Tag Archives: supply chains

California’s BIG Project: Transforming Rail Logistics

Here’s a project that should have happened 20 years ago.

California’s major ports, at Los Angeles and Long Beach, have been desperate for relief from drayage traffic for containers they bring in. It was a struggle to get rail to the ports so that containers could be directly loaded. In 2002 the Alameda Corridor began to move double-stack double-track trains from near (but not on) the ports to the San Bernardino area. But rail service to the bulk of the US was still elusive. Transloading to 53-foot truck containers was the main activity in the Eastern valley. And that led to more truck traffic on the already busy freeways.

Remember that in the earlier days, pre-COVID, the land-bridge was still a preferred route from Asia to Europe. Ship to LA/Long Beach, Rail to New York or another eastern port, and ship again to Europe. It was lower cost and shorter time than any other Asia-North Europe route. And that included the numerous delays in moving goods by rail out of the port areas.

The problem has been urgent because of air pollution from the many drayage trucks traversing the area. California has been trying to address this problem from many directions. One of the first methods was the Clean Trucks program, which banned engines earlier than 2007 carrying to and from ports, and imposed other requirements on NOx and particulate emissions, especially PM2.5, a demonstrated pathogen for breathing problems. Gate reservations came next, as an attempt to articulate delivery and pickup with container movements in the yard.

But many noticed that switching from truck to rail would cut pollution even faster, and perhaps even improve efficiency. Numerous researchers, including my coauthor Chris Clott and me, suggested that moving functions off the port quickly to inland sites, called inland ports, would work. We even suggested, back when the land-bridge was functioning well, that inland ports as far away as Chicago could boost efficiency. The ports were not interested at that time.

Meantime, the ports and private firms have invested in the Alameda Corridor, which took double-stack, double-track trains through a frantically busy melange of LA suburbs, with many overpasses and intersections that had to be rebuilt, and many regulatory challenges.

Now finally, BNSF, a major Class I railroad, one of two serving the West Coast, has committed to a large inland rail intermodal terminal. It’s near Barstow, CA, out in the desert, kind of toward Las Vegas. This large inland port will be able to eliminate over 200 million truck miles by its completion in 2028.

The latest yard technology will be used, including zero-emission cranes, forklifts, and hostlers, electric plug-ins for refrigerated containers, and hybrid rubber-tired gantry cranes. BNSF has also committed to use the cleanest available switching locomotives in the yard.

The project is appropriately nicknamed BIG (for Barstow Intermodal Gateway). The press release says “By relocating container sorting and processing from congested port-adjacent communities to Barstow—a high desert hub with strong transportation infrastructure—the project enables a major mode shift from trucking to cleaner, more efficient rail.”

California and its residents are serious about industry controlling pollution.

Stuart Chirls·Wednesday, June 17, 2026

https://www.freightwaves.com/news/bnsf-wins-local-approval-for-new-4b-california-rail-intermodal-project

Christopher Clott, Bruce C. Hartman, Supply chain integration, landside operations and port accessibility in metropolitan Chicago, Journal of Transport Geography, Volume 51, 2016, Pages 130-139, ISSN 0966-6923,
https://doi.org/10.1016/j.jtrangeo.2015.12.005.

Cold-chain hubs crucial for produce imports

Cold-chain logistics are more complicated than ever. When many fresh products are imported, it’s crucial to have warehousing facilities that can handle many aspects of importing as well as storage and transshipment. Large brokers recognize this.

The article here shows that CH Robinson division Robinson Fresh is moving to benefit from the increasing tide of Mexican and South American produce coming into the US. The new facility in Pharr, TX is state-of-the-art, and helps Robinson provide a ‘seamless experience’ for their customers. It cost over $33 million.

Located in the town of Pharr in the Rio Grande Valley, the South Texas facility is one of the largest in the region. (Photo: Robinson Fresh)

Robinson Fresh is a division of brokerage giant C.H. Robinson focused on produce and perishable supply chains. The company services grocery retailers, wholesalers and foodservice customers across North America, including companies such as Whole Foods, H-E-B, Walmart and Sysco.

Pharr, TX is in Hidalgo County near McAllen in southeast TX.

The Rio Grande Guardian provides more background. Over $50 billion in trade now crosses the Pharr-Reynosa Bridge each year. It’s all handled by truck. “We’re crossing about 1.2 million trucks a year through this bridge,” Luis Bazan, director of the Pharr International Bridge, said recently at the August meeting of the South Texas Manufacturers Association.

On average, between 2,700 and 3,200 commercial trucks pass through the Pharr-Reynosa International Bridge heading northbound into the United States each day. Traffic volume depends heavily on the agricultural and manufacturing seasons. Peak Months: Up to 3,200 trucks per day (largely driven by the winter and spring produce harvest, as Pharr is the nation’s leading port of entry for items like avocados). Slower Months: Around 2,700 trucks per day.

Combining both northbound (into the U.S.) and southbound (into Mexico) commercial traffic, the bridge handles over 5,000 total trucks daily, amounting to roughly 1.2 million truck crossings annually.

There’s another bridge, Anzalduas, just west of Reynosa, and there are rail connections to the ports at Brownsville TX – Matamoros MX. These logistics nodes place the Pharr facility in a key location for facilitating international perishable and cold goods trade.

“These facilities specifically focus on imports that come from Mexico and South America,” Robinson Fresh President Jose Rossignoli said. “We’re talking about mangoes, bananas, avocados, tropicals and limes. It requires a certain ability of repacking, quality control and consolidation.”

With international trade becoming more complex, the role of full-service brokers seems sure to grow. CH Robinson has recently been on a mission to become a more proficient operator. The current President and Chief Executive Officer of C.H. Robinson is Dave Bozeman. He officially took on the role in June 2023. Prior to leading the logistics company, Bozeman held executive and operations roles at Ford, Amazon Transportation Services, Caterpillar, and Harley-Davidson. He was a legend at Amazon for his focus on measurable results, wise use of technology, and lean leadership.

Noi Mahoney·Friday, May 22, 2026

https://www.freightwaves.com/news/robinson-fresh-opens-border-cold-chain-hub-as-mexico-produce-imports-grow

Steve Taylor – Posted Sunday, September 1, 2024 12:23 pm

https://riograndeguardian.com/stories/bazan-pharr-reynosa-international-bridge-is-now-crossing-50-billion-worth-of-trade,15934

CSX Rail Projects boost intermodal

The CSX (NASDAQ: CSX) first-quarter financial report was very positive. It showed over 5 percentage points improvement in the operating ratio, to 64%. Operating ratio is a metric much watched in the rail industry, as it shows how efficiently the line is moving and using equipment. The formula for calculating the Operating Ratio is:

OR = 100 * Operating Expenses / Operating Revenue

What it Covers: Operating expenses typically include fuel, labor, equipment maintenance, and materials. It does not include taxes, interest, or other non-operating costs. In particular it doesn’t cover capital improvements to the rail line and equipment.

The industry benchmark for this ratio is in the low 60s or even high 50s, when the so-called “Precision Scheduled Railroading” (PSR) strategy is in place. Invented by Hunter Harrison, at the Illinois Central Railroad, PSR began as a series of ‘lean operations’ improvements including speeding up interchange of equipment, and making sure trains interacted on time and customer loads were routed to meet committed schedules the customers expected. His last stop in leading several railroads was at CSX.

As the concept evolved, cost-cutting became the mantra, and this was realized in the adoption of operating ratio as the measure of success.

But modern implementations of PSR-like concepts have included running longer trains on more spaced-out schedules, reducing crew sizes, lengthening crew working hours, reducing rail staff such as inspectors and conductors, reducing the amount of equipment used such as locomotives, adjusting safety and inspection standards to less frequent review, and using more automated inspection equipment and fewer human inspection hours. Some of these actions are not consistent with the original Hunter Harrison practices, especially when pushed to limits.

There have been protests from rail unions over practices that reduce rail staff and compromise train safety. Some of these have surfaced at major accident sites such as the derailment and toxic spill at East Palestine, OH in 2023, where defect-detection technology failures and lack of human inspection were implicated in the accident. The rail involved was Norfolk Southern (NS).

Intermodal freight increases were instrumental in the financial good tidings presented in the report. And with fuel prices escalating, intermodal should be the go-to choice for shippers looking to reduce their exposure to rising fuel costs. Intermodal freight can replace many highway trucks, and save lots of fuel. More intermodal shifts are required than for straight trucking; but for longer movements, intermodal has been a winner for a while.

To me the most interesting feature of the report is the pending completion of a new double-stack tunnel and bridge clearance project between Baltimore and Philadelphia. The map below indicates the location of project elements.

A key element is the Howard Street Tunnel project. This capital project allows CSX to run double-stack intermodal trains from Baltimore to Philadelphia, and beyond. It opens the Northeast to improved rail-container traffic from Southeast ports. This will improve transit times for shippers. The project is a capital project, and its cost is not reflected in the operating ratio, but represents CSX making investments of its surpluses in infrastructure that will improve service both long-term and short-term. Especially now, with fuel prices at highs and going up, customers will have a more reliable and sustainable alternative to trucks.

CSX also made improvements in its intermodal terminals and interchange in the Chicago area, removing bottlenecks of long standing at the Barr Yard. Chicago has been a bottleneck for East-West transfer for many years, and relieving it should have been a major priority for years. CSX’s action is important because of potential competition with the potential merged rail UP (Union Pacific) and NS, which will create a coast-to-coast national rail service with more leverage to eliminate its bottlenecks.

Trains.com Staff·Wednesday, April 22, 2026

https://www.freightwaves.com/news/csx-sees-stronger-first-quarter-earnings-as-costs-fall-volume-rises