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The Port of Long Beach has commissioned a study to evaluate the business case for short-haul rail that is due to be completed in the coming months.
When the port launched its Supply Chain Optimization (SCO) Initiative last year, short-haul rail quickly emerged as a strategy with big potential. The analysis will examine market demand, the anticipated costs, and the next steps if the findings support shuttling cargo by rail between the port, markets and warehousing districts within 100 miles of the harbor.
A short-haul rail service could take more cargo off the highway and add more consistency to delivering it inland. Regional benefits include reducing traffic on the region's impacted highway system, with one double-stacked train eliminating up to 750 truck trips.
"Short-haul rail is a key component of a broader
port rail expansion strategy to enable our regional supply chain partners to achieve significant gains
in velocity, throughput and environmental improve-
ments," said Port CEO Jon Slangerup. "We're
taking a comprehensive look at the feasibility of
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this concept."
Up to 70 percent of containerized imports that move through the San Pedro Bay ports leave the harbor complex by truck. Of that total, about 40 percent are headed east for distribution centers and warehouses in San Bernardino and Riverside counties known as the Inland Empire.
The short-haul rail concept is not new, but today, the dynamics have shifted. The cost of drayage to the Inland Empire is substantially higher and freeway commutes are slower than ever. At the same time, the Class I railroads are experiencing a decline in business due to a slump in commodities such as oil and coal.
For the ports and marine container terminal operators, a major driver is the advent of megaships delivering more cargo in a single call and during the same four or five days per ship as previously with smaller vessels.
The study will address cost, velocity and reliability.
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