Minnesota Comprehensive Statewide Freight and Passenger Rail Plan
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1 Minnesota Comprehensive Statewide Freight and Passenger Rail Plan Freight Technical Advisory Committee August 13, 2009 presented by Cambridge Systematics, Inc. Kimley-Horn and Associates, Inc. TKDA, Inc.
2 Agenda Introductions and Opening Comments Bill Gardner Co-Project Manager, MnDOT Presentation on State Rail Plan, Cambridge Systematics, Inc. Study Overview, Marc Cutler Outreach Update, Randy Halvorson Freight Rail Demand, Andreas Aeppli Passenger/Freight Integration, Paul Danielson Performance Measures, Erika Witzke Next Steps, Marc Cutler Discussion Randy Halvorson 1
3 Study Overview Marc Cutler
4 Project Phases Project Phase Description Phase I Rail Vision Task 1 Task Phase II Inventory Freight System and Passenger Tasks 2 and 3 Rail Plans Phase III Integration of passenger and freight Tasks 4 and 5 planning, and development of performance criteria Phase IV Plan Development Needs, Institutional Tasks 6-96 Arrangements, Programs, Financing Continuous Public Outreach Task 10 Final Report Task 11 3
5 Schedule Task Month Mar 1 Apr 2 May 3 Jun 4 Jul 5 Aug 6 Sep 7 Oct 8 Nov 9 Dec Create Vision 2. Inventory Rail Freight System 3. Identify Passenger Rail Network 4. Integrate Freight and Passenger Planning 5. Parameters for Corridor Priority 6. Establish Investment Needs 7. Role of Private versus Public Sectors 8. Institutional Guidance 9. Funding and Programming 10. Public Outreach 11. Final Report Start Task End Task Key Outreach Activities 4
6 Public Outreach Randy Halvorson, Facilitator
7 Outreach Activities Since Open Houses and Last PAC/TAC Meetings 6 Minnesota HSR Commission June, July, August Joint Meeting St. Paul, June 26 Fresh Energy Housing Preservation Project Transit for Livable Communities Minnesota Regional and Shortline Railroads Annual Conference Grand Rapids, July United Transportation Union (UTU) St. Paul, July 15 Twin Cities and Western RR Glencoe, July 15 Railroad shippers West Central MN, August Individual stakeholder meetings Growth and Justice Sierra Club 1,000 Friends of Minnesota
8 Upcoming Meeting Dates PAC meeting November 13 Freight and passenger TAC meetings November 12 Open houses second round October
9 Freight Rail Demand Andreas Aeppli
10 Freight Rail Demand What drives demand for freight Minnesota s economic structure and future industry prospects Minnesota s multimodal freight system Future trends 9
11 Economic Size of Leading Minnesota Metros Jobs and Gross Product Gross Product (Dollars in Billions) Jobs (in Thousands) 2,000 1,750 1,500 1, , Twin Cities Rest of Minnesota Duluth Fargo- Moorhead* Rochester St. Cloud Mankato 0 Gross Product (in $billions) Employment (in thousands) Source: Bureau of Economic Analysis; *Moorhead component of Fargo-Moorhead included in Rest of Minnesota. 10
12 Key Minnesota Industries Jobs and Contribution to Gross State Product GDP (Dollars in Billions) Jobs (in Thousands) Distribution, Warehousing, and Retail Manufacturing Construction Agriculture and Food Paper and Wood Life Sciences Energy Mining Gross Product (in $billions) Employment (in thousands) Sources: Bureau of Economic Analysis and Bureau of Labor Statistics. 11
13 Key Minnesota Industries Long-term Trends Industry Outlook Explanation Distribution, Warehousing, Retail Manufacturing Construction State remains excellent location for North-Central logistics; Retail to recover with economy Output steady as jobs decline; technically-advanced players will compete successfully Industry will recover with economy, but not to levels 12 Agriculture and Food Paper and Wood Life Sciences Energy Mining E15 decisions to affect corn production; soybeans stable; uncertainties for dairy Expansions at existing paper facilities; Exports balancing low domestic demand Recognized world leader in medical equipment and advanced healthcare Population and jobs to increase energy demand; fuel types and origins may change Growing interest in Iron Range; expanding to steel; new markets for taconite tailings
14 U.S. and Minnesota Modal Usage Tonnage Water 7% Overall U.S. Other 19% Truck 44% Water 6% Minnesota Other 7% Truck 49% Rail 30% Rail 38% Truck Water Rail Other Truck Water Rail Other Value Water 1% Rail 4% Air 2% Other 5% Rail 18% Water 0% Air 0% Other 1% 13 Truck 88% Truck Rail Water Air Other Truck Rail Water Air Other Truck 81%
15 Traffic Characteristics Vary Greatly Between Rail and Other Modes Through 31% All Modes 2007 Intrastate 23% Inbound 21% Outbound 25% Tons (in Millions) 10% of rail versus almost 50% of truck tonnage moves intrastate Only 13% of all truck tonnage moves through the state Rail Inbound Outbound Through Intrastate 14
16 Trucking Will Continue to Dominate Tons (in Millions) Modes by Tonnage Rail Truck Water Other Source: IHS-GI Transearch
17 Intermodal Units Constituted 1/3 of Rail Traffic in 2007 Split by Tonnage Split by Units Intermoda l 7% 7% Intermodal Intermodal 35% Inte rmo da l 35% Carload 65% Carload 65% Carload 93% Carload 93% 16 Source: IHS-GI Transearch 2007.
18 Top Rail Commodities by Tons Tons (in Millions) Coal Farm Products Chemicals and Allied Products Freight All Kinds Clay, Concrete, Glass, and Other Commodities Metallic Ores Farm Products Food Products Chemicals and Allied Products Freight All Kinds All Other Commodities Inbound Outbound Through Tons (in Millions) Farm Products Coal Chemicals and Allied Products Freight All Kinds Lumber or Wood Products Food Products Non-metallic Minerals Primary Metal Products Pulp, Paper, and Allied Products Clay, Concrete, Glass, and Stone Other Commodities Tons (in Millions) Source: IHS-GI Transearch 2007.
19 18 Intra-Minnesota Rail Traffic Tons dominated by ores, commodities diverse by value Tons (in Millions) Tons Value Dollars (in Billions) Metallic Ores Farm Products Non-metallic Minerals Chemicals and Allied Products Food Products Other Commodities Metallic Ores Chemicals and Allied Products Machinery, excl. Electrical Food Products Pulp and Paper Products Other Commodities Source: IHS-GI Transearch 2007.
20 19 Rail Trading Partners by Tonnage Top BEA Origins Top BEA Destinations Tons (in Millions) Tons (in Millions) Casper, WY Billings, MT Chicago, IL Non-CMA SK Fargo, ND Elsewhere Chicago, IL Non-MN Portion of Seattle, WA Non- Metropolitan St. Louis, MO Elsewhere Source: IHS-GI Transearch 2007.
21 Rail Traffic Originations and Terminations 20 Source: STB Waybill
22 Future Growth in Tonnage on Minnesota s Rail Network 2007 and Source: IHS-GI Transearch 2007.
23 Future Growth in Tonnage on Minnesota s way Network 2007 and Source: IHS-GI Transearch 2007.
24 Smaller Railroads are Important to Minnesota Traffic Type Non-Class I Carloads (2007) All Railroads % of Total Carloads Inbound 17, , % Outbound 46, , % Through 38,601 1,083, % Intrastate 7, , % Smaller railroads handled 4.6% of all traffic, 5.5% of traffic that has a Minnesota origin or destination. 23
25 A Few Conclusions for Freight As in most regions, at 81% of value and 49% of tonnage, highways handled the majority freight traffic But, at 19% for value and 38% of tonnage, rail is a very important component of Minnesota s multimodal freight system Mix of industries and geography play to railroad s strengths of handling high volumes over long distances IHS-Global Insight forecast predicts 25% growth in rail tonnage through However, while it attributes substantial growth to intermodal, anticipated growth in coal is questionable Cross-border traffic with Canada is significant, accounting for 18% of all tonnage in 2007, and expected growth of 61% by value through % of originated carloads start their trip on a short line. 24
26 Passenger/Freight Integration Paul Danielson 25
27 26 Passenger/ Freight Integration Track Capacity
28 27 Passenger/ Freight Integration Current LOS
29 28 Passenger/ Freight Integration Future LOS
30 Passenger/Freight Integration PTC The Rail Safety Improvement Act of 2008 requires widespread installation of Positive Train Control (PTC) systems by 2015 for all Class I railroads and those entities providing regularly scheduled intercity or commuter rail passenger service. PTC systems utilize integrated command, control, communications, and information systems technologies to prevent train-to-train collisions, casualties to roadway workers and damage to their equipment, and overspeed derailments. The systems can vary in complexity and sophistication. 29
31 Passenger/Freight Integration Corridor Conditions Tier I Corridor Potential Ridership Track Condition Available Capacity Coon Rapids Big Lake Good Medium Big Lake St. Cloud Good Low Minneapolis Willmar Medium Fair Minneapolis St. Paul (BNSF) Fair Medium Minneapolis St. Paul (CP) Fair Medium St. Paul Hastings Fair Hastings Winona Fair St. Paul Northfield Medium Fair Northfield Albert Lea (Kansas City) Low Good Minneapolis Mankato Medium Fair St. Paul Eau Claire, WI Medium Fair 30
32 Passenger/Freight Integration Corridor Conditions Tier II Corridor Potential Ridership Track Condition Available Capacity Minneapolis Coon Rapids Fair Low St. Cloud Fargo/Moorhead Medium Good Low Coon Rapids Cambridge Medium Good Low Willmar Fargo/Moorhead Low Fair Willmar Sioux Falls, SD Low Good Medium Mankato Worthington (Sioux City) Low Fair 31
33 Passenger/Freight Integration Corridor Conditions Tier III Corridor Potential Ridership Track Condition Available Capacity Cambridge Duluth Medium Fair Low Rochester Owatonna St. Paul Low Fair Rochester Owatonna Minneapolis Low Poor Rochester Winona Low Poor Minneapolis Norwood/Young America Low Poor Norwood/Young America Montevideo Low Poor 32
34 Performance Measures Erika Witzke 33
35 Performance Measures Methodology Identified relevant topics/issues for evaluation Reviewed planning efforts by MnDOT Literature search on other DOTs, Amtrak, other rail operators, FRA efforts Assembled separate measures for freight and passenger rail Developed common list of performance measures 34
36 Rail Performance Measures System Performance capacity, speed, annual production of ton/miles, ridership System Condition track, bridges, crossings Connectivity/Accessibility proximity to users, commercial terms, modes Safety & Security at-grade crossings, hazmat Environmental positive and negative impacts of construction and operations 35 Financial/Economic Capital costs, operations, taxes, jobs, economic development, cost/benefit comparisons
37 Developing Criteria for Public Rail Investment Ability of private sector to contribute to project funding Acceptable Cost versus Public Benefits Significant Utility Good Ridership, New Service Access Addresses a Verified Need Accommodates new passenger service, freight growth, or corrects bottleneck Exhibits Multiple Benefits combination of intercity passenger, local/commuter, and freight operations and capacity Contributes to State s Priorities Environmental and green growth goals, reduced energy use, safety, enhanced land use, improved travel options, life style and competitiveness Timeliness of Implementation 36
38 Next Steps Marc Cutler 37
39 Phase IV Tasks 38 Task 6 Establish Investment Needs Estimate benefits versus performance measures Estimate high-level costs Task 7 Determine Public versus Private Sector Roles Task 8 Provide Public Sector Institutional Guidance Task 9 Funding and Programming Task 10 Outreach Second round of Open Houses Oct Final PAC/TAC meetings Nov
40 Discussion Randy Halvorson, Facilitator
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