C. H. Barnette speaks at Philadelphia Traffic Club
Bethlehem Steel Corporation
For Immediate Release
BETHLEHEM, Pa., January 20, 2000 - The Chairman of Bethlehem Steel Corporation told the Philadelphia Traffic Club recently that Bethlehem is confident that the new owners of the former Conrail rail system will "deliver to the shipping community the promised benefits" from last year's takeover of Conrail.
Curtis H. Barnette, highlighting Bethlehem's heavy dependence on rail transportation for hauling raw materials, said that while service levels are still returning to their pre-June, 1999, level, when Norfolk Southern Railway and CSX Transportation took over Conrail, Bethlehem continues to believe that the shipping community will benefit from the takeover.
Bethlehem's chief executive underscored the necessity of reliable transportation to the nation's second largest integrated steel company which produces 10 million tons of raw steel a year.
"Iron ore, coal, coke and limestone, millions of refractory bricks, and vast amounts of ferroalloys: These raw materials are brought in by ship, train and truck, and are transformed into millions of tons of steel products for shipment to customers' plants, principally by rail and highway," said Mr. Barnette. "Coordinating all these shipments within our plants, between our plants, and to our customers, is a monumental job."
He noted that Bethlehem Steel currently operates nine short-haul railroads in Pennsylvania, Maryland, New York and Indiana, which also are providing new and increased services in direct support of Class 1 railroads. In addition, he said, Bethlehem currently has two 1,000-foot-long vessels transporting iron ore on the Great Lakes, plus a trucking company.
"Transportation always has been, and is, a very important part of Bethlehem Steel," he said, noting that Bethlehem currently operates three steel manufacturing plants in Pennsylvania, and one each in Maryland, Indiana and New York.
Looking at the future of transportation, Mr. Barnette pointed to the prospects that e-commerce promises in various areas of product shipment. "E-commerce's place in transportation is still developing," he said, citing transactions between shipper and carrier, purchasing transportation services, shipment tracking and inventory control.
"Virtually all aspects of supply chain management will be done in such a way to provide instant access to information by countless parties simultaneously.
"Success will be determined by reliability, speed and execution. As more companies develop e-commerce-driven distribution centers, the need for effective delivery systems will increase," said the Bethlehem CEO. "This will offer us many challenges, but also many opportunities to both the transportation and steel businesses."