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    Rail Freight and Rail Freight and Economic DevelopmentEconomic Development

    Glen WeisbrodGlen WeisbrodEconomic Development Economic Development Research Group, Inc.Research Group, Inc.2 Oliver Street, 92 Oliver Street, 9thth FloorFloorBoston, MA 02109 USABoston, MA 02109 USA

    www. edrgroup.comwww. edrgroup.com

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    22

    Three ThemesThree Themes1. Underlying Trends: changing due to

    national & global economic markets.

    2. Intermodal Rail Freight Projects:reducing costs & expanding services to improve competitiveness.

    3. Economic Development: depends on market access & cost competitiveness.

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    1. UNDERLYING TRENDS1. UNDERLYING TRENDS

    0%

    5%

    10%

    15%

    20%

    25%

    1992 1993 1994 1995 1996 1997 1998 1999 2000

    Value of Mfg

    Freight Ton-Miles

    Population

    Freight Growing Faster than Population

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    PA PA ---- Freight OFreight O--D by ModeD by Mode

    0%10%20%30%40%50%60%70%80%90%

    100%

    Truck Rail Water Air Truck-Rail

    Courier-Mail

    tofromwithin

    0%10%20%30%40%50%60%70%80%90%

    100%

    Truck Rail Water Air Truck-Rail

    Courier-Mail

    tofromwithin

    Tons

    Dol

    lars

    Rail Freight Imbalance:

    Ratio: outgoingincoming

    Tons = 0.86$Val = 0.38

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    Intermodal Importance (US)Intermodal Importance (US)Intermodal accounts for a small part of the tonnage, but a large part of the value moving by rail.

    0

    200

    400

    600

    800

    1000

    1200

    1400

    Domestic Exports Imports

    Intermodal

    Rail

    Billions of Dollars

    0

    500

    1,000

    1,500

    2,000

    Domestic Exports Imports

    Millions of Tons

    COFC: 83% of all IntermodalImports + Exports > Domestic

    by 2035

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    66

    PA PA ---- Rail Freight FlowsRail Freight Flows

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    77

    Appalachian ExportsAppalachian Exports

    FloridaFloridaTexasTexas

    FOOD PROCESSING MACHINERYOrigin: PA GA SC OH

    Key Ports: Laredo TX New York NY . Detroit MI

    FOOD PROCESSING MACHINERYOrigin: PA GA SC OH

    Key Ports:Key Ports: Laredo TX New York NY . Detroit MI

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    PA PA ---- NAFTA Trade via Rail NAFTA Trade via Rail

    PA to Canada $758 million (+83% from 2000)Canada to PA $2.698 Billion (+85% from 2000)

    PA to Mexico $311 million (+44% from 2000)Mexico to PA $104 million (-21% from 2000)

    International Trade Administration 2006

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    PA PA ---- Exports to Canada by RailExports to Canada by Rail Locomotives & Traffic Signals Organic Chemicals Iron & Steel and Products Plastics Mineral Fuels, Oils & Waxes Wood and Wood Articles Boilers, Machinery and Parts Chemical Products

    Contrast to Domestic Rail Flows that feature Coal, Petroleum, Pulp & Paper

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    1010

    2. RAIL FREIGHT ROLES & PROJECTS

    SPACE AIR TRUCK RAIL IMX RAIL CL WATER

    HIGHER LOWERSERVICE CONTINUUM (Speed, etc.)

    $10K $1.50 $.05 - .10 $.03 $.01 $.005

    COST CONTINUUM ($ / LB)

    Intermodal Strong in the 750+ mile range.Can it penetrate the 200+ mile markets?

    Modal Spectrum: Service & Cost Tradeoffs

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    1111

    Rail Freight to Reduce Hwy TrafficRail Freight to Reduce Hwy TrafficNCHRP Guide: Converging interests: private carriers, public agencies Motor carriers (facing labor shortages, truck delays,

    rising fuel prices) see rail freight as a positive option. Reducing congestion and road/rail conflicts can

    enhance public safety & economic development

    Guide for evaluation & public-private partnerships

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    1212

    170 Miles Seattle - PortlandNorthwest Container Services, Inc. Daily dedicated service 60,000 containers/year Private terminals & equipment Private, purchased train

    Keys to Success: Single-end dray Stack economics Economic geographyTurnkey set of services

    Successful Short-Haul

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    1313

    Regional Rail-Hwy Access Strategies Vancouver Gateway System Chicago CREATE

    Inland Ports and Feeder Systems Netherlands: European Container Port Venlo Virginia Inland Port Nilai Inland Port (Malaysia) NY: Port Inland Distribution Network

    Rail to Satellite Facilities Betuwe Line - Netherlands Alameda Corridor - California

    Expanding Regional CapacityExpanding Regional Capacity

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    1414

    Example: Vancouver BC International Trade Gateway

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    1515

    Example: Chicago Rail YardsExample: Chicago Rail Yards

    74 rail yards, 17 for intermodal

    delays at 600 grade crossings

    http://http://hometown.aol.com/chirailfan/watchmap.htmlhometown.aol.com/chirailfan/watchmap.html

    Congestion from truck trips moving cargo from yard to yard

    Abandoned & under-utilized rail yards

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    1616

    Inland PortsInland Ports

    European Container Terminal Venlo 120 miles from Rotterdam

    daily shuttle trains

    Virginia Inland Port 220 miles from Hampton Roads

    daily shuttle trains

    Nilai Inland Port (Kuala Lumpur) 25 miles from Port Klangdaily shuttle trains

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    1717

    Port Inland Distribution NetworkPort Inland Distribution Network

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    1818

    Rail Service to Satellite Facilities

    Betuweroute Freight Line 100 miles Netherlands port to GermanyShuttle trains

    Alameda Corridor20 miles (future 55 miles) San Pedro Ports to Los AngelesShuttle trains

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    1919

    Business growth & attraction depends on many cost, quality and market size factors.

    Freight connections alone do not create economic development.

    But failure to provide access or service can constrains it.

    International trends will create more opportunities for intermodal services.

    3. Economic Development

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    2020

    PA PA Rail Intermodal TerminalsRail Intermodal Terminals

    (Pittsburgh, Harrisburg, Scranton, Allentown, Philadelphia)

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    2121

    Local Econ Assessment PackageLocal Econ Assessment Package

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    2222

    LEAP: Barriers to Econ LEAP: Barriers to Econ DevelDevel

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    2323

    PA PA Rail Freight & DevelopmentRail Freight & Development

    Rail Freight Properties Directory (205 listings)

    Rail Freight Assistance Program (track, bridge, siding, spurs for industrial development)

    Intermodal Warehousing & Logistics Centers

    Int. Port Connections (e.g., reverse logistics for military equip. repair (Phila to Ft. Drum, Dix), future PIDN to Pittsburgh, etc.

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    Future: Public-Private Cooperation

    FAC & Rail CarriersPublic AgencyMedia coordinationPublic AgencyRail CarriersMulti-jurisdiction coordination

    Public AgencyEnvironmentFreight Advisory CouncilPublic AgencyPublic educationFAC & Rail CarriersPublic AgencyNew market assessments

    Rail CarriersPublic AgencyTrans-modal effects of investmentRail CarriersFAC & Public AgencyFreight market projections Public AgencyRail CarriersRail capacity investment needs

    Rail CarriersRail capacity limits

    SupportLeadershipElement

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