Wednesday , 22 May 2019
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Intermodal operators and leasing companies investing in specialist fleet management systems, can achieve up to 50% return on investment (ROI) and a pay-back time of six months or less, according to Real Asset Management (RAM), the UK-based supplier of asset and business management solutions for the container and intermodal industries.

White paper highlights investment return on intermodal software

Calculating the ROI of a specialist intermodal IT system, RAM quantifies the comparative advantages of modern, specialist software over alternative systems, including in-house solutions. In its ‘White Paper’, researched in consultation with a range of customers, the company compares different scenarios highlighting the possible savings to be made by switching to a bought-in specialist system.

Using the example of a start-up leasing company or operator with up to 20,000 teu, a return of 21% can be achieved, representing a net savings of around US$163,000 over a five year period. For a small company operating up to 150,000 teu the savings can be US$386,000, a 38% return on investment.

Similarly, a company with up to 1m teu could generate net savings of US$770,000 (49%) while at the top end of the scale, an organisation with a fleet in excess of 1m teu could save US$2.1m, a 51% ROI. In all categories, the White Paper concludes that the cost of the initial investment would typically be paid back with in six months.

RAM claims that its research demonstrates that intermodal companies can save money by outsourcing to a third-party providing comprehensive technical support, as an alternative to employing their own team of IT developers and maintenance staff.

Commenting on the findings, Craig Anthony, RAM’s general manager, says, “To maximise profits and compete in a demanding market, forward thinking intermodal companies must take full advantage of the latest technology, and continually review their business processes and upgrade or replace front office systems”.

“The main aim of the White Paper is to demonstrate clearly the financial benefits of using technology provided by a supplier that specialises in the intermodal industry”, explains Anthony.