J.B. Hunt and BNSF Railway are heralding a new era in freight transport with the reintroduction of Quantum, an improved intermodal service unveiled at FreightWaves’ F3: Future of Freight Festival in Chattanooga, Tennessee, on Nov. 7.
Quantum, which builds on a decades-long collaboration, pledges to accelerate delivery times and ensure higher consistency in service, offering a competitive edge in the logistics industry. With this initiative, the companies are hoping to capture a segment of the market that has remained elusive: those needing the stability of trucking coupled with the economic and environmental benefits of rail.
By promising a 95% on-time delivery rate and boasting a new operational center to monitor and manage freight movement continuously, Quantum is positioned as a synthesis of tradition and innovation — poised to expand the boundaries of intermodal transport.
On Tuesday morning, executives from both companies met to discuss their vision for the industry. For J.B. Hunt, it was Spencer Frazier, EVP of sales and marketing, and Darren Field, EVP and president of intermodal. For BNSF, it was Thomas Williams, group president of consumer products.
Strategic insights and expansion plans
J.B. Hunt and BNSF’s vision for Quantum
The vision for Quantum emphasizes a transformative approach to intermodal freight transport. Central to their strategy is the expansion of capacity, as demonstrated by the J.B. Hunt container fleet’s projected growth to as many as 150,000 containers by 2027, and BNSF’s development of the Barstow International Gateway. This reflects an assertive posture on improving the scalability and efficiency of operations.
Quantum appears to be a nexus where technological advancement meets strategic infrastructure growth. The technological integration, particularly the idea the companies’ “clouds talk to each other,” underscores a push toward a more connected and data-driven operational model.
“It takes people, process and technology together to execute on our commitment for our customers,” Field said.
The firms’ collaborative ethos goes back decades, to when J.B. Hunt partnered with Santa Fe Railway (now BNSF) on the first iteration of Quantum. The new venture shows a commitment to this pursuit of a unified, customer-centric service model. The idea is that it can now mature into an effort to recapture market share from trucking, as indicated by the focus on lanes traditionally dominated by road transport.
“We have long seen a huge amount of business out there where we thought intermodal could be the right answer,” Field said. “But customers have been hesitant for a host of reasons. And so what can we do that’s unique in the market and gain their trust?”
Both companies attest to having a foundational commitment to providing exceptional customer experiences through their intermodal products. The announcement in March 2022 of a capacity expansion initiative was a testament to this commitment, particularly in response to customer frustrations over service experiences.
Both companies have focused on foundational investments as a springboard for quality service enhancement. BNSF has injected over $2 billion in expansion capital since 2019, resulting in significant infrastructure improvements. These include 90 miles of additional mainline track for consistent train service, expansion of loading tracks at intermodal facilities, and thousands of new parking spaces to accommodate growth.
“[We’re adding] capacity to handle additional volume and capacity to handle that additional volume more consistently over time,” Williams said.
Quantum entails a proactive and customized approach to addressing customer needs, particularly for those shipping scenarios where intermodal was previously avoided due to higher perceived risks. The implication is a service that rivals the simplicity of trucking with the benefits of intermodal’s lower carbon footprint and cost efficiency.
By scaling capacity, streamlining operations and leveraging data and technology, J.B. Hunt and BNSF are positioning Quantum not only as a response to contemporary logistics challenges but as a pioneering service that could potentially shift the dynamics of North American supply chains.
Barstow International Gateway expansion
The Barstow International Gateway project is a significant element in the strategy to bolster the Southern California freight corridor. Details emerging about this expansion highlight its potential to transform logistics in the region. The project aims to develop a state-of-the-art facility that could act as a central hub. This expansion is part of a larger vision to meet growing demands and to alleviate congestion in key ports, which is critical given the corridor’s status as one of the busiest entry points for goods into North America.
Intermodal expansion into Phoenix and Denver markets
The planned intermodal expansion into the Phoenix and Denver markets appears designed to tap into the growing industrial and consumer bases within these regions. By extending their intermodal services, both companies hope to capture new business opportunities and provide more comprehensive coverage. This expansion is part of a calculated effort to broaden their footprint and respond proactively to evolving supply chain dynamics in North America.
Significance of the Intermodal Innovation Center in Fort Worth
The so-called Intermodal Innovation Center in Fort Worth, Texas, is poised to become a pivotal hub for advancing analytics and operations research. It’s an investment in a centralized planning that draws on both companies’ strengths. Field said J.B. Hunt has embedded employees with BNSF in the Fort Worth planning center.
Notably, the companies are working together on advanced analytics algorithms to optimize moves from pickup to train loading. Concrete positive results are already being seen, like at the BNSF facility in Alliance, Texas, where Williams said they were seeing a reduction of about 20 miles of hostler driving distance for each loaded train.