rails show signs of rebound

Like their counterparts in air, ocean, and truck transportation, railroads have responded to the recession by cutting capacity, slashing payrolls, and pulling thousands of pieces of equipment out of service. But that may not go on much longer. One industry observer says it appears that carrier executives are now confident that rail freight is on track for recovery.

One sign is that most have furloughed— not dismissed—employees. That’s an important distinction, said Christopher Aadnesen, vice president, national rail freight services for the consulting firm HNTB Corp., at the Coalition of New England Companies for Trade (CONECT) Annual Northeast Cargo Symposium. The fact that the railroads continue to pay for those employees’ health insurance and other benefits indicates they believe they’ll need those experienced hands soon. Aadnesen should know; in a past life, he was a VP of human resources and transportation at the Union Pacific.

Another indication that the rails see better times ahead is their continued investment in intermodal expansion projects like the

Norfolk Southern’s Heartland Corridor and CSX’s National Gateway. “They have not stopped spending money during the recession,” Aadnesen said. “They expect growth.” That growth will come from the Panama Canal expansion as well as from increased demand for domestic intermodal transportation, which has helped to soften the blow of declining international trade volumes.

Intermodal, in Aadnesen’s opinion, will be the catalyst for the railroads’ revival. “I think the use of railroad assets in storage will come roaring back, driven by intermodal growth beginning next year,” he said. It looks like the tide has already begun to turn, he added. “They have already begun bringing cars and locomotives back into service.”

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inbound

Though founded just four years ago, the non-profit American Logistics Aid Network (ALAN) already has an impressive track record in humanitarian relief. The group, formed in the aftermath of Hurricane Katrina, serves as a kind of logistics clearinghouse for disaster response efforts, matching aid organizations in need of logistics expertise or services with companies willing to provide that support. Some examples of ALAN’s accomplishments include the following:

; Bringing together Feed the Children and vendors of Limited Brands to deliver relief supplies to victims in American Samoa after the September 2009 tsunami

; Assisting with transportation and logistics to deliver protective firefighting gear donated by Montgomery County, Md., to Haitian firefighters

; Working with Menlo Worldwide Logistics to distribute pallets of bottled water to Feeding America food banks across the country

; Helping Invacare Corp. connect with Catholic Charities and donate much-needed mattresses, wheelchairs, and walkers for disaster relief after Hurricane Gustav.

Disaster can strike at any time, and help is always needed. If you or your company can donate supply chain expertise, products, equipment, or transportation/warehousing services, contact ALAN at www.alanaid.org.

buddy, can you spare some logistics
expertise?

We work hard here at DC VELOCITY to bring you the best-written, best-designed magazine and Web site in the industry. Our greatest reward for all that work is your satisfaction and loyalty, but we certainly don’t mind being recognized for excellence in other ways—like awards. In fact, we’ve recently received three awards from professional associations.

“Outbound,” the lively commentary on the world of logistics and current events that appears on the last page of each issue of DC VELOCITY, received a 2009 Northeast Region “Azbee” award from the American Society of Business Publication Editors (ASBPE) for Best Staff-written Column.

And in what has become an annual tradition, Director of Creative Services Keisha Christopher won yet another award from Graphic Design USA for Overall Magazine Design. Her work for DC VELOCITY has been recognized by GDUSA every year since the magazine was launched.

Finally, the article “how green are your pallets?” which appeared in the November 2008 issue, received an Honorable Mention in the 2009 Outstanding Material Handling and Logistics Content Award Competition conducted by the College-Industry Council on Material Handling Education (CICMHE).