Short-Haul Opportunities For Moving Minerals By Rail ? Summary

Railroads are cost competitive with trucks for hauls greater than 500 miles - WRONG. Today I will tell you about many rail movements of less than 100 miles throughout the country. Rail is a short haul transportation alternative you must consider. Transportation today is the largest controllable cost in the total cost of production of goods. In fact it is the one cost area where aggressive management, using new tools, can achieve significant reductions. You can't control the price of metals in the world market, you can't control labor rates since they are tied to industry norms, and the price of raw materials are relatively insensitive to specific price reductions to your firm. Transportation is the one area where major savings are now being realized. Sample Movements First, I will give you several examples of short haul rail moves to make you a believer that they do exist. Then I will show you the reasons why railroads suddenly "like" short hauls.