Market Studies

Following are a few examples of Market Studies we have completed in the past few years:

Aggregates & Ballast Market
An aggregate producer was interested in pursuing additional sales and asked that we explore alternative markets for them. They had conducted an extensive market study at a high level that indicated that there should be additional aggregate business for their quarries. We first verified their thinking with our own independent study and drilled down into the details with specific potential customers. We also integrated this market study into a more comprehensive consulting assignment with port and depot networks to reach the market via truck, rail and barge. After completing the aggregates market study, we then encouraged our customer to conduct a ballast market study where the aggregate producer would produce ballast for the rail industry. This study included a comprehensive review of the ballast: quality with Class I railroads; supply and demand; and, a feasibility review of price versus physically reachable markets.

Metallurgical Coal Mine Developers
A group of developers exploring the sale of a mid-sized metallurgical coal mine engaged Tealinc to conduct a feasibility study of shipping coal from the mine to various port and overseas destinations. Tealinc researched comparative coal quality from other metallurgical mines in the neighboring states, potential rail rates to three alternative ports and shipping rates from the ports to the final destination. The end result was a favorable market position of the mine resulting in a sale of the mine to future owners.

Rail Company Acquisition Candidates
An investment management firm engaged Tealinc in finding an acquisition candidate in the rail transportation industry with very specific market presence and EBITDA requirements. Tealinc conducted extensive research using its knowledge of the industry and suggested a select group of private and public companies to serve as an investment foundation as well as selective market enhancements to meet the specific requirements of the investment management firm. The investment management firm is actively engaged in discussion with a potential acquisition candidate.

Grain Processing Facilities
Tealinc has conducted three market studies for three separate grain and grain processing companies whereby the questions were generally the same but specific to each company and geographic location. The basic premise in each market study was to site from one to three additional facilities that would fit with the base operation of the parent organization. Tealinc researched market demographics from a commodity source (growing conditions, amount of specific commodities grown) and transportation alternatives (multi-railroad service, barge service and in some cases deep water ports) to projected future competitors positioning in the market.

Rolling Stock Appraisals
Tealinc routinely performs rolling stock (railcars and locomotive) appraisals for investors, Lessors, banks, finance institutions and rolling stock buyers and sellers. In some cases these are extensive covering multiple year time frames and railcar / locomotive types.

Hazardous Waste Drumtainer Program
A client shipping hazardous waste in containers wanted to explore transferring from truck to rail for containerized drums of PCB contaminated hazardous waste. Tealinc worked with the shipper, Class I railroad and DOT’s involved to determine if the program would be feasible from a cost, liability and public perception standpoint.