Forest Products

and be consumer-oriented, and they are.

Trucks have other advantaees also. They can pick up a load of lumber at the mill and deliver it to the front door of the customer a lot faster than the railroads.

The end result is a smaller inventory volume for the retailer and that means lower inventory costs. Damage enroute is also held to a minimum because of the smaller loads.

As well as the motor carriers have been working for us, there are some potential problems facing their industry and indirectly the western lumber industry.

Looking into the 80s, the fuel problem is expected to worsen. There are also questions on the availability of a sufficient supply of trucks.

Western lumber is a back-haul for the truckers. That industry has made it very plain that they are not willing to deadhead West to pick up lumber. If some circumstances alter the movement of steel and machinerv West. western lumber will be short on trucks.

Western lumber mills that are located in remote areas also face trouble. One can easily understand the reluctance of a trucker to so 75 miles out of the way to pick u[ a load of lumber when there are ample supplies from those mills located near freeways.

Basically though, the trucking industry cares and they want the business. So, not surprisingly, they're getting it.

Productivity

I believe in using the transportation resource in the most productive way. We have the situation where the railroads are energy efficient, 4 or s-to-l ratio compared to trucks, yet the productivity of the trucks far exceeds that of the rails. What we need is a stronger effort on the part of the rails, trucks and industry to increase the use of intermodal transportation. - What we must guard against. though, is the possibility of giving up the truck productivity factor to obtain the rail energy efficiency ending up with an even far worse situation.

The intermodal system will work if we can obtain the advantages of the trucks for loading, pickuf,, delivery and unloading and the energy savinss from the railroads.

o Pressure Treated Forest Products o Custon Treating Service o Fencing o Water-Borne Salt . CCATweA o Grape-Stakes o Posts & Poles

The railroad's energy advantage alone, though, is not enough of a factor to offset the problems if we don't see changes in the areas of pricing, productivity and service. We must look to cooperation between the rails and trucks if we expect to see a better transportation system become a reality. It can be done.

But it will take much work and patience. It must be a total commitment with all parties: shippers, truckers, railroads, customers and the ICC. Congress must also be flexible in dealing with these transportation opportunities it has before it.

There is no solution in the simple passing of one dimensional legislation. Change must come from within the system in a positive way. Those concerned must realize that the answer isn't in subsidies or forcins the efficient systems to shoulder the iveak sister's burden. Productivity must be first and foremost.

Today I challenge all parties to arrive at this best solution. The opportunity to succeed is there. It is a realistic possibility that during the upcoming decade we will arrive at this solution. lt is also a possibility that if we fail, our industry and country could face some very difficult times.