This is where the railroading business gets interesting.
Depending on the route and operational details, it might take 15 railcars to fulfil a delivery cycle, where one or two trucks shuttling back and forth might deliver the same amount of product just as fast. Railcars spend a lot of time standing still, or moving slowly…. Trucks not so much..
Plus, the railway’s delivery schedule might not align with the shipper or receiver’s production schedule. A tank car of product that won’t arrive until Friday is not cheaper to a production plant if it’s needed for a production run by Tuesday. And if the shipper has their product ready to send, and their factory tanks are full, but the tank car they ordered on Sunday hadn’t arrived yet? They have to shut down the line.
Trucking may cost more, but reliability of delivery and how long the shipment takes end to end may make that raw cost savings moot.
In the case here, OSR is a short line with a reputation for service to its customers. Not all railways can deliver in the same manner, and since the North American railroads are a single integrated network, one poor performer can drive away a lot of potential business Good on OSR for making this one work.
- Paul