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October 29 2018

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34 The Journal of Commerce | October 29 2018 www.joc.com Surface Transportation CSX TRANSPORTATION PLANS to elim- inate more than 230 domestic inter- modal and 65 international intermod- al origin-and-destination pairs on Jan. 3, forcing rail shippers to rethink how to move containers next year. The railroad also is doubling down on its commitment to drive freight through North Baltimore, Ohio, announcing it will offer service from Los Angeles through BNSF Railway as of Oct. 29 and partner to construct a logistics park adjacent to the railyard. "The January service changes are part of the overall CSX network strat- egy to improve service consistency and prepare the network for sustain - able growth now and in the future," Maryclare Kenney, CSX vice president of intermodal and automotive, wrote in an advisory to customers. "Not only do these changes further enhance the BNSF and UP interchange plans, which have improved service by alleviating Chicago congestion ahead of peak season, they solidify our inter- modal network offering." Cargo owners will face CSX service cuts in Miami, Pittsburgh, and Kansas City. Seven services out of Miami (via Florida East Coast Railway) will be slashed in 2019 to destinations includ- ing Baltimore; Philadelphia; Memphis and Nashville, Tennessee; and Cincin- nati, Ohio. International containers with Tampa and Miami destinations will reroute to central Florida in several cases. International routes into Kansas City mostly will transfer to east St. Louis, and many lanes to Louisville, Kentucky, and Pittsburgh will end alto- gether. The Port of Savannah will lose one route to Louisville, and Charleston will lose one to Miami. The BNSF-CSX collaboration is the latest move in a shifting vision at CSX for the North Baltimore termi- nal, which the railroad hopes to make a central hub for Ohio freight but also includes logistical challenges for shippers and truckers. The hub was built to divert cargo from often-con- gested Chicago, but the plan changed when then-CEO E. Hunter Harrison took over in April 2017 and sought to streamline the network by moving away from the hub-and-spoke model. Ultimately, CSX consolidated Ohio-bound interline freight using a steel-wheel interchange in Chicago to North Baltimore routings starting in September. If shippers want deliveries to Cincinnati, Columbus, or Cleveland, Ohio, they must book a crosstown dray to CSX's 59th Street terminal or Bedford Park facility. One problem shippers must contend with using North Baltimore is finding drayage drivers, according to intermodal marketing companies. Not many truckers live near North Baltimore, according to Aaron Owens of Owens Intermodal, a drayage provider serving the facility. In fact, the population of North Baltimore is about 3,500. Owner-operators don't typically like hauling containers from the rural town unless they are well compen - sated because it is nearly four hours from Cincinnati, Columbus, and Cleveland, a round trip that is difficult to complete in one day under hours-of- service regulations. Those who serve North Baltimore prefer to work within 50 miles, not the 200 mile-plus hauls to the three Ohio cities. CSX believes in North Baltimore, however, calling it a "strategically located terminal for growth and strengthen[ing] CSX's value offering to the Ohio Valley." "CSX's Northwest Ohio Inter - modal Terminal is ideally situated on CSX's main line network 30 miles south of Toledo on Interstate 75 and is surrounded by a population of nearly 30 million within a 200-mile radius. We are excited to transform Northwest Ohio into a regional demand point that provides attractive solutions for cus- tomers and supply chain needs," CSX CEO Jim Foote said in a statement. BNSF will offer departures from Los Angeles to North Baltimore five days a week in each direction through interline service. Shippers can com- bine this new service with additional East Coast port offerings from Ohio to the Port of New York and New Jersey and back. Existing UP interline services will remain. NorthPoint Development will team with CSX to build a logistics park, including warehousing, dis- tribution facilities, container yards, equipment storage, and transload facilities, on a 500-acre parcel. JOC email: ari.ashe@ihsmarkit.com twitter at: @arijashe More changes down the tracks CSX designs intermodal service cuts to 'improve service consistency' By Ari Ashe Mark Szakonyi "Not only do these changes further enhance the BNSF and UP interchange plans … they solidify our intermodal network offering." Trucking | Rail | Intermodal | Air & Expedited | Distribution

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