Disclaimer

The contents of this report reflect the views of the authors, who are responsible for the facts and accuracy of the information presented herein. This document is disseminated under the sponsorship of the Department of Transportation, University Transportation Centers Program, in the interest of information exchange. The U.S. government assumes no liability for the contents or use thereof.

Executive Summary

One of the greatest challenges facing rural communities is limited transportation options. Many small companies do not produce quantities sufficient to ship in unit trains or even full truckloads Intermodal shipping should provide companies and identity-preserved producers with truck trailer and container convenience while taking advantage of lower costs provided by rail shipping. Presently North Dakota has no intermodal facility. Short line railroads may enhance their own traffic base and customer service by adding an intermodal option.

A survey of North Dakota businesses' outbound/inbound transportation was conducted to identify containers now being shipped by truck/rail intermodal into and from the state. Results showed that the Southeast portion of North Dakota represented some 63 percent of all traffic. This is due to a combination of business density and willing respondents. A Commodity Flow Survey (CFS) was used to estimate potential container truck/rail intermodal traffic generated in North Dakota. The increased shipments identified in the CFS and previous study estimates of potential intermodal traffic indicate that the railroads view of intermodal is dependant on other variables.

This study provides a snapshot of truck/rail container intermodal shipping in to and out of North Dakota. The study revealed the benefits of intermodal transportation including: lower overall transportation costs, increased economic productivity and efficiency, reduced congestion and burden on over-stressed highway infrastructure, higher returns from public and private infrastructure investments, reduced energy consumption, and increased safety.

The truck/rail container intermodal shipping problem in North Dakota is circular in nature. Problems exist in the form of rates and service. Rates are high and service levels low because there is no volume, and there is no volume because rates are high and service levels are low.