State positioned favorably in Norfolk Southern’s future operations

You can almost gauge the state of the economy by watching the train and truck traffic at Norfolk Southern Corporation’s Birmingham Regional Intermodal Facility (BRIMF).
Shipping containers packed with everything from retail goods bound for stores to auto parts bound for factories move in and out of the $97.5 million, 316-acre facility in McCalla.
There is also an increasing number of vehicles from various automakers moving in and out of the facility bound for Alabama dealerships. In fact, the volume of vehicles being shipped through the facility is causing the BRIMF to expand its automotive holding area, an official giving a tour of the facility said.
Located across the tracks from the Jefferson Metropolitan Park McCalla – the Jefferson County-owned and operated industrial park – the BRIMF brings in anywhere from five to 15 trains a day. While most are still the container trains many people are familiar seeing, a growing number are the enclosed train cars carrying cars and trucks from automakers and distributors across the country or right here in the state.
There are two intermodal tracks that run onto the BRIMF site and another four holding tracks where trains can be stacked waiting to come onto the facility for loading and unloading before continuing their treks down the tracks.
Randy Bayles is the director of International Intermodal for Norfolk Southern Corp. He said Norfolk Southern has invested many millions of dollars in expanding its intermodal infrastructure throughout the eastern half of the U.S. No facility is more modern than the BRIMF, he said.
“I know your Commerce Department has the slogan ‘Made in Alabama’ but we like to add that it’s ‘Moved by Norfolk Southern,’” Bayles said during a recent presentation to supply chain and logistics officials in Birmingham.
Bayles said even though there is steady activity at the BRIMF, the facility is not operating anywhere near its capacity. That, too, is a sign of the slow economic recovery, he said. Still, Alabama is positioned to figure prominently in Norfolk Southern’s operations and in intermodal shipping going forward.
The railroad company had more than 1,372 miles of rail route track in Alabama at the end of 2013. Last year, it moved 50,000 containers in and out of Alabama and that number should increase this year.
Norfolk Southern accounts for 1,800 jobs in the state with an annual payroll of $102 million, Bayles said.
The facility had hoped to have a greater economic impact on the central Alabama region by now. Other intermodal facilities have given rise to distribution centers, trucking and even manufacturing operations in other parts of the country as companies found it advantageous to locate close to those facilities.
As the volume shipped through the BRIMF increases, officials are hopeful more of the expected economic impact will come to fruition.
Patrick Murphy, economic development manager with Alabama Power Company, helped recruit the BRIMF to McCalla and has continued to work with Norfolk Southern to help it grow its operations and lure new industry as a result.
“Intermodal using rail and local or regional truck delivery has emerged as one of the most efficient ways to move any number of products and that efficiency already benefits many Alabama businesses,” Murphy said. “But there is potential for an even greater economic development impact as companies look to locate or expand their distribution operations as a result of this facility being in McCalla. The hope is we will see that potential realized as the Norfolk Southern Birmingham Regional Intermodal Facility grows.”
Bayles believes the trends are heading that way.
Because trains are a much more efficient way of moving large amounts of freight over great distances, more and more companies are structuring their logistics operations using trains for long-haul shipping and trucks for more localized delivery.
Nearly half of Norfolk Southern’s volume was once moving international shipments, Bayles said. Today, international accounts for 36 percent of its traffic as domestic shipping continues to climb.
Bayles said Norfolk Southern believes there is much more volume out there that could shift to rail and boost operations at facilities like the BRIMF.
–Mike Tomberlin