Market Opportunity Assessment for the Eastern Shore Short Line Rail in Maryland with a Focus on Potential New Customers
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2016-01-01
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Abstract:This study by the University of Maryland explored the potential of an improved freight rail line to attract new customers. The analysis was based on the 2014 InfoGroup U.S. Business Database and other input data that the National Transportation Center at University of Maryland has acquired. In addition, the research group conducted a survey to collect data from businesses that are not currently short line rail customers, but might be attracted by improved freight rail facilities and services. More specifically, the research team conducted a survey to explore needed facility and service improvements from the potential customers’ perspective and to learn about their freight movement needs. Based on these data, a Market Opportunity Analysis (MOA) was performed for the system served by the Maryland & Delaware Railroad Company (MDDE). The results were then used to estimate the potential for attracting new customers to short line rail on Maryland’s Eastern Shore. The analysis included a market definition, customer and competitor analysis (trucks), market demand forecast and evaluation of the alternatives. As part of this effort the team evaluated what would happen to businesses in the region if certain improvement scenarios were employed, and quantified the consequent rail activities and changes in demand.
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