Transportation Revolution Highlights SME Fall Meeting In Salt Lake City, Utah

Inflation, tight money and keen competition spur companies to consider advanced material handling systems capable of reducing cost per ton of moving ore, waste or men and supplies. Since transportation charges account for an average of about 25% of the total delivered price of a product, then this cost center may actually determine the economic value of a new deposit. This being so, it is interesting to note that of the 1.4 billion tons of revenue freight carried by all Class I carriers of the nation in 1967, over 247 million tons or 17.5% were industrial minerals or products dependent on industrial minerals, i.e., glass, gypsum board, brick, etc. Because most bulk commodities have a comparatively low market value and are usually classified for lower than normal freight rates, railroads rely on large volumes and better equipment utilization to effect an equitable return. It is for this reason that the unit and shuttle train concept came into being. The average rate per ton-mile of all materials hauled by rail in 1968 was 1.31 cents. The low rates existing for industrial minerals contributed to this low average as did unit and shuttle train rates.