fbpx
tank car truck transload

Understanding Rail Car Storage

Oct 10, 2024

Understanding how to optimize the transportation and storage of goods is key in the logistics and shipping industry. This is where rail car storage comes into the picture—a crucial yet sometimes overlooked element of efficient supply chain management.

What is Rail Car Storage?

Railcar storage is a specialized service provided by certain facilities that enable railway companies or the owners of railcars to park their train cars temporarily when they are not required for immediate use. This need for storage can arise under various circumstances, including seasonal changes in demand or an excess in available transportation capacity. Additionally, interruptions in the supply chain can cause a need to store rail cars. This service ensures that railcars are kept safely and securely until needed again, offering a practical solution for managing fluctuating transportation needs.

Much like a parking garage for vehicles, these storage facilities ensure that rail cars are maintained in ready-to-use condition, protect them from damage and vandalism, and keep them out of the way until they are needed again.

When Do You Use Rail Car Storage?

While railcar storage may not directly contribute to revenue generation, there are circumstances in which it can be a financially sensible choice, potentially leading to savings. Several considerations should be considered when deliberating on the option of storing railcars. These include the duration of storage, entry and exit fees, the possibility of cherry-picking (selecting specific cars for use), and the costs associated with relocating cars to and from the storage facility.

There are several scenarios when businesses may need to resort to rail car storage:

1. Seasonal Storage:
Some goods are transported seasonally. For instance, agricultural products are often shipped after the harvest. Outside of these peak times, the cars transporting these goods need a place to be stored.

2. Fluctuating Market Demand:
The demand for rail cars can vary with market conditions. Excess cars can be stored during low demand until they are needed again.

3. Maintenance and Repairs:
Rail cars may need to be stored while awaiting maintenance or repairs. Proper storage ensures they do not take up valuable active track space during this time.

4. Transitional Storage:
Rail cars might transition between leases to different operators and require a place to stay during the interim.

Railcar Storage Factors to Consider

Several factors must be considered when contemplating rail car storage solutions. This helps ensure that the stored cars are secure, maintained, and readily accessible when needed.

1. Location:
Ideally, storage facilities should be accessible and close to major rail networks to limit additional transportation costs and provide easy redeployment of rail cars.

2. Security:
Adequate security measures must be in place to protect the rail cars from theft, vandalism, or unauthorized access.

3. Cost:
Cost-effectiveness is a significant consideration for businesses. They must evaluate the storage fees against the potential risks and costs of not storing their rail cars.

4. Capacity:
The storage facility must be able to hold the required number of rail cars.

5. Flexibility:
Storage offerings should be flexible regarding short-term and long-term options to accommodate varying business needs.

6. Maintenance Services:
Some storage providers offer maintenance services, which can be an added benefit by preventing the degradation of the rail cars while in storage.

7. Accessibility for Inspection:
Regular inspections are necessary to ensure the rail cars remain in good condition. Therefore, easy accessibility for inspection crews is an important factor.

McDonald Farms Offers Rail Car Storage

One facility that checks off these key considerations for rail car storage is McDonald Farms. We offer a robust rail car storage service with space for up to 90 cars, catering to businesses of different scales and operational demands.

Our Franklin facility is an ideal hub for rail car services, served by the Burlington Northern Santa Fe Railway, the Union Pacific Railroad, and the Denver Rock Island Railroad. This strategic location provides excellent rail access throughout North America, with seamless connections to Canada and Mexico, allowing for greater flexibility and efficiency in international transport.

Strong ties with major rail networks mean that storing rail cars at the McDonald Farms Franklin facility reduces logistics planning complexity for businesses requiring multi-national distribution. Cars stored within the facility can also quickly be brought back into service to meet sudden increases in transportation demand.

When choosing a storage provider, businesses should also consider the additional services the facility offers. At McDonald Farms, clients can take comfort in knowing their rail cars are not just parked but are under the care of knowledgeable and experienced staff. A staff that can facilitate essential maintenance and ensure the rail cars are fit for their next journey.

We Are Here For Your Rail Car Storage Needs

Efficient rail car storage is vital for smooth shipping and logistics operations. Understanding when and why to use such services and the key factors in choosing a storage provider can lead to cost savings and increased operational efficiency. McDonald Farms is a prime choice for businesses seeking a reliable storage solution for their rail car fleets. We provide a strategic location served by major railways, ample capacity, and a cadre of other beneficial features for seamless North American transportation needs.

In the ever-fluctuating world of transportation and logistics, having a facility like McDonald Farms’ Franklin rail facility can provide the assurance and support to keep supply chains running smoothly, no matter the volume or frequency of rail car usage.

If you’re seeking reliable and efficient railway services, look no further! Contact McDonald Farms today, and our team of experts will be ready to assist you with your railcar storage needs and more. A seamless experience and customer satisfaction are just a phone call away. We’re here to help you navigate the best options for your situation. Call us at McDonald Farms for top-notch railway services tailored to your requirements.