Association of Rail Shippers July 17, 2018 Customer First Safety - - PowerPoint PPT Presentation

▶
association of rail shippers
SMART_READER_LITE
LIVE PREVIEW

Association of Rail Shippers July 17, 2018 Customer First Safety - - PowerPoint PPT Presentation

Feb 12, 2024 475 likes •799 views

Watco Perishable Express Midwest Association of Rail Shippers July 17, 2018 Customer First Safety Always! 1 Agenda Quick (I promise) Watco Overview Existing perishable supply chain issues Perishable Express supply chain

slide-1
SLIDE 1

Customer First – Safety Always!

Watco Perishable Express – Midwest Association of Rail Shippers

July 17, 2018

1

slide-2
SLIDE 2
  • Quick (I promise) Watco Overview
  • Existing perishable supply chain issues
  • Perishable Express supply chain
  • Questions/Discussion

Agenda

slide-3
SLIDE 3

Customer First – Safety Always!

Customer First Foundation Principles

3

Value Our Customers

  • Earn their business every day by providing Safe, Accurate, and

Timely Service

  • Create solutions that deliver value for our Customers and Watco
  • ver the long-term

Value Our People

  • SAFE Service, ALWAYS
  • Be Honest and Fair

Safely Improve Every Day

  • Always do the right thing and always try to find a better way
  • Build a tremendous future by making decisions that protect our

Customer, Team, Community, and Environment

Customer First - Safety Always!

slide-4
SLIDE 4

Customer ♦ Commodity ♦ Geography ♦ Service

Watco Overview

4

Geographic Diversity

We operate 38 railroads, 31 mechanical shops, 87 terminal and port operations, and 31 switching locations in 37 States, 1 Canadian Province, Australia, and Mexico.

slide-5
SLIDE 5

Watco Overview

5

Unique Services Offering

14% of 2017 Revenue

  • Formed joint venture with The Greenbrier Companies

effective July 18, 2014 (“GBW”)

  • Provides repair and maintenance services
  • 31 mechanical facilities
  • Tank Shops
  • Freight Car Shops
  • TTX Shops
  • Mobile Repair

53% of 2017 Revenue

  • Second largest short line operator (largest private
  • perator) in North America with 38 short line railroads

in the U.S. and Australia

  • +440 locomotives
  • +4,200 railcars
  • +5,100 track miles
  • +1MM car loads transported or switched
  • 31 switching and other operations
  • Operations in 29 states and Australia

25% of 2017 Revenue

  • 87 Terminal and Port Operations
  • Transload Terminals
  • Marine Terminals
  • Specialty Terminals
  • Service Offerings
  • Dedicated Contract Facilities
  • Merchant Terminals

8% of 2017 Revenue

  • Opportunity to solve Customer supply chain needs
  • 15 Supply Chain Service Centers
  • End to End solutions
  • +25,000 Licensed Motor Carriers Under

Contract

Supply Chain Services Mechanical Services Transportation Services Terminal and Port Services

Customer ♦ Commodity ♦ Geography ♦ Service

slide-6
SLIDE 6

Initially: Protecting rail shipments of our shortline’s biggest commodity (fresh potatoes) by innovating service, facilities, and equipment (the Supply Chain) Now: Building a new supply chain using the most efficient equipment and new technology with the rail industry’s best service to build incremental perishable rail traffic

Perishable Express Goals

slide-7
SLIDE 7

Eastern Idaho Railroad

slide-8
SLIDE 8
  • Service: 20-30 day one-way cycle time
  • Equipment: Retiring 50’ ARMN fleet - 2.5:1 truck conversion
  • Damage: Consistent 5-20% damage per rail load due to existing slip sheet

pallet loading

  • Dunnage: Customers paying $500-750 per load to secure slip sheet pallet

loading (particularly in fresh shipments)

  • Loading/Unloading Time: Slip sheet pallet loading/unloading takes 5-6

people 4-5 hours per car to load/unload a car

Things To Fix

slide-9
SLIDE 9

Learn About The Market: Current Truck Lanes

slide-10
SLIDE 10

Customer First – Safety Always!

Burley, ID - Market

slide-11
SLIDE 11

Customer First – Safety Always!

Idaho Falls, ID - Market

slide-12
SLIDE 12
  • Service: Use Class 1 premium service
  • Equipment: Use the largest most efficient car
  • Damage/Dunnage/Loading & Unloading: Use new technology
  • Bundled Pricing and Tracking “Farm to Table”

What We Did

slide-13
SLIDE 13
  • Burley Warehouse
  • New Car, New Equipment (Racks, Rollers)

– 72ft Car, 4:1 truck conversion – Racks, eliminates dunnage, speeds loading, reduces damage, gets down to “pallet level” customer)

  • Service (UP “Food Train”, NS Intermodal)
  • Bundled “farm to table” pricing and tracking using Watco Supply Chain

Services

  • Not just fresh potatoes now (butter, onions, frozen potatoes) – flexible to ship

multiple commodities per load Truck competitive product to the Northeast (and soon to be Midwest)for Idaho Shippers

What is Perishable Express

slide-14
SLIDE 14
  • UP Food Train

– EIRR connects at Minidoka and Idaho Falls and hits the Food Train at Pocatello – < 3 days Pocatello to Global 3/Rochelle; Train ZWACYP – UP intermodal train (Rochelle – Chicago) connects to NS; Train IG3AH

  • NS Intermodal

– Cars run on priority UPS intermodal trains Ashland Ave/Chicago – Harrisburg, then Harrisburg – Bethlehem; Trains 24Z and 22V Total transit time Burley – Bethlehem has ranged from 7-11 days (the 11 day trip was during the blizzard of early 2017)

Train Service

slide-15
SLIDE 15

A Sight For Sore Eyes – Getting Through Chicago

slide-16
SLIDE 16

– Watco acquired the Burley, ID Warehouse to feed Food Network. – Developed a trucking strategy with a local Idaho trucker to deliver product from customer sheds to the Warehouse. – Joint marketing with customers to win business.

Origination Terminal

slide-17
SLIDE 17

Customer First – Safety Always!

Destination- Bethlehem, PA

slide-18
SLIDE 18

Equipment - Refrigerated Boxcar Specs

  • Partnered with ARX (Fed Ex freight movement/rack system)
  • GBRX and TILX Refrigerated Boxcar Specs
  • ~179,000 lb. net weight
  • 20 Racks / 80 pallets per railcar
  • 4:1 Truck to boxcar conversion
slide-19
SLIDE 19
slide-20
SLIDE 20

The Rack and Rollers System

slide-21
SLIDE 21

Loading

slide-22
SLIDE 22

Inside the Car

slide-23
SLIDE 23

Total Package

  • Utilizes Patented Racking / Roller System
  • Eliminates damage
  • No dunnage
  • No blocking/bracing
  • Faster and safer load / unload
  • Premium Rail Service
  • 7-9 day normal service
  • Truck competitive
  • Added capacity
  • Manifest to Intermodal
slide-24
SLIDE 24

Customer First – Safety Always!

7

slide-25
SLIDE 25
  • Fully integrated and flexible supply chain

– Trucks – Warehouses – Rail – “One Price”

  • 4 Cars In Service / 21 In Service by 3Q
  • 3 Tables In Service
  • LCL “Pallet Level” Shipping via the rack system

– Mixed products – Mixed customers

Where are we today?

slide-26
SLIDE 26
  • Eastbound Examples of shippers utilizing Perishable Express

– Fresh potatoes from Burley, ID to NJ for cruise ships – Fresh onions for restaurants in NY, NJ – Mixed loads of fresh onions and potatoes for grocery stores. – Frozen butter for croissants for LeCoq Cuisine in CT and for cookies for David’s Cookies in PA and NJ – Frozen French fries from Caldwell, ID to PA. – Frozen potatoes products from Caldwell to New England destinations.

Commodities

slide-27
SLIDE 27
  • 21 total cars in service by 3Q
  • 5 tables in service by 2Q
  • Setting up additional origins and destinations

– Rochelle, IL (Midwest Market)

  • Turn Nampa (BVRR interchange) on to UP Food Train
  • Continued fleet expansion
  • Developing Backhauls

– Shipped our first backhaul last week (Boston Beer Co. and other NE micro brews to Seattle from Bethlehem) – 3x 2000+ mile loaded hauls in a month

What’s Next

slide-28
SLIDE 28

Customer First – Safety Always!

Future Destination - Rochelle, IL

slide-29
SLIDE 29
  • Focused Origins and Destinations
  • Must connect well with intermodal/premium service network
  • Shortline or Class 1 delivery: Both work
  • Extremely short turn time on equipment

The Secret Sauce

slide-30
SLIDE 30

Thank You