u.s. railroad industry federal railroad administration u.s. railroad industry federal railroad...
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U.S. Railroad Industry
Federal Railroad Administration
U.S. Railroad Industry
Federal Railroad Administration
The Roles of FRA, DOT and the U.S. Rail Industry
Administrator
Public Affairs/Civil Rights
SafetyChief CounselAdministration/
FinancePolicy and
Communications Railroad
Development
Federal Railroad Administration (FRA), U.S. Department of Transportation
FRA Organization Structure Federal Railroad Administration (FRA), U.S. Department of Transportation
FRA Organization Structure
REGION 1Cambridge, MA
REGION 7Sacramento, CA
REGION 8Vancouver, WA
REGION 6Kansas City, MO
REGION 5Hurst, TX
REGION 4Chicago, IL
REGION 3ATLANTA, GA
REGION 2Philadelphia, PA
Federal Railroad Administration (FRA), U.S. Department of Transportation
FRA Regions Federal Railroad Administration (FRA), U.S. Department of Transportation
FRA Regions
Promulgate and enforce rail safety regulations Administer railroad financial assistance
programs Conduct research and development in support
of improved rail safety Develop national rail transportation policy Administer grant agreements to Amtrak
Federal Railroad Administration (FRA), U.S. Department of Transportation
FRA Mission Statement Federal Railroad Administration (FRA), U.S. Department of Transportation
FRA Mission Statement
• 140,490 miles of road owned by railroads• 23,732 locomotives*• 1.3 million rail freight cars*• 99 average tons per carload*• 186,957 workers [Class I – 168,438]• 2.0 billion ton-miles carried*• 32.1 million freight cars originated• $52.2 billion annual operating revenue• 11.3% rate of return on shareholders
equity**Class I only
• 140,490 miles of road owned by railroads• 23,732 locomotives*• 1.3 million rail freight cars*• 99 average tons per carload*• 186,957 workers [Class I – 168,438]• 2.0 billion ton-miles carried*• 32.1 million freight cars originated• $52.2 billion annual operating revenue• 11.3% rate of return on shareholders
equity**Class I only
Federal Railroad Administration (FRA), U.S. Department of Transportation
Selected 2006 Rail Freight Statistics Federal Railroad Administration (FRA), U.S. Department of Transportation
Selected 2006 Rail Freight Statistics
Federal Railroad Administration (FRA), U.S. Department of Transportation
GIS – Rail Density Map (Volume in Millions of Tons)
Federal Railroad Administration (FRA), U.S. Department of Transportation
GIS – Rail Density Map (Volume in Millions of Tons)
2,410
1,425
1,249
612
567
77
0 500 1,000 1,500 2,000 2,500 3,000
USA
China
Russia
Europe (lessRussia)
Asia (less China)
Sub SaharaAfrica
Billions of ton/kmBillions of ton/km
Source: UICSource: UIC
Federal Railroad Administration (FRA), U.S. Department of Transportation
2002 Freight Comparisons [in 000,000 ton/km] Federal Railroad Administration (FRA), U.S. Department of Transportation
2002 Freight Comparisons [in 000,000 ton/km]
92
4,636
4,570
2,407
449
77
0 1,000 2,000 3,000 4,000 5,000
USA
China
India
Japan
Europe (lessRussia)
Sub SaharaAfrica
Source: UICSource: UIC
Federal Railroad Administration (FRA), U.S. Department of Transportation
2001 Passenger Comparisons [in pax/km] Federal Railroad Administration (FRA), U.S. Department of Transportation
2001 Passenger Comparisons [in pax/km]
0%
13%
17%
28%
42%
.4%.4%
= Oil Pipelines
Federal Railroad Administration (FRA), U.S. Department of Transportation
Freight Market Share Federal Railroad Administration (FRA), U.S. Department of Transportation
Freight Market Share
Federal Railroad Administration (FRA), U.S. Department of Transportation
Commodities Tons Carried Federal Railroad Administration (FRA), U.S. Department of Transportation
Commodities Tons Carried
0
10
20
30
40
50
60
70
80
90
100 Vehicles 1.9%
Other Commodities 9.9%
Waste 2.3%
Metal & Metal Products 3.1%
Lumber, Wood & Paper 4.7%
Chemicals & Petroleum 11.8%
Farm & Food Products 13.6%
Minerals & Ores 9.2%
Coal 43.6%
27.4 28.233.4
48.1
82.191.1 93.7
106.2 108.9
0
20
40
60
80
100
120
1960 1970 1980 1990 2000 2002 2003 2004 2005
Staggers ActStaggers Act
Federal Railroad Administration (FRA), U.S. Department of Transportation
U.S. Railroad Net Investment [cumulative in billions of $] Federal Railroad Administration (FRA), U.S. Department of Transportation
U.S. Railroad Net Investment [cumulative in billions of $]
1,200
780
566
458
216168 157 155 158 162
78 72 68 68 71
129200
80
7474
0
250
500
750
1,000
1,250
1,500
1950 1960 1970 1980 1990 2000 2002 2003 2004 2005
Others Class I
Federal Railroad Administration (FRA), U.S. Department of Transportation
U.S. Railroad Industry Staffing [in thousands]
Federal Railroad Administration (FRA), U.S. Department of Transportation
U.S. Railroad Industry Staffing [in thousands]
584
1,901
3,2933,651 3,805 3,908 4,019
863327
0
1000
2000
3000
4000
5000
1960 1970 1980 1990 2000 2002 2003 2004 2005
Federal Railroad Administration (FRA), U.S. Department of Transportation
Staggers Act: Productivity [ton-miles/employee-hour]Federal Railroad Administration (FRA), U.S. Department of Transportation
Staggers Act: Productivity [ton-miles/employee-hour]
Staggers ActStaggers Act
Rail Rates
Railroad Rates After Inflation (1972=100)
80
90
100
110
120
130
140
Year
Staggers Act 1980
Sources: Bureau of Labor Statistics, Producer Price Index for Line-Haul Railroads; Bureau of Economic Analysis, Implicit Price Deflator for Gross Domestic Product
• Rail freight rates adjusted for inflation declined an average of 0.6% per year
from 1990 through 2005
Rail, Maritime, andIntermodalism
• Intermodal traffic second only to coal
• 1980: 3.0 million trailers and containers originated
• 2005: 11.7 million trailers and containers originated
• Double-stack container loads increasing, including expansion from the Midwest to the Eastern Seaboard
• advantage of 1 train with a crew of 2 hauling 200 containers versus 100 truck drivers and trucks hauling 100 double trailers
• Intermodal traffic second only to coal
• 1980: 3.0 million trailers and containers originated
• 2005: 11.7 million trailers and containers originated
• Double-stack container loads increasing, including expansion from the Midwest to the Eastern Seaboard
• advantage of 1 train with a crew of 2 hauling 200 containers versus 100 truck drivers and trucks hauling 100 double trailers
Federal Railroad Administration (FRA), U.S. Department of Transportation
Intermodal Traffic Federal Railroad Administration (FRA), U.S. Department of Transportation
Intermodal Traffic
INTERMODAL GROWTH:LOADINGS IN MILLIONS OF UNITS
0
2
4
6
8
10
12
1980 '83 '86 '89 '92 '95 '98 '01 '04
Source: Association of American Railroads, “Railroad Facts”Source: Association of American Railroads, “Railroad Facts”
Freight Volumes Growing Faster than Passenger
Issues Facing the IndustryIssues Facing the Industry
Federal Railroad Administration (FRA), U.S. Department of Transportation
A Question of Congestion and CapacityFederal Railroad Administration (FRA), U.S. Department of Transportation
A Question of Congestion and Capacity
Truck Freight Flows, All CommoditiesAll truck types; highway freight density in tons
Rail Freight Flows, All CommoditiesRail freight density in tons
The Future
• Freight traffic is expected to double by 2020.
• Population growth and economic growth mean that the domestic transportation system will be further strained.
• Funding for expansion not identified.• Environmental issues will slow increases in
capacity.
Railroad Freight Growth2003 - 2008
Rail ton-miles: 3.0 % per year
Rail intermodal units: 4.9 % per year
Rail tons carried: 2.2 % per year
Rail carloads 1.9 % per year
Rail Capacity Growth
• Railroads are expanding workforces and infrastructure.
• Rate of expansion determined by profitability.• Demand for intermodal and coal are the key
factors.• Railroads reluctant to invest “speculatively” – will
the demand be there in the future?• Railroad profits do not justify rapid increases in
capacity.
Economic strength and trade relationships will increasingly define global influence in the 21st century…and influence can help guide change
– 16th-19th century….age of locational advantage
– 20th century…age of competitive advantage
– 21st century…age of competitive & collaborative advantage
In Closing:
http:\\www.fra.dot.gov
The EndThe End