Business Opportunities Created By Increased Rail vs Truck Competition
As systemic driver shortages and electronic logging data requirements result in the tightening of trucking supply and therefore trucking price increases, domestic and international cargo owners are starting to look more closely at rail options. This is the case not only for shipments travelling more than 500 miles, but even for shorter distances where rail was once viewed as uncompetitive. Except in high density, long haul rail corridors, ex. Los Angeles to Chicago, there are both opportunities and challenges that require intense logistics management in order to create rail competitiveness, particularly along shorter distances and in less dense corridors. As the problems associated with trucking persist in the US and become more challenging for shippers, we're confident that expanded rail route/products will be offered to meet the need. In California for example, with the added complication of the State's increasing focus on environmental stewardship and reduction in greenhouse gases, we foresee expanded opportunities for market-to-seaport rail logistics. Our 2,000 acre Mid-California International Trade District project is designed to act as an inland port asset to seaports in Los Angeles - handling inbound cargo for inbound distribution and industrial supply chains, and outbound cargo from the massive agribusiness base and from manufacturing. We believe that there are similar opportunities in other strategic settings.