Eastern Railroad Discussion > Alabama picked for new Toyota / Mazda assembly plant

Although not yet offical, it was reported that Toyota / Mazda will announce the construction of a new assembly plant in Alabama that is slated to be online by 2021. The site for the plant will presumably be just west of Huntsville in the community of Greenbrier. This is on NS’ Memphis District East End.

Here’s a link to the article: https://www.google.com/amp/s/articles.al.com/business/index.ssf/2018/01/alabama_picked_for_toyota-mazd.amp

Andrew

Good for NS and Alabama. Lots of good jobs.

Posted from Android

Kind of interesting that they are not locating where they could also be served by CSXT.

PRR_4859 Wrote:
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> Kind of interesting that they are not locating
> where they could also be served by CSXT.

CSX could still get some of the business. Such is the case with Honda at Lincoln, AL. The plant is on NS, but finished vehicles are trucked about 20 miles south to the ramp CSX built in Talladega.

Andrew

Time to reopen the Chattanooga hump!

I know it probably would not have much to do with classifying the new plant's traffic, but the overall business level on NS might justify it.

Parts business! Some of it might come by truck...but auto parts is a railroad type of thing!

Not anymore. Parts for the 2005 Hyundai plant in Montgomery, Ala and the 2008 Kia plant in West Point, Ga. arrive almost exclusively by truck even though both plants are served by CSX for outgoing shipments. The supply chain for the two plants is scattered along I-85 between the two.

CSX in Decatur, Al. is less than 1/2 hour from the proposed site.

Paul B
Canton, GA

ctillnc Wrote:
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> Not anymore. Parts for the 2005 Hyundai plant in
> Montgomery, Ala and the 2008 Kia plant in West
> Point, Ga. arrive almost exclusively by truck even
> though both plants are served by CSX for outgoing
> shipments. The supply chain for the two plants is
> scattered along I-85 between the two.


That is indeed the business model for the newer plants. Vendors are held to strict JIT deliveries and it is their responsibility to inventory somewhat close to the assembly plant or "campus".
Rich S

The only companies moving auto parts by rail boxcar are GM, Ford and Chrysler. That is result of their old stamping plants and other operations being a long distance from the assembly plant. The amount of auto parts boxcar movements with these 3 companies have declined by a large amount in past few years. They cannot tie up inventory moving on boxcars which is slower transit than truck.
The other auto companies as posted require their suppliers to be a short truck drive to their assembly plant. Parts are received just hours before used on the assembly line. Very efficient operation. These parts suppliers receive a portion of their inbound materials from rail cars, such as steel and plastic pellets. These other auto companies also receive a good volume of railroad intermodal containers with auto parts.

gmojim

gmojim Wrote:
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> These parts suppliers receive a
> portion of their inbound materials from rail cars,
> such as steel and plastic pellets. These other
> auto companies also receive a good volume of
> railroad intermodal containers with auto parts.
>
> gmojim

That's interesting. I wonder if the profit margin on a container of auto parts is similar to the same amount of auto parts delivered by box car?

Auto parts used to be a very profitable part of the rail mix

Lackawanna484 Wrote:
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> gmojim Wrote:
> --------------------------------------------------
> -----
> > These parts suppliers receive a
> > portion of their inbound materials from rail
> cars,
> > such as steel and plastic pellets. These other
> > auto companies also receive a good volume of
> > railroad intermodal containers with auto parts.
> >
> > gmojim
>
> That's interesting. I wonder if the profit margin
> on a container of auto parts is similar to the
> same amount of auto parts delivered by box car?
>
> Auto parts used to be a very profitable part of
> the rail mix

Most auto parts by container received are imported auto parts on steamship containers. These auto companies import a small percent of their auto parts, certain items such as engine control modules and such electronics. Very little domestic 53ft container auto parts moved, except to and from Mexico.

gmojim

gmojim Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > gmojim Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > These parts suppliers receive a
> > > portion of their inbound materials from rail
> > cars,
> > > such as steel and plastic pellets. These
> other
> > > auto companies also receive a good volume of
> > > railroad intermodal containers with auto
> parts.
> > >
> > > gmojim
> >
> > That's interesting. I wonder if the profit
> margin
> > on a container of auto parts is similar to the
> > same amount of auto parts delivered by box car?
> >
> > Auto parts used to be a very profitable part of
> > the rail mix
>
> Most auto parts by container received are imported
> auto parts on steamship containers. These auto
> companies import a small percent of their auto
> parts, certain items such as engine control
> modules and such electronics. Very little domestic
> 53ft container auto parts moved, except to and
> from Mexico.
>
> gmojim

Thank you.

I know a lot of transmission assemblies, some engines etc come from Mexico.