Download - Port of Oakland
Port of Oakland
Northern California’s ‘Capitol Corridor’ on Union Pacific Railroad
The busiest intercity passenger route in the country outside the NEC – 32 trains on weekdays, 22 trains on weekend days
• Nearly 1,700,000 annual passengers (average trip: +/- 70 mi
• Railway Age called it a 10-year case-study of ‘How the CCJPA won the Heart of the Union Pacific Railroad’
• What works and why
• What components may be applicable elsewhere
Happy customers are advocates!
Union Pacific Railroad’sCentral Corridor
Capitol Corridor
Port of Oakland
Roseville Yard
Union Pacific Central CorridorCapitol Corridor Intercity Rail
The Capitol Corridor – Part of the National Intercity Passenger Rail Network
Components of the Business Partnership with a Freight Railroad
• Involvement in planning
• Capital funding
• Access fees
• Maintenance
The Railroad is not in the business of running trains… They are in the business of making money.Running trains is HOW they do it
How Did the Capitol Corridor Do It?
• Defined and shared their ‘Vision Plan’
• Addressed what is important to the Railroad
• Negotiated ‘Master Agreements’ (C&M)
• Funded a dedicated MOW gang
• Funded a capitalized maintenance program (partnership with Caltrans $)
• Renegotiated Amtrak-calculated incentive payment earnings for stand-alone performance
Discern What is Important to the Railroad
• Compensation is adequate to keep them interested
• You have a capital program and at least initial funding to start work
• Reliability and existing freight capacity is protected
• They retain their ability to expand freight business
• You are prepared to build adequate ‘fixed plant’ to operate your service, and these facilities are adequate for them to run it reliably
Let’s Talk Real Dollars into Railroad…Capitol Corridor operates 1,200,000 train miles annually on 170 UPRR route-miles and about 280 track miles, so.
or an average of $49,374 per track mile per year
Track Use (Amtrak fees paid to UPRR) $ 2,225,000/year (CC Cost)
Plus Direct CCJPA-UPRR paymentsDedicated MOW gang (CC direct):Capitalized maintenance (CC direct):
$ 600,000/year (FRA Class V)$ 1,000,000/year
Approximate annual paid to UPRR for MOW: $13,660 per track mile
Plus Direct Capital Funding for Capacity ExpansionApproximately $100M over 10 years $ 10,000,000/year
Approximate annual capital $35,714 per track mile
…and that’s not all, folks.PLUSThe Capitol Corridor pays UPRR a ‘stand alone’ incentive for superior on-time performance:
UPRR potential annual incentive earnings: approx. $2,400,000 or $8,570 per track mile
(100% was earned in 2008-09, 100% was earned in 2009-10, and 100% so far in 2010-2011)
$22,230/ track mile (w/o capital) to
$57,900/ track mile (w/ capital)
AND the Capitol Corridor enjoys the best On-Time Performance of ANY Amtrak Route
Summary of some ‘hot buttons’ for the freight railroads?
Protection of the freight franchise & stockholders• Protect existing freight capacity/reliability• Allow freight capacity expansion• Build/buy more capacity than just what you need for passenger service• Joint capacity modeling for expanded services to determine additional needed
facilities• No liability for passenger service
Publicly recognizing the freight railroad when they do a good job in service delivery
Adequate compensation for public use of private facilities• Full compensation for capital improvements required for reliable operation of
passenger operations• Funding assistance for annual maintenance costs of added facilities• Annual capitalized maintenance contribution• No added tax liability from provision of additional fixed plant to support
passenger services• Ability to earn stand-alone incentives for good on-time performance
You want the Business Deal to be good for the freight railroad!
$11.74 $15.91 $18.80 $21.35 $20.77 $20.86 $21.87 $18.07 $22.38 $25.70$20.15
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State Allocation CurrentYTD
FY 1999-00 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08FY 1998-99
Train Frequency 4 RT 6 RT 7 RT 9 RT 12 RT 16 RT
FY 2008-09
9/11
Start of Annual CCJPA-Amtrak Fixed Price Contracts
Train Frequency Increases – Travel Time Reductions (20 minutes)
463,000
1,700,000On 9/30/08
Annual State Operating Cost
31.3% 35.7% 40.7% 35.3% 38.3% 38.6% 43.1% 45.8% 48.0% 55.0% 50.1%
Annual Farebox Recovery Ratio
Riders have paid for service frequency increases
EFFICIENT MANAGEMENT
October 1
1998
4RT 6RT 7RT 9RT 10RT 11RT 12RT 16RT
September 30
2008
10-Year Snapshot
Wrap Up
• It will take understanding what is important to the host railroad - work in partnership with them
• It will take political will – understand funding sources and the leadership to secure it
• It will take trust between the parties
Bottom Line:
It can be done, because it already is being done and you have heard the reports from Maine, North Carolina and California on HOW it is being done. Go ye and do likewise….!