South Dakota State Rail Plan
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1 South Dakota State Rail Plan presented to Rail Plan Advisory Committee Meeting #1 presented by Cambridge Systematics, Inc. in partnership with Civil Design Inc October 9, 2013
2 Agenda Introductions State Rail Plan Overview» Purpose and desired results» Chapter structure» Team and process State Rail Plan Content Review South Dakota's Rail System Discussion» Function» Future Vision Statement and Discussion Next Steps
3 State Rail Plan Overview Purpose, Plan and Process
4 State Rail Plan Project Team South Dakota DOT» Bruce Lindholm, Project Manager» Misty Siedschlaw Cambridge Systematics» Erika Witzke, Project Manager» Allan Rutter Civil Design Inc» Carey Bretsch 4
5 Rail Plan Advisory Committee (R-PAC) Role Meet three times during project» October 9, 2013» February 12, 2014» July 9, 2014 Review advance materials, come prepared Share public- and private-sector perspectives Suggest data sources and information Provide input and guidance for South Dakota DOT consideration and decision-making 5
6 State Rail Plan Purpose Develop a State Rail Plan that meets federal requirements (to position South Dakota for possible federal funding)» FRA/PRIIA Compliance» MAP-21 Considerations Identify System Needs Establish State Rail Ownership and Investment Goals» Investment in existing state system infrastructure» Investment in expanding state system» Sale of state-owned assets Become part of the South Dakota Long Range Transportation Plan 6
7 Core Components of a PRIIA State Rail Plan FRA Requirements Vision, Goals and Objectives» Guide actions, programs prioritization» Provide linkages to other DOT initiatives Rail System Inventory and Assessment» System inventory» Performance assessment» Needs, issues and opportunities Planning for the Future» Prioritization of investments» Implementation plan integrated with other state transportation plans and priorities
8 South Dakota State Rail Plan Chapter Outline 1. Introduction and vision (What is the future role of rail in South Dakota?) 2. History (What has been the role of rail in South Dakota?) 3. Rail system inventory and review (Where are we now?) 4. Rail issues and opportunities (What are the challenges?) 5. Rail system analysis, evaluation, and needs identification (What are the improvement needs?) 6. Rail system investments (What are the funding needs?) 7. Long-range service and investment program (What is SDDOT s next step?)
9 South Dakota State Rail Plan - Project Schedule Task 2013 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2014 Apr May June July Aug Sep Oct 1 Project Management, Kick-off Meeting, and Identify and Review Best Practices 2 Identify State and Local Rail Programs 3 Existing System Description and Infrastructure Inventory 4 Develop Stakeholders Outreach and Coordination Program 5 Execute Stakeholder Outreach and Coordination Program Rail Plan Advisory Committee Meetings Regional Rail Stakeholder Meetings One-On-One Interviews 6 Describe the Impacts of Rail Transportation 7 Needs Assessment and Evaluation 8 Develop a Vision for Rail in South Dakota 9 Identify Potential Investment Opportunities 10 Long Range Service and Capital Investment Program 11 Integration of South Dakota State Rail Plan into the Statewide Long-Range Transportation Plan 12 Draft South Dakota State Rail Plan Preparation and Presentation 13 Final South Dakota State Rail Plan Presentation to SDDOT Start Task Draft Deliverable Activity End Task Final Deliverable Project Management Meeting R-PAC Meeting Stakeholder Workshop/Meeting One-On-One Interviews
10 R-PAC Meetings/Plan Content R-PAC Meeting No. 1 Sioux Falls, October 9, 2013 R-PAC Meeting No. 2 Rapid City, February 12, 2014 R-PAC Meeting No. 3 Pierre, July 9, July October January March July October Chapter 2, State and Local Rail Programs Chapter 4, Rail System Impacts Chapter 6, Potential Investments Chapter 3, Existing System Inventory Chapter 5, Needs Assessment Chapter 7, Long Range Capital Plan 10
11 State Rail Plan Content
12 R-PAC Meetings/Plan Content R-PAC Meeting No. 1 Sioux Falls, October 9, 2013 R-PAC Meeting No. 2 Rapid City, February 12, 2014 R-PAC Meeting No. 3 Pierre, July 9, July October January March July October Chapter 2, State and Local Rail Programs Chapter 4, Rail System Impacts Chapter 6, Potential Investments Chapter 3, Existing System Inventory Chapter 5, Needs Assessment Chapter 7, Long Range Capital Plan 12
13 Chapter 2 - State and Local Rail Programs Chapter Topics» South Dakota Rail History» State Intervention» Review of Previous South Dakota State Rail Plans» State and Local Programs and Administration» Rail Funding 13
14 South Dakota Rail History First railroad in South Dakota in 1872 Winona & St. Peter to Gary, and to Watertown in 1873 Chicago, Milwaukee, St. Paul and Pacific (later the Milwaukee Road) from Sioux City, IA to Vermillion; to Yankton in 1873 and Mitchell in 1880 Sioux Falls served in 1878 Railroads rapidly expanded in late nineteenth century, reaching peak in
15 South Dakota Rail Network From South Dakota s Railroads: An Historic Context, South Dakota State Historic Preservation Office Source: South Dakota s Railroads: An Historic Context, South Dakota State Historic Preservation Office
16 South Dakota Rail Network From South Dakota s Railroads: An Historic Context, South Dakota State Historic Preservation Office Source: South Dakota s Railroads: An Historic Context, South Dakota State Historic Preservation Office
17 Decline of South Dakota Rail System Post-WWI agriculture demand decreased, affecting both farming and railroads The Depression and Dust Bowl further depressed agriculture and rail, as railroads went in and out of bankruptcy Number of farms:» 1915 = 100,000» 1945 = 70,000» 1974 = 45,000 Post WWII abandonments:» 1948 = 4,400 rail miles» Today ~ 1,900 rail miles 17
18 State Intervention The Milwaukee Road finally goes under in 1977 South Dakota creates the South Dakota Railroad Authority; acquires the Core Line in 1980 and Main Line in 1982 BNSF acquires Core Line (2005) it contracted to operate Other Local Lines are operated by short line railroads 18
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20 CP/DM&E Railroad Uncertainty 1986 Dakota Minnesota & Eastern purchases former Chicago & Northwestern east-west rail line 1997 DM&E announces plans to build new line to connect to Powder River Basin, offer alternate coal route STB environmental clearance granted in 2001, but expansion doesn t attract funding Canadian Pacific purchases DM&E in 2008 In 2012, CP reveals intention to sell DM&E trackage west of Tracy, MN (all of SD) 20
21 South Dakota Rail Organization Legislature authorizes Regional Railroad Authorities among two or more subdivisions; today there are 27 Authorities South Dakota DOT assigned railroad responsibilities South Dakota Railroad Authority created to purchase Core Line the South Dakota Railroad Board created to work with South Dakota DOT on rail matters 21
22 South Dakota DOT Org Chart 22 Source: South Dakota DOT
23 Federal Railroad-Related Agencies FRA - safety regulation, state rail plans, passenger rail funding FHWA - allocates grade crossing improvement funds FTA - funds commuter rail, rail transit STB - economic rail regulation NTSB - major accident investigation, safety recommendations PHMSA - hazmat regulation with FRA TSA - rail security regulation with railroads 23
24 Rail Funding State Railroad Trust Fund created in 1981 State appropriations to Railroad Authority and Trust Fund Federal loan fund (LRSA, LRFA) from 1979 to 1995 allocated $23M in Federal funds, $5M state, $7M other funds, totaling $35M Since, South Dakota has received funds from the FRA, RRIF loans to railroads, and TIGER grants from USDOT 24
25 Chapter 3 Existing System Inventory Chapter Topics» South Dakota s Rail Operators» South Dakota s Rail Infrastructure» Railroad System Demand - Current and Potential Future (2040) 25
26 South Dakota s Freight Railroad Operators BNSF Railway Canadian Pacific (CP)/Dakota, Minnesota & Eastern Railroad (DM&E)* CP/SOO Dakota and Iowa Railroad (D&I)* Dakota, Minnesota Valley and Western Railroad (DMWV)* State Owned Active Rail Miles 17% Active Rail Miles 1,884 miles Other Rail Miles 5% Dakota Southern Railway* Ellis & Eastern Railroad Sisseton/Milbank Railroad Sunflour Railroad CP/DM&E 30% BNSF 48% 26 * Operate on portions of the State-Owned System
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31 South Dakota Freight Flows All Modes, Tons Thousands of Tons 700, , , , , ,000 Trucks: = 75% moved by truck = 78% moved by truck Rail: = 25% moved by rail = 22% moved by rail 100,000 0 Truck Rail Water Air 2011 TOTAL Tons 382, , TOTAL Tons 651, , Source: Freight Analysis Framework (FAF3.4), STB Waybill and CS
32 South Dakota Freight Flows Truck and Rail Movement Comparison, Tons 500, , ,000 Truck 400,000 Truck Thousands of Tons 300, ,000 Rail Thousands of Tons 300, ,000 Rail 100, , Through Tons 2011 Outbound Tons 2011 Inbound Tons 2011 Intrastate Tons Through Tons 2040 Outbound Tons 2040 Inbound Tons 2040 Intrastate Tons
33 Rail Flows by Movement Type 2011 and 2040 Forecast, Tons Rail Flows (in millions of Tons) Through Outbound Inbound Intrastate Movement Type 33 Source: Freight Analysis Framework (FAF3.4), STB Waybill and CS
34 Rail Flows by Service Type 2011 and 2040 Forecast, Tons Auto, 0.08, 0% Intermodal, 0.02 Auto, 0.16, 0% Intermodal, 0.05, 0% Bulk - Other, 13, 10% Bulk - Other, 18, 10% General Merchandise, 22, 17% Bulk - Coal, 95, 73% General Merchandise, 46, 25% Bulk - Coal, 122, 65% Source: Freight Analysis Framework (FAF3.4), STB Waybill and CS
35 2011
36 2011 Rail Flows, Tons Excluding Coal 0.8, 2% 1.1, 3% 1.1, 3% 0.6, 2% 0.5, 1% 0.7, 2% 3.0, 8% 1.4, 4% 1.7, 5% 2.5, 7% in Millions of tons 2.6, 7% 3.3, 9% 3.6, 10% 9.2, 26% 3.8, 11% Cereal Grains (incl. seed) Other Ag Prods., exc. for Animal Feed Alcohol Animal Feed and Prods. of Animal Orig., n.e.c. Crude Petroleum Oil Waste & Scrap Non-Metallic Minerals, n.e.c. Fertilizers Non-Metallic Mineral Prods. Other Prepd. Foodstuffs, & Fats & Oils Metallic Ores & Concentrates Coal & Petroleum Prods., n.e.c. Milled Grain Prods. & Preps., & Bakery Prods. Pulp, Newsprint, Paper, & Paperboard Other 36
37 2040 Rail Flows, Tons Excluding Coal 0.8, 1% 0.8, 1% Alcohol Cereal Grains (incl. seed) 2.2, 3% 0.8, 1% 1.8, 3% 2.0, 3% 5.2, 8% 12.7, 20% Animal Feed and Prods. of Animal Orig., n.e.c. Other Ag Prods., exc. for Animal Feed Waste & Scrap Non-Metallic Minerals, n.e.c. Non-Metallic Mineral Prods. 2.5, 4% Crude Petroleum Oil 2.8, 4% 4.3, 7% 10.9, 17% Other Prepd. Foodstuffs, & Fats & Oils Metallic Ores & Concentrates Fertilizers 4.6, 7% 6.9, 11% Milled Grain Prods. & Preps., & Bakery Prods. Coal & Petroleum Prods., n.e.c. 6.0, 10% Articles of Base Metal in Millions of tons Other 37 Source: STB Waybill and CS
38 South Dakota's Rail System Discussion - Function and Future
39 South Dakota Rail Changes Since 1980 Ownership changes Abandonments of light traffic lines serving smaller communities Changes in logistics with more grain shipment consolidation at shuttle loading facilities Agriculture production has changed:» Cattle stable 1990 = 1.4B lb 2012 = 1.5B lb» Wheat decreased 1990 = 128M bu 2012 = 78M bu» Corn exploded 1990 = 122M bu 2012 = 768M bu 39
40 Function Support for Agriculture, 286K Carloads Projection % CAGR % Total Corn 332, ,945 13% 58% Wheat 137, ,242 12% 22% Soybeans 83, ,218 14% 15% Sunflower 16,346 48,636 15% 3% Sorghum 3,302 8,980 13% 0.6% Oats 1,770 2,967 7% 0.2% Millet 826 1,023 3% 0.1% Barley 411 1,037 12% 0.1% Beans % 0.0% Flax % 0.0% 40
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42 Function Connect Communities, Inbound/Outbound, Tons Rail Volumes (in Millions of Tons) Aberdeen Mitchell Pierre Rapid City SDDOT Planning Region Inbound and Outbound Flows, Only 42 Source: STB Waybill and CS
43 Function Connections to Nat'l & International Markets 2011: 6.9 MTons 2040: 9.2 MTons CAGR: 1.0% 2011: 0.7 MTons 2040: 0.9 MTons CAGR: 0.8% (INTRASTATE) 2011: 0.4 MTons 2040: 0.7 MTons CAGR: 1.7% 2011: 0.01 MTons 2040: 0.02 MTons CAGR: 1.7% 2011: 2.5 MTons 2040: 3.8 MTons CAGR: 1.5% 2011: 2.2 MTons 2040: 3.4 MTons CAGR: 1.5% 2011: 3.1 MTons 2040: 5.9 MTons CAGR: 2.2% 2011: 0.2 MTons 2040: 0.3 MTons CAGR: 1.3% 2011: 0.06 MTons 2040: 0.04 MTons CAGR: -1.7% 2011: 2.8 MTons 2040: 4.7 MTons CAGR: 1.8% 2011: 0.2 MTons 2040: 0.4 MTons CAGR: 3.2% 43 Source: FAF3.4, STB Waybill and CS; Notes: CAGR = Compounded Annualized Growth Rate, MTons = Millions of Tons
44 Discussion What will the rail system look like in the future?» How many people and goods will be traveling in the future?» Where will people and goods travel from/to?» What commodities will use the rail system?» How will the future rail system be shaped by the Economy? the Environment? Advancing Technology? 44
45 State Rail Plan Vision Statement
46 State Rail Plan Vision Statement What does a vision statement do According to the State Rail Planning Best Practices guidebook, an effective rail vision statement has the following attributes:» Describes the role of rail in the future.» Reflects the desires of rail stakeholders and constituents.» Depicts what the rail system will be like in the future.» Recognizes challenges and opportunities.» Provides high-level strategic guidance to goals and objectives. 46
47 Significant Events for Railroads over the Last 50 Years Year Late 1950s Significant Event Beginning of intermodal freight - that year, railroads moved 168,000 trailers and containers Trucking executive Malcom McLean converted a military tanker into the first marine containership; the Ideal X sailed from New Jersey to Houston with 58 containers on board Retirement of steam locomotives in favor of diesel engines Southern Railway introduces 100 ton capacity Big John grain hopper car, engages in lengthy Interstate Commerce Commission (ICC) fight to offer lower rates Burdened by regulation, nine Class I railroads, representing nearly 1/4 of the industry's trackage file for bankruptcy protection The Rail Passenger Service Act of 1970 creates Amtrak. Amtrak officially begins service on May 1, 1971 Congress passes the Staggers Rail Act, reducing the Interstate Commerce Commission's regulatory authority over railroads Source: AAR
48 Source: AAR Staggers Rail Act
49 Discussion Name a few things/ways that the world may look different in 50 years?» Will there be competitive access?» Will the State continue rail line ownership? How will South Dakota change and grow economically, demographically, geographically? What will the impact of these things be on the rail system? 49
50 Subjects to Consider and Address in a Vision Statement Mobility and Accessibility Reliability Goods Movement Economic Development/Growth Environment and Energy Efficiency Multimodalism Safety and Security Capacity Community Development Improvement of the Status Quo Competition Others. 50
51 Rail Plan Vision Samples
52 Michigan State Rail Plan A rail system that provides enhanced mobility for travelers and the efficient movement of goods, while supporting economic development and environmental sustainability. Key Themes:» Freight and passenger» Mobility» Goods movement» Economic development» Environment
53 Wisconsin State Rail Plan An integrated multimodal transportation system that maximizes the safe and efficient movement of people and products throughout the state, enhancing economic productivity and the quality of Wisconsin s communities while minimizing impacts to the natural environment. Key Themes:» Freight and passenger» Safety» Sustainable communities» Economic development» Environment 53
54 Texas State Rail Plan The Texas Rail System will provide cost-effective, energy-efficient, sustainable personal mobility and goods movement that connects Texas communities and links Texas businesses with domestic and international markets, minimizing environmental impacts, reducing road congestion, improving air quality, and promoting economic growth. Key Themes:» Freight and passenger» Efficiency» International trade» Economic development» Environment 54
55 California State Rail Plan California has a premier, customer-focused rail system that successfully moves people and products while enhancing economic growth and quality of life. Key Themes:» Mobility» Goods movement» Economic growth» Environment» Customer focus
56 Discussion What struck you about the samples? What did you like?» Form - detailed or succinct?» Scope - unified and/or freight and passenger specific?» Utility - how does the vision statement lead to goals, policies, projects and programs in the state rail plan that follows?» Timeframe - generic or describes how rail will function in the future?» Boldness - inevitable or visionary future state?
57 Next Steps
58 Next Steps Stakeholder Roundtables in November Next Tasks» Chapter 4 - Rail System Impacts» Chapter 5 - Needs Assessment Next R-PAC Meeting:» February 12 th - Rapid City, SD» Topics Present Work-to-Date Draft Vision Statement Discuss Goals and Objectives 58
South Dakota State Rail Plan
South Dakota State Rail Plan presented to Rail Stakeholders presented by Cambridge Systematics, Inc. in partnership with Civil Design Inc November 2013 Agenda State Rail Plan Overview» Purpose, Plan and
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