Port workers“What is thebiggest challenge in drayage today? The highly fragmented drayagemarketplace,” Ken Kellaway, president and CEO atRoadOne Intermodal Logistics, said at the Pulse ofthe Ports conference last week. There has been significantinfrastructure investment made in the supply chain over the lastfew years to enhance everything from terminals at the ports to railto intermodal. However, the highly fragmented drayage market iscausing major issues in the supply chain that Kellaway says willinhibit growth.

“We have watched everyone speak about multi-billion dollarmarket caps and big infrastructure investment in terminals, vesselsand rail,” said Kellaway. “In the middle of all ofthis is the weakest link in the supply chain when there is not onecompany in the United States that does more than half-a-billiondollars in drayage today. That is a big staggering issue.”

RoadOne Intermodal is one of the largest drayage businesses inthe country—and Kellaway says that should be an example of thefragmentation in the market. It is an illustration of the lack ofcapitalization in these companies. “We have a little more that $250million in revenue, and we a number one or two in the country,” heexplained. “That scares me, not because we aren't a great companybut because from a capital standpoint, we are so much smaller thaneveryone else around us in the marketplace.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.