The impact of escalating energy costs on freight rates has led to a renewed interest in the potential economies of intermodal freight services, which combine the flexibility of trucking at the points of pick-up and delivery with the line-haul efficiencies of rail. This paper reports on the findings of an exploratory study of the potential marketability and commercial viability of an improved intermodal service based on the transport of trailers and containers by rail in Canada. The study focused on an assessment of prospects for a frequent, high-speed service of short 20-car unit trains in the Quebec City/Windsor corridor. Terminals were designed for efficient loading/unloading operations with a maximum stay of 30 minutes at intermediate stops in Montreal, Smith Fails or Kingston, Toronto, Galt, and London. Two through-trains would operate each day in each direction with a supplementary shuttle service of four trains a day between Montreal and Toronto. The paper summarizes the way in which estimates were made of representative freight rates for the proposed service, based on an analysis of railway capital and operating costs. The estimated rates were comparable with those currently charged for existing (but longer and less frequent) intermodal trains. Marketability was assessed through an analysis of how shippers choose between competing services, based on face-to-face interviews with a representative sample of shippers, freight forwarders, and for-hire trucking companies. The study indicated that there is indeed a case for developing improved intermodal services in Canada with benefits to shippers in terms of reduced transportation costs and to the nation at large in terms of savings in fuel consumption. (A)
Abstract