Rail Regional Rail System: A Transportation Network for the 21st Century
A New Vision for State Rail “Transportation Action Plans”
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Transcript of A New Vision for State Rail “Transportation Action Plans”
Goals, Measures, Commitments, and Results for Commerce, the Environment, and the Community
Michael Sussman, PresidentOnTrackAmerica and Strategic Rail Finance
A New Vision for State Rail “Transportation Action Plans”
AASHTO, Standing Committee on Rail Transportation, 2014, Denver, Co.
Rail Line Abandonment 2005-2013
2005 2006 2007 2008 2009 2010 2011 2012 20130
100
200
300
400
500
600
700
546
370
614575
375
289324
177
118
Number of MilesTotal since 2005 =
3,390 miles
Ford Supply Chain (Inbound Freight)
“Inbound Freight” is production material shipped into Ford Manufacturing Plants
Approximately 58% of total inbound freight is shipped via Truck, 22% Rail, 20% Water
Steel is Moving by Truck
It’s not just consumer goods that are moving by truck
Here is how the largest steel company in the world spends its transportation budget
ArcelorMittal ships more outbound steel by truck 55% than by rail 43%
Planned State Freight Modal Share (Million Tons)
2011 2030 Increase
Washington
Truck 335.5 602.7 +267.1
Rail 127.0 220.0 +93.0
Florida
Truck 677.6 949.5 +271.9
Rail 58.0 77.6 +19.6
South Dakota
Truck 382.0 558.0 +176.0
Rail 131.0 167.0 +36.0
Pennsylvania
Truck Planning a 74% tonnage increase by 2040
Rail Planning a 45% tonnage increase by 2040
The world’s largest automated and refrigerated facilityYork County, PABuilt without rail service; requested later (too late)
Convenient to I-83, Not to a Railroad:
Bumper to Bumper Truck Traffic on I-83
ToysRUs warehouse built on Morristown & Erie Railroad, NJ in 1996
Typical State Rail Plan Elements
Inventory of existing system
History of railroads in the state
General description of freight flows in/out of state
Freight trends projected to 2040 based on 3rd-party data
Higher truck growth projected than rail
Project wish list… adds up to much more than anyone can afford
Short description of existing funding sources
This is a good foundation for the next step…Transportation Action Planning
Transportation Action Planning Process Elements 1-5:
Involves all stakeholders in the entire process from inception to implementation.
Advances stakeholder collaboration beyond outdated “anti”-trust limitations, and toward the level of trust now needed to address critical infrastructure issues.
Requires stakeholder participants to commit to a specific set of participation requirements to ensure a productive planning process.
Does not proceed until participants have identified the specific opportunities to be advanced for that region’s commerce.
Establishes a new set of “Freight Transportation Land Use Strategies” for the state.
Transportation Action Planning Process Elements 6-9:
Includes the creation of an “action plan”, complete with targets, dates, action steps, and responsible parties.
Converts plans into results by asking stakeholder representatives to commit their entities to take the plans’ action steps.
Considers diverse interests as the building blocks of wise plans, not an impediment to agreement.
Utilizes a facilitation team to guide discussions, lead participants thru negotiations, stimulate idea refinement, and synthesize and digest participant input for maximum efficiency of the whole process.
Pinpointing Commercial Opportunities within a Transportation Action Plan
Identify current freight movement by shipper and lane through granular analysis
Distinguish through-traffic from in-state origination and destination
Identify opportunities to support specific new economic development initiatives
Identify existing and potential shippers’ needs to economically reach a greater marketplace
10 Steps of a Transportation Action Plan
Get Seated
Assess
Measure
Target
Strategize
Plan
Commit
Enact
Capitalize
Act
Sample Action Plan Metrics p.1
Example Metrics for Commerce Total costs to ship ($/ton/mile) Service reliability Direct rail, truck, and water service Economical, equitable access to
maximum market geography
Example Metrics for Land Use Footprint per tonnage shipped Impact on transportation system
congestion Industrial and commercial
concentration/sprawl
Sample Action Plan Metrics p. 2
Example Metrics for the Environment
Air emissions per ton-mile
Water quality impact
Example Metrics for Communities
Jobs and economic revitalization
Noise, vibration, and light pollution
Public safety
Public tax burden per ton-mile by mode
STATE OR AGENCY
NUMBER OF LOANS
DOLLARS LENT DEFAULTS
Wisconsin 2013
105 $117,000,000 0
Illinois 2013
5 $6,434,157 0
Michigan 2012 37 $15,300,000 0
Idaho 2013
3 $3,770,475 0
Iowa 2011
108 $69,761,000 0
Minnesota 2013
225 $95,700,000 0
Kansas 2013
46 $16,903,380 0
Mississippi 2007
35 $12,000,000 0
Ohio 2013
40 $33,464,731 1
Montana 2013 4 $2,078,004 0
SBA 2013
34 $14,400,000 1
TOTALS (as of year indicated) 650 $380,337,988 2
Data gathered By Strategic Rail Finance
State Rail Loan Program Repayment History
Thank you for all of your good work!
Michael Sussman, PresidentLeo Penne, OTNA Board MemberOnTrackNorthAmericaPhiladelphia, [email protected]
SCORT 2014 Annual MeetingDenver, Colorado
Questions I would like to ask you!
What entity in your state could be enlisted to enact freight transportation land use strategies?
What legal and regulatory barriers need to be addressed to allow increased coordination between your agency and the private sector?
What has to happen for road, rail, and water to be valued and supported objectively and apolitically?
What challenges do you face in enrolling the state in getting behind rail as a conscious modal choice?