Frequently Asked Questions about Intermodal Rail

What is Intermodal Rail?
Intermodal rail is the movement of freight by rail and at least one other mode of transportation, usually in a standard shipping container.

What is a shipping container?
A shipping container is typically a semi-trailer-sized metal box used to transport cargo - anything from clothes and toys to computers and cars. The unique thing about containers is that they can be easily switched between different modes of transportation (trucks, trains, ships and barges) without unpacking the contents. Containers can also be stacked when loaded on trains, ships and barges, allowing for more capacity than traditional semi-trailers that are generally designed for highway use only. Containers are used to carry all sorts of products, including consumer goods. For example, containerizations have streamlined the logistics of order fulfillment, supporting the retail world of fashion malls and popularity of online shopping.

Why is intermodal rail important?
According to a study by the Battelle Memorial Institute, logistics is a $700 billion industry - and intermodal rail is transforming this industry. Logistics operations become more efficient and reduce shipping times when they can use the best mode of transportation for each portion of a trip, and easily switch between the modes when necessary. This benefits consumers and business alike. And for those regions that can capitalize on the trend, the economic opportunities are numerous.

What economic opportunities does it create?
Intermodal rail ports - stations that allow transporters to switch modes - attract business investment. These companies are seeking reduced transportation costs and enhanced supply chains, but they also bring good jobs and an expanded tax base to a region.

For example, the Gap clothing company chose Columbus, Ohio, as the site for its "click and brick" e-commerce fulfillment hub. This brought hundreds of high-paying information technology jobs to the area in addition to more traditional transportation jobs, like railroad engineers (who typically earn more than $21/ an hour).

Additionally, intermodal rail transactions generate tax revenue and user fees, supporting state and local budgets.

What is the outlook for the future of intermodal rail?
As our population grows and demand for consumer and durable goods increases, opportunities in the transportation/logistics sector seem unlimited. The explosion of e-commerce is just one of a number of factors causing freight traffic to grow exponentially. And intermodal rail is the key to meeting this demand - intermodal hubs are today's inland ports.

Intermodal rail is already experiencing tremendous growth, and that growth is expected to continue. During the past 10 years, annual intermodal shipments in the U.S. have increased by 58 percent from 5.5 million units to 8.7 million. According to conservative projections,

Chicago - the nation's rail hub - is expected to take in much more intermodal traffic than it can handle. According to conservative projections from the Chicago Area Transportation Study, the city has less than half of the land necessary needed for intermodal rail ports by 2020.

Why Indiana?
Indiana is the "Crossroads of America" in more than name only - more than 82 million people live within 500 miles of Indianapolis, and we already serve as a significant trucking and rail corridor. We have more interstates than any other state.