The Future of Rail

Standing Committee on Rail Transportation (SCORT)September 20, 2010

Federal Railroad Administration

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The Plan:

• $50 billion up-front investment

• Establish infrastructure bank with public and private funding

• Construct and maintain 4,000 miles of rail

• Target investments at US DOT’s five key strategic goals

• Develop performance-driven program

• Streamline, modernize, and prioritize surface transportation investments

The President’s Infrastructure Proposal

“Over the next six years… we’re going to lay and maintain 4,000 miles of our railways – enough to stretch coast-to-coast.”

- President Obama in Milwaukee, WI September 6, 2010

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National Rail System Development

Principles of development:

• Strong national vision, leadership, and support

• State-led implementation

• Predictable and sustained funding

• National standards-settings

• Planned and phased system development

Interstate System routes designated in September 1955

Development approach modeled after Interstate Highway System

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Population and Freight Growth

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Why do we need high-speed rail?

America is growing by 70 million people over next 25 years—80% of them will live in a “megaregion”

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How will high-speed rail help connect a growing America?

Half of the country’s flights

carry 30% of all passengers

and are less than 500 miles

Populatio

n Dens

ity

Intercity Distance in Miles

0-100 100-600 600-300

Light 1) Auto 1) Auto2) Conventional Rail

1) Auto2) Air

Moderate 1) Auto2) Commuter Rail

1) High-speed Rail2) Auto

1) Auto2) Air

High 1) Auto2) Commuter Rail

1) High-speed Rail2) Air 1) Air

Sweet Spot for High-Speed Rail

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World Passenger and Freight Rail Volume Comparisons

India

China

Europe

Japan

USA

- 200,000 400,000 600,000

431,707

428,509

232,905

158,574

5,784

Europe

India

Russia

China

USA

0 500 1000 1500 2000

240

298

1290

1373

1770

Passenger(million passenger-miles)

Freight(billion ton-miles)

Room for significant improvement

Maintain market share, grow domestic intermodal

What level of investment is needed to implement this program?

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Analysis of freight movements shows that the transportation system consistently moves 40 tons of freight per person per year 1.

Sources:1. Source: Commodity Flow Survey 1993-2007, US Census Bureau (Gross amount of aggregate, consumable and durable goods, waste, etc.)

Freight needs grow proportionally

Food

Fuel

Consumer goods

Autoparts

Building materials

Durablegoods

Chemicals

Raw Materials

When Population Grows

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Freight Transportation Mode Share

Tons

Truck 75%

Rail 15%

Wa-ter

3.50% Pipeline 5.60%

Ton-miles

Rail 39%

Truck 29%

Pipe-line 20%

Water 12%

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Freight Rail’s Strengths and Opportunities

Freight Transportation Mode Share by Distance Traveled

One long-distance, double-stack train from Chicago to Los Angeles

• Capitalize on inherent advantages over long distances

• Enhance capacity to reduce highway congestion, pavement wear, accidents, and harmful emissions

• Facilitate public/private partnerships for improvements with public benefits that are low priority for railroads

can replace 300 trucks and save 75,000 gallons of fuel.

= 3,000 gallons

= 10 trucks

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Ton-miles per gallon of diesel fuel

water

rail

truck

0 100200300400500600

576

413

110

Fatalities per billion ton-miles

Water Rail Truck

0

0.5

1

1.5

2

2.5

3

3.5

0.230.33000000

0000002

3.19

As one of the most fuel efficient and safest transportation modes, rail is positioned to offer the most significant contribution to improving America’s transportation system to accommodate forecast growth.

Relative Efficiency of Modes

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TIGER Funding

Freight Rail receives funding from Transportation Investment Generating Economic Recovery

Project State Tiger Grant Amount

Crescent Corridor Intermodal Freight Rail Project

TN, AL $105,000,000

CREATE Program Projects IL $100,000,000

National Gateway Freight Rail Corridor

OH, PA, WV, MD $98,000,000

Alameda Corridor: Colton Crossing CA $33,800,000

Port of Gulfport Rail Improvements MS $20,000,000

Appalachian Regional Short Line KY, WV, TN $17,551,028

Total $374,351,028

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NEPA/ Environmental

Engineering Documents

Service Planning

Financial Planning

Agreements• Host Railroad • Operator • Other

Understanding the Process

Lessons Learned

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NRP Outreach: What We Heard

• Biweekly conference calls

• Informational webinars

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Capacity

Culture Change

Communication

Construction

Commitment (long term)

Challenges

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"The future does not belong to those who are content with today, apathetic toward common problems and their fellow man alike, timid and fearful in the face of bold projects and new ideas. Rather, it will belong to those who can blend passion, reason and courage in a personal commitment to the ideals of American society.“

Robert Francis Kennedy

Conclusion