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Transportation and logistics company Savage Services and Union Pacific (NYSE: UNP) plan to construct Idaho’s first-ever intermodal rail terminal in Pocatello.
Savage’s terminal, which will enable farmers and others to export containerized hay and other agricultural commodities to Asia and other global markets, should be operational by mid-2021. It will operate at Union Pacific’s (UP) rail yard in Pocatello.
Goods loaded at the Pocatello terminal will be transported to the Northwest Seaport Alliance ports in Seattle and Tacoma, Washington.
In the past three months, the volume of empty inbound Seattle international containers (orange line) has been roughly equal to the volume of loaded inbound Seattle containers (white line). Terminal investment in Idaho may result in a shift toward loaded containers. (Source: FreightWaves SONAR) To learn more about FreightWaves SONAR, click here.
“We’re excited to serve Idaho producers and shippers with intermodal export service,” said Savage President and CEO Kirk Aubry. “The ability to ship containers out of Idaho directly to the Pacific Northwest by rail will open up supply chains and allow more Idaho businesses to access global markets.”
UP noted that the arrangement will give shippers an export option beyond trucking.
“Union Pacific’s unique collaboration with Savage uses intermodal containers heading to the Northwest ports. This partnership makes the most of the container’s round trip and saves truck drayage costs for Idaho shippers by providing a direct rail option,” said Kari Kirchhoefer, vice president of marketing and sales for the company’s premium segment.
The Northwest Seaport Alliance also spoke favorably about the new service.
“The new service will help lower export costs and increase volumes through our gateway. The Northwest Seaport Alliance looks forward to the successful launch of this new initiative,” said Commissioner Dick Marzano, alliance co-chair.
This article first appeared on s29755.pcdn.co
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