Rail - What Does the Future Bring?

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Transcription:

Rail - What Does the Future Bring? Jeannie Beckett Sr. Dir., Inland Transportation Port of Tacoma Oct 18, 2007

The Rail Networks

Railroads Media Blitz Print Ads TV Ads Radio Ads D:\aapa\ RailroadsPSA.wmv

Let s Look at the Challenge What will the Future Bring? Can we Meet the Cargo Projects and Still give out Communities Quality of Life? Are there Alternatives to Congestion?

As cost of Highway Congestion goes up Railroads help carry more Freight

Rail moves 30% of our Freight

Many different types of Rail Recognizing the different needs of each Business Unit Customers a Seamless Solution to the marketplace An Expressway to your customers door

Global Economy to double by 2020

Volume will continue to go to Gateway Ports

Gateways continue to Grow

Chicago and NE continues to Grow

Consumption driven by Population growth

Industrial Production continues to Grow

Consumption follows Population Growth How do we move the cargo inland? People Added 2000 to 2010 Population Loss No Growth Slow Growth Moderate Growth Top 20% of Growth

Will the Gateways be able to meet Projections?

Primary Rail Corridors

Major Freight Growth Projected (Domestic Tons All Modes) 160% 150% 140% 130% 120% 110% ATA AASHTO* DOT 100% 90% 2005 2010 2015 2020 2025 All figures indexed with each source s 2005 traffic levels equal to 100 percent *AASHTO: American Association of State Highway and Transportation Officials

Highway Capacity Already Strained 250% 225% 200% 175% 150% 125% 100% 75% Interstate traffic has grown much faster than lane miles Vehicle Miles Traveled (VMT) VMT per Lane Mile Lane Miles 50% 1980 1984 1988 1992 1996 2000 2004 Source: Dept. of Transportation, National Transportation Statistics

More Highway Gridlock Coming Truck Traffic 1998 2020 Source: Dept. of Transportation, FHWA Freight Analysis Framework

Benefits of Rail A single intermodal train can remove up to 280 trucks from roadway travel saving lives and fuel; reducing congestion, pollution and greenhouse gases

Rail has become more productive 350% 300% 250% 200% Class I Rail ton-miles have increased dramatically without growth in track miles Ton Miles per Mile of Track Ton Miles 150% 100% 50% Track Miles 0% 1980 1984 1988 1992 1996 2000 2004 Source: Dept. of Transportation, National Transportation Statistics

Main Line Targets

U.S. Freight Railroad Performance Since Staggers 300 Index 1981=100 250 Productivity 200 150 100 Staggers Act Passed Oct. 1980 Volume Revenue 50 Price 0 1964 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 Source: AAR

Rail Density is Growing Rail Density in Tons 2004 Source: Dept. of Transportation, FHWA Freight Analysis Framework

RR have more than halved their cost / revenue per ton mile since deregulation Railroad Expenditures per Revenue Ton Mile (1982$)

Tighter Capacity + Better Service

Rail Pricing continues Up

Balancing Shareholder Needs

Railroads Are Highly Capital Intensive Capital Investment as a % of Revenue Railroads 16.2% Trucking 6.2% All Transportation 12.0% Manufacturing 4.2% All Sectors 4.3% 0% 5% 10% 15% 20% Source: Census Bureau, STB All figures based on 2002 economic census except railroads and trucking All transportation includes NAICS 48 industries including: air, rail, trucking, water and pipeline transportation Trucking figures are 1999-2005 average for NAICS 484 based on Census Services Annual Survey Railroad figures are 1999-2005 average based on STB R-1 filings (Class I railroads cash capital)

Capital Investment Has Grown in Tandem with Profitability... but... 9 8 7 Billions of Dollars 6 5 4 3 2 1 0-1 Industry Capital Investment Industry Profits 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Historical nominal dollars invested based on STB R-1 filings (Class I railroads cash capital) Industry profits based on R-1 filings of Class I railroads

Growth is not being Rewarded

RR Capital Investment Reality

Capacity Improvement Process Build new Intermodal Facilities and Add new Track Add Technology to current Terminals Develop Web based Decision Tools Improve Financial Returns Improve Cashflows Document Processes- look for opportunities to improve efficiency Courtesy of UPRR

Capital Investment must be Focused

Increasing Capacity at Ports Balancing Port Capacity Land Use Container Yard Acres Intermodal On-dock Acres What is the right formula? Balancing Densification of Storage with Velocity of Rail Decrease the Dwell & Increased Capacity Do you stack it higher, or move it faster? Off-site support

Increasing Capacity Velocity Density by Destination = Capacity & Reliability results in More Throughput And Better Customer Service

Alternative Loading Schemes/Geometry What is the right Equipment Mix?

Today s Rail Capacity Described multiple ways On Dock Ramp Capacity Support Track Capacity Port Rail Capacity Connector Capacity Mainline Capacity

Correct Formula

Train Lengths

Today s Rail Capacity Total Port On-Dock Ramp Capacity All Yards working 24/ 7 5 year Forecast compared to Capacity Balanced Flow East and West bound Support Yard Capacity 1:1 Support track to Loading Tideflats Capacity Short line Crews and Engines Ability of Partners/ Connectors meet Productivity Goals Open Running Track

Operational Improvements..\tac rail video\klineoverup.wmv..\tac rail video\klineoverbnsf.wmv..\tac rail video\uplocopull.wmv

Today s Rail Capacity Port Access Capacity (The Connection to the Outside World) Total train slots per day through this connector Mainline Capacity Windows/ Spacing of Trains on to the Mainline Assets Utilization including Power and Crew Lengths of Trains Mainline Track Capacity to your Market Off-Port Arrival &Departure Tracks Length of Sidings

Off-site Near Port Holding Area Port Off-site Support

Maytown Property Port of Tacoma Port of Olympia BNSF Mainline Tacoma Rail Mountain Division Purchased Property

Challenges Demand Continues to Grow Growth is uneven year to year Infrastructure takes up to 10 years to build Who should pay for the infrastructure? Who truly benefits from the infrastructure? Funding is always an issue

Capital Investments

Railroad Capacity - Tracks Most track is single track that requires one train to pull over to have another pass On Heavy traffic areas there are double tracks so 2 trains can move at once US has limited triple tracked areas

Track Controls Improve Capacity Automatic Block Signaling (ABS) is a signal system that controls when a train can advance into the next track block. A block is a section of track with traffic control signals at each end. Centralized Traffic Control (CTC) and Traffic Control System (TCS) are systems that use electrical circuits in the tracks to monitor the location of trains, allowing railroad dispatchers to control train movements from a remote location, typically a central dispatching office.

Types of Trains Group 1 Merchandise/carload trains and bulk coal and grain trains. These trains tend to haul heavier, bulkier commodities such as coal, grain, gravel, and phosphates, and operate at slower speeds.

Group 2 Intermodal trains and multilevel auto carriers hauling assembled automobiles. These trains tend to operate at higher speeds because they are lighter than merchandise and bulk trains and are run to more exacting schedules.

Group 3 Passenger trains such as Amtrak s long distance trains and local commuter rail trains. Passenger trains operate at high speeds and on fixed schedules, similar to the speeds and schedules of intermodal trains. They require close control to ensure safe operation and stopping distances, especially when operating along corridors carrying merchandise trains or a mix of merchandise and intermodal trains. By Law Passenger Trains have priority over all other Rail

Example of Service Types

Level of Service

Capacity Today Red indicates Only 2 areas (108 miles) over capacity

Joint Services

New Ports

New Facilities and Partnerships

New Public Private Partnerships

Improved Corridors

Clearing of Tunnels

New Corridors

Summary Freight demand growing rapidly; more rail infrastructure needed More rail infrastructure would produce substantial public benefits Both public and private investment will be required to meet future rail infrastructure needs Federal tax incentives being requested from the Railroads

Questions? jbeckett@portoftacoma.com