Panel: As Rail Logistics Evolve, Communication Will Be Key
10/19/2016 - With shipments on the decline, it will be critical for coal buyers and coke makers to communicate and maintain close relationships with the railroads, according to a panel of logistics professionals who spoke Wednesday during the Smithers Apex Met Coke World Summit in Pittsburgh.
"The Class 1 railroads are evolving. I wouldn't say there's less emphasis on coal, but, frankly, coal is not quite as important, at least from a volumetric standpoint, to the railroads. I think how we, as customers, manage our relationships with the railroads is going to be critical over the next five years," said Mike Hardesty, SunCoke Energy's senior vice president of commercial operations, business development, terminals and international coke.
Kimberly Kitchen, Norfolk Southern's coal marketing manager, agreed, saying that producers and the railroads will have to work hand-in-hand to find efficiencies, especially if coal and coke volumes decline further.
"We will all need to become more efficient as the commodities in general reduce," she said. "Communication is so important. We need to be talking, and talking frequently."
Speaking from the maritime side of the logistics business, St. Lawrence Seaway marketing manager Vince D'Amico said that given the ebbs and flows in volumes, communication and good relationships will be paramount if the system is to remain fluid.
He added that railroads are now beginning to look at waterways less as a competing mode of transportation and more of an opportunity to complement services.
But to facilitate that relationship, communication is necessary, he said.
"We all have to communicate because, otherwise, you're not going to see light at the end of the tunnel."
"We all have to communicate because, otherwise, you're not going to see light at the end of the tunnel."
Ricardo Torres, logistics coordinator for United States Steel Corp., echoed those comments.
"As the railroads evolve, coal and coke needs to evolve and to make sure we're not being left behind," he said.