Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

A New Vision for State Rail “Transportation Action Plans”

1,516 views

Published on

Goals, Measures, Commitments, and Results for Commerce, the Environment, and the Community

Published in: Government & Nonprofit
  • Be the first to comment

  • Be the first to like this

A New Vision for State Rail “Transportation Action Plans”

  1. 1. Goals, Measures, Commitments, and Results for Commerce, the Environment, and the Community Michael Sussman, President OnTrackAmerica and Strategic Rail Finance AASHTO, Standing Committee on Rail Transportation, 2014, Denver, Co.
  2. 2. Rail Line Abandonment 2005-2013 546 370 614 575 375 289 324 177 118 700 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of Miles Total since 2005 = 3,390 miles
  3. 3. 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
  4. 4. Even 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%
  5. 5. Planned State Freight Modal Share (Million Tons) Is this a sustainable future? 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
  6. 6. The world’s largest automated and refrigerated facility York County, PA Built without rail service; requested later (too late)
  7. 7. Convenient to I-83, Not to a Railroad:
  8. 8. Bumper to Bumper Truck Traffic on I-83
  9. 9. The Downside of Intermodalism:
  10. 10. Increased Local Truck Traffic  Even if an existing rail line is close by
  11. 11. Using Valuable Rail ROW for Truck-served Facilities
  12. 12. Small Towns in America like York, PA are Getting Big City Truck Traffic
  13. 13. ToysRUs warehouse built on Morristown & Erie Railroad, NJ in 1996
  14. 14. Went all truck in 2005
  15. 15. 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
  16. 16. What is wrong with this?  Treats transportation expense as a cost, not an investment  Considers freight demand as a problem, not an opportunity  Relates to projections as an inevitable future  Relates to freight rail as just another transport mode  Does not consider the business plans of transportation and logistics providers
  17. 17. 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.
  18. 18. 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.
  19. 19. 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
  20. 20. 10 Steps of a Transportation Action Plan  Get Seated  Assess  Measure  Target  Strategize  Plan  Commit  Enact  Capitalize  Act
  21. 21. 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
  22. 22. 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
  23. 23. State Rail Loan Program Repayment History 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 650 $380,337,988 2 indicated) Data gathered By Strategic Rail Finance
  24. 24. Thank you for all of your good work! Michael Sussman, President Leo Penne, OTNA Board Member OnTrackNorthAmerica Philadelphia, PA msussman@ontracknorthamerica.org SCORT 2014 Annual Meeting Denver, Colorado
  25. 25. 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?

×