Rail Transloading

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Introduction to Rail Transloading

Transloading is the transfer of goods from one transportation

mode to another to complete a shipment. Rail transload terminals
can be a vital link in your supply chain by allowing you to reach
locations that are not directly rail served. Transloading gives you
the best of both worlds: economical long haul rail transport with
the flexibility of local truck pickup or delivery.

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Advantages of rail
transportation
▪ Lower long haul cost for large
quantity or weight.
▪ Capable of moving high volume
▪ Very safe and a low carbon
footprint
Transloading can occur at the origin, destination, or both
Advantages of truck
transportation
▪ Almost universal access for local
delivery
▪ Same day just in-time delivery
schedules for local moves.
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Destination Transload

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Origin Transload

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Door-to-door Transload

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Transloading is most often used when:
A location lacks direct rail
service or product loading
requirements require
trucking.
The capacity of one mode Modal diversity is needed
needs to be either to improve
supplemented with reliability, reduce cost, or
another. We have seen provide negotiating power.
this recently with the It is not unusual to see rail
shortage of truck drivers. shippers use transloading
as a way of accessing a
competing railroad.
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RSI operates terminals that transfer materials between rail and truck, rail and barge,
and barge and truck. A variety of dry and liquid bulk commodities are transloaded. The
most common include:

▪ Lumber and building ▪ Sweeteners and oils ▪ Clay

materials
▪ Fertilizer ▪ Grains and seeds
▪ Metals
▪ Metal ▪ Flour
▪ Sand & aggregates
▪ Plastic resins ▪ Soda ash
▪ Paper
▪ Petroleum oils ▪ Beans
▪ Ethanol and biofuels
▪ Petrochemicals

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Choosing a Transload Terminal
Several factors should be considered when choosing a
rail transload terminal:

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Location, location, location:

The first obvious thing is to find a terminal that is close enough to your
origin/destination. Finding a terminal can require a bit of research. The first thing to
consider is whether or not there is a particular rail carrier that the terminal should be
located on. By knowing where rail lines are located, you can use that to narrow down
your search. Most railroads maintain a listing of their transload terminals on their
website. Of course all of RSI’s terminals are listed here. Subscribers to RSI’s rail routing
and rate analysis tool have access to a database of rail terminal locations that can be
searched by geographic location or railroad.

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Terminal capability and capacity:

Equipment, such as a conveyor, pump, steam boiler, lifting equipment, truck wash, and
a scale, may be required depending upon the material to be transloaded. Generally,
equipment is transportable, which means that it may be able to be brought in if there
is sufficient volume. Equipment may need to be compatible with your railcars or trucks.
Ground storage, warehousing, tank, or on-track storage may be required. You may also
want to look at rail and truck capacity, service hours, and rail switching schedule.

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Safety and material handling:

Material handling creates the possibility of product degradation, contamination,

equipment damage, and safety risk. The transloader should be able to show that they
are able to handle the product in a professional and safe manner. Is the necessary
safety equipment in place, how are products spills handled, is containment necessary?
You’ll want to know who is liable for potential problems such as product or equipment
damage and overloaded railcars. Is the facility secure?

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Additional services:

Various services such as inspection, sampling, product metering, and rail or truck
shipment documentation may be needed. Technology for visibility, reporting, and
communications can improve the customer experience. Value added services such as
blending, repackaging, or containerization may be available.

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Truck Drayage:

Obviously, the cost and availability of local truck transportation is it important element.
Trucking can sometimes be provided by the terminal operator, although in most cases
it’s up to the shipper to find a trucking company. If you don't know which trucking
companies can serve a terminal, the transload operator may be able to provide
recommendations.

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Cost:

There are several costs to be aware of and these will vary based upon the commodity
and services provided, volume, and geographic market. Material transfer costs
between truck and rail are generally in the range of $600 to $1,000 per railcar. There
may be additional fees for special equipment, as well as track occupancy fees. Facilities
generally allow a certain number of free days with a daily charge thereafter. Fees at
railroad owned terminals are usually stated in tariff documents such as the NS’s 9328
Tariff.

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RSI has been providing high quality transload services for over 30 years and have
operated facilities on behalf of multiple Class I and regional railroads. RSI was the first
terminal operator on the Norfolk Southern to handle hazardous chemicals. All of our
terminal employees are hazardous materials certified. Our terminals handle a variety
of products including dry and liquid commodities, chemicals, petroleums, and plastics.
Contact us to discuss your needs. If we don’t have a facility near your desired location
we may be able to refer you to another terminal or evaluate opportunities to establish
a new facility. In addition to operating terminals, RSI works with property owners to
quickly establish new transload facilities.

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Interested in learning more about
our terminal capabilities?
Request Information

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