ron o’blenis, pe senior rail project manager€¦ · senior rail project manager (617) 357-7758...

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© 2015 HDR, Inc., all rights reserved. Ron O’Blenis, PE Senior Rail Project Manager (617) 357-7758 [email protected] Presentation Focus: Expansion of Northeast Rail Lines and Local Impact on Communities: How to Promote Smarter Freight Connections, Strategic Partnerships & Cleaner Technologies

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Page 1: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

© 2015 HDR, Inc., all rights reserved.

Ron O’Blenis, PE

Senior Rail Project Manager(617) 357-7758

[email protected]

Presentation Focus:

Expansion of Northeast Rail Lines and Local

Impact on Communities:

How to Promote Smarter Freight Connections,

Strategic Partnerships & Cleaner Technologies

Page 2: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

The Guardian

Omaha- “It’s a very efficient way of moving

goods.” said Buffett. “I just believe this country

will prosper; that you’ll have more people moving

more goods 20 to 30 years from now …

Matthew Rose, BNSF’s chief executive, said the

railway company believed its future would be a

“three logged stool” of carbon pricing, high fuel

costs and traffic congestion, all of which are likely

to encourage a search for alternatives to road

transport.

Buffett in $44B Deal for Burlington Northern Sante Fe

World’s Second Richest Man Sees Bright Future for Rail

Source: theguardian.com

Page 3: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Interstate Highway Improvements –

Truck Mode Share Increase

Deregulation of transportation modes of 1978 -1980

Transformation to respective modes can be complementary

“Private Railroads” have public benefits

State “Highway Departments” become “Departments of Transportation” – total

system view

0%

10%

20%

30%

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50%

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70%

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100%

Truck Rail Air Water

Share

MA Share US Share

Major Policy Changes Affecting Modal Transportation

Page 4: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

U.S. Highway Congestion Increasing

High Volume Freight Truck Routes to

Increase 230% from 2002 to 2035

Source: Federal Highway Administration, Office of Freight Management and Operations,

Freight Analysis Framework, Version 2.2, 2007

Page 5: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

U.S. Rail Corridors and Congestion

Rail Volumes Expected to Increase 88% from 2002

to 2035 – 1.7 billion tons to 3.2 billion tons

Source: Federal Highway Administration, Office of Freight Management and Operations,

Freight Analysis Framework, Version 2.2, 2007

Page 6: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Importance and Needs of Freight

Trade as percent of US GDP increased from 10% to 30% during the

last 40 years

Freight tons to grow 70% by 2030

National Transportation Policy & Revenue Commission

o “US needs …$225 billion per year ...upgrade to good state of repair.

Currently spending less than 40% of that.”

o Recommended Freight Transportation Program to enhance global

competitiveness

American Association of Railroads (AAR) estimates $148 Billion

capacity investments for future demand

Page 7: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Trends of Rail Freight

Page 8: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Benefits of Rail and Marine Shipping

Shipper cost savings – rail costs approximately 50% lower than truck &

water 75% lower than truck

Efficiency – rail fuel efficiency is 1.9 to 5.5 times higher than truck per

ton-mile

Emissions reductions – rail and marine produce fewer greenhouse

gases per ton of freight moved

Congestion relief – allows for faster travel times to remaining vehicles

Pavement maintenance costs are 0.2 cents per car mile vs 59 cents per

truck mile

“Comparative Evaluation of Rail and Truck Fuel Efficiency on Competitive Corridors”

Federal Railroad Administration, November 19, 2009

Page 9: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

CSX & NS Class 1 Operators

Significant regional and short lines

Limited Hudson River Crossings

Shore lines are passenger-focused

Major intermodal terminals:

o Mechanicville, NY; Ayer, MA;

Worcester, MA and Auburn, ME

NE Freight Rail Network

Page 10: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Downeaster improvements

Knowledge Corridor/Conn River Line

Capitol Corridor to Nashua, Manchester

and Concord, NH

South Coast Rail

Inland Route Boston to Springfield

Extension to Montreal

NE High Speed and Intercity

Passenger Rail Vision - 2009

Page 11: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Capacity, operations and liability challenges

Can work well together – Downeaster/Pan Am/MBTA

Most Passenger Rail is Shared Use with Freight

Page 12: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Massachusetts Freight Volumes Projected to Increase

Freight volumes projected to increase by 70% by 2030

Each mode to grow with trucks increasing mode share

Page 13: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Considerations for Modal Shifts

Rail and marine more competitive on long-distance goods movement

Significant reduction in shipping heavy bulk loads that favor rail

Large distribution markets in NJ, NY, PA

Infrastructure constraints such as:

o Weight on rail (286k)

o Vertical clearances (double-stack) for rail corridors

o Port and navigational channel depth

o Landside access and intermodal connections

Page 14: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Policy Issues and Recommendations

Land use development

o Identifying, preserving and facilitating freight-intensive uses in Massachusetts

Funding and financing

o Freight considerations in prioritization of projects

o Public benefits justify participation in public-private partnerships

Regulatory environment

o Truck routes, regional multi-modal planning, etc.

Passenger rail

o Reverse commute, operations, TOD/Smart Growth

Industrial incentive areas to preserve freight land uses

Page 15: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Funding and Financing Policy Initiatives

Strategic multi-modal investments

o State funding support for key multi-modal investments

Industrial Rail Access Program (IRAP)

o Matching funding and low-interest loans for economic development

opportunities

Increased use of public-private partnerships

o Public participation in funding private freight facilities based on anticipated

public benefits

Passenger service benefits for freight

o Added public benefits from improved freight service

Page 16: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Public Benefits of Improved

Rail System

Economic Benefits

o Shipper cost savings

o Truck congestion benefits

o Freight logistics benefits

o Jobs: Near-term and long-term

Transportation

o Auto congestion benefits

Environmental

o Reduced Green House gases

o Reduced emissions

Page 17: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Northern Tier Benefit-Cost Example

Stars indicate Return on Investment (ROI) magnitude

o Three stars: ROI is above 3

o Two stars: ROI is above 1.5

o One star: ROI is less than 1.5

Page 18: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Northern Tier Benefit-Cost Example

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Total Benefits Total Costs Net Present Value

Mil

lio

ns

Econ Benefits Environment

Total Costs Net Present Value (NPV)

Transportation

Economic Benefits

o Shipper cost savings $315M

o Truck congestion relief $2M

o Freight logistics $2M

o Near-term 150 jobs

o Long-term 100 jobs

Transportation

o Auto congestion relief $15M

o Accident reduction $3M

o Highway maintenance $9M

Environmental

o Green House gas emissions CO2: 3,494

ton reduction

o Emissions reduction $2M

Benefit-Cost Ratio: 3.7

Page 19: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

New Haven-Hartford-Springfield Rail Program

Improve the high speed and passenger

rail system serving the Northeast

Expand intermodal transportation options

Encourage economic development

Create more livable and sustainable

communities

Page 20: Ron O’Blenis, PE Senior Rail Project Manager€¦ · Senior Rail Project Manager (617) 357-7758 Ronald.Oblenis@hdrinc.com Presentation Focus: Expansion of Northeast Rail Lines and

Summary Thoughts

Warren Buffett’s vision seems very good

o Rail will be a significant part of future transportation system

The public benefits are foundation of transportation investments

Substantial progress made on integral approach to transportation planning

System view best for transportation improvement assessments