Page 85 - BizVoice May/June 2013

May/June 2013 – BizVoice/Indiana Chamber 85
E ver been stuck in a traffic jam in Chicago?
Your frustration was likely as palpable as
being a Cubs fan in October.
But imagine if that delay was costing
you not just time, but money. That has been the
logistical reality for many Hoosier companies
that have used Chicago’s railroads and steamship lines for
importing or exporting. Citing numerous challenges, delays
have plagued businesses that rely on efficient shipments.
Some key players hope that will change this summer
as a new intermodal (movement of freight in containers by
a combination of transportation methods without reloading)
rail hub is set to open in downtown Indianapolis. The
facility stems from a unique partnership between Canadian
National Railway (CN) and The Indiana Rail Road Company
(INRD) – expanding the railroad’s existing terminal on
Senate Avenue (near Lucas Oil Stadium).
Time is money
As a whole, Indiana’s logistics industry moves nearly a
billion tons of freight to and from the state every year,
according to Conexus Indiana, which endorsed and
facilitated the project and has been working toward its
development for a number of years.
“It’s all about customer service – and anything dealing
with customer service today is all about speed,” contends
Chip Edgington, chairman of the Conexus Indiana Logistics
Council and executive vice president of operations for OSP
Group (formerly Redcats USA). “We’ll take any opportunity
to get product into distribution centers since logistics is a
big part of our economy – it’s about cutting down days.”
He projects that circumventing Chicago will help some
Indiana importers and exporters shave three to five days –
perhaps more – off of travel time.
The route will now include shipments into and out of
Canada, with INRD and CN providing the rail connections.
Previously, many shipments arrived at Long Beach on the
West Coast and were transported through the Chicago
bottleneck before coming to Indiana.
Eric Powell, intermodal and economic development
manager for INRD, describes the enhancement as a “game
changer” for the state.
“I’ve had industrial real estate folks tell me that in
previous years they’ve lost deals to cities with a more robust
intermodal presence,” he reflects. “Indianapolis has great
highway access and a great airport, but didn’t have
intermodal access – particularly from the West Coast. This
will make the region more marketable to other logistics-
minded companies that are considering moving here.”
He believes the partnership enhances INRD’s presence
and has the small railroad poised for big things.
“We felt it was a good opportunity for another market
for our services,” Powell asserts. “We have a 500-mile network
that we operate on, so obviously we’re a relatively small railroad.
This wouldn’t have worked without a partner – one of the
big Class I’s (the Surface Transportation Board assigns Class I
status to the largest railroads based on operating revenue) –
and the one that made the most sense was (CN).
Fast Track
New Intermodal Hub a ‘Game Changer’
By Matt L. Ottinger
The open area in the middle of the yard is where construction of
the intermodal facility is currently underway. When completed,
the facility will consist of two 1,350-foot loading/unloading
tracks with 100 feet of paved working space in between.