释放北美铁路增长的短线

CONTENTSIntroductionMaking tracks to short line successCreate the cultureLeverage existing infrastructureReach beyond the assetInvest in new infrastructureUnlocking the next level in growthElevating short line strategyResponsive processes, deeper collaborationHonorable mentions: technology and pricingConclusionRelated insights fromOliver Wyman 34810111213 56669 © Oliver WymanINTRODUCTIONOver the past few decades, the North American Class I railroads have streamlinedoperations, cut costs, and improved productivity, while delivering strong financial resultsfor investors. Despite this, the industry is experiencing an ongoing erosion of rail marketshare to truck— with no end in sight. As we discussed in prior articles published this year,the rail industry must develop a radical focus on growthto ensure long-term shareholdervalue, such as byconverting more freight to intermodalanddoubling down onscheduledrailroading.Additionally, at the same time that the Class I’s have been growing volumes more slowlythan gross domestic product (GDP), many short line railroads are growing faster, withsome reporting double-digit traffic increases year-over-year. With a strong customer-firstculture, many short line railroads have realized impressive volume gains in recent years byleveraging infrastructure, ancillary services, and industrialdevelopment.To better understand these dynamics, we interviewed and surveyed senior executivesrepresenting more than 300 North American short line railroads, including all of the topshort line holding companies. We also interviewed senior executives at major transloadfacilities and terminals. In this fourth paper of our 2024 rail growth series, we focus in onwhat these executives see as the keys to short line success, as well as opportunities topartner with the Class I’s to better serve today’s shippers and supply chains — therebyreinvigorating rail’s role in the freighteconomy.“Railroading at its core is about solving problems forcustomers.” Rail/terminal holding company MAKING TRACKS TOSHORT LINESUCCESS © Oliver WymanAcross the board, short line executives highlight their entrepreneurial culture andintentional focus on service reliability as the cornerstones of success in this sector of therail industry. As they mature, these railroads move on to leveraging existing infrastructureto extend rail service to underserved customers, diversifying into ancillary services, andinvesting in infrastructure to entice new customers to rail (Exhibit1).Exhibit 1:Four steps to a successful short linerailroad1234Create thecultureLevarageexistinginfrastructureReach beyondtheassetInvest innewinfrastructure•Create anentrepreneurialculture, focused onservice andgrowth•Increase share ofwallet with existingcustomers throughserviceexcellence•Offer an array ofancillary services —solve customer needsbeyond simpletransit•Attract newshippers throughindustrialdevelopment•Collaborate withcustomers and ClassI’s to findsolutions•Use transloading andinfrastructure to extendcustomerreach•Extend sales forcereach beyond theClassI’s•Partner with realestate developersto create rail-servedindustrialparksSource:Oliver Wyman2024 Short LineSurveyCREATE THECULTUREThe first thing most of our interviewees cited as critical for growth was that they hadspent time developing a culture of service and a passion for growth. As one top short lineholding company executive put it, “Short lines have that entrepreneurial spirit, that desireto help people solve problems.” Like a safety culture, this is not built overnight. The abilityto be responsive to customers and their needs must be instilled in the organization andconsistently supported byleadership.Short line leaders also expressed their willingness to take calculated risks to drive growth— that there is a need to “look at the bigger picture” — even to the point of making short-term investments to generate longer terms gains in carload growth. Said one short lineholding company executive: “if you’re going to try something new, you have to be willingto take more risk, because this industry is not fast.” And they embrace the notion thatsmall customers can turn into big customers — reporting that many successful customerrelationships often start with just a few carloads and then grow over time as the shipperlearns to trust rail and is able to grow its ownmarket. © Oliver WymanIn addition, these leaders say they are focused on working collaboratively with partnersto develop full commercial solutions that can help customers have a more “truck-like”experience. For example, a short line company through its logistics arm was able to help amajor pipe manufacturer coordinate interchanges with two Class I’s, assist at origin withan unloading schedule, and work with transloaders at destination to prevent demurrage —leading to additional unit-train volumes and market sharegains.LEVERAGE EXISTINGINFRASTRUCTUREWith a service culture in place, successful short lines next focus on understandingthe busi