Regional and

Short Line Railroads

Gil WilsonRail Operations Specialist

TxDOT Rail Division

Definitions

• Class 1 – Over $401.4 million in annual revenue• Regional: Operating >350 miles and/or

$40 million - $401.4 million annual revenue• Short Lines:

– Local railroads below regional criteria– Switching & terminal, jointly owned by 2 railroads or operating

within the confines of a facility or group of facilities

• Often created as a result of Class 1 abandonment proceeding

National Freight Railroads

• 565 freight railroads nationwide• Rail carries 16% of national freight tonnage• Rail freight = 92 billion truck VMT on U.S.

roadways• Would cost shippers an additional $69 billion

to ship this tonnage by truck

Texas Freight Railroads

• 10,743 miles of track (#1 in U.S.)

• 44 freight railroads

Rail freight currently = 30-40 million more truck-loads per year on Texas roadways

• Over $1 billion in wages paid to Texas railroad employees annually

Texas Short Line Railroads• 41 regional & short line railroads

– Regional = 2, operating 1,058 miles of track– Short Lines = 39, operating 1,744 miles of track– Operating on 26% of track

• Carloads handled = 390,000• Truck equivalents = 1,121,000• Estimated pavement damage savings =

$49,000,000

Freight Railroads Impacts• Economy

– Lower shipping rates = higher shipper profits– Economic development

• Public Safety– Reduced truck freight on highways– Highway/rail grade crossings in urban areas– Safer hazardous materials movements– Trespasser issues

• Environment– Locomotive emissions in urban areas– Increased automotive emissions at grade crossings– Noise from equipment and locomotive horns

Abandonments

• 254,000 miles of track in U.S at peak (1916)• 139,887 miles of track currently (2008)• Abandonments usually by Class 1, divesting

unprofitable lines• Many short lines formed as a result• Typically deferred maintenance by Class 1prior

to abandonment• Poor track conditions at acquisition

Typical track conditions pre-abandonment

Typical track conditions pre-abandonment

Typical track conditions pre-abandonment

Need for Freight Rail Improvements

• Without rail infrastructure upgrades• Class 1 rail line capacity issues• Increased truck freight• Short line failures

• Limited or “o” funds for track improvements

• Alternatives for improvements• Upgrade existing infrastructure• Tax credits for improvements

• Assumes availability of funds

• Development of new corridors/services

TxDOT & Short linesTxDOT & Short lines

• Rail safety inspection program

• Resource agency for assistance

• Assisting short lines with funding applications, project development

• Owns approximately 424 miles– 391 under lease and operating– Currently rehabilitating South Orient

Gil.Wilson@TxDOT.gov