Honda (NYSE: HMC), which is known for building fuel efficient automobiles, has gone a step further by introducing a fleet of railcars designed to carry the automobiles across the U.S. more efficiently.
The company announced that it has fully deployed a fleet of Auto-Max railcars, which achieve a significant reduction in the fuel consumption and carbon dioxide emissions associated with its automobile distribution.
The 400-car fleet of more space-efficient Auto-Max railcars is the only such automaker-operated fleet in use in the United States. Including the Auto-Max fleet shipments, American Honda currently transports about 82% of its Honda and Acura automobiles across the country by rail, achieving the highest rail-shipping rate of any automaker.
Each multi-level Auto-Max railcar holds up to 22 vehicles and can hold both trucks and cars to reduce unused space. The result is less fuel usage per vehicle shipped. An average bi-level railcar can transport only 10 trucks, generally of a single vehicle type.
Honda's Auto-Max railcars have a 50-year estimated lifespan versus standard railcars, which typically require a major overhaul after just 20 years of service, the company said. Honda participated with the Greenbrier Companies (NYSE:GBX) in designing Auto-Max, which is exclusively manufactured by Greenbrier.
"Honda is adopting a holistic approach to minimizing its greenhouse gas emissions, addressing not only the production and on-road use of our products, but also new, more fuel-efficient strategies for how we transport our products to dealers," said Dennis Manns, assistant vice president, Sales & Logistics Planning for American Honda Motor Co., Inc. "Rail is the most environmentally responsible method available to move our products, and our Auto-Max railcar fleet can make a good system even more fuel efficient."
To further support Honda's strategy to increase product distribution by rail, Honda this year invested approximately $7 million to redesign the rail infrastructure at its automobile plants in Marysville and East Liberty, Ohio. The redesign added rail capacity, enabling American Honda to ship more units via rail.
Further, inbound and outbound trains at the plant can now operate at a faster pace; pull easier on upgraded tracks; and, require less railcar switching in the yard, reducing fuel consumption, CO2, and other air pollutants emissions that are produced while engines are left idling.
