RailRunner has positioned itself in the market place as a technology which may be utilized to enhance or feed the existing double stack networks as well as to provide or allow for an intermodal option in markets that have been traditionally truck served. These are enormous markets which present significant opportunities. In the US short haul sector alone, which we define as trips in the 300 to 800 mile range, over 200 million trips are made annually, worth an estimated USD 300 billion. On a revenue basis, trucks currently handle in excess of 90% of this business. RailRunner provides an economically viable and environmentally sound opportunity to convert this current truck traffic to rail.
Trucking companies compete with other industries for cyclical labor. As the economy recovers, driver capacity will tighten. The result will be higher truck prices and more difficulty finding a truck to service the customer. Improved consistency in rail service provides an opportunity to convert this traditional truck traffic to rail, providing the same consistent service but at a lower price. Improved service performance by the rail also eliminates the need for safety stock or increased inventory float to insure product is available. RailRunner technology provides the opportunity to benefit from the economics normally associated with rail in markets not currently serviced by rail or in markets that are currently underserved. A RailRunner train can transport 150 truckloads with a single locomotive and a two man crew. The benefits of reducing this congestion from our highway systems are numerous and significant.
Capital costs associated with RailRunner terminals are significantly less than a traditional intermodal facility. No specialized container lift equipment or costly surface preparation is required. Terminals may be scaled to accommodate high or low volume operations. In the event of a rail disruption, the RailRunner technology provides the flexibility to move the container over the road to protect service commitments. In addition, RailRunner is more energy efficient due to the light weight rail characteristics, radial steering and aerodynamics.
In certain situations, RailRunner offers the ability to load containers at heavier weights than normally allowed on roadways. When the RailRunner chassis are loaded and moved to rail without accessing highways and transported directly to railroads for unloading or movement via stack train service, containers may be loaded heavy. Loading products such as grain or other agricultural products in this manner allows the shipper to enjoy a significant reduction in transportation costs when expressed in a per ton price. The flexibility provided b a RailRunner terminal makes this economic savings a reality for a wide range of products and markets.
Whether you need to move manufactured goods, raw materials, MSW, agricultural products or other products, RailRunner has an application for you.
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