A Solution to Jacksonville's Logistics Problems

[Coolyfett]

Concrete huh? Interesting.

[fieldafm]

Let's be honest.  If it were really a top priority of CSX, they'd pay for the facility and the Springfield bypass themselves.  While they may be talking, no one has come to the table in the aggressive manner that improvements are taking place in other areas of the country, such as the National Gateway project.

To be fair, and you can go to their annual reports... the Midwest has been identified as a significant long term push for the company.  They're trying to increase freight traffic from mfg centers to the east coast and long-haul freight is a significant profit center as competition is significantly small due to high barriers of entry.  I think they are very interested in increasing cheaper/more efficient rail traffic through Jaxport, they just want the port to pay for some of it(Hundred and a half million in investment for activities that generate hefty profit margins, versus 60 or so million in investments for smaller profit margins... hence they want the port in on the upfront investments too).  And Jaxport has to get motivated to get more money, and they are seeing that... case in point, the search for a replacement for Rick Ferrin... who again, was a great operational man and very well respect(deservedly so).

You're right, it's not their top priority, but its important to both parties(definately the TOP priority for Jaxport IMO).  Long haul freight has higher margins and as such is a higher priority for the rail company, but Jaxport knows its losing out to Savannah whose traffic would still flow through Jacksonville by land.. and the port loses out on money for cargo that would ultimately touch Duval County soil if it gets offloaded by sea an hour and a half up north of here.  CSX is going to get the freight traffic in either scenario, so obviously they know the carrot is in front of Jaxport so they want Jaxport to bring some good money to the table.

I will reiterate my idea for a dedicated funding liason for the port by COJ.  Having a Paul Hardin-type lobbying for funding sources and joint partnerships/deals with logisitics companies would be significant for our community.  I tend to think they envision their new CEO to be this type of person, but a CEO has to wear many hats... which is why a person dedicated to lobbying for federal/state money and to put together deals like say a joint partnership CSX/Jaxport rail offload terminals would be beneficial.

Looking forward to Ock chiming in about the technical details...

[thelakelander]

At the end of the day long term, a CSX only accessible port is not the answer if JAXPORT wants to be the major player in this country or even the East Coast, that they claim they want to be.  To play in the big leagues, you'll got to put yourself in the best position to compete.  Looking at the assets of competition, that position should include an attempt to make you customers accessible to multiple rail carriers.  On the other end, Jacksonville should not be isolating JAXPORT logistically.  What impacts the port also impacts the rest of the community.  Solving our logistic issues from a holistic standpoint will open the door to additional financial opportunities that JAXPORT can't take advantage of today.

[Ocklawaha]

This is not some weird untried concept...


Even small towns own and sometimes operate their own railroads...


There is not a lot of profit in this photo for CSX, but a Terminal road might make a buck off those cars...


There is a pay-off...

Let's sort through this mess huh?

1. JAXPORT ALREADY HAS RAIL! YES! WE HAVE IT! I think about one more "Jaxport needs a rail connection" post and I'm going to hit my pain free potion...

2. Anyway we cut it, today-this moment, if you have a heavy shipment of containers headed to Titusville or Macon, you can route via any of our 3 carriers. Railroad's are in competition but always mindful of NETWORK.

As an example let's say 5 double stack cars daily of containers move from Jaxport to a food processor in Titusville. Keep in mind, this same day 40 cars of containers move out to the north via the CSX - off the Jaxport spur - Yulee - Gross - Callahan - and right into Waycross where CSX will create trains and hustle them northward.

Now back to those 5 cars for Titusville. Obviously they are moving over the Florida East Coast, as nobody else get's anywhere near Titusville. Each day the cars come off the Blount Island spur over the CSX, but 5 cars doesn't make a train. So CSX shoves these into a pocket track and waits 4 days so it can economically pull 20 cars to Moncrief Yard, already set up for delivery to the FEC.

The crew ("job" in RR slang) only works the Blount Island-Moncrief segment, so the cars spend the night in Northwest Jacksonville. The following day a "transfer job" moves 59 cars including the 20 container cars down to Bowden Yard on the FEC. From there the FEC will get them to Titusville ASAP, usually within hours.

For the FEC the economy of speed (competition) from truckers may be so poor that they lose the entire daily shipment to the highway, after all was said and done, while it might be far cheaper to use the rails, 5 days to get across Jacksonville was just unacceptable to the shipper.

3. Multiply this times every shipper using the FEC or NS - Houston we have a problem.

4. Note that even with a new 60 million dollar yard, we are not boosting our position in the shipping world one bit.  Nothing in this example is changed with such a yard.

WHAT IF:

1. The city purchased the trackage from Yulee to Maxwell House and everything east thereof, the city also rebuilds the short segment between Jacksonville Terminal and Springfield yard, where it intersects the line to Yulee, this right of way is already city owned.

2. The city leases the track to a shortline operator, in this example we'll use Talleyrand Terminal Railroad as our "operator."

3. The city taps both new intermodal terminals with direct railroad connections as well as constructs a small recieving yard for intermodal loads.

4. Each day Talleyrand Terminal will send it's jobs to Blount Island to switch the port terminals and whatever intermodal yard we end up building. They pull out loads headed to each railroad, as they use smaller equipment, they might choose to do this in 3 trains. So our 40 cars for CSX, arrive at the interchange either at Yulee or Panama Park Jct. ready to roll. Within a couple of hours, 2 other trains have made delivery's of short cuts of cars for both NS AND FEC. These moves could be nocturnal or midday.

5. CSX divests itself of terminal track which carry's a higher risk, harder to work and maintain. While it retains 100% of it's traffic it is able to move that traffic over lines with a much better operating ratio then twisting industrial and port trackage.

6. Talleyrand Terminal would cut a rate deal with each carrier and earn a share of the revenue per car originated. Terminal charges are likely to be flat fees, thus development of new industry is a primary key to shortline successes. The Terminal Company has an incredibly light operating overhead, meaning they CAN profit where giants fail. Perhaps it comes down to: several small trains working constantly to do a great job = one big train that gets a job done.

7. Now with direct Jacksonville Terminal (DOWNTOWN TRAIN STATION) connection the city/state is free to initiate commuter service over the same trackage which would likely run from the Airport Road to downtown, and depending on shortline operations, perhaps into Fernandina Beach (Center St. Station).

OCKLAWAHA

[fieldafm]

Ok Ock(thank you btw)... since you posted a picture, tell me about Tacoma(oddly enough, another big customer of Mitsui OSK).  They have a decent sized port and a railyard run by the local utility company.  Any links to case studies about their system?

How much would it typically cost to construct such a system?  
What would the typical operating costs be?  
What would be the potential revenue generated?  
Who would administer such a system?  
Are there other municipalities that have shared lines for commuter rail and city-run intermodal services?  
How would this shared line work, aren't their congestion limits on tracks to consider?  If you're talking about say 60 minute headways for commuter rail, and then moving freight as well... how would you keep the lines from running over 50-60% capacity?(isnt this the standard to keep under?)

How would this be cheaper and/or more efficient than partnering with CSX and investing in intermodal container offload terminals?(estimated to be about in the $60million dollar range)

[thelakelander]

Thanks for the detailed response Ock. In addition to this, potentially using this same track for commuter rail, improvements that help JAXPORT could also be funded with federal New Starts money.  That's something that could fund a lion's share of the cost that isn't available to JAXPORT today. Also, since the line would be municipal owned, millions would be saved by not having to lease ROW from CSX or anyone else. Furthermore, if you follow the FEC model, as the port grows, land adjacent to the rail line could be developed into TOD, industrial and manufacturing uses, strengthening the city's tax base and putting people back to work.

[thelakelander]

The CSX only intermodal yard still doesn't get shipments to FEC and NS in a timely matter.  That's probably the largest downfall with such an idea.  You're dropping $60 million and still not solving the ultimate problem.

[fieldafm]

In addition to this, potentially using this same track for commuter rail, improvements that help JAXPORT could also be funded with federal New Starts money.

When is the time to apply for the 2012 round of transit money?  

[fieldafm]

The CSX only intermodal yard still doesn't get shipments to FEC and NS in a timely matter.  That's probably the largest downfall with such an idea.  You're dropping $60 million and still not solving the ultimate problem.

Currently, about how much cargo gets rerouted through trucking companies b/c of this 'gap' in the supply chain?

[tufsu1]

In addition to this, potentially using this same track for commuter rail, improvements that help JAXPORT could also be funded with federal New Starts money.

When is the time to apply for the 2012 round of transit money? 

you must first conduct preliminary environmental studies before getting in line...and then its a political game.

if we get started on those studies in early 2011 (as JTA plans to do) then we might be able to get in line sometime in 2012...but more likely 2013 or 2014

[fieldafm]

And then typically you're looking at what, 40-50% of your startup costs if you're succesful in getting the money?

[tufsu1]

Feds used to fund 80%...now it is as low as 50%

[thelakelander]

If the 2030 Mobility Plan passes council, additional money generated by the Mobility Fee could be combined with other funding sources as well.  Politically with Mica and Brown (both strong advocates for commuter rail) in position to help, I think we could fare pretty well if we came to the table with a true multimodal solution and local money for matching opportunities.

[Ocklawaha]

The beauty of this whole concept is that it's a WIN WIN for EVERY player...

CSX, NS, FEC, JAXPORT, COJ, JTA, FDOT...

OCKLAWAHA

[spuwho]

The only concerns I bring up on the use of the "S" Line as a primary connector;

- A 50 unit dual stack container train moving at essentially yard speed through central Jacksonville at grade will cause some crossing congestion. If these are deferred to night service to facilitate through traffic, then noise will be a concern, especially as it horns to switch or cross non-signalled crossings.

- I agree that cross use for a commuter like system is ideal, but only if freight is moved at night. Freight switching and on time commuter schedules don't mix, especially if the container stacks are long unit types.

- COJ can't fund it without significant contributions from the Feds and FDOT.