Potential for Freight in Florida

As far as I know, CSX and NS are the two main Class I players, along with FEC. Anyone have any thoughts on this?

http://www.jaxdailyrecord.com/showstory ... _id=537283]FDOT gathers public input for freight and logistics policy[/url]

Stakeholders in the freight and logistics industries attended a regional listening session Thursday hosted by the Florida Department of Transportation’s new Office of Freight, Logistics and Passenger Operations (FLP) as it works to develop its freight mobility and trade plan.

The FLP was created in response to Florida House Bill 599, which requires the Florida Department of Transportation to develop the freight mobility and trade plan for the state. About 80 people attended the listening session held at the cruise terminal at Dames Point.

“FDOT’s main function has been construction and building roads. Freight has always been off to the side,” said Richard Biter, assistant secretary of intermodal systems development for FDOT.

“The governor realized the impact that freight has on the economy and job creation, and he also realized that the state couldn’t wait for the federal government to come in and assist with funding. He made a strategic investment in the ports to help the state’s economy,” said Biter.

I believe most of us tend to think of Florida as an "inboud" or "consuming" state -- similar to New York and New England. Not much goes out, although it does produce a great deal of phosphate fertilizer in the area east of Tampa Bay. Most of us know about the Tropicana "juice train" but citrus traffic in reefers ended years ago and, while I know CSX began making a play for it via the intermodal route in the early 80's, I'm not sure how succesful they've been.

And most of us also recognize that rail freight is no longer a ubiquitous, carload-oriented industry. The name of the game is volume -- solid trainloads if possible, delivery of multible-car lots to distribution centers if not, and intermdal partners taking care of pickup and delivery on smaller shipments.

When I worked in the trucking industry, too many years ago, a similar discrimination was common practice. Many motor carriers shunned and "unsold" shipments under a certain distance. It backfired and a handful of dominant companies got most of the high-revenue "gravy"; we tried to re-institute short haul in the areas where we were still dominant, but for some companies, it came too late.

Given that everyone within the rail industry is "waiting for the shoe to drop" with regard to PANAMAX and the traffic it is expected to divert, I think there won't be much change in the immediate future. Once the amount and location of the excess capacity which is expected is determined, the marketing team can determine what's feasible. But someone with a better knowledge of the Florida economy will be better-equipped to speculate than I.

I concur that, as one who "goes down below" most every year, that citrus and phosphate are pretty much all that Florida has to "export". Norfolk really does not serve Florida very much ans CSX has essentially "abdicated" South Florida to the FEC.

If the Port of Miami is to be part of the post-PANAMAX party that all of the East Coast ports are throwing, somebody better come (I have my reservations, the maritime companies are already building vessels that are still in excess of (new) PANAMAX and that the West Coast ports (as well as UP and BNSF are not about to roll over and play dead), then FEC will be the main "beneficiary". As I've noted over at this topic, I believe the State, to protect the investment in public funds they have made in the South Florida ports, could well buy the $$$ losing FEC (railroad operations are making a buck but not enough to cover the debt service arising for the leveraged buyout).

All I can say is hope it all work's out.