CASE STUDY - Assessing a Port's Competitive Position
A port authority was concerned whether it could sustain its competitive position as a major container port of call and intermodal rail gateway for the Atlantic coast. In light of CSX's and Norfolk Southern's acquisition of Conrail, intermodal rail schedules and service levels from the Port to various inland destinations would change significantly. The client feared that such changes could potentially affect its competitive position relative to other ports. The client employed Norbridge to conduct an extensive analysis of the post-merger intermodal network in the eastern U.S.
Approach
Norbridge approached the task by first obtaining current post-merger schedule information published by the two railroads. A Norbridge/client team then identified which port-inland routes should be targeted for analysis. In total, 11 inland cities and 8 Atlantic ports were selected, thus creating 176 potential port-inland pairs. The team then devised a set of criterion by which to evaluate and compare each intermodal service lane:
Value Added
Norbridge's analysis proved that the competitive landscape of the Atlantic port industry had altered significantly as a result of the split of Conrail. Using our analysis the client was able to understand the strong and weak points in its intermodal service relative to other ports on the east coast. Equipped with this knowledge, they were able to prioritize which capital investments were required to help them sustain a long-term competitive advantage.
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