By Dennis Wilmot
The Legacy and Challenges of Rail Transportation
Railroads have an incredible history. They truly helped to build America and were among the first major corporations, employers, and yes, lobbyists and influencers in the halls of government. Today, they have a great story to tell—rail transportation is more fuel efficient, has a much lower carbon footprint, is more cost-efficient, and has lower pricing. So why is it that rail has been talking about gaining market share from trucks for decades but, at best, is holding even or even losing ground? And what are they doing to change that?
Since I started my career in rail shipping over 50 years ago, I have seen numerous ideas tried and changes take place. In this final article of my 50-year journey, I want to highlight two major impacts on rail shipping in the past years, one major shift in my own career, and what the future holds for both.
Precision Scheduled Railroading & A Global Disruption
How could the rail carriers change their somewhat stagnant operations to truly make those advantages, such as fuel efficiency, gain them more market share? Enter Hunter Harrison and Precision Scheduled Railroading (PSR). Hunter was a change agent, no question, whose ideas changed how railroads operate. In 2017, I even wrote an article pondering his management style and asking if he was going to be a General Patton (seeking victory for all), or a General Gates (seeking self-promotion)? Was this a good long-term improvement?
Shippers, labor unions, and just about everyone except Wall Street investors questioned PSR from the start—and still do. The many promises of improvement have yet to be seen. Just as all Class I’s began to deploy the practices of PSR, an unforeseen enemy changed not only the rail industry but the entire world.
In March of 2020, my wife and I were driving back to Ohio after visiting our daughter and family in Florida. While en route, the governor of Ohio ordered a shutdown of all activity—all business, all stores, all everything. When we entered Ohio, we struggled to find an open gas station, rest area, or bathroom, but signs were everywhere: Closed by order of the governor of Ohio. The entire world was shut down, not just Ohio—including all railroads.
COVID! No one living had ever seen anything like this—if not the actual pandemic, then the response to shut everything down. Providentially, our office lease had come up for renewal, and with current technology, we determined we could successfully all work from home offices. By the end of February, and well before the world shut down, Iron Horse Logistics Group was in place to operate at 100% capacity, even when the shutdown was ordered.
A Personal Shift and Looking to the Future
There are watershed moments in every career when we must evaluate our past, consider our future, and decide if change is in order. Nearly ten years ago, for me, this change was to dedicate myself to working within an organization other than IHLG to help improve the education, networking, and opportunities for those in the rail marketplace. The solution was the North East Association of Rail Shippers (NEARS).
Joining that board, serving in various official capacities—including president (during the COVID shutdown, where three of four conferences were either canceled or virtual-only)—and now as chair of the Administrative/Executive Committee has truly been one of the joys of my entire 50-year career. Read more about NEARS at nears.org and be sure to join us in Baltimore in April for our spring conference!
Final Reflections
Fifty years seems like a long time—almost a lifetime for me. I have only been able to provide a quick glimpse at life over these five decades. Please allow me to end with a few observations or conclusions:
I am as enthralled with rail as that first day I walked into the rail yard on the Newburgh & South Shore at Marcy Yard.
The past long and storied history of the railroads and the valiant attempts of ideas like PSR (whether fully productive or not) and technology leave me hopeful that there remains a future for railroading.
NEARS remains a highlight for me as long as I can reasonably contribute.
Life is much clearer in the rearview mirror than in the windshield. By looking back, I can see the providential hand of God guiding the events and circumstances.
Since I know God is faithful and always keeps His promises, and since I can look back and see how He has guided me thus far, I know my own future is bright as long as my focus remains on Him. Telling of His greatness and love is more important than anything else I do. You can learn more HERE.
I am always interested in feedback. You can email me at dennis@ihlogistics.com or contact me directly at 440-552-7091.