Insights - September 2016 - 7
An Intermodalist Looks Back:
Reflections from the Silver Kingpin Winner
Jim Hertwig's career has truly
been intermodal. The current
president and CEO of the Florida
East Coast Railway has served six
years with the company and another six at CSX, but as he points
out, he actually spent more of his
career on the motor carrier side
of freight transportation. He has
had the opportunity to experiHertwig
ence the history and see the
potential for intermodal, and his contributions to the field
have earned him recognition in the form of IANA's 2016
Silver Kingpin Award.
In this interview with Intermodal Insights, we've asked
Hertwig to join this year's distinguished list of intermodal
leaders to reflect on IANA's 25th anniversary.
Insights: When IANA was formed 25 years ago, intermodal was a fledgling market segment in transportation.
What were some of the initial challenges that its supporters had to overcome to gain acceptance and respect for
the mode? How did IANA and other trade associations
work to overcome these challenges or objections?
Hertwig: The size of the equipment was an issue back
then. A lot of rail trailers were owned by leasing companies,
many of them in poor condition. At that time there were
no container programs of any significance for the domestic
side of the business.
There was also a perception of poor rail service. You had
cross-towns from the western railroads to the eastern railroads, which delayed service in many cases. [Cross-town dray
moves were often needed to take intermodal trailers from
the terminus of one railroad to a rail yard of another when
moving on multiple railroads from origin to destination.]
IANA really established the forum where all the different parties in intermodal could come together and talk
about best practices and industry standards, the creation of
the UIIA, and other concerns of the day. There was a lot of
strong leadership back then, and I think everybody wanted
the product to be good. It was just a matter of getting out
of your own silo and looking at the overall supply chain. I
think IANA has continued to do that throughout the years
- improve that communication and education among all
the different modes of service.
Insights: It sounds like IANA helped set the tone.
Hertwig: Yes. I can't stress enough the importance of the
Operations, Maintenance and Repair, and the other committees. In some of those smaller committee rooms there
were some heavy debates, but out of them came a decision
that, "This is the way that we're going to move forward as an
industry." Everybody got the buy-in at those meetings. So, I
think those committees were extremely important. People
accepted it, they knew it was best for the entire industry,
and they moved forward.
Insights: Some in the industry say railroads were reluctant
or resisted getting into the intermodal market. They are
certainly on board today - how does today's attitude
differ from those early stages of intermodal development?
How does that compare/contrast with the other modes in
which you have worked?
Hertwig: At first, a lot of intermodal was trailers, and
trailers were difficult to make a profit. They didn't double
stack [containers] much at that point in time.
Once the leased trailers went away, and the container
programs got off the ground, the railroads started embracing intermodal a lot more. When you think of it, they were
able to get twice as much revenue when they used double
stack as when they used one trailer. It helped profitability.
Then, they started to see more and more truckload
carriers becoming interested in getting into the intermodal
business.
There was a lot of discussion during IANA's meetings on
how we could improve operations at rail terminals to benefit
the motor carriers, on how they could come in, get their unit
and get back out. A lot of people don't give IANA enough
credit there. They brought the groups together, [including]
motor carriers. And, the railroads listened. The result was
they designed the newer terminals - intermodal facilities
- and made them driver-friendly and better for the drayage
community. They understood the intermodal product was
not just moving from ramp to ramp, it involved getting it
to the customer's door.
Insights: Who do you feel, either people or entities, were
most responsible for the strong industry it has become
today, 25 years later?
Hertwig: You have to give credit to UPS. They were a
Hertwig3PLs
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September 2016 | Intermodal Insights 7
Table of Contents for the Digital Edition of Insights - September 2016
Insights - September 2016
FMCSA Proposes Pilot Qualifying Military Drivers
STB Decides Rail Cost of Capital
From the IANA President & CEO
Board Nominations Close on Sept. 5
Fall Webinar to Kick Off Enriched Education Program
IANA’s Information Services Premier at EXPO
EXPO Preview: Insights from Barclay’s Brandon Oglenski
Reflections from the 2016 Silver Kingpin Winner
Freight Reports
Port News
Key Moments in IANA’s 25 Year History
IANA Salutes Intermodal Truck Drivers
EXPO Mobile App Now Available
Get Social at Intermodal EXPO
Sustainability News
Maritime Industry Loses a Champion
Mexican Rail and Intermodal Leader Emilio Sacristán Roy Dies at 77
People in the News
Get Your Name in Intermodal Insights!
2016 Sponsors
In Brief
Welcome New Members
Intermodal Calendar
Insights - September 2016 - Insights - September 2016
Insights - September 2016 - STB Decides Rail Cost of Capital
Insights - September 2016 - IANA’s Information Services Premier at EXPO
Insights - September 2016 - 4
Insights - September 2016 - EXPO Preview: Insights from Barclay’s Brandon Oglenski
Insights - September 2016 - 6
Insights - September 2016 - Reflections from the 2016 Silver Kingpin Winner
Insights - September 2016 - 8
Insights - September 2016 - 9
Insights - September 2016 - 10
Insights - September 2016 - 11
Insights - September 2016 - 12
Insights - September 2016 - 13
Insights - September 2016 - 14
Insights - September 2016 - Freight Reports
Insights - September 2016 - 16
Insights - September 2016 - Port News
Insights - September 2016 - 18
Insights - September 2016 - 19
Insights - September 2016 - 20
Insights - September 2016 - Key Moments in IANA’s 25 Year History
Insights - September 2016 - 22
Insights - September 2016 - 23
Insights - September 2016 - 24
Insights - September 2016 - 25
Insights - September 2016 - 26
Insights - September 2016 - IANA Salutes Intermodal Truck Drivers
Insights - September 2016 - 28
Insights - September 2016 - Get Social at Intermodal EXPO
Insights - September 2016 - 30
Insights - September 2016 - Sustainability News
Insights - September 2016 - 32
Insights - September 2016 - Maritime Industry Loses a Champion
Insights - September 2016 - 34
Insights - September 2016 - People in the News
Insights - September 2016 - 36
Insights - September 2016 - Get Your Name in Intermodal Insights!
Insights - September 2016 - 38
Insights - September 2016 - 2016 Sponsors
Insights - September 2016 - In Brief
Insights - September 2016 - Welcome New Members
Insights - September 2016 - 42
Insights - September 2016 - 43
Insights - September 2016 - 44
Insights - September 2016 - 45
Insights - September 2016 - 46
Insights - September 2016 - 47
Insights - September 2016 - Intermodal Calendar
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