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Flexible Shipping Options

When locating your industry along a railroad, it is important that you choose a carrier that gives you the best options for moving your freight. The question becomes: do I locate next to a class I railroad or a shortline railroad? While each have their benefits and drawbacks, we want to show you the benefits of choosing a shortline wil two class I connections (e.g. the Aberdeen Carolina & Western Railway that interchanges with both CSX and Norfolk Southern).

A shortline that has two class I connections gives you the most competitive pricing options as well as access to the biggest markets. When a shortline has an option to send/receive freight from two different class I's, the class I's compete for your business. In some cases, this competition can cut your transportation costs in half. A study conducted by Escalation Consultants Inc. of Maryland shows that carrying rates are sometimes double when a customer is considered "captive," meaning they have only one carrier to choose from.

Benefits of Having Two Class I Rail Carriers to Choose From:1

NS CSX BN UP
Farm Products Captive Rate $25.67 $40.46 $46.28 $44.50
Farm Products Non-Captive Rate $14.15 $22.31 $25.52 $24.53
Coal Captive Rate $22.92 $22.63 $21.11 $21.34
Coal Non-Captive Rate $9.84 $9.72 $9.07 $9.17
Chemicals Captive Rate $44.20 $40.99 $43.23 $43.78
Chemicals Non-Captive Rate $22.08 $20.48 $21.60 $21.87
Food or Kindred Products Captive Rate $44.61 $48.31 $69.09 $74.20
Food or Kindred Products Non-Captive Rate $21.58 $23.36 $33.41 $35.88
Pulp, Paper Captive Rate $59.81 $61.97 $89.97 $91.32
Pulp, Paper Non-Captive Rate $25.44 $26.36 $38.27 $38.85

Most shortline railroads in the U.S. only connect to a single class I railroad, and thus there is no competitive advantage. Unlike most shortlines, the Aberdeen Carolina & Western Railway connects with two class I railroads and two shortlines at four different locations. The following matrix shows who we connect with and where we connect with them:

ACWR Interchanges

 

the WSSB is owned by both NS and CSX
Aberdeen Charlotte Norwood Gulf
CSX Yes Yes
Norfolk Southern Yes Yes
Winston Salem Southbound Yes
Aberdeen & Rockfish Yes

Good Interchange Capacity

Not only do we interchange with multiple carriers, but our interchanges have outstanding infrastructure. Most shortlines have poor interchanges with class I railroads. This is because they generally connect to a remote part of a class I railroad, where there are less frequent trains and thus less capable infrastructure. When dealing with a shortline railroad, it is very important to know the interchange capacities. Interchange capacity is basically "how much can I move" and "how long will my freight sit at an interchange before getting picked up?" A good interchange can handle today's large unit trains that span 90+ cars long. A good interchange also has frequent pickup/dropoff times (dwell times).

Our interchanges stand out from the rest. They are on the mainlines of other railroads, and they have the capacity to hold today's largest trains. We have the ability to get your more of your freight to more destinations in less time.

Our Charlotte interchange with Norfolk Southern, for example, is a very good interchange. This interchange is less than a mile from the NS switching yard in Charlotte, meaning freight is picked up and moved to the next train very quickly. See our video below.

Norfolk Southern Interchange in Charlotte

Our CSX interchange in Aberdeen is also a good interchange. It is very long and has many switching capabilities. It is also next to the CSX main line, which means your freight gets picked up and dropped off sooner. See our video below.

CSX Interchange in Aberdeen

Lastly, our Norwood interchange with the Winston Salem Southbound (operated by CSX/NS) is a good interchange. It has parallel track that extends for over half a mile and a Y-track that extends for over a third of a mile, totaling close to one mile in total. See our video below.

WSSB Interchange in Norwood

Overall, the Aberdeen Carolina & Western is one of the best locations for you to locate your industry. In sum:

Class I vs Shortline Railroads

interchanges
carrier choices
interchange capacity
interchange days of service
Competitive Pricing
Class I rail carriers
N/A N/A multiple unit trains (100-200 carloads)
7 days
Most Shortlines
1
1 <100 carloads
5 days
No
ACWR
4 2 multiple unit trains (100-200 carloads)
7 days
Yes

Footnotes


1. Source: 2007 study by Escalation Consultants of Marlyand, based on data from the Surface Transportation Board. Read more on this subject on this USA Today Article: Freight railroad customers complain about prices, service
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