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Indiana Honda plant a prime example of short lines' marketing potential
Indiana Honda plant a prime example of short lines' marketing potential
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jstagl
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Indiana Honda plant a prime example of short lines' marketing potential
Jeff Stagl
7 Jan 2009 8:00 AM
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On Dec. 2, a monumental event occurred in the short-line industry. A Central Railroad Co. of Indiana (CIND) train moved the first batch of vehicles to be transported by rail from a new Honda Motor Co. automotive plant in Greensburg, Ind., to Cincinnati, where the short line interchanges with CSX Transportation and Norfolk Southern Railway.
Doesn’t sound too earth-shattering? Here’s why it is: The Honda plant is the first automotive manufacturing facility to be built on and primarily served by a short line.
The automaker had considered building the plant in Illinois, Michigan, Ohio and Wisconsin, but chose the Indiana site in part because
RailAmerica Inc.
-owned CIND offers multiple railroad connections between Cincinnati and Shelbyville, Ind. In addition to CSXT and NS, the 81-mile short line interchanges with Canadian National Railway Co. and the Indiana & Ohio Railway Co.
The plant, which opened last summer, is being tooled to produce Honda Civic sedans. After the facility reaches full production capacity, more than 80 percent of the assembled vehicles will be transported via rail — outbound traffic that could total 8,000 carloads annually.
That’s a big boon to CIND’s traffic, just as landing the plant is a big marketing feather in the cap for both the railroad and short-line industry. The facility serves as a prime example of short lines’ ability to compete with Class Is for major industrial development projects, as well as their aptitude to work with Class Is to provide major shippers a total long-haul transportation option.
With Honda breaking the proverbial ice and CIND showing it can be a primary transportation provider, I expect a few more automotive plants to spring up along short lines in the near future. That is, if the economy rebounds and consumers become active auto buyers again.
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Short Line/Regional