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May16
Fuel Costs To Change Delivery And Distribution?

Interesting article. How might this change the business climate - let me count the ways.

KMMblogTrain.jpg

I live in an area that relies a lot on trains. My home is actually within a mile of a line. I grew up 5 houses from a rail line. Back then it was fun to nail the Chessie Systems cat with snowballs. But I digress...

Railroads in the U.S. are poised for growth.

The nation faces escalating fuel prices and one way to save fuel is only a rail away. As the volume needs of transportation continue to climb, railroads may well be a major part of the answer. Although trucks continue to transport about 75% of the total value of shipments in the U.S., rail can be seen as a long-haul substitute for a good deal of this traffic.

Seems like a reasonable assessment of the situation. But here's an angle that businesses might have to address.

A major part of the rail solution will be dependent upon the increase of the miles of track far beyond what we now have. This can mean double- and triple-tracking along routes for which the rail companies already have right of way.

Near where I live, the rail system actually reduced a double-track down to a single track, and then re-routed much of the traffic. You should have heard the uproar. Communities that ended up with the increased train traffic - and associated congestion - blew a gasket. Politicians huffed and stumped for the cameras with righteous indignation.

So even though this may seem to be a viable solution, businesses that want to move in this direction better be prepared for a long, slow battle. A bunch of moms with strollers might have a greater effect on their company's bottom line than they ever imagined!


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