1. Intermodal Freight Terminal Development AASHTO SCORT 2010 National Meeting Joseph Bryan, Halcrow Bengt Mutén, IHS Global Insight September, 2010

2.  Locations fit in a network fulfilling a business process  Network optimizes business drivers to serve a market franchise  Location process is expression of network strategy  Intermodal terminals are no different Origin Destination Freight Facility 1 Perspective: Logistics Facility Placement Source: NCFRP 23 (Preliminary)

3. 2 IMX Terminal Expansion in Rough Order  New train service between existing terminals Facilities adequate  New capacity in existing terminal markets More space in current facility New facility added to old New, larger facility replaces old  New terminal in new market May displace distant facility Implements new train service

4. 3 Terminal Viability  Wholesale train operation feeds and fed from retail dray operation at terminals Both ends affect terminal viability  Train production: Full trainloads in lane Competitive service for market ROA in terms of revenue per foot  Drayage: Balance in linehaul and P&D In-route direction  Terminal placement: Spacing – based on dray turn Incremental volume – other terminals can’t attract Lift volume – from multiple lanes

5. 4 Terminal Requirements  Lane density to fill trains Apx. 250 loads daily, or 1 million tons yearly  Long distance lanes: Higher revenue per foot Dray less significant to total costs Break points: major 1,500 miles – minor 750  Terminal placement: 250 miles apart (except clusters) 100-150 thousand lifts  Distinctions: Lower thresholds in East than West Domestic more drayage sensitive

6. 5 IMX Terminal Network & Dray Radius Source: IHS Global Insight, Transearch 2008, Radius to 80% of total dray volume, red radii are top volume

7. 6 Lengths of Haul Trending Higher Source: IHS Global Insight, Transearch - adjusted for rebills But Non-Port distances shorter 

8. 7 Effect of Density & Distance on IMX Share Source: IHS Global Insight, Transearch, IMX share of dry van full load market, adjusted for rebills Million Ton Mark

9. 8 Market & IMX Growth Forecast Source: IHS Global Insight, Transearch, dry van full load market, commodity forecast IMX share adjusted Port markets yield higher share, somewhat faster growth

10. 9 Growth in Density & Distance Favor IMX Source: IHS Global Insight, Transearch, dry van full load market, commodity forecast IMX share adjusted Above Average Growth

11. 10 Offsets & Opportunities  Lane density and distance trade off  Low dray costs cut required distance  Less competitive OTR truck utilization Congestion “Between” distances (work shift limits)  Terminal cost sharing Affects lift and distance requirements Does not affect trainload requirements  Scope of alternative opportunity West vs. East  Supply chain redesign Change to trade and staging  Growth over time Change to density and viability

12. 11 Public Role Options  Support market players Whose proposals make sense What do you want back  Support market forces Distance reducers: density, dray, OTR & terminal costs Exploitation of change  Public initiatives Attainment of public benefits sooner Attainment of public benefits not otherwise available Costly to change priorities of network owner Thresholds and network functions still rule

13. Halcrow Freight & Logistics 2067 Massachusetts Avenue Henderson Carriage Building Cambridge, MA 02140 USABryanJG@halcrow.comWestRO@halcrow.comAthertonS@halcrow.com IHS Global Insight 24 Hartwell Avenue Lexington, MA 02421 USABengt.Muten@ihsglobalinsight.com