May I ask what are you basing this on?
On the fact that Americas rail system is sub-par.
Passenger service barely exists, and the number of lines is comparatively small.
I just finished a project that ..
Is anecdotal. Just because you found a case where it is cost effective, doesn't mean it is viable for most.
Rail external costs are ..
Infinite if the rail does not go where you need it.
As a logistics consultant, I don't see AI driving trucks
You're not qualified to make that prediction. And you're wrong. Trucks will become self-driving, it's only a matter of when.
Do you really think companies are using more expensive trucks when they have a cheaper option?
If rail becomes cheaper, they will change on their own.
On the fact that Americas rail system is sub-par.
You stating something is not a "fact." What is "par", if the US rail system is sub-par?
Passenger service barely exists
We are talking freight here, not passenger service.
the number of lines is comparatively small.
Compared to whom, exactly? And if there are 10 lines or 10,000, if the 10 are carrying 4 million tons of freight, and the 10,000 are carrying 1 million tons of freight, does it matter how many lines there are? Or are you referring to track? The US currently has 140,000 miles of track, 95,000 of which is long haul.
Is anecdotal. Just because you found a case where it is cost effective, doesn't mean it is viable for most.
The costs came from an independent study that I linked. The project I was on, I specifically stated that I would not release data on it.
Infinite if the rail does not go where you need it.
You use rail to get it close, and then you use local drivers to take it from railyard to receiving dock. No need for OTR truck drivers then, these local drivers can go home at night.
You're not qualified to make that prediction
Yes I am. It's what I do for a living. Companies pay me a lot of money per hour to tell them my predictions. I am eminently qualified.
And you're wrong. Trucks will become self-driving, it's only a matter of when.
No, I am not wrong - trucks will not be self-driving in the near future. I will define that as next 15-20 years. I didn't say it will never happen.
Do you really think companies are using more expensive trucks when they have a cheaper option? If rail becomes cheaper, they will change on their own.
Cost is not the only factor at play when you are looking at OTR or Intermodal. Timing is also critical to some companies, and they will pay more to get it there quicker (ever heard of FedEx?) Rail shipments follow rail schedules, whereas OTR can leave and drive immediately without waiting for the next available locomotive at the next switching station. So, the business need to ask, "Is a 40% reduction of freight charges worth the extra 3 days in transit?" From a finance perspective, you have to look at the risk, time and opportunity costs, especially when you are running a JIT or lean manufacturing system. If you are a cash strapped company - having an extra 3 days inventory in transit requires that much more cash as inventory, if you are turning just 12 times a year, that's an additional 10% of raw goods or finished goods inventory you have to carry. Up that to 36 turns a year, and it's an additional 30% inventory increase for those 3 days. Build in safety stock for breakdowns/delays, and you're at 50% more cash sitting as inventory.
I know you think I'm some troll or whatever, but I really know what I'm talking about when it comes to business operations.
You stating something is not a "fact."
That sentence seems broken, as it is nonsense.
I assume you meant that my saying it doesn't make it a fact. Which is true. The fact that it is true is what makes it a fact.
We are talking freight here, not passenger service.
That is not what my comment, nor your reply, said.
I said that "Americas rail infrastructure is sub-par." That includes passenger. Did you know that they use the same tracks and are related because of that?
No, I am not wrong
Yes, you are. AI driven transport trucks are already on the road.
I didn't say it will never happen.
And I never said when it would happen. You're arguing against things that were never said.
Is it because you can't argue against what I actually say?
Cost is not the only factor at play ..
So now you agree with my original statement that rail can't relive much of the burden? Make up your mind.
I know you think I'm some troll or whatever
I think you are someone who is deeply unhappy and seeks to spread their misery around.
Because all you do is post inflammatory polarized articles, and then look for a circle-jerk.
You react with hostility to anyone that doesn't agree 100% with your views or statements.
Am I wrong? Do you have a happy or friendly side that you choose not to show?
I really know what I'm talking about when it comes to business operations.
You claimed "As a logistics consultant, I don't see AI driving trucks"
That's dumb. Working in shipping does not qualify you to speak on AI. Not even a little bit.
May I ask what are you basing this on? Warren Buffet specifically purchased into Burlington Northern railways at a time (2009) when people thought rail was dead. Yet the Long haul, Class 1 rail lines (BNSF, Union Pacific, etc.) are growing at a fast pace. UP is delivering record profits.
I just finished a project that takes off product from an OGV (Ocean Going Vessel - think supertanker or cargo ship) and places it in a series of storage tanks at a major port. It is then split into multiple shipments, and shipped by rail to storage sites in the farm and ranch areas where the product is most used. It is delivered by truck from these regional locations. Why? because the price for rail is less. According to this study
We found similar rate charts for our project, but I cannot provide that data, as it is confidential. Sorry! There was a 40% savings by processing it through OGV to Rail to short haul deliveries by truck over running everything OTR.
Rail companies in the US spent $27.1 billion on infrastructure upgrades in 2015 mostly on the Class 1 (Long Haul) freight lines. Which bodes well for increasing traffic on long haul freight lines, which eases the burden on OTR trucker shortages, while also opening the door for more local drivers, which is usually easier to find drivers, as it allows for a more normal family and home life.
USDOT has put in tax breaks (50% of infrastructure costs can be used) for regional and local intermodal projects (Places where Rail and Trucking meet) and a $4.5 billion spending plan to improve regional and local freight infrastructure over the next 5 years. Federal funds can be used for up to 80% of the project costs using the FASTLANE grant program.
A previous employer had set up an intermodal dock in the alleyway between their two main manufacturing plants, so the materials could be unloaded right onto the yard dogs' container flatbeds and driven to the correct dock for processing the incoming materials.
As a logistics consultant, I don't see AI driving trucks anytime in the near future, at least on public roads. I can see the yard dogs being replaced by self driving machines, as it is a controlled environment, but the liability is so high at this time, it's not worth the risk, and if manufacturers are anything, it is risk averse! But, I could be wrong!