North America’s railroads are increasingly influencing supply chains in positive ways through innovation, productivity and service reliability. We have invested a lot time and effort in the supply chain, and into the collaboration, dialogue and metrics necessary to reach new levels of service.
I am particularly excited at the supply chain transparency resulting from this important work as shippers and railroads collaborate to improve fluidity. As markets evolve, transparency is critical if we are going to make smart and thoughtful decisions, staying ahead of traditional approaches.
As an industry, we are strategically positioned to create value through our role in the supply chain. Applying understanding to the supply chain will reduce its complexity. Collaboration will ensure consistency and predictability. These tools keep us nimble as the market evolves, applying innovation to the service we provide our customers.
New opportunities have emerged quickly and had a profound effect on the transportation service railroads provide. For example, metallurgical coal traditionally was destined for export, while thermal coal was distributed and consumed domestically. In the last two years, demand for export thermal coal has emerged, creating a new flow of traffic. In addition, we are seeing emerging energy developments such as the Bakken oil formation on the plains where railroads are the service solution of both inbound and outbound materials.
We have shown time and again we can be innovative; leveraging our capabilities to meet emerging markets and deliver solid service. We are in the middle of such an evolution and see railroads as an important part of making new markets and opportunities a reality.