VWs to ride rail to market
By Mike Pare mpare@timesfreepress.com
Online: Hear U.S. Rep. Zach Wamp talk about transpor tation. Comment. Calling Chattanooga an ideal rail location, a Volkswagen official said Friday that nearly nine of every 10 autos assembled at its plant will leave the facility by railroad. Joerg Schnackenberg, VW Group of America’s general manager of vehicle logistics, cited the importance of two railroad companies serving the Chattanooga plant site. “A big advantage Chattanooga has is its rail,” Mr. Schnackenberg said. Norfolk Southern and CSX service the industrial park. He said rail access is a reason why VW was interested in the location at Enterprise South industrial park, noting shipping long distances by railroad is cheaper than the use of
trucks. Ulfert Stier, inbound logistics manager for VW’s Chattanooga operation, told a Transportation Clubs International conference the plant will only have space for a couple of hours worth of production materials. “It’s going to be a big challenge,” Mr. Stier said about sequencing parts for the new car to be built in the factory. He said negotiations are in progress about a supplier park to be built next to the plant. U.S. Rep. Zach Wamp, RTenn., told the group Tennessee could become the top automotive manufacturing state by 2020. Currently, the state is No. 3 with Michigan No. 1. “That’s realistic,” he said, adding Tennessee is a right-towork state, has a high quality of life, low cost of living and improving work force. Rep. Wamp, who is a candidate for governor, said Tennessee’s work force isn’t quite as skilled as it needs to be. “We’re getting there,” he said. Rep. Wamp said transportation and energy are the two greatest opportunities for the state’s economy. David Parker, chief executive of Chattanooga-based Covenant Transportation Group, said a larger portion of the nation’s economic stimulus package should be devoted to repairing America’s transportation infrastructure. “If you really want to stimulate the economy, we need to go out and build some roads, spread some asphalt” he said. The transportation sector ground to a halt during the recession as companies began reducing inventory, Mr. Parker said. He said he doesn’t anticipate rates increasing anytime soon, but projections show trucking will become a larger part of the shipping industry by 2020. Staff writer Brian Lazenby contributed to this story.
