(The Commercial Appeal posted the following story by Richard Thompson on its website on August 13.)
MEMPHIS, Tenn. — Burlington Northern and Sante Fe Railway Co. officials said Tuesday that the company is studying ways to increase capacity at its Memphis terminal five-fold.
“We have some studies under way to determine the feasilibility of expanding capacity in Memphis or locating a greenfield site in Memphis,” BNSF assistant vice president of economic development Vann Cunningham said.
By year’s end, the railroad expects to increase capacity for the fastest growing segment of its business – intermodal shipping.
The plans apparently don’t include joining the Super Terminal Memphis project, which less than two months ago landed Canadian National Railroad as its anchor tenant.
Cunningham said Burlington would like to achieve 1 million lifts of capacity for intermodal cargo in Memphis; it currently has about 200,000 lifts of capacity. “Lifts” refer to the number of transfers of containers to and from rail cars and trucks.
Railroads use intermodal yards to load and unload shipping containers, sending the goods to the end consumer by truck or rail.
The move could affect employment at the terminal, which has about 550 workers.
About 100 BNSF employees met with company executives Tuesday at the Whispering Woods Hotel and Conference Center in Olive Branch to address rumors and concerns about the future of the railroad’s Memphis terminal.
The city’s rail yards are over capacity because they were not designed for intermodal shipping, which requires lanes for truck traffic and areas to store empty shipping containers.
BNSF, a major force in the movement of goods from the West and East coasts, is well over capacity at its 57-acre yard at U.S. 78 and Shelby Drive.
And the company has made no secret that it’s shopping to expand, looking at property in Marshall County, Miss., and in Arkansas.
It has an 18-acre intermodal facility in Marion, Ark.
Mark Kotter, BNSF assistant vice president of operations, said no decisions have been made about the Memphis terminal.
But Kotter said the growth of international shipments, which consists of containers from steamship companies, is prompting BNSF to look at its intermodal operations.
Other railroads are also struggling with capacity, which is what prompted CN to decide to invest $25 million to create an intermodal facility at Frank C. Pidgeon Industrial Park.
CN acquired 155 acres with an option on 95 more acres in the 3,000-acre Pidgeon park.
The Pidgeon intermodal yard will serve CN and any railroads CN brings into the deal. Canadian National is negotiating with CSX Corp., which is expected to invest another $25 million in the facility.