SHELL ROCK, Iowa — The new Butler Intermodal Terminal in Shell Rock will be the hub for an internationally focused intermodal service to be offered by Iowa Northern Railway, Union Pacific, Watco Cos., and logistics firm Valor Victoria.
The service will launch in December. It is designed to provide an alternative to larger Midwest rail hubs and provide a cost-competitive option reducing long-haul trucking miles. Union Pacific will bring eastbound intermodal shipments from the ports of Los Angeles and Long Beach for interchange with the Iowa Northern for delivery to the Butler terminal. Export shipments will benefit from a consistent supply of international containers.
“Iowa Northern is thrilled to be part of this remarkable new service product for Iowa industries seeking strategic solutions to maintain a competitive global presence in the marketplace,” Daniel Sabin, Iowa Northern Railway president, said in a press release.
Watco will provide and staff in-terminal operations and coordinate transloading activities for customers loading containers for export through the West Coast ports. Customers interested in the new service should contact Valor Victoria at iowa@valorvictoria.com.
“We are excited to be part of a solution that embodies our Customer First culture. Coupled with our tremendous partners, Union Pacific, Iowa Northern Railway. and Valor Victoria, we are positioned to provide a cost-effective service solution that our customers deserve,” Dan Smith, Watco CEO, said in the release.
Anybody hear of developing domestic shipping lanes? Most traffic is under 500 miles. The railroads are still fishing for the niche markets.
Iowa has 8 outbound export loads for every one inbound. Loading outbound boxes will not be a problem.
Although purpose built underground storm shelters would be ideal, containers would also seem to make great underground storm shelters in a pinch w/proper preparation. .
These arrangements work only if the logistics management can provide an adequate amount of full container return to the POE. Tom Hoback at INRR took years to collect enough mid-western vendors that could justify his intermodal to Indianapolis via CN-Port Rupert with interchange at Newton.
It’s not an issue of getting Asian containers to an US endpoint. It’s the economics of getting full containers to take back.
That is why so many POE’s and certain rail yards have mountains of empty containers with nowhere to go. Returning empties is a money loser. Returning full containers is profitable. Selling containers as backyard sheds have more value.
If rail wants to beat trucks, this is the sweet spot they need to take advantage of. Helping US firms develop export markets that can use container return.
Cedar Rapids is the Southeastern end of Iowa Northern and is on UP’s transcon. Manly is the Northwest end of Iowa Northern and is on the UP’s spin line. Either interchange is somewhat out of the way but I don’t know which is closer.
To Walter Rittle, the interchange will probably occur at Cedar Rapids since that is the western end of the Iowa Northern
Pork? Corn? other Agri-business?.. Will make a nice backhaul on those otherwise empty westbound sea boxes
Where will the UP/Iowa Northern interchange be? Cedar Rapids or the Mason City area?
I thought the UP plan was to get traffic from point A to Point B with out dealing with set outs or pickups.
Union Pacific will bail on them.
Good luck to Iowa Northern. A decade ago Iowa Interstate closed ramps at Newton and West Liberty.