North American Intermodal Transportation: Infrastructure, Capital and Financing Issues
Executive Summary
More than 25 years of fast growth in international trade has left the North American freight transport system with serious capacity challenges. The growth of containerized traffic took place at a rate faster than global trade, which was itself growing faster than the gross global economic output. As an outcome, many intermodal terminals such as ports and rail facilities are running close to, if not above, design capacity. Although containerization has been a significant factor in the improvement of the efficiency of transport systems, maritime and inland alike, the current context underlines serious limits in existing practices. Logistics has placed intense pressures to manage containerized freight distribution in a more time dependent manner, placing additional challenges for intermodal terminal operators. A new wave of investments in intermodal transportation is currently underway, but yet the inherent fluctuations in market conditions and the private character of the industry make such endeavors quite prone to risks and uncertainties. For instance, the economic slowdown and volatility in energy prices have been relatively unexpected and have substantial consequences on global commodity chains and intermodal transportation. Thus, outside existing terminals that have a long standing history of generating traffic, private capital is reluctant to commit investments. Yet, intermodal transportation as a system also requires investments in new locations along the supply chain to improve its overall throughput and efficiency, namely through satellite terminals and freight distribution clusters. These new terminals and the additional capacity will also require the financing of intermodal equipment servicing their operations. The purpose of this report is to assess the financing models related to the next generation of intermodal terminals equipment. A particular emphasis is placed on the feasibility of public / private partnerships.
Table of Contents:
- 3 EXECUTIVE SUMMARY
- 5 The Intermodal Freight Transport System
- 5 Deregulation of the Intermodal Transport Sector
- 6 North America and the Global Economy
- 6 The "China Effect"
- 7 The Intermodal Transport Agenda
- 7 Nature and Function of Intermodal Terminals
- 9 Ports
- 10 Rail Corridors and Terminals
- 11 Capacity Issues
- 12 Advances in Terminal Design and Operation
- 13 Terminals and Equipment Needs
- 14 Intermodal Equipment Pools
- 15 Transloading
- 16 Freight Distribution Centers and Distribution Clusters
- 16 Private Participation in Transport Infrastructure
- 17 Causes and Forms of Public Divestiture
- 18 Privatization and Financing Models
- 19 Limitations of Private Capital
- 19 Challenges to Existing Funding Practices in Freight Terminals
- 20 Private / Public Partnerships
- 21 CONCLUSION: OPTIONS AND RECOMMENDATIONS
- 23 ABOUT THE RESEARCHERS
- 24 REFERENCES