facebook.   Finalists were then reviewed by a team of judges composed of various industry and media representatives.   Some good ideas were suggested from the contestants and two lucky winners will be selected.  Here is the video CSX used to introduce the contest, which closed May 13th. 

While the contest was cool, what I really liked was that CSX continues to promote not only their marketing message but uses it to promote ideas that go beyond railroading. 

"When CSX launched this campaign around the environment, I really questioned how this effort would help CSX move freight.  

Over time I've reckoned there are a few ways. " 

First, it raises the image of railroads as a viable domestic long haul transportation option vs trucks.  I think many younger people simply do not think about railroads.  Main stream passenger services are largely a thing of the past, so unless you have specific interest to do so,  rail isn't the first way most young professional transportation people think to move cargo. 

Second, I think the green aspect raises the profile of the railroad as an important societal infrastructure component.  This impacts government and political opinion over whether the railroad is a nuisance or a vital, economic and environmental asset to a community.  Trains moving on rail lines near your home could be seen as noisy, dirty and potentially dangerous.  However, when considering they take many, many trucks off the roads every time they move a train,  the trade off begins to have balance.   Considering that alternatives to foreign oil such as coal and ethanol move primarily by rail, the railroad now becomes an important national asset.  

By raising the positive aspects of rail freight transportation, CSX is doing a great thing for the industry.  Why would a politician vote against rail transportation or right-of-way when such vital interests are being raised to the public?    Voters are being educated here.   Given that, this whole message becomes strategic to CSX and the industry. 

By connecting with the public in new media like Facebook,  CSX is attracting the attention of young people.  Transportation is an asset heavy business with relatively few people in it given the size of the businesses involved.   When I started at United States Lines in the early 1980's,  graduates from ivy league schools interviewed with shipping companies.  Not so much any more.  That stopped being cool in the mid 80's when everybody who looked good in a pinstripe suit figured they could be a stockbroker during the Reagan years.   Reconnecting youth, particularly net savvy young people with brains to transportation is a way to bring new talent to the industry at a time when we need it.  

Lastly,  investors look at the media as well as the general public. CSX stock has climbed steadily since the 2009 economic crisis.  I think there is good reason for this.  The rails move the base commodities that power our country and many exports.   Warren Buffet thought railroads a good enough idea that he bought one.  Moreover, he decided to vertically integrate by buying a rail tank car manufacturing company.  If you are an old technology company wanting to impress a new technology investor base, why not use a forward thinking message like the environment to communicate that CSX stock is a good buy?  

All I know is that if I had bought CSX stock when I started in this business (stock in the single dollars) to now (stock in the 80 dollar range), I wouldn't be sitting in Atlanta.  I'd be in the Bahamas posting this! 

This second video is available on the CSX web site, but I think communicates the green value of rail transportation well.

Eric

Maritime Risk Management

My old colleague from APL,  Don McKay presents an informative talk on maritime risk management in association with the American Public University.   Don's talk focuses on port and cargo security.  He also discusses ways to learn from previous incidents in order to mitigate cargo and safety risk in the future.   It's an interesting talk but I wish it were video instead of just voice over PowerPoint.

Maritime Risk Webcast from American Public University on Vimeo.

An Old Dawg Talks about New Tricks. 2011 awaits.

My friend and former colleague Jerry Hempstead spent 32 years in the parcel business.  He "retired"...and I use that term loosely... in 2006.  In the meantime Jerry and his consultancy practice have been busier than most non-retired people I know.   Jerry possesses a passion for people, intellect for our business and street savvy that make him simply fun to be around if you are a freightdawg like me.  

I've been working in this field for 25 years and I learn every time I talk with Jerry.   Below he shares his thoughts for 2011.  This will be a challenging year in rebuilding the global economy.  Logistics players will be challenged across the board, ranging from carriers to 3PL's and forwarders to the integrators.   Nothing is as it was.

_____________________________________________________

I get a lot of what I would call "negative mail". Items that complain about the decisions being made by politicians. The state of the economy, the housing crisis, the dollar, our taxes and so on. Taken without context, its enough to make one depressed.

Today we are on the verge of entering a brand new year. Most who know me, realize right away that I'm an optimist. Just ask me how I'm doing when you call me... you'll know immediately.  I believe that no matter how bad things are,  I have a daily obligation to determine how I will relate to you. I choose to do so positively.

My life's passion is Logistics.   When I think about it and the future, I get excited.   I've been doing this for years, and I remain motivated about our field of endeavor. While I am retired from the firm I served for many years, I remain active in the industry I love as a consultant, enthusiast and confidant of supply chain professionals worldwide.

I'm a parcel guy first and I remain amazed at our postal system. We in the United States have the greatest postal service on the planet. I have lived overseas and can attest that our service is second to none, when you consider that every citizen has the right to home delivery six days a week. The Postal Service is actually one of the few things our Constitution says the government must provide.

The United States Postal Service employs over 500,000 people. Relative to any other postal service, ours is a bargain. $.44 for one to three day service just about anywhere in the USA is amazing. I think its the most complex logistics provider on the planet when you consider all the classes of mail, the number of pieces they handle and the myriad of sizes and shapes they transport.

As weird as it sounds, the USPS is one of the biggest customers of FedEx and UPS. Conversely two of the largest customers of the USPS are FedEx and UPS. I suspect that FedEx Smartpost gives the USPS more parcels today than any other mailer, and Smartpost has been the fastest growing FedEx service.

Two of the largest logistics players in the parcel world are U.S. companies FedEx and UPS. Take a look at how these two firms performed financially in 2010.  Fedex stock rose by 11% year to date and UPS is up 26%. I think between the two there are over 600,000 people employed globally. We can be proud of both these companies and be thankful they are American flag carriers.

I thought about our road system after seeing a television program on how our infrastructure is crumbling and that we are in crisis. I spend a lot of time "on the road", both here and abroad, and I can share with you that with all its faults our interstate and local road systems are the best there is in the world.

I have been on every continent except Antarctica and I can say that we are blessed to have the network we have today. No other country has invested like we have in our roads, with the possible exception of Germany. We have the most available and largest domestic trucking industry in the world and a workforce that for all its issues generally cares for the customer and about their mission in the transport and delivery process.

The United States has more technology, more ports, more rail track and more modern and sophisticated aviation infrastructure than any other country.  We are blessed.

I have had the opportunity to work for over three decades with a group of people who have passion for their work and for building enterprises that offer services that delight customers. I've witnessed incredible, exciting changes over those decades that have increased the speed, visibility and the consistency of the services being offered. Most of all I have shared my life with a community that has a tremendous work ethic and a wonderful sense of camaraderie that the logistics industry seems to engender.

I have made lifelong friends as a result.

So as we enter 2011 let's focus not on what the press is saying about how bad things are, and let's get to work making a difference each and ever day to make the situation better. Even if its just the pride at the end of the day, that you did your best and for those tasks to which you were assigned that day, you made a difference.

Do these Eight things in 2011.  They will not only improve your business, but your life.

1. Make every encounter with your peers, your customers, your family, your friends a positive one. Brighten up a room when you enter and not when you leave. 


2. Make an effort every day to improve yourself. don't let time get wasted away without content. Use the commute to listen to a book on tape, read a book or article, for goodness sake, what you are thinking is important, write an article. This will make you more valuable to your employer or when you might be seeking new employment or a promotion.


3. Dress like you care about how you look. People make judgements based on first impressions. Sorry but that's just life. Always look like you are enjoying the experience...over time you will.


4. Everyone wants to be assured that they are important, worthwhile and accepted. This includes your family and your colleagues. Take the time to send an email or better yet call or speak face to face and tell them they did a good job, or that you really appreciate something they did.  You will make friends for life.


5. Focus on doing the right things, doing them right and not having to do them over. Do everything as if your job depends on it. Have a sense of urgency and a sense of pride in what you produce. Be thankful you have meaningful work and know there are 400 people out these that would love to have your job (no matter how bad you think your job might be).


6. Get involved. if you are in the freight/logistics business you are remiss if you are not at least attending the local roundtable events hosted by CSCMP. There are other inexpensive and or free organizations that will expand your circle of contacts and if you pay attention will increase your knowledge of the business. Organizations like Toastmasters will help you in may ways to improve who you are and how you communicate and also make you some great friends.


7. Know what's going on with federal and local issues that impact your employer and your continued employment. Then get involved. You can communicate for free with your elected officials. Believe it or not,they keep track of what constituents are saying. You can be on the bus or under the bus. Your choice.


8. You are bright, intelligent, articulate, and motivated if you got this far in the article. Take that power and create a mission for yourself for 2011 and then put it on an index card and post it on your bathroom mirror. Make a decision that 2011 is going to be the best year of your life. List those things that are important to you and to which you will actually devote some time and create one or more things on your bucket list to accomplish in this coming year. My wife has always wanted to go to Poland, the land of her fathers ancestors. Number 1 on our list for 2011 is to get to Eastern Europe. What do you think my odds are of getting that accomplished?

Happy New Year

Jerry

Bring it On: Big Money for High Speed Rail

WASHINGTON (Reuters) – The federal government will send $2.4 billion to 54 high-speed rail projects in 23 states, the Transportation Department said on Thursday, following up on announcements made by members of Congress and governors earlier in the week.

"States understand that high-speed rail represents a unique opportunity to create jobs, revitalize our manufacturing base, spur economic development and provide people with an environmentally friendly transportation option," said Transportation Secretary Ray LaHood in a statement.

More than 30 rail manufacturers and suppliers have agreed to establish or expand bases of operations in the United States in order to build up a network of "bullet trains," according to the department.

Companies such as Germany's Siemens and French engineering group Alstom that have already established expertise in constructing the special train cars and rail lines are keenly watching how the states progress with their development plans.

The money comes on top of $8 billion included in the $814 billion economic stimulus plan passed last year.

The United States has primarily focused on building up a system of interstate highways and has lagged other countries in creating intercity passenger rail that can reach speeds over 200 miles per hour.

The federal government received 132 applications from 32 states totaling $8.8 billion, more than three times the amount appropriated, the department said.

California will receive the most money. The state has approved selling $10 billion bonds to build a rail line stretching north to south and already received $2.25 billion from the stimulus plan.

News of the awards began trickling out Monday from members of Congress. Federal law gives lawmakers the option of announcing transportation awards before the Transportation Department.

Below is a list of the states receiving money. Some projects run through more than one state, and a handful of states are involved in multiple projects.

via news.yahoo.com

The United States needs to invest in rail passenger services as an alternative to air service for regional transportation routes.

As a regular traveler, I would rather ride the train to destinations under 500 miles than fly.  You can work, use your cell phone, laptop plus have freedom of mobility based on extra room that a train presents.    Europe and Japan have us whipped on this.    The US needs to catch up.  

 

MyProgressiveRailroading.com

I usually don't spend a lot of time promoting other groups, but thought I would recommend MyProgressiveRailroading.com.   This is a professional blogging site for the railroad industry.  It provides good insights particularly into the North American rail market, light rail and industry trends. 

I get daily updates emailed to me from progressive railroading magazine, and this blog site is an extension of that excellent service.

Eric

 

Already Gone...

I've been in a rail fan kind of mood lately and reloaded Microsoft Train Simulator on my PC.  This is an old sim from almost 10 years ago, but being a transportation geek, I enjoy virtually moving trains around, especially Double Stack Trains and the old F and E unit car body locomotives... However, this is a French Duplex high speed train.  Speed to BURN baby.

That looks pretty cool...but this is a game. Check this video out. This is the real deal absolutely screaming across France.

Here's another video that compares the French TGV against the Japanese Shinkansen.  I've had the pleasure several times of riding the Japanese bullet trains.  They are fabulous.

And yes, I have a fairly current gaming computer.  I get over 50 frames per second in this old sim.

RailTrends 2010: NYC Sept 28-29, 2010

The top railroad conference in North America returns for its 6th year in New York on September 28th and 29th, 2010.   Matt Rose, Chairman, President and CEO of BNSF Railway Co. will be the honored guest, receiving the Railroad Innovator Award, presented by Progressive Railroading Magazine.   Details of the conference are below.

Make plans to be a part of it September 28-29, 2010, in New York City. RailTrends is the rail profession’s reliable source for:

• Industry insights, innovations and advancements
• Executive elbow-rubbing
• Intelligent investment information

Brought to you by two rail-industry authorities, Progressive Railroading magazine and Senior Transportation Analyst Tony Hatch, this two-day summit was carefully crafted to address the issues that matter most to rail professionals. Facilitated by some of the rail industry's most-respected authorities, RailTrends presentations will address all facets of the industry, including:

• Wall Street’s take on the rail industry
• Freight railroad executives’ views on rail in the post-recession economy
• What lenders look for in a railroad
• The Obama Administration’s position on rail policy and high-speed rail

RailTrends provides you with an amazing opportunity to connect with the best of the best from all areas of the rail industry: Shippers, Suppliers, Banks and Financial Organizations, Lessors, Short-Lines and Class Is.

Past heavy-hitter attendees include:
• Vice President, Corporate for Walmart Transportation
• Vice President and Managing Director for GATX Corporation
• Executive Vice President and Chief Operating Officer for Gannett Fleming Transit & Rail Systems
• Senior Vice President and General Manager for Siemens Financial Services Inc.
• Executive Vice President and Chief Financial Officer for Kansas City Southern

You can register for the conference at this link.

BNSF Updates Web Site

 Steve Manning, who is the Manager of web content and social media at BNSF, wrote me the other day to inform me that the railroad is updating its web site with easier navigation, improved content and much improved user tools.   check it out at www.bnsf.com.   

Make a point of checking out the really cool virtual train tour.   This flash application tells you about the parts of a rail engine, rail consist and the roles of the rail personnel involved with the operation of the train.   Really good stuff.   As a rail fan, I loved it.   

Jetwhine's Great Train Article

Happy Holidays and Happy New Year everybody.  I'm on vacation this week, but after reading a great article by Scott Spangler over at Jetwhine.com,  I thought I'd post a link to it.

Scott's article details the pleasure of train travel where available in the US as an alternative to air travel hell.   I wish it were more available here in Atlanta where we only have the Amtrak Crescent, which goes between New Orleans and Washington DC.  It passes through Birmingham, Atlanta and Charlotte on the way.  

When I was a kid,  my girlfriend, (and later my wife) lived in Birmingham.  I recall with fondness taking the train to visit her.   It was only a 4 hour trip, but pleasant nonetheless.

With air travel becoming increasingly painful due to security, cost and schedule contraction, perhaps one day America will reinvest in passenger rail.   Scott Spangler lives in Chicago, where railroad travel both east and west, is still somewhat of an option, just as it is in the Northeastern US, Japan and all over Europe.

Eric

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Berkshire Hathaway buys BNSF

Warren E. Buffett is officially a railroad tycoon, joining folks like Cornelius Vanderbilt and John D. Rockefeller.    For $34 billion dollars his investment company, Berkshire Hathaway, now will assume 100 percent control of the Burlington Northern Santa Fe Railroad (BNSF).  

Buffett has been investing in railroads and railroad rolling stock for a couple of years now.   First with minority investments in BNSF as well as Norfolk Southern Railroad.   Now, he has declared himself "all in" regarding investment in what he considers Americas economic future.

Buffett is quoted as follows regarding what is now Berkshire Hathaway's largest investment ever.

“Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer. “Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry.  “Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett. “I love these bets.”

BNSF is the largest railroad in the western US.   They move the largest amount of coal, corn and wheat from the region.   These are strategic energy commodities.   Coal is used for fueling electrical generation plants as well as for export for the same use overseas.   Corn is a multi use product, providing both feedstock for animals as well as food for people.   Further, corn is used as a raw product in the US for the production of ethanol. 

Buffett gets the concept that raw energy must move by rail. Even potential energy sources like coal shale originate mostly from within the western footprint of the BNSF, so if major fields are developed and mined, the shale oil products will eventually hit the BNSF to move to market.   Berkshire Hathaway bought control of a tank car manufacturing firm a year or so ago, so not only is Berkshire Hathaway involved in the locomotion of ethanol products, its also involved in providing leased movement capacity in the specialized equipment required.

BNSF is also a major player in the operation of doublestack trains for the movement of intermodal containers.   This makes BNSF critical to the movement of international cargoes from the US West Coast to the heartland of America. 

Eric

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