A Transportation Alternative that Saves Remarketers Money

By Jennifer Reed, Auto Group Editor
September 22, 2008

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SAN DIEGO — In tight times, each dollar saved in the remarketing process takes on new emphasis as it can bolster recovery rates and save costs for companies. With gas prices soaring and hurricane season not yet over, the cost for transporting units to auctions for remarketers may skyrocket even higher. The solution?

Why not transport by trains? At least that's the solution proposed by Jeff Grandstaff, general manager for Insight Network Transportation.

His company has found a unique way to highlight its partnership with UP to offer this alternative to remarketers — a special trip on one of Union Pacific's heritage passenger trains to the National Remarketing and Used-Car Conference & Expo in San Diego. During this trip, the Insight team will explain its new program and answer questions and concerns by remarketers in attendance.

"Trains are not only more fuel- and cost-efficient versus truck over longer distances; rail provides robust capacity to help large traders and fleet managers move inventory in high-volume quicker and easier (than using a truck here and there) to execute larger inter-regional transactions efficiently," he explained.

"This is particularly important when seasonal fleet turnover tends to flood certain markets and erode resale values," he continued. "Rail is secure, enclosed, 99.9 percent damage free transportation. Lastly, less fuel consumed is not only more cost-efficient, but greener and results in less CO2 emissions into the environment. Trains are three times cleaner than trucks on a ton-mile basis."

Grandstaff indicated that remarketers are just learning to utilize rail and it can prove difficult for those who have never done so before. To help with this, Insight and UP are opening car distribution networks on rail and "providing easy-to-use truck and rail services that enable auto remarketers to more effectively balance supply and demand across regions, improve resale values and dramatically expand their Internet and simulcast trading ranges to include nation-wide and international used-car trading online."

According to Grandstaff, "More and more new customers are coming to Insight for rail transportation solutions. Traders are looking at rail and multi-modal transportation because Insight is making rail easy-to-use and bottom line, it saves money, expands trading zones and enables traders to improve their margins.

"Ultimately, cars have to be trucked or driven to dealers (none are rail served), but there are tremendous opportunities to expand inter-regional and international trading by utilizing multiple transportation modes and more robust delivery networks than local truckers can provide themselves," he continued.

To learn first-hand how this option can save money, Grandstaff and his team are inviting a select group of remarketers to join them Monday, Oct. 20, just prior to NRC. The trip kicks off in the beautiful Middle Harbor Shoreline Park across the bay from San Francisco. In addition to listening to the details of the benefits of trains as an alternative, guests will have the opportunity to enjoy passing through the California hills as the heritage passenger train travels on its way down the scenic coastal route to Los Angeles.

Attendees can experience the thrill of riding the rails high above the ocean, into tunnels and winding through lush wine country and end up arriving at the historic Los Angeles Union Station at about 1 p.m. on Tuesday, Oct. 21.

"Few people have ever had the opportunity to set foot on, much less experience rail travel the way it can be provided aboard UP's private flagship fleet of business cars," Grandstaff pointed out. "This vintage fleet mainly originated in the 1930s when the introduction of the lightweight Streamliner passenger trains set a new standard for luxurious train travel. The equipment you enjoy today is a remnant of those lightweight passenger trains that began operations in 1934.

"The Streamliners' opulent furnishings, impeccable service and total comfort, combined with air conditioning, reduced noise and a better ride, which distinguished these trains from the conventional steam-powered models of the early 1900s," he explained.

In fact, Grandstaff indicated, "The Union Pacific fleet has played host in the past to presidential candidates and celebrities, Olympic organizers, state and local leaders, in addition to top industry executives. Now Insight and UP are happy to host leaders from the auto remarketing industry for a scenic trip along the California coast line in route to the National Remarketing Conference in San Diego."

To get a glimpse of these historic trains, visit www.uprr.com/aboutup/photos/diesel_passenger.shtml and www.uprr.com/aboutup/photos/p_passengers.shtml.

For those guests who would like to continue on to the conference by train after the special trip, Grandstaff said his company will provide transport via Amtrak for a 5 p.m. arrival into San Diego on Oct. 21, which will land just minutes away from the Manchester Grand Hyatt.

And Grandstaff said he hopes guests will go on to attend NRC, which will be held Oct. 22 to 24.

"NRC exists to facilitate collaboration, networking and exchange of new ideas, strategies and best practices among industry thought leaders. Insight and UP feel this is a perfect venue to highlight how multi-modal transportation options and our easy-to-use online services can expand opportunities and markets for auto traders," he noted.

Those interested in participating in the special train ride are invited to contact jjgrandstaff@insightnt.com, or call (866) 207-0027. Space is extremely limited. For more information on the company, visit www.ShipCarsNow.com.

To view a full NRC agenda, visit www.autoremarketingconferences.com. The early registration deal of $795 concludes today. After Monday, it will cost $995.

Discounted rooms at Manchester Grand Hyatt San Diego are available at $269 per night until Sept. 29. To reserve a room, call (800) 233-1234 and use the group code G-CPUN.

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