NS creates "Empire Link" with NY shortines

Here is a story about how NS is creating the "Empire Link" with 10 New York State shortlines.

http://www.progressiverailroading.com/n ... p?id=16811

Take that Pan Am



Chris,

Lancaster, CA

I don't really understand what is being done here. Short lines work with the class 1's to send out and receive cars for the companies they serve everyday. What is the difference between this "Empire Link", and the way cars are usually handled?

SimTrains wrote:I don't really understand what is being done here. Short lines work with the class 1's to send out and receive cars for the companies they serve everyday. What is the difference between this "Empire Link", and the way cars are usually handled?

It seems like NS is simply stating that they are pro-shortlines in markets where they haven't the current and on-going focus to improve service. No harm, no foul. More and more the class ones are becoming simply long-haulers with the shortlines doing the customer service.

I don't really understand what is being done here. Short lines work with the class 1's to send out and receive cars for the companies they serve everyday. What is the difference between this "Empire Link", and the way cars are usually handled?

If you read the story this agreement focuses on local traffic (from shortline to shortline) to take advantage of the rising gas prices and taking some of the traffic away from trucks on not time sensitive delivery (like salt or grain).

Chris

Could be a cost-cutting scenario...let the short lines screw around with the short haul traffic while NS does the "real"work! I've got to wonder how the Gang Mills guys doing a lot of this work right now feel about the situation (though I don't expect it to be utilized right away).

I do have to laugh at the underutilized bit - why stop at Silver Springs? Does the 5-days-a-week H2R REALLY make that big of a difference between Silver Springs and Buffalo? Or does NS just want to keep the lucrative Buffalo gateway to themselves? There is definitely underutilization, however - evidence of which is that NS runs 39T via the siding through Hornell just to remove rust from the rails!

SimTrains wrote:I don't really understand what is being done here. Short lines work with the class 1's to send out and receive cars for the companies they serve everyday. What is the difference between this "Empire Link", and the way cars are usually handled?

It sounds like it is more a joint-marketing effort than anything else. Unless NS starts to re-arrange the schedule to expedite more local deliveries in their proposed corridor...

It also appears that with NS' most recent corridor ideas, they are looking for more business in New York and New England where CSX has had its fingers in both buckets for so long. Any new rail development is welcomed by me as long as it will not be detrimental to the currently operating railroads. More trucks off the road is a good thing in my opinion, it makes driving a little safer, less crowded, and the railroads make some money on it. Win win win in my opinion.

More trains = more gooder. More cooperation between shortlines and NS = more gooder.

-otto-

It could be possable that NS is looking to better improve faster pick up and drop off of cars with its interchange partners? Something that CSX has been lacking in for some time know. I had heard storys about CSX not picking up cars on a timeley matter from area Shortlines. I rember for a while a lot of CSX & Chessie Cars going into Auburn, NY to the bottle plant all of which came off of CSX. It would apear that they lost the contract to NS?? as there are more N&W and Winchester & Western Cars than I could shack a stick at. Some of this loss may have come from better and faster service connections from NS. It did seem that last Summer CSX left the FGLK and outher shortlines in the area hanging for days and some times weeks with out picking up cars in Lyons, NY when the Yard was closed there. Hopefully this exparament will work??

The key to understanding Empire Link is right in the second sentence of the NS press release: "Empire Link" allows the short line (my emphasis) railroads to market excess rail capacity on NS's Southern Tier main line between Binghamton and Silver Springs".

It's a significant innovation in the ratemaking process. It will be watched closely by the industry.

Under "EL", participating NS partners will now have greater latitude to initiate truck-competitive rates on short haul moves that use the NS Southern Tier Line as a link. For example, traffic originating on FGLK that wants to move to a WNYP destination -- or traffic for the NYSW that has an LAL origination.

Before "EL", it has been difficult or impossible to construct rates for such three railroad moves that are attractive to shippers. The "Empire Link" should also speed up and simplify the ratemaking process. In the past, as shippers know, this has been cumbersome and time consuming.

Thanks for that analysis. Is this anything like the old "Conrail Express" shortline partnership program?

-otto-

No, it's not a rehash of Conrail Express. It's a new concept -- although it is rooted in some of the principles of the Rail Industry Agreement (RIA), to which all seven Class 1's and most of the short line industry are signatories.

NS has, in fact, empowered its upstate New York short line partners to be creative and competitive when they market short haul traffic that is new to rail. This is a market segment that the Class 1's have pretty well kissed off as they pursue long haul business.

"The empire link should mean more business – not more jobs going to work, just more cars to handle with most of the jobs. This will, in turn kill our budget (which is determined by the previous year) and add to our man hours, however, it should be financially advantageous for us." and {already} "no crews to run trains out of Binghamton (CP makes sure of that)", Interesting.

I like the term EL.

Anyway, that's right blabey, the rate structure is what it is all about. I've been dealing with NS Development as the saga for a transmodal facility continues in Elmira. Coldiron Fuel gets tank cars out of Bradford and Corning/World Kitchen gets sand out of Mapleton U.S. Silica, both shortline shorthaul B&P(Coldiron interchange at Salamanca of all things),WNYP,NS off the ZYT turn at Hornell.

It's all good. But, what is glaring here is the communication of marketing to operations and the effect thereof. Bison is underutilized while Gang Mills is a hub and cloggedwith trains parked (often H88 returns) at A&P Industrial in Horeheads and, Baker St. Yard, Gang Mills Runner (old #1 main west of CP-Erwins) and Elmira is the stage for the Mahoopany Turn, Sayre Turn, H88 to Binghamton, Ithaca Turn delivered by the Sayre turn - MT Salt hops today. FGLK boxcars and Nucors are shorthaul. Sand for FGLK Guardian plant in Gene, etc. Oh, I've got a market study for ya.

Operationally, the Ithaca, Mahoops, and H88 can all grow. 309 and 310 are nearing a limit again where extras are needed. It's all good.

I just want one call for one rate. One call for one rate. Hello, "how much for my urban ore to go from Hither to Yon." In many instances, my computer can't deliver that interline and interchange pricing. Sometimes it's easier to back through the system, say, call Mr. Eagan at WNYP for rates. It's easier and more personal service.

I look forward to your comments and suggestions. Also, I need a big distributor to come in here instead of these local guys as they still need to be educated about rail service and I'm running out of breath. And why should I do NS marketing work?

There are errors here, but it's the end of the day here at the office. I'm going to work on the pool. I'll check back in the morning.

How much of this trackage (or generally speaking trackage in NYS) still CR Shared Assets, and what effect does that have on this plan? That always confused me.

By the way, I'm surprised that the mention of "excess capacity" in conjuction with "Southern Tier" hasn't bought out the usual posts about Binghamton service via PJ, or suggestions that NYS lease the line. Not that I want to start that topic up again......