Americas rail infrastructure is sub-par. It's not currently in a state to relive much of the burden. Costs are high and route are few.
Another upcoming problem will be too many tuckers. There will only be a shortage until the trucks are equipped with ai pilots. Then all the drivers join the welfare line.
Americas rail infrastructure is sub-par. It's not currently in a state to relive much of the burden. Costs are high and route are few.
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
Rail external costs are 0.24 cent to 0.25 cent (US) per ton-mile, well less than the 1.11 cent for freight trucking
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!
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.
Use more freight trains and less Long Haul Trucking?