Market & Traffic Analysis
RII is able to listen, evaluate and acess client issues and problem in order to develop the study that best suits their needs. Projects can be broken down into phases if the client is testing markets or can be a combination of several types of analyses for a bigger long-term picture. RII combines analysis and industry knowledge to turn studies into actionable strategies.
+Develop feasibility studies for new projects, improvements, investment opportunities, etc.
+Optimize Traffic analysis, traffic flows, gross ton miles, traffic projections
+Strategize transportation costing - rail, truck, barge, transload, from individual units to fleets and unit trains
+Evaluate general Market Studies to test or identify new and optimal markets
+Tailor targeted market analysis for a specific problem or objective
+Asess commodity demand forecasts to measure future volumes
+Identify public data analysis to measure traffic flows by gross ton mile, commodity volumes, unit volumes (carloads, truckloads, intermodal containers)
Projects
Lynx Phase 1 & 2 Market Studies (Stone Aggregates)
Phase 1 of this market analysis was targeted to developing business for a 1200 acre property located near Barstow, CA. It included contacting 30 area companies and organizations (economic development agencies, ports, railroads, potential customers, partners and competitors) to determine which services would be most successful at the new facility, what types of partners would have the most demand and essentially where to focus a more detailed and strategic market analysis. Results led to Phase 2, which included developing a brochure for the facility, developing a partner contact list for the Client, assessing traffic flows through the area using a combination of URCS 2% waybill sampling, CFS and FAF data on intermodal traffic to and from the southern west coast ports and on mining traffic-the biggest industry produced in the area, a transload market study examining likely commodities to be handled, a Storage In Transit study examining plastics traffic flowing into the Los Angeles and Central Valley areas, including capital costs.
In addition, RII specifically examined the data for aggregate flows, researched growth in 4 keys markets within southern California, and developed the unit train rail costing to these points to develop business for the aggregate quarry on site at the facility. Feasibility analysis for the expected volumes and revenue against the expected capital costs and operations to achieve the new business were developed to determine the return on investment, potential capital shortfalls for investor development, rates and volumes needed for success and capital recovery time. RII was key in bringing the Class I railroad to the table to negotiate these terms in order to make the project successful.
In addition, RII specifically examined the data for aggregate flows, researched growth in 4 keys markets within southern California, and developed the unit train rail costing to these points to develop business for the aggregate quarry on site at the facility. Feasibility analysis for the expected volumes and revenue against the expected capital costs and operations to achieve the new business were developed to determine the return on investment, potential capital shortfalls for investor development, rates and volumes needed for success and capital recovery time. RII was key in bringing the Class I railroad to the table to negotiate these terms in order to make the project successful.
North Carolina Railroads Traffic & Traffic Diversions Analysis
RII was tasked to analyze the traffic on rail lines running through North Carolina in order to develop additional revenue opportunities for state-owned track, develop possible economic development opportunities and assess capacity for growth along lines that host Amtrak routes expected to grow and expand services. Analysis used track charts, Railinc data and other sources to develop traffic volumes, gross ton miles and directional flows for various segments of track. Results were used to examine alternative routes for traffic diversions, measuring volumes that could flow over other routes including the capital costs involved in rehabilitating those routes to handle the same volumes and speeds. Transportation costing was performed to compare the operational costs for moving on the original routes vs. alternatives, including comparisons on existing routes. Work also included identifying business development opportunities along the routes, such as transit-oriented-development, excess property utilization, commercial property value appreciation, growth trends and triggers happening along the statewide corridors and synergistic transportation services.
Infrastructure Materials Market Demand Study (Calcium Carbonate)
RII performed a market analysis and forecast for Calcium Carbonate and Quicklime demand for both the Northwestern United States and Central Canada. The entire study included a survey contacting over 60 producers and users along the supply chain, as well as industry research to develop a forecast for 1-5-10 year increments. The study included transportation costing by rail and truck for pricing and competitive analysis, as well as traffic flow analysis and forecast by state/province in Nevada, California, Utah, Idaho and Arizona then Montana, Minnesota, Manitoba, Saskatchewan and Alberta. The detailed report was utilized by our client both for planning and due diligence on new investment projects and as a deliverable to potential investors to show the markets and demand for the materials.
RailPower Locomotives Market Analysis
RII developed a market study for this producer of genset/electric-diesel hybrid locomotives for a specific model when the technology was still new to many players in the industry. RII identified target customers based on their number of locomotives in service or scheduled to be retired, their operations in environmentally sensitive or political areas such as ports or metropolitan areas, and/or their history of green technology usage. In addition, RII was tasked to identify new markets, such as short line railroads and public entities that would be most likely targets. A total of 130 entities were contacted, resulting in a total of 65 interviews, and 42 completed survey forms. Lastly, based on the results of the analysis, RII was able to eliminate certain target groups, develop a contact list for RailPower's sales team and suggested strategies for approaching and developing specific target groups.
Gulf Inland Logistics Port Feasibility Studies
RII’s work has included multiple feasibility studies for this facility located in Dayton, TX, examining the costs for improvements, traffic in the areas, types of services and demand forecasting, revenue projections and return on investment. Studies have involved customer surveys with the major shippers in the heavy petrochemical area, interviews with serving Class I carriers and stakeholders at the Port of Houston, and assessment of competing facilities in the area for similar services and potential market share. Specific projects of note include a Market Study for developing a Transload Facility on the property, including identifying customers for surveys and developing the types of commodities that competition and market share would allow, facility and equipment type and capital costs involved. RII also developed several versions of a Storage-In-Transit yard, including layout and capital costs, customer surveys to determine traffic volumes, rates and revenue for the yard and operating costs, to come to a final return on investment for the project.
RII also developed a feasibility study in conjunction with the facility for Liberty County examining how a railroad extension could alleviate rail traffic congestion in the Houston area. RII developed the potential traffic for the extension based on regional traffic flows, potential revenue, operating plan, costs and economics X. The study involved forecasting for the commodities moving in and through the Houston area, plastics storage in transit demand, major customer interviews, capital costs for construction of the line, yard and crossings, measuring the public benefits of the infrastructure improvements, developing detailed financial projections for operations of both facilities.
RII also developed a feasibility study in conjunction with the facility for Liberty County examining how a railroad extension could alleviate rail traffic congestion in the Houston area. RII developed the potential traffic for the extension based on regional traffic flows, potential revenue, operating plan, costs and economics X. The study involved forecasting for the commodities moving in and through the Houston area, plastics storage in transit demand, major customer interviews, capital costs for construction of the line, yard and crossings, measuring the public benefits of the infrastructure improvements, developing detailed financial projections for operations of both facilities.
Transportation Costing Studies for Rail Shippers
- RII frequently performs Transportation Costing studies for shippers to compare truck vs. rail, to test the feasibility of shipping cost against new capital projects or develop the pricing for potential customers. Some prime examples include:
- Locating a transload facility for Perlite America in California, with trucking and transload costs, to allow it to ship via rail to selected customers
- Developing comparative costs for a petroleum coke shipper in California to ship blocked cars to 3 different ports so it could determine which one to contract with
- Developing the truck costs, including fleet size and turn times, for multiple lanes for Fulcrum BioFuels to quote pricing to new customers for its Northen Nevada facility
- Developed unit train coal costing for coal from a central Utah mine to various west coast ports for Arch Coal
- Developed transportation costing for Packaging Corporation of America for the branch line upon which one of its facilities sits, both for the existing Class I service and for a potential third party short line operator
- Developed unit train costing for iron ore for a proposed facility on shipper owned railroad in Chile for Antofagasta/Quadra mining