Points:15/20
Background of double-stack container train service
Double-stack (DS) train service was an innovative technology introduced in 1984 from U.S West Coast ports. The DS trains reduced nearly 50% of line-haul costs of moving containers by rail. The rapid growth of DS train services, along with the intermodal Yard (IY) facilities, is receiving close attention recently.
Background of the Port of Seattle
The Port of Seattle is mainly a container cargo port, occupying around 20% of market share of the West Coast ports in 1986 for total container cargo, as shown in Exhibit 1. The intermodel cargo is Seattle’s lifeline; therefore to succeed in the intense competition for the intermodal cargo base is critical to the Port of Seattle.
Challenges from new changes
The rising double-stack train service puts pressure on Seattle to remain competitive with ports to its south. Improving the physical link between ship and railcar is most important for port intermodal competition. As intermodal yard (IY) facilities act as a link to the inland rail movement, a port with better IY facilities has competitive edge over other ports.
The strength of the port of Seattle in respect of DS train service:
l Seattle has the advantage of BN railroad, which does not serve California ports. BN has been providing a very successful DS train service to Chicago on daily basis since 1985. This service is compatible to Seattle’s plan of “Seattle Cargo express Service” which aims at attracting substantial volumes of intermodal cargo to Seattle in respect of emerging DS train service.
l Only Seattle provides port-operated warehouse/distribution services on the West Coast. These services can capture a significant piece of the import c ...