Creating a Smarter Path to Rail
A national sawmill operator-lumber supplier seeking relief from rising transportation costs and a strain on truck capacity found a solution through Watco Rail Logistics.
CHALLENGE
A lumber customer’s logistics manager was tasked with finding a more cost-effective transportation solution than relying solely on trucks.
The customer needed a transportation partner that could provide a reliable and cost-effective alternative to truckload shipping and a consistent transit performance with delivery visibility. The lack of rail access at the sawmills created an additional challenge.
SOLUTION
Through a referral from Watco’s Highway Logistics division, the customer was introduced to the Watco Rail Logistics team. Working closely with the customer, the Watco team developed a customized rail transportation strategy that included:
- Identifying a strategic transload partner. Watco Rail Logistics sourced and coordinated an origin transload facility capable of efficiently transferring lumber products from flatbed trucks onto center beam railcars.
- Coordinating competitive rail service. The team collaborated directly with the Class I railroad to secure competitive linehaul pricing through a direct-line rail move, improving both efficiency and cost control.
- Managing the entire transportation process. Watco Rail Logistics provided end-to-end management of the shipment process, including:
- Railcar ordering and coordination
- Transload management
- Railroad communication and coordination
- Shipment tracking and monitoring
- Final railcar placement at the receiver’s rail siding
RESULTS
By outsourcing the entire process to Watco Rail Logistics, the customer gained a single point of contact and a fully managed transportation solution. The transition from truck-only shipments to a rail-supported transportation model was seamless and immediately impactful.
Key outcomes:
- Reduced transportation costs through rail conversion
- Improved shipment visibility and coordination
- Reliable direct-line rail service
- Simplified logistics management through a single provider
- Savings of more than four days of administrative effort per month
With Watco Rail Logistics handling the complexity of rail coordination and transloading management, the logistics manager, who also has sales responsibilities, was able to focus more time on sales.
I was like a fish out of water when it came to rail and transloading, but your team made me feel comfortable every step of the way by explaining everything in a clear and concise manner.”
Kurt A.
Sales & Transportation, Associate National Lumber Wholesaler