Wisconsin Freight Rail Day 2013

About GoRail National non-profit grassroots organization promoting the public benefits of rail We are: railroads, rail supply companies, local business, government and community leaders Supporting legislation to expand rail capacity Opposing legislation that would shrink capacity or undercut investment in freight rail

Freight Transportation Demand Source: Freight Analysis Framework, FHWA billion tons 28.3 billion tons

Railroads provide 43 percent of the nation's intercity freight transportation—more than any other mode. Rail intermodal moves almost 12 million trailers or containers a year $525 Billion in private capital investment since 1980 $13.5 Billion in capital expenditures in 2012 Average rail rates are 44% lower today than they were in 1981 The Freight Rail Success Story

Freight Rail Creates Jobs Every freight rail job sustains another 4.5 jobs across the economy. Freight railroads generate nearly $265 billion in economic activity each year. Every $1 billion of new rail investment creates 20,000 jobs. Every $1 of rail investment that adds new capacity generates more than $3 in total economic output. Freight rail will hire an additional 11,000 people this year alone – many of them veterans.

“Franklin Yards” story abandoned factory redeveloped as transload facility capable of serving a multi-county area created 1,027 jobs, saved 3,053 jobs, and resulted in $22 million invested in local manufacturing “Without freight rail, none of this development and job growth would be possible,” said Martin Russell, Director for Warren County’s Office of Economic Development and Executive Director for the County’s Port Authority

Reasonable Regulation has Worked

Truck size and weight Postive train control Reasonable regulation Current Rail Issues

Due November 15, 2014 Contractor selected, first public input session held May 29 Configurations, highway networks for study not yet released Desk scan and technical plans not yet released Second public input session was to be in September; likely to be in Chicago in November DOT Truck Size and Weight Study

Bigger has never meant fewer Rail diversion McCullough, 2013: 10% decrease in truck costs would divert 15%-20% of rail-competitive traffic (3 billion more heavy VMT) Martland, 2010: 97,000-pound trucks would divert 19% of Class I traffic (8 million more truckloads on highways) Martland, 2007: 97,000-pound trucks would reduce short line traffic by 17% US DOT, 2000: NAFTA scenario would force railroads to choose between shrinking their systems and deferring maintenance, which would negatively impact rail service Bigger Trucks = More Trucks

December 2015 deadline: $3b dedicated so far with $5b more to complete installation Challenges remain: o Time to fully integrate and test systems o Critical software was released one year late on 7/15/13 o Radio spectrum uncertainties o Limited adequately trained personnel o Passenger railroads lack funding for installation. APTA supports an extension o FCC delaying PTC antenna installation effort Positive Train Control

22,000 additional PTC antennas to be installed: Vast majority of antennas (97%) located on railroad rights- of-way Encumbered by FCC’s NEPA & NHPA review process FCC only capable of processing 2,000 applications annually, including non-RR projects Industry has been working with FCC staff since May Two vacancies at the FCC, including Chair FCC Halted PTC Antenna Installation

2012: House T&I Committee-passed bill (H.R. 7) allowed for extension to December 2020 Senate Rail Title (S. 1813) allowed for three one-year extensions, with additional flexibility at DOT’s discretion; dropped from final bill FRA report stated most railroads unable to complete implementation by deadline Possible Extension of PTC Deadline

2013: June: AAR testimony to House T&I and Senate Commerce requested extension to December 2018, with additional flexibility at DOT’s discretion August: Extension legislation introduced in Senate Possible Extension of PTC Deadline

Extends implementation deadline to December 2020 Allows for two additional one-year extensions at DOT discretion Sen. John Thune (R-SD) o Claire McCaskill (D-MO) o Mark Pryor (D-AR) o Roy Blunt (R-MO) Passage of stand-alone legislation is unlikely S. 1463: Railroad Safety and PTC Extension Act

Effort to repeal antitrust exemptions: o Following retirement of Sen. Kohl (D-WI), S. 638, the “Railroad Antitrust Enforcement Act,” introduced by Sen. Klobuchar (D-MN), chair of Senate Judiciary Subcommittee on Antitrust o Removes freight railroads’ limited antitrust exemptions o Senate hearings possible this fall Reasonable Regulation – Antitrust

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