The Intermodal Freight Program was established to develop and demonstrate profitable improved rail intermodal service (the movement of highway trailers and/or containers on rail flatcars). Emphasis was placed on developing the use of multiple frequency dedicated trains in intermediate distance markets (200-600 miles) dominated by trucks. Railroads operating demonstrations approved under the program were eligible for federal assistance covering 40 to 60 percent of operating losses during periods required to attain profitability. From June, 1978, through May, 1980, the Milwaukee Road operated a demonstration between Chicago and the Twin Cities (Minneapolis/St. Paul). The demonstration involved four dedicated intermodal trains each way each weekday in the corridor. Labor cooperation produced improved productivity in the service and improved capital utilization was attained through rapid equipment turns. A highly reliable service was developed. Milwaukee intermodal traffic in the corridor doubled from predemonstration levels with the additional business being attracted primarily from the highway. Profitability was attained during peak volume periods and possibilities for profit enhancement were identified. The experience gained during the demonstration should be of value to carriers considering similar services.
Intermodal Freight Program-Phase II, Demonstration Management
1980
131 pages
Report
No indication
English
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