Small Railroads: Big Agenda

Inland Rivers Ports & Terminals, Inc.Annual MeetingShreveport, LAApril 30, 2015

Short Line Industry

558 “Short Lines”:

Class III railroads: Revenues < $31.9 M

Class II railroads: Revenues $31.9 M - $398.7 M

Switching and Terminal Railroads

Growth of Short Line Route Miles

More Than 465% Route Miles Growth Over the Course of 30 Years . . .

Class I Railroads vs. Number of Short Lines

(Short Lines can interchange with more than one Class I)

Class I Number of Short Lines

BNSF 190

CN 19

CP 9

CSX 254

KCS 14

NS 256

UP 223

Short Lines vs. Class I Interchanges

Over 300 Short Line Railroads Have More Than One Class I Connection

Historically

Coal

Farm Products

Minerals & Ores

Chemicals

Metal Products

Pulp, Paper, Lumber

Food Products

Short Line Commodities

Feb 2014 – Feb 2015

Chemicals 8.0%

Intermodal 13.9%

Grain 12.6%

Metals & Products 0.1%

Aggregates 20.2%

Paper Products 1.1%

Petroleum Products 2.0%

Rail Industry Carloads

Class I's – Short Line Traffic Only – Available Data

RR H1 2012 H1

2013 Variance

BNSF 609,756

684,472

+12.3%

CN 109,104

119,274

+9.3%

CSX 392,548

403,989

+2.9%

NS 516,659

528,963

+2.4%

UP 774,485

825,076

+6.5%

Class II / III Annual Financial Slice

Revenues: $3.3+ Billion

Capital Expenditures: $920+ Million

Maintenance Expenditures:$800+ Million

Federal Tax Credits 2004 – 2013:

$1.5B in infrastructure and equipment

Federal, State and Local Taxes of $410+ Million

Short Line Operating RevenueComparison, 2012 - 2013

Two Consecutive Periods of Growth

Two Consecutive Periods of Decline

Decline Followed by Growth

Growth Followed by Decline

Source of Funds

The American Short Line and Regional Railroad Association

Membership:

• Railroad: Class II & Class III railroads

• Associate Business

• Sustaining

• Tourist & Excursion Railroad

• Plant & Switch Contractors

RR Member History by Decade1983 - 2013

ASLRRA’s Mission

Represents Interests of Small Railroads Before:

Congress

Federal Agencies

Class I Railroads

State & Federal Courts (Amicus)

ASLRRA’s Mission

Education & Compliance

Railroad “U”

Regulation Compliance Seminars

Webinars

Compliance Templates

Alerts and publications

ASLRRA’s Mission

Meetings

Annual Convention

Four Regional Meetings

General Counsel Symposium

Finance & Administration Conf.

Railroad Day On The Hill

Numerous FRA Compliance Seminars

Member Driven

Committees

Executive Finance & Administration Legislative Policy General Counsel Safety & Training Police & Security Technology Human Resources Mechanical Small Railroad

Volunteers