Regional and Short Line Railroads Introduction Mario unavailable Gil Wilson Rail 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 American Association of State Highway Transportation Officials’ freight bottom line report: By 2020: 900 million tons of freight added to highways if no rail system increases 450 million tons of freight added to highways if railroads build what they can afford from revenue & loans Public Private Partnerships for system expansion could divert 600 million tons from highway to rail

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 Freight rail – 16% of total national freight movements Equals additional 92 billion truck vehicular miles traveled on highways $64 billion in road improvements needed to handle this traffic if no rail $69 billion in additional shipper costs if no rail

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 has the most track in the U.S.; and has lost more to abandonment than is currently in California If there were no railroads in the state, there would be 30 to 40 million more truckloads annually on our roads Move over 8 million loaded cars through Texas each year Texas citizens earn over $1 billion annually in wages from railroads Railroads have a large impact on our economy and freight movements

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 Texas has the most track in the U.S.; and has lost more to abandonment than is currently in California If there were no railroads in the state, there would be 30 to 40 million more truckloads annually on our roads Move over 8 million loaded cars through Texas each year Texas citizens earn over $1 billion annually in wages from railroads Railroads have a large impact on our economy and freight movements

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 Local impacts: Public safety at grade crossings Hazardous materials movements Trespasser issues Environmental: Locomotive emissions in urban areas Increased auto emissions at grade crossings Noise issues

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 American Association of State Highway Transportation Officials’ freight bottom line report: By 2020: 900 million tons of freight added to highways if no rail system increases 450 million tons of freight added to highways if railroads build what they can afford from revenue & loans Public Private Partnerships for system expansion could divert 600 million tons from highway to rail

Typical track conditions pre-abandonment American Association of State Highway Transportation Officials’ freight bottom line report: By 2020: 900 million tons of freight added to highways if no rail system increases 450 million tons of freight added to highways if railroads build what they can afford from revenue & loans Public Private Partnerships for system expansion could divert 600 million tons from highway to rail

Typical track conditions pre-abandonment American Association of State Highway Transportation Officials’ freight bottom line report: By 2020: 900 million tons of freight added to highways if no rail system increases 450 million tons of freight added to highways if railroads build what they can afford from revenue & loans Public Private Partnerships for system expansion could divert 600 million tons from highway to rail

Typical track conditions pre-abandonment American Association of State Highway Transportation Officials’ freight bottom line report: By 2020: 900 million tons of freight added to highways if no rail system increases 450 million tons of freight added to highways if railroads build what they can afford from revenue & loans Public Private Partnerships for system expansion could divert 600 million tons from highway to rail

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 Complete all studies in region and develop viable alternatives Coordinate with railroad and stakeholders on preferred alternative Develop funding sources for project implementation Secure federal approval of any new construction

TxDOT & 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 Rural rail transportation districts Initially developed to prevent abandonments Now involved in economic development opportunities NETEX most successful, Blacklands RR operates on their line TxDOT monitors formations, provides resources, assists as able

Gil.Wilson@TxDOT.gov