Rail Freight Transportation Author: Dr. Alan Erera

North American Mode Share, 1996 water air rail truck % of total ton-miles

U.S. Freight Movements, 1996

Railroad Freight Flows

U.S. Freight Railroad Economics In Market share: 40% of intercity tons Large share markets: –70% of finished automobiles –64% of coal (generating 36% of electricity) –40% of grain (domestic and export)

U.S. Railroad Economics II Movement statistics –Freight volume: 1.38 trillion ton-miles –Carload volume: 26 million carloads 8.8 million intermodal trailers and containers Fleet statistics –1.3 million railcars –127 million ton capacity Costs 26% less (57% IA) than 1981

Railroads are capital-intensive

Primary Commodities Rail Only –Coal 572 MM tons –Farm Products 158 –Non-metallic minerals131 –Petroleum 123 –Chemicals118 Intermodal –Transportation equipment6.9 MM tons –Chemicals, food, lumber, pulp & paper

Georgia Rail Freight

Growth in Intermodal

17% of revenues –second only to coal: 23% COFC 62%, TOFC 38% Why? –Labor efficiency –Fuel efficiency (50% savings over truck) –Door-to-door service Downsides –speed, reliability

Container land bridge Asia - Europe market Double-stack N.A. network Why? –Hub-and-spoke efficiencies –Panama canal costs, queuing delays Long BeachElizabeth

NAFTA freight flows for UP

Freight Railroad Classification Class One –Operating revenue > $250 MM (1991$) –91% of total revenue, 71% of track –CSX, NS, UP, BNSF, Kansas City Southern Regionals –Revenue $ MM, more than 350 miles –Wisconsin Central, Bangor & Aroostook, Alaska Local/Short Lines

CSX Miles: 23,000 Carloads: 5.1 MM Locos: 4,000 Railcars: 100,000 Revenues: $5.6 B –coal: $1.6 B –chem: $0.91 B –auto: $0.76 B

Norfolk Southern Miles: 21,800 Carloads: 5.1 MM Locos: 3,500 Railcars: 117,000 Revenues: $5.2 B –coal: $1.3 B –intermodal: $0.83 B –auto: $0.73 B –chem: $0.73 B

Union Pacific Miles: 38,600 Carloads: 8.5 MM Locos: 6,847 Railcars: 157,000 Revenues: $10.2 B –coal: $2.2 B –intermodal: $1.7 B –chem: $1.6 B –auto: $1.0 B

BNSF Miles: 33,500 Locos: 5,000 Railcars: 90,000 Revenues: $9.1 B –carload: $2.6 B –intermodal: $2.5 B –coal: $2.2 B –agri: $1.3 B

Kansas City Southern Miles: 6,400 NAFTA railroad –Gateway Western –KCS –TexMex –TFM –Panama Canal RR

Canadian National Miles: 16,000 Carloads: 3.5 MM Locos: 5,000 Railcars: 90,000 Revenues: $5.1 B –grain: $1.0 B –forest: $0.97 B –chem: $0.84 B –intermodal: $0.80 B

Locomotive Equipment They are mobile power plants –Diesel generators –DC and AC traction motors Road vs. switching Multiple units –consist –DPUs and helpers for heavy trains, grades

Pre-diesel UP locomotives

UP Road Locomotive AC traction (6000 HP)

CSX Roads in Two-engine consist

Yard switcher Often “retired” road locomotives Low HP (1500)

Boxcars Weather-protection Insulation, refrigeration, cushioning Auto parts, building materials, food products, bagged products

Automobile Racks (autoracks) Bi-level or tri-level Damage/vandalism protection Finished autos, trucks, vans, minivans

Load/unload operations: autoracks a type of “roll-on, roll-off” system

Open hoppers Hopper openings or rotary couplers Coal, coke, stone, sand, ores, gravel

Load operations: coal conveyors

Unload operations: coal

Covered hoppers load: round or trough hatch unload: hoppers (gravity, airslide) grains, corn, soybeans, flour, salt, sugar, clay, phosphates, cement, fertilizers, plastics

Tank cars Private (non-railroad) fleets Chemicals, molasses, water, diesel fuel

Gondolas Open or covered Scrap metal, aggregates, woodchips, logs, poles, steel beams, steel coils

Load/unload: Lumber on flatcars

TOFC Trailer-on-flatcar Highway trailers –LTL trucking growth in intermodal

TOFC train

COFC Container-on-flatcar ocean shipping containers, trucking containers

Double-stack COFC (1979) Articulated cars Clearances –bridge/tunnel investments

Load/unload: Double-stack COFC

Intermodal flatcar types Two-hitch flatcar –two trailers, each up to 40 ft length Articulated well flatcar –containers sit low for double-stacking –articulation: no conflict with rail wheels (trucks) –3 to 5 permanently joined units Roadrailer –truck trailers mounted on railroad wheel assemblies

EOT Device End-of-train device Caboose replacement –warns following trains Crew size reduction –brakemen, fireman gone –2-4 person crews –labor cost reduction

Rail shipping Shipment types –Unit train (bulk commodities) –Carload (FCL) –Less-than-carload (LCL) Train types –Unit train (through service) –Hot shot (intermodal; expedited service) –Bulk train (single bulk commodity) –Manifest (mixed freight)

Unit train routing Direct, through trains –From shipper to consignee Coal train example –Powder River Basin, WY to Dallas area power plant Petrochemical example –Elizabeth, NJ refinery to Houston processing plant –Interline

Intermodal train routing Expedited service –But, set-outs or pick-ups at consolidation points Load/unload intermodal yards –Portside (e.g. Long Beach) –Port adjacent (e.g. Oakland) –Inland Enroute yards –“hubs” –cross-towns (rubber tire transfers)

Manifest (mixed freight) train routing Load/unload facilities –Shipper sidings, public facilities (e.g. grain elevators) –Switching service to terminal railyard Hump yards –Classification sorting by destination –Receiving, bowl, departing –Hub-and-spoke concept

North Platte Hump Yard (UP)

US Deregulation: Staggers (1980) Market-driven pricing –only for route/services with competition Confidential service agreements, rates Abandonment and sale streamlined Impact –Costs down: 57% from 1981 to 1998 –Return on net investment: from 2 to 7% –Consolidation –Regionals and shortlines: 50,000 miles

Post-deregulation performance

Railroad misconceptions Not technologically advanced … –$247 billion investment since 1980 –Advanced signaling, communication, control Rolling stock outdated … –7,500 new locomotives since 1990 (37.5%) –Freight cars lighter, stronger, more reliable

BN Operating center

Freight railroads: no subsidies! Track privately-owned and operated –construction and maintenance Amtrak –pays “usage fees” to freight railroads Trucking uses public infrastructure –C&M funding via $0.55/gallon fuel tax but … –Estimate: covers only 2/3 of costs