What Is Railway Logistics? A Guide To Understanding The Basics Of Railcar Tracking

Rail networks are what keep the wheels of commerce turning.

According to the Association of American Railroads, freight railroads in the United States alone move approximately 40% of the country's freight ton-miles annually.

The sheer scale of modern rail networks, coupled with the substantial investment required to develop and maintain them, means that the need to track railcar movement is more critical than ever. Without robust tracking systems, overseeing a large number of railcars would be more problematic, resulting in widespread delays, inefficiencies, and higher operational costs.

Despite rail transportation's long-standing history, railway logistics is a fairly new phenomenon, filled with potential for innovative breakthroughs.

Therefore, it is critical to delve into the realm of railway logistics, understand its components, the advantages it offers, the technological elements it encompasses, and identify factors that could significantly influence railcar management.

What is Railway Logistics?

Railway logistics encompasses the organization, management, and execution of transporting goods through railroad systems. It involves arranging timetables, handling the loading and unloading processes, monitoring railcars, and overseeing the maintenance of tracks and related structures to ensure their secure and efficient functioning. Given the expansive and intricate scope of railway logistics, which incorporates a range of processes and activities, below are some illustrative examples that delineate critical roles within this field:

• Bulk Commodity Transport: Moving large quantities of raw materials such as coal, grain, or minerals from extraction sites to processing plants or export terminals.
• Intermodal Freight Transport: Coordinating the movement of containerized cargo using multiple modes of transport, such as ships, trucks, and trains. This includes managing schedules for transfers between the different modes.
• Capacity Planning: Analyzing and forecasting demand to ensure that sufficient railcars, locomotives, and infrastructure are available to meet transportation needs without overcapacity.
• Real-Time Tracking and Monitoring: Leveraging advanced technologies like GPS and telematics to monitor the location and status of railcars and shipments in real-time for unparalleled visibility.
• Cost Management: Monitoring and controlling transportation costs through optimal route planning, load optimization, and fuel management.
• Environmental Sustainability: Implementing practices and technologies to reduce the environmental impact of railway activity, such as using energy-efficient locomotives and promoting modal shifts from road to rail.
• Crisis and Disruption Management: Developing and executing plans to handle unexpected disruptions, such as natural disasters, accidents, or infrastructure failures.

Regardless of one's position within the diverse realm of the rail industry, it is crucial to consider aspects of railway logistics.

For example, those involved in supply chain management must oversee the movement of goods from suppliers to consumers; crucial metrics include inventory control, predicting demand, and enhancing transport efficiency. Similarly, logistics analysts depend on metrics that gauge punctuality, railcar usage, and delivery speeds for efficient daily operations. Administrators also require access to logistical information to streamline document management and uphold operational effectiveness.

In the grand scheme, railway logistics is the engine driving this industry forward, bringing together its various components and maximizing utility for all stakeholders. Metrics function as compasses, directing strategies and decisions towards enhanced performance and customer satisfaction, with constantly advancing technologies for gathering and analyzing these metrics.

Railcar Tracking: The Backbone of Railway Logistics

Visibility is non-negotiable in the industry – it's a matter of delivering tangible value for customers.

To prevent manufacturers from opting for more expensive options, railcars— such as those operated by Trinity’s lease fleet — are being fitted with GPS devices that can track the cargo and forecast metrics like location, dwell by location, cycle time, network output, and more.

The availability of real-time data enables manufacturers to optimize their production timelines, allows shippers to schedule loading and unloading operations more efficiently, and assists distributors in maintaining optimal stock levels. Tracking railcars also supports environmental sustainability by fostering transportation methods that make better use of resources.

Methods of Railcar Tracking

With the progression of railcar monitoring systems, aspects such as the extent of geographical reach and consistency of signal strength [SE1] have become important. However, certain techniques have proven to be dependable benchmarks throughout the years.

AEI (Automated Equipment Identification)

Automated Equipment Identification (AEI) has long been the go-to for rail event reporting. Attached to [KF2] the sides of railcars, AEI "tags” include a chip that holds important information like the mark and car number.

As the railcar moves past, trackside AEI scanners scan the tags and log both the location and timing of the railcar’s movement. These RFID tags contain unique identification information, such as the railcar’s type, owner, and road number. The scanned information is then sent to the appropriate railroad, logged as an “event,” stored in the railroad’s system, and ultimately distributed to relevant parties either through the TRAIN-II message system or in the form of a Car Location Message (CLM). This entire procedure is commonly referred to as “event reporting.”

Railway companies strategically install AEI scanners at various distances, which may span from a few to many miles apart, to ensure thorough monitoring of events as railcars traverse their paths. This setup is ideal for railcars, although containers without AEI tags require a different method for logging events.

While RFID does offer fundamental data necessary for tracking vehicles, railroad executives are fast adopting other advanced tools available in the market that afford improved fleet management, particularly technologies that render a more detailed account of a railcar’s travel.

GPS and Telematics

Railcars equipped with GPS (Global Positioning System) technology capture cellular signals to transmit the location data and pinpoint their precise coordinates. This is achieved by calculating the duration taken for the signals to arrive at the receiver, enabling it to ascertain its distance from each satellite, and thus determine its exact position.

Beyond providing real-time location updates for railcars, the integration of telematic sensors offers shippers detailed insights into the condition of their cargo. These instruments are capable of monitoring and recording various events, including impacts, internal temperature of cargo, instances of doors and hatches being accessed, and occurrences of handbrake usage.

Leveraging a railway logistics analytical platform such as Trinsight enhances the value of both real-time and historical data, turning it into a critical resource for improving the efficiency and safety of railcar operations. Railway managers are thereby equipped to make immediate decisions, swiftly addressing any arising issues to help prevent delays and mitigate costs.

Analysis of historical dwell times provides insight into previous patterns, supporting strategic planning, optimizing routes, designing better schedules, and other important processes. Further, utilizing GPS Cycle Time analysis helps gauge the length of particular railway activities—including time spent at the origin, during outbound and inbound transit, and at the destination—serving as key performance indicators for reducing cycle times and maximizing the use of assets.

Which Railcar Technology Is Right For You?

A multitude of technologies is available for tracking railcars, from traditional methods like CLM to advanced options like GPS. The decision on which technology to utilize depends on several considerations, including the particular needs of the company’s function within the railway sector and the traits of the railcars to be monitored.

As an example, tank cars carrying dangerous goods might need advanced sensor monitoring systems to adhere to safety standards and avert potential leaks or spills. Similarly, refrigerated cars carrying perishable items require accurate temperature control to preserve the quality and safety of the products.

When selecting the optimal tracking technology, factors such as geographical reach, signal dependability, and compliance with regulatory standards must be taken into account.

These questions should be kept in mind to find the perfect fit for tracking needs.

• What are the specific operational challenges or pain points that need to be addressed with a railcar tracking platform?
• How many railcars are currently operated, and what types of railcars are in the fleet?
• What are the typical routes and destinations for the railcars, and are there any specific geographic considerations to account for?
• What are the KPIs that need to be improved or monitored with the tracking technology?
• How will the tracking tool be integrated with the existing railcar maintenance and scheduling processes?
• What level of data granularity is required from the tracking platform, and how frequently are updates needed on railcar location and status?
• Are there any regulatory compliance requirements or industry standards that the tracking platform must adhere to?
• How will the tracking platform accommodate any future changes or expansions in the railcar fleet or operations?
• What are the potential risks or challenges associated with implementing the tracking platform, and how can they be mitigated?
• What is the expected return on investment (ROI) for implementing the tracking platform, and how will success be measured?

IMPROVE RAILWAY LOGISTICS WITH TRINSIGHT

Rail companies – including shippers, manufacturers, and supply chain operators -are increasingly turning to powerful railway logistical tools to gain a strategic edge.

Whether it's reducing transit times, minimizing operational costs, or maximizing asset utilization, rail companies are making substantial investments in these tools to remain competitive in today's dynamic rail market.

To experience optimizing your fleet with the right GPS sensors and better maximizing working capital, click here.