Talking Freight

Promoting Economic Revitalization through Enhanced

Freight Transportation

Eric G. MaddenEric G. MaddenDeputy Secretary for Aviation and Rail FreightDeputy Secretary for Aviation and Rail Freight

Pennsylvania Department of TransportationPennsylvania Department of Transportation

June 16, 2010June 16, 2010

Why invest in Why invest in rail freight?rail freight?

National Highway System National Highway System Estimated Peak-Period Estimated Peak-Period

Congestion: Congestion: 19981998

Source: Federal Highway Administration (FHWA) www.FHWA.dot.gov

National Highway System National Highway System Estimated Peak-Period Estimated Peak-Period

Congestion: Congestion: 20202020

Source: FHWA

Domestic Freight Flow - 2002 Domestic Freight Flow - 2002 (truck/day)(truck/day)

Source: FHWA

Domestic Freight Flow - 2035 Domestic Freight Flow - 2035 (truck/day)(truck/day)

Source: FHWA

National Rail-Freight TrendsNational Rail-Freight Trends

If all freight rail were shifted to trucks tomorrow, it would

add 92 billion truck vehicle-miles-of-travel to the highway system and

cost federal, state and local transportation agencies an additional $64 billion for highway improvements over the next 20 years.

Source: American Association of State Highway and Transportation Officials (AASHTO) www.transportation.org

Major National Rail-Freight Major National Rail-Freight Choke Points and Congested Choke Points and Congested

AreasAreas

Source: AAR

Source: AAR

Current Volumes Compared Current Volumes Compared to Current Capacityto Current Capacity

Source: AAR

Current Volumes Compared Current Volumes Compared to Current Capacityto Current Capacity

What does this mean?What does this mean?

States and stakeholders must now:• Understand the true meaning of

global logistics;• Reach out to new partners;• Realize the new consequences of

various decisions; and• Accommodate the rebirth of true

planning.

Priority Rail-Freight CorridorsPriority Rail-Freight Corridors

Rail-Freight ImprovementsRail-Freight ImprovementsPA Portion of National Freight Core System•Removing double-stack clearance obstacles

•286K-compliant

•Right-of-Way Preservation

•Intermodal yard capacity

•Track and bridge upgrades

Regional and Short-Line SecondaryFeeder System•286K-compliant

•Intermodal facilities

•Track and bridge upgrades

•Highway/Rail Crossings

Economic/Business Development Connections•Strategic siding locations

National Focus: TIGER INational Focus: TIGER I

• Transportation Investment Generating Economic Recovery (TIGER) discretionary grant program

• Top three awards were rail projects1. Norfolk Southern Crescent Corridor

Intermodal Freight Rail Project -- $105 million

2. CREATE Program Projects, Illinois -- $100 million

3. CSX National Gateway Freight Rail Corridor -- $98 million

Benefits of Freight Benefits of Freight InvestmentInvestment

Economic- Every $1 freight-rail infrastructure investment yields a $3 return (AAR)

- Freight rail employs more than 7,000 Pennsylvanians, with the potential for thousands more

Environmental- A freight train can haul a ton of freight 457 miles on one gallon of fuel

- If just 10 percent of highway long-distance freight switched to rail, national fuel savings would exceed one billion gallons a year and annual greenhouse gas emissions would fall by some 12 million tons.

System Preservation- a single intermodal train can haul the equivalent of 280 trucks (AAR)- less highway maintenance costs, fewer accidents

CSX National GatewayCSX National GatewayAn $842 million public‐private

partnership that will upgrade tracks, equipment and facilities, and provide

double‐stack clearance.

CSX estimates that Pennsylvania will see more than $650 million in public benefits:

• 250,000-ton CO2-emissions reduction;

• New intermodal terminals in Chambersburg and Pittsburgh;

• Freight from nearly one million trucks shifted to the railway, saving more than $40 million in highway-maintenance costs; and

• $35 million savings in logistics costs.

Norfolk Southern Crescent Norfolk Southern Crescent CorridorCorridor

Project includes straightened curves, added passing tracks, improved signal systems and new terminals. Norfolk Southern estimates Pennsylvania will annually see:

• 651,000 long‐haul trucks diverted to rail;

• 10.5 million gallons of fuel saved;

• 116,000 tons CO2 reduction;

• more than $35 million in traffic congestion savings;

• estimated $9 million in accident cost avoidance; and

• 26,000 jobs created or enhanced over the next 10 years.

Crescent Corridor, Parallel Crescent Corridor, Parallel InterstatesInterstates

21

Interstate Highways

NS Rail Lines

New Intermodal Terminals

Expanded Intermodal Terminals

Other Crescent-Served Terminals

The East’s most comprehensive public-private partnership to

improve rail-freight transportation

•300 miles of new passing track and double track when fully developed

•New or expanded terminals in 11 markets

•$2.5 billion in new investments through full corridor development as early as 2021 depending on matching public funds

More domestic shipping options

•2,500 mile network from New Jersey to Louisiana parallels Interstates 20,40, 59, 75, 76, 77, 78, 81, 85 and 95

•Most-direct intermodal rail route between the Northeast and South

651,000 Annual Trucks Diverted 10.5 Million Gallons of Fuel Saved 116,000 Tons Reduced Tons of CO2

$7.1 Million Pavement Savings $35.6 Million Congestion Savings $9 Million Safety Savings $177 Million Logistics Savings

583,000Fewer Trucks

7,000 Fewer Trucks

335,000 Fewer Trucks

99,000 Fewer Trucks

1,100 Fewer Trucks

62,000 Fewer Trucks

125,000 Fewer Trucks

5/3/10

*Public benefits derived from Cambridge Systematics analysis

Crescent Corridor

Thank youThank you

Contact: Eric Madden – emadden@state.pa.us

Pennsylvania State Intercity Passenger and Freight Rail Plan