Straight Track #137

U.S. Rail News, in Vol. 25 No. 22, published October 23, 2002, reported on the new 681-acre multi-modal freight facility in Elwood, Illinois, outside of Chicago. Because of the predictions that such facilities will become an industry model, we thought to share the article with our Straight Track subscribers. 

BNSF Opens Chicago 'Logistics Park' 
To Consolidate Intermodal Operations

Published by U.S. Rail News on October 23, 2002

Burlington Northern Santa Fe Railway last week opened a 681-acre multi-modal freight facility in Elwood, Illinois, outside of Chicago, that the railroad predicts will become an industry model. 

The $240 million intermodal rail yard and related facilities integrate rail, truck, intermodal and transload services with distribution and warehousing in one location. It also would reduce truck traffic in Chicago area if it draws the number of shippers Burlington Northern expects. 

The BNSF Logistics Park-Chicago is located next to the railroad's track leading to West Coast routes and an interstate highway. The opening ceremony last week attracted about 400 people. 

The new facilities "are establishing a new logistics standard to meet the forecasted growth in intermodal and automotive traffic for the next 20 years," said Matthew Rose, Burlington Northern’s chief executive officer. 

In addition to the BNSF Logistics Park, the railroad has options on more than 200 additional acres to develop for intermodal, distribution and warehousing in Chicago's southwest suburbs. 

A Project Long-Time Coming 

"It has taken over seven years, negotiations with over 50 governmental agencies, and more than $250 million to make the largest multi-modal industrial park in the Midwest a reality," said Mike Mullen, chief operating officer of Centerpoint Properties, the property developer of the park. 

The BNSF Logistics Park's first customer is Maersk Sealand, which is moving container traffic from ports in Southern California, Oakland and the Pacific Northwest. All international shipments will be consolidated at the yard, regardless of their West Coast point of origin. 

The intermodal facility increases Burlington Northern’s Chicago lift capacity by 400,000 lifts to nearly three million annual lifts. Possible expansions planned for the future would increase the lift capacity by another 800,000 annual lifts. 

The railroad describes its automotive facility there are a "Gateway Hub" for building automotive trains destined for western markets. It is intended to help shippers use "fast-to-market" strategies for quick deliveries. Customers include Ford Motor Co., UPS Logistics, American Honda Motor Co., American Isuzu Motors, and Subaru of America. 

The BNSF Logistics Park includes a switching yard, which will allow Burlington Northern to build trains faster and combine intermodal and automotive trains to western markets. 

The innovation of the intermodal facility is the way it consolidates transportation services with a strategic location, railroad officials said. "We know this type of formula works," said Kathleen Regan, Burlington Northern's vice president for business development at Alliance, Texas, north of Fort Worth. 

The Logistics Park is another step in Burlington Northern's strategy of retaining its role as the nation's largest intermodal carrier. Intermodal represents about 30 percent of the railroad's $9 billion in annual revenue. The strategy focuses on creating hubs and alliances with other transportation companies. Contact: Richard Russack, BNSF, at (817) 352-6425. 

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