May 1, 2004
Modalgistics' MACH-One Machinery Service Drives New Business
Norfolk Southern is gaining a greater share of the growing heavy machinery transportation
market, thanks to improved operating efficiencies and the planning and management
capabilities of MODALGISTICS®.
Equipment manufacturers such as John Deere, Caterpillar and Case New Holland are using
NS' MACH-One Machinery ServiceSM to move heavy equipment from Midwestern plants
to eastern ports.
High-value construction and agriculture machines, including excavators, bulldozers,
combines, tractors and cotton-pickers, are being exported to Bosnia, Romania, Turkmenistan
and possibly Iraq to assist in rebuilding efforts. But it isn't all about exporting.
"We are creating opportunities to handle imports and domestic equipment distribution," said
Rob Robinson, director of MODALGISTICS' machinery, government and distribution services.
"Our consistent service is fueling the Mach-One initiative."
Studies estimate the U.S. machinery market to be about $60 billion, and the overwhelming
majority moves by truck. "Rail has previously handled only 1 percent of this market," said
Tim Mann, manager business solutions. "We expect business to double in this segment of our
machinery business in 2004."
"Having a greater understanding of supply chain management has helped us gain a better
understanding of our customers and how to do business with them," Robinson said. "Thanks in
large part to our service, we are finding ways to introduce rail as a viable mode in their
supply chains, and they're beginning to take notice."
NS is moving the machinery in unit trains and on flat cars and is working with western
partners Union Pacific and Burlington Northern Santa Fe to transport the expensive
equipment. One recent unit train with 77 carloads of combines was valued at $69 million.
"Our team approach, represented by 10 NS departments, greatly enhances our ability to
service these customers," said Steve Blinn, MODALGISTICS' national account manager
government and machinery. "There is tremendous growth potential, and we are positioned to
handle it."
