AASHTO Standing Committee on Rail Transportation SCORT

1
AASHTO Standing Committee on Rail Transportation
(SCORT)

• Potlatch Corporation and its attempt to put
  Forest Products
• in Motion
• Dave Weisel
• Director of Distribution

2
AASHTO Standing Committee on Rail Transportation
(SCORT)

• Potlatch Business and 30,000 foot level

• Major challenges for rail
• Car Supply
• Service

3
AASHTO Standing Committee on Rail Transportation
(SCORT)
Baseball is 90 mental and the other half is
physical.
4
Business Overview

• Diversified Forest Products company with multiple
  operating divisions
• Solid wood products (lumber, panels, etc.)
• Pulp and Paperboard (milk cartons, file folders,
  etc.)
• Consumer Products (napkins, towels, facial
  tissue, bath tissue)

5
Business Overview

• 2004 Revenues - 1.6 Billion

• Primary Operating areas in Arkansas, Idaho, and
  Minnesota

6
Business Overview

• Variety of customers and channels
• Wholesale distribution
• Direct to Retailer
• Paperboard to intermediate manufacturer

7
Samples of Product Offerings
8
Transportation Challenges

• Complex transportation environment with multiple
  modes of transport
• Rail, Truckload, LTL, Parcel
• Ocean, Barge, Intermodal

9
Transportation Challenges

• Managed in excess of 169 million in annual
  outbound transportation (2005 projection)
• In excess of 140,000 truck shipments
• In excess of 20,000 rail shipments
• Approximately 45 shipping locations
• Domestic and international destinations

10
Overview of Transportation Operations
Order
Accounts Payable
Sales/ Purchasing/ Transportation Routing/Planning
LOGILITY Voyager TPM
Reports Lane Analysis Carrier Performance Account
ing
Car Billing
Load Tendering
Carriers
Load Status
11
Phase Two Goals for Transportation Operations

• Enhance the Front End portion of the
  Transportation function
• Load tendering
• Private Exchange
• Shipment Status Tracking

12
Car Supply

• The Boxcar fleet in North America has declined
  from 233,000 cars (1993) to fewer than 159,000
  today.

• Some carriers have begun the total elimination of
  their chip and log car fleets through sale or
  asset retirement.

• The national Boxcar fleet (over 75 are in excess
  of 25 years old).

13
Our Challenge

• Improved equipment utilization
• Average equipment cycle time 12-13 turns per
  year
• Improvement to 15 turns per year would mean
• Significant freight savings
• Additional rail freight revenue and asset savings

14
Our Challenge

• Specific examples of what Potlatch is doing
• Leasing and buying cars as a supplemental fleet
  to the rail system cars
• Doing round-trip moves where feasible

15
Examples
Elwood, IL
Lewiston
Elwood, IL
Lewiston
Cook, MN
Las Vegas
Portland
Lewiston
Chicago
16
Other Opportunities

• Communication with the short lines
• Pre-block cars
• Better interchange direct to the Class I terminals

17
Other Opportunities

• Better communication with the Class I Railroads
  on the first mile/last mile.

18
Key Issue

• How do we improve our transportation
  infrastructure and at the same time use
• Best Practices
• to improve velocity
• of our freight?

19
(No Transcript)