Ron O Blenis, PE Senior Rail Project Manager (617)

Transcription

1 Presentation Focus: Expansion of Northeast Rail Lines and Local Impact on Communities: How to Promote Smarter Freight Connections, Strategic Partnerships & Cleaner Technologies Ron O Blenis, PE Senior Rail Project Manager (617) Ronald.Oblenis@hdrinc.com 2015 HDR, Inc., all rights reserved.

2 The Guardian Buffett in $44B Deal for Burlington Northern Sante Fe World s Second Richest Man Sees Bright Future for Rail Omaha- It s a very efficient way of moving goods. said Buffett. I just believe this country will prosper; that you ll have more people moving more goods 20 to 30 years from now Matthew Rose, BNSF s chief executive, said the railway company believed its future would be a three logged stool of carbon pricing, high fuel costs and traffic congestion, all of which are likely to encourage a search for alternatives to road transport. Source: theguardian.com

3 Share Major Policy Changes Affecting Modal Transportation Interstate Highway Improvements Truck Mode Share Increase 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Truck Rail Air Water MA Share US Share Deregulation of transportation modes of Transformation to respective modes can be complementary Private Railroads have public benefits State Highway Departments become Departments of Transportation total system view

4 U.S. Highway Congestion Increasing High Volume Freight Truck Routes to Increase 230% from 2002 to 2035 Source: Federal Highway Administration, Office of Freight Management and Operations, Freight Analysis Framework, Version 2.2, 2007

5 U.S. Rail Corridors and Congestion Rail Volumes Expected to Increase 88% from 2002 to billion tons to 3.2 billion tons Source: Federal Highway Administration, Office of Freight Management and Operations, Freight Analysis Framework, Version 2.2, 2007

6 Importance and Needs of Freight Trade as percent of US GDP increased from 10% to 30% during the last 40 years Freight tons to grow 70% by 2030 National Transportation Policy & Revenue Commission o o US needs $225 billion per year...upgrade to good state of repair. Currently spending less than 40% of that. Recommended Freight Transportation Program to enhance global competitiveness American Association of Railroads (AAR) estimates $148 Billion capacity investments for future demand

7 Trends of Rail Freight

8 Benefits of Rail and Marine Shipping Shipper cost savings rail costs approximately 50% lower than truck & water 75% lower than truck Efficiency rail fuel efficiency is 1.9 to 5.5 times higher than truck per ton-mile Emissions reductions rail and marine produce fewer greenhouse gases per ton of freight moved Congestion relief allows for faster travel times to remaining vehicles Pavement maintenance costs are 0.2 cents per car mile vs 59 cents per truck mile Comparative Evaluation of Rail and Truck Fuel Efficiency on Competitive Corridors Federal Railroad Administration, November 19, 2009

9 NE Freight Rail Network CSX & NS Class 1 Operators Significant regional and short lines Limited Hudson River Crossings Shore lines are passenger-focused Major intermodal terminals: o Mechanicville, NY; Ayer, MA; Worcester, MA and Auburn, ME

10 NE High Speed and Intercity Passenger Rail Vision Downeaster improvements Knowledge Corridor/Conn River Line Capitol Corridor to Nashua, Manchester and Concord, NH South Coast Rail Inland Route Boston to Springfield Extension to Montreal

11 Most Passenger Rail is Shared Use with Freight Capacity, operations and liability challenges Can work well together Downeaster/Pan Am/MBTA

12 Massachusetts Freight Volumes Projected to Increase Freight volumes projected to increase by 70% by 2030 Each mode to grow with trucks increasing mode share

13 Considerations for Modal Shifts Rail and marine more competitive on long-distance goods movement Significant reduction in shipping heavy bulk loads that favor rail Large distribution markets in NJ, NY, PA Infrastructure constraints such as: o Weight on rail (286k) o Vertical clearances (double-stack) for rail corridors o Port and navigational channel depth o Landside access and intermodal connections

14 Policy Issues and Recommendations Land use development o Identifying, preserving and facilitating freight-intensive uses in Massachusetts Funding and financing o Freight considerations in prioritization of projects o Public benefits justify participation in public-private partnerships Regulatory environment o Truck routes, regional multi-modal planning, etc. Passenger rail o Reverse commute, operations, TOD/Smart Growth Industrial incentive areas to preserve freight land uses

15 Funding and Financing Policy Initiatives Strategic multi-modal investments o State funding support for key multi-modal investments Industrial Rail Access Program (IRAP) o Matching funding and low-interest loans for economic development opportunities Increased use of public-private partnerships o Public participation in funding private freight facilities based on anticipated public benefits Passenger service benefits for freight o Added public benefits from improved freight service

16 Public Benefits of Improved Rail System Economic Benefits o Shipper cost savings o Truck congestion benefits o Freight logistics benefits o Jobs: Near-term and long-term Transportation o Auto congestion benefits Environmental o Reduced Green House gases o Reduced emissions

17 Northern Tier Benefit-Cost Example Stars indicate Return on Investment (ROI) magnitude o Three stars: ROI is above 3 o Two stars: ROI is above 1.5 o One star: ROI is less than 1.5

18 Millions Northern Tier Benefit-Cost Example Economic Benefits o Shipper cost savings $315M o Truck congestion relief $2M o Freight logistics $2M o Near-term 150 jobs o Long-term 100 jobs Transportation o Auto congestion relief $15M o Accident reduction $3M o Highway maintenance $9M Environmental o Green House gas emissions CO2: 3,494 ton reduction o Emissions reduction $2M Benefit-Cost Ratio: 3.7 $400 $350 $300 $250 $200 $150 $100 $50 $0 Total Benefits Total Costs Net Present Value Econ Benefits Environment Total Costs Net Present Value (NPV) Transportation

19 New Haven-Hartford-Springfield Rail Program Improve the high speed and passenger rail system serving the Northeast Expand intermodal transportation options Encourage economic development Create more livable and sustainable communities

20 Summary Thoughts Warren Buffett s vision seems very good o Rail will be a significant part of future transportation system The public benefits are foundation of transportation investments Substantial progress made on integral approach to transportation planning System view best for transportation improvement assessments