West Coast port congestion leads to new ideas for testing cross-border rail transport in the southern part of Norfolk in the United Pacific Ocean

Continuing rail congestion at West Coast ports has created opportunities for East Coast ports, Container shipping lines and rail operators to forge new trading relationships.

In January, ocean-going carrier Hapad Lloyd, south of Norfolk. Port Virginia and Union PacificThe partnership created a trade triangle where goods from the West Coast would be shipped to Virginia Harbor and loaded onto Norfolk Southern railway cars. The Container will then be loaded onto the Chicago-bound West Coast UP rail car.

"At the end of the first quarter, we started to see service growth," said D 'Andrae Larry, vice president of Norfolk Southern International Intermodal Group. "Since then, we have seen the service grow. So the first thing is that the service is accepted by the market."

Larry said the idea originated with Hapag Lloyd, which wanted to promote West Coast trade more effectively.

"The market continues to think about ways to look for alternatives. We believe there are a lot of opportunities there," Larry said.

Norfolk South Freight Train towed by GE ES44DC Evolution Series diesel locomotive Locomotive 7565.

Media Group/reading Eagle Via Getty Images Media Newsgroup Getty Images

The service also moves Container from west to east, enabling Union Pacific to move out of its own Container. Shippers in the Pacific Northwest say they have been using the new trading service because they can ship Container out of Virginia Harbor. They also redirected Container to Gulf ports.

Another innovation Norfolk Southern uses to push the balance between imports and exports is its Dual Mission Incentive Scheme, which encourages truckers to drop and withdraw Container during a trip. Truckers are rewarded with $200 each time they complete a double task.

"The market has embraced the plan," Larry said. "We want to reach 50 percent or higher dual tasks. We're starting with Chicago and Kansas City and we're seeing more pickup trucks. It's not just about having more drivers on your docks to effectively move the impact of Container. It's also helping to reduce carbon emissions in these markets because there are fewer trucks on the road."

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South Norfolk

At the same time, railway delays on the west coast have not improved. Logistics managers are measuring 12-day rail delays at Los Angeles and Long Beach ports. For Container transported by truck and rail, the delay time is 30 days. Congestion on railways also affects inland railways, causing delays. A logistics provider told customers that it would take 40 to 50 days to wait for Container to pick up a piece at a railway station in Dallas. Other railway yards in Kansas City and Memphis are also full of Container.

To ease traffic jams at Norfolk Southern's main terminal in Memphis, the railroad opened two parking lots outside the terminal to handle up to 2,000 seaborne Container.

Larry says congestion will spur more development of cross-border trade routes.

"We believe that seaborne demand on the East Coast will continue to be strong and the market will continue to look for ways to meet that demand," Larry said. "As the market leads us to new paths or new opportunities, we hope to be able to do this and continue to innovate new solutions," he said.

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