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Federal Railroad Administrator Joseph C. SzaboAmerican Public Transportation Association (APTA)

2012 Rail ConferenceDallas, TexasJune 4, 2012

Good morning, and regards from President Obama and Secretary LaHood.

Let open by recognizing APTAs tireless commitment on behalf of public transportationand, in particular, thank you for hosting this years UIC World Congress on High-SpeedRail in Philadelphia next month.

The World Congress will be a great opportunity to carry our message that high-speedand intercity passenger rail must be an integral part of a multi-modal transportationsystem a transportation system that forms the backbone of our economy, just like theTranscontinental Railroad and Interstate Highway System did in centuries past.

So this morning, let me talk about the future of our country, particularly ourtransportation needs and how they affect our economy.

In 1955, President Eisenhower told America in a State of the Union address:

A m odern, ef ficien t highw ay sy stem is essential to m eet the need s of our g row ing

population , ou r exp anding econom y, and our nation al security .

In some respects, that statement is just as true today.

Except today, President Eisenhowers vision would not just be limited to our highways.

It would include highways, airports, public transit systems, waterways, and of courseour railroads.

To provide for the future, all of these modes will need to work in concert at full strength.

But dont take it from me.

Take it from the U.S. Chamber of Commerce.

The Chamber has stated that in order to support a 21st century economy America

needs to target high levels of investments at improving performance across alltransportation modes.

They went on to say and this is a direct quote: There can be no m ore business asusual.

As the Chamber recognizes and as President Obama continues to emphasize transportation is, and always has been, the bloodline of our economy.

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No economy can ever grow faster than its transportation system can carry it.

But today, our network is saddled with gridlock and its heavily reliant on foreign oil.

Moreover, by 2050, our transportation network will have to move more than 100million more people and 4 billion more tons of freight per year.

In the meantime, traffic congestion is already placing a huge strain on our economy,with costs approaching $130 billion each year.

According to one study, more than 19 out of 20 Americans are concerned about the stateof our countrys transportation infrastructure.

They realize business as usual wont create more jobs or improve our transportationperformance.

And it definitely wont help us kick our addiction to foreign oil.

Meanwhile, with service levels targeted for the marketplace, passenger rail can be themost cost-effective, least oil-reliant, and most environmentally friendly mode oftransportation.

Two railroad tracks can carry as many people in an hour as sixteen lanes of highway.

Thats why theres so much growing support for rail development.

Backed by the Presidents investments in high-speed and intercity passenger rail as we

speak 32 states are now moving ahead with 153 rail-development projects.

This year alone, 44 projects in 16 states representing close to $3 billion in federalfunding are underway or set to break ground.

And, other projects are already coming in on time and on budget.

The Presidents support for passenger rail remains as strong as ever.

His Fiscal Year 2013 budget requests $2.5 billion combined with $6 billion in immediatetransportation investments a total of $8.5 billion for the continued development of

high-speed and intercity passenger rail projects.

Americas rail renaissance is well underway.

From 1995 to 2008, ridership on commuter rail, light rail, and heavy rail shot up 72percent.

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The 10.4 billion trips Americans took using public transportation last year was the mostsince 1957.

And last year Amtrak set another record, transporting more than 30 million travelers.

Judging by what were seeing so far for 2012, Amtrak is well on pace to set yet anotherridership record its 9th in the last 10 years.

Americans want and they deserve more transportation choices.

Theyre tired of being stuck in traffic, delayed in airports, and facing pain at the pump.

And, analysis shows that Americans travel habits are beginning to undergo rapidchange.

According to a new report by the U.S. Public Interest Research Group and the FrontierGroup, the average American drives six percent fewer miles today than in 2004.

But, leading this trend are the 16- to 34-year-olds.

From 2001 to 2009, this group reduced their vehicle-miles traveled by23 percentandincreased their average passenger miles traveled by trains and buses by a whopping40percen t.

This is the future, and its time for Congress to understand these facts and prepare forthis trend.

To adequately meet the transportation mobility needs of our citizens, America needs a

fully-funded, multi-year transportation bill.

We need a bill that not only sparks confidence in long-term planning but one thatshows the private sector that were serious about developing a 21st centurytransportation network that is safer, more energy efficient, more environmentallysustainable and offers citizens more transportation choice than the one we inherited.

And, as we meet the travel demands of our citizens, thats when well meet the demandsof a growing 21st century economy.

Today, even though Americas economy is growing again, adding jobs now for 27

consecutive months, we know we must do more.

As unemployment continues to recede, we must do everything we can to accelerate thepace of our economic recovery.

In New England, were seeing a great example of how rail development can help makethat happen.

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There, our partners are extending Amtraks Downeaster service between Boston andPortland, returning passenger rail service to the Maine towns of Freeport and Brunswickfor the first time since 1959.

Research done by the Center for Neighborhood Technology finds that this service

extension will bring more than $7.2 billion in private development to the corridor overthe next 18 years and some $75 million in new annual tax revenues for the States ofMaine and New Hampshire.

Already, work along the line has provided business to 53 companies in 20 differentstates.

At the FRA, our focus is on maximizing those benefits, which is why all federally-fundedrail projects must comply with US DOTs strict Buy America requirements.

Buy America ensures that from tracks to cross ties, train sets, construction materialsand new stations everything is built with American-made parts and supplies, creatinga huge ripple effect throughout the supply chain.

But to make that ripple effect even larger, the Next Generation Corridor Equipment PoolCommittee or as we call it the Section 305 committee has made great progressstandardizing parts and components for passenger rail cars and locomotives.

Standardization has numerous benefits, including lowering the costs of production andcreating broader competition among manufacturers and suppliers.

For operators, standardization makes it easier to maintain equipment and creates lowerlifecycle costs.

As a result, Caltrans and a pool of Midwestern States have just released a $551 millionRFP for approximately 130 new bi-level, American-made passenger rail cars and willsoon follow with an RFP for 35 new high-performance locomotives.

The states initial order for 35 locomotives is expected to be followed by a replacement ofAmtraks existing diesel locomotive fleet. Their 2012 Fleet Strategy Plan calls for 280diesel locomotives to be replaced using the 305 specification.

So, I challenge APTA and the commuter railroads in this room to look at ways tohitchhike on to the good work of the 305.

Both the bi-level passenger coaches and the diesel locomotive procurements have roomfor many options, including the ability of commuter agencies to utilize the specs.

By combining multiple orders, all will benefit from the economies of scale on equipmentand replacement parts, saving significantly in operating, maintenance and capital costs.

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Moving ahead, FRA continues to provide the technical guidance our state partners needto complete projects on time and on budget.

Weve identified more than 20 areas for guidance, and well be issuing a draft of our firsttechnical guidance document covering Statewide Rail Plans by the end of this month.

In addition to that, weve published a notice in the Federal Register announcing sevennew categorical exclusions (CEs), for which the public comment period will becompleted by the end of June.

Now, before I address FRAs efforts to lead an evolution in railroad safety culture, Idlike to touch upon the issue of Positive Train Control.

Weve heard the concerns expressed by the industry particularly the challenges facedby commuter authorities and we continue to work with all to make PTC deployment areality.

Our status report to Congress on PTC implementation is on pace to be delivered wellahead of schedule. And were confident it will give members of Congress the facts theyneed to make informed decisions.

But right now, as FRA continues working with states to modernize Americas railnetwork, were focused on doing the same with rail industry safety culture.

The centerpiece of our efforts is our Risk Reduction Program, which creates aframework in which railroads can more proactively identify and eliminate risks.And right now the Railroad Safety Advisory Committee (RSAC) is developingrecommendations for both passenger and freight carriers.

The Committees Passenger Safety Working Group has developed guidelines for aSystem Safety Program to be applied to commuter rail, intercity passenger rail, andhigh-speed rail operations.

The System Safety Program is based on a voluntary commuter railroad programadministered by APTA over the past 15 years.

And the System Safety Program recommended by the Passenger Safety Working Groupsatisfies the Rail Safety Improvement Act requirement for railroads to establish a riskreduction program.

FRA is currently using the Committees recommendation to develop final language for aSystem Safety Program notice of proposed rulemaking that will be issued this fall.

While the railroads today are as safe as theyve ever been, the Risk Reduction Programwill help us gather new data, establish new and innovative practices, and further ourefforts to continually drive down the numbers of accidents and incidents.

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In particular, let me recognize both Amtrak and New Jersey Transit as two of thepassenger operators helping lead the way in our Risk Reduction efforts.

Both are involved with Confidential Close Calls Reporting pilot projects, a non-punitiveapproach to self-reporting incidents that could have resulted in an accident, but didnt.

In our early pilots on close calls reporting, were seeing a remarkable 70% reduction inaccidents and injuries combined with a 90% reduction in discipline cases.

All this takes us back to the premise that whether were talking safety or talkingtransportation policy there can be no more business as usual.

Having a safe rail network that can ensure mobility for 100 million more Americans andhelp haul 4 billion more tons of freight

Providing alternatives to paying ever-escalating costs for fuel at the pump

These are not luxuries.

These are necessities.

And as a Nation, we must continue to evolve to adapt just as we have so many timesin our past.

In 1919, it took Dwight D. Eisenhower, then a major in the U.S. Army, 62 days to travelby road from the nations capital to San Francisco.

When he became President, he set a goal to build a highway network that would bring

our cities closer together, catalyze industry, and power the strongest economy the worldhas ever seen.

It took 10 administrations and 28 sessions of Congress to build out the Interstatesystem.

But, incrementally, we got it done.

Through boom years, through bust years through eight recessions we built the bestnational highway system in the world.

Years from now, the next generation will no doubt look at the choices we made today.

Theyll see we knew of the threats of climate change.

Theyll see we were well aware of the crushing effects of rising fuel prices, and of ourdependence on foreign oil.

Theyll see we knew of the coming population growth and of the debilitating effects

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and costs of congestion.

When they look at the choices we made with the knowledge we had will they say wegot it right? Like Lincoln did or like Eisenhower did?

With the commitment of President Obama and with the talent, dedication and energyof everyone in the room Im convinced America will one day have the true 21st centuryrail network we need to win the future.

Thank you very much.