Western Railroad Discussion > UP News Release Just Dropped--New IM Terminal in SoCal

Union Pacific Opening New Southern California Terminal in Major Import Distribution RegionThe Inland Empire Intermodal Terminal will expand suppliers' access to key U.S. markets.  OMAHA, NEB., MAY 4, 2021  Union Pacific today announced plans to open a new intermodal terminal in the heart of Southern California’s import distribution region. It is the fastest growing region of industrial warehousing and continues to be a leader throughout the United States. Located near the Ports of Los Angeles and Long Beach, the new terminal will open in the second quarter of 2021, providing customers’ expanded access to Chicago and other key markets."We are excited to expand our intermodal presence and do it where we can reduce truck traffic on California’s highways, cut drayage costs and compete effectively for domestic intermodal freight," said Kenny Rocker, Executive Vice President - Marketing and Sales. "Inland Empire Intermodal Terminal demonstrates our commitment to intermodal and the strength of Union Pacific’s franchise to grow quickly and strategically using our existing footprint."Union Pacific will start by establishing a “pop-up" terminal at its West Colton rail yard. Domestic intermodal service will launch between Southern California and Chicago, with expected future service to Dallas and southeast markets...
 



Edited 1 time(s). Last edit at 05/04/21 14:47 by zars.

Yah and Phoenix just as soon as UP opens the West line for traffic!

Out 

Will this be in the "old yard" or does it have something to do with the Slover Mountain property that I thought BNSF purchased?

https://www.up.com/media/releases/210504-inland-empire-intermodal.htm

The second quarter of 2021 ends in 47 days.

Rather confusing news release, to be sure. The Ports of LA and Long Beach are nowhere near the Inland Empire.

This might be an attempt to move imports to the IE and a move to originate and terminate the ZCIG4/ZG4CI pair at West Colton.

Allen

Posted from Android

callum_out Wrote:
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> Yah and Phoenix just as soon as UP opens the West
> line for traffic!
>
> Out 

Don't have any photos, but there's a huge stockpile of shiny new 53' boxes on the NE corner of the former Colton Diamonds, where the old SP depot used to be. Most of them were Wal-Mart boxes, if I remember correctly? This was about 2 weeks ago. I suppose SoCal railfans can collaborate this info when they drive east on I-10 from Pepper Ave.

Don't see any other reason why someone would leave a pile of 53' boxes there. There are betterr spots to store new 53' boxes closer to your typical Inland Empire warehouse clusters (Ontario, for example).

But guys just remember, it is the UP we're talking about.

Out 

callum_out Wrote:
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> But guys just remember, it is the UP we're talking
> about.
>
> Out 

Sure, but the stockpiling of new 53' boxes at Colton predated any financial propaganda (and this news release). Los Angeles Division has been quick to revert lame PSR decisions, like quickly ending the "mother of all haulers" out of West Colton, and using manned helpers frequently, so maybe there's hope on the local management level? I'm sure there are other PSR decisions lingering in the division, but surely, the world isn't THAT one-dimensional as you see it?

There is rail service from the ports using the Alameda Corridor, a depressed line that eliminates grade crossings.

Bill Deaver
Tehachapi, CA

Yup, I mentioned this on here months ago. It wasn't a rumor then either.

Is a "pop up" terminal the same thing they did in Minneapolis?    They just increased service there recently.  

Yes bsaically, an experiment to see how things go before spending any real money. 

Out 

West Colton is the new yard, a hump operation.

There might be more info presented at todays Investor Day. Kenny Rocker has a segment in the afternoon session.

Posted from Android

bradleymckay Wrote:
-------------------------------------------------------
> Rather confusing news release, to be sure. The
> Ports of LA and Long Beach are nowhere near the
> Inland Empire.
>
> This might be an attempt to move imports to the IE
> and a move to originate and terminate the
> ZCIG4/ZG4CI pair at West Colton.
>

Repurposing West Colton for intermodal. Over time, the carload yard will shrink and intermodal will expand.

It is not an attempt to "move" imports to the IE. They already move there on their own, drayed from the ports to IE distribution centers. The imports are then re-shipped in domestic containers or trailers, a large portion as rail intermodal. There are many more imports moving this way than moving intact in marine container stack trains out of the ports. For most large importers, the marine-box double-stack train is an obsolete supply chain they make little or no use of.

Best regards,

Rob L.

It will be interesting to see what UP’s “pop-up” terminal will really look like. The Inland Empire has  the largest concentration of high-cube, Class A DCs in the US. Draying back to COI, LATC, LA East Yard and in the past few years even the ICTF (which now does domestic intermodal) is expensive: a 40- to 65-mile dray can take 2 to 2-1/2 hours each way, or as short as 1 to 1-1/2 hours. The IE DC market is huge, and the cost savings on drayage could be huge with a West Colton ramp. But how much drayage does UP pay for? Is that reflected in their rates? Do they care? Regardless, a “pop-up” ramp seems to be a minor response to a major market. 

UP has repeatedly missed opportunities on land to acquire and build a good-sized ramp since the SP acquisition. At that time, in 1996, they recognized that the IE would have explosive growth in DCs, and included it in their strategy documents presented to the STB.  Nothing ever happened: UP could never stomach the cost of land in the LA Basin, even when it was just north of a quarter million per acre. Now it is just south of $2M per acre.  Oops? Maybe they finagled the CalPortland land away from BNSF?  

West Colton carload will continue to shrink. The numbers are continuing to go down to where a hump yard no longer makes sense for local traffic and probably not even for blocking/sorting for the main trunks radiating out to the San Joaquin Valley, Salt Lake City, and El Paso.

Some size of carload yard is needed, but what size? Where? Could a re-purposed City of Industry flat-switched yard take over carload, and West Colton converted to all or mostly intermodal? How would those numbers compare, what is the cost of doing that, and what are the long-term traffic benefits? At West Colton, paving over the bowl, kicking out MCM Construction and moving Hulcher to another spot gives about 135 acres of terminal. Demo the RIP/car repair? That brings the total up to about 180 acres. If you include all of the receiving yard for staging and the departure yard between Riverside Avenue and Pepper Avenue, those bring the total up to a ramp of 220 acres (I've left out the engine terminal and shops).  With no carload capacity at all.

By comparison, if UP does the delayed Industry renovation/expansion (on existing UP land), they get a ramp with 170 - 175 acres.  That is a cost of about $50M to $75M. Swapping West Colton for Industry with full build-out gives an increase in lift capacity only about 30% more for likely $250M to $300M. Does that make sense? Approximate area of LA East Yard (excluding engine terminal) is 220 acres. The ICTF is about 230 acres if you include the Watson Company land that UP was planning on giving back; about 140 acres without it. Global 4 looks to be about 700 acres, but I’m not sure on what UP’s land boundary is.

So much for speculation.  Any news on what Kenny Rocker had to say today about this (see Lackawanna484’s post above)?

Bruce
 

So UP is trying to catch up with BNSF and their San Bernardino and Barstow IM ramps?

trainjunkie Wrote:
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> So UP is trying to catch up with BNSF and their
> San Bernardino and Barstow IM ramps?

San Berdoo yes, Barstow no.

Best regards,

Rob L.

Possibly because that land is free of rent and alsothat the boxes will gradually be released into service .Lots more to come from our friendly Chinese trading partners!

Rob and Bruce have it right. This is about shorter drays of 53s originating at all those huge IE DCs. Not about ocean boxes from the port. Which the steamship lines would prefer to quick cycle back to East Asia these days anyway.

Apparently according to Rocker it's going to start at 45K lifts (pop up) and can eventually reach 1.5M. That sounds to me like a gradual West Colton hump closure then complete phaseout. IF they decide to grow it. Which I hope they do.

I hear Roseville has some extra capacity and they just upgraded Englewood (and moved all the Houston IM to Settegast). 

Could permanently open the second North Platte hump again too. 

(Micro) block the LA carload traffic from those points. 



Edited 1 time(s). Last edit at 05/06/21 15:49 by pbouzide.