1. Importance of (Freight) Rail Transportation in North America
Pasi Lautala, PhD, P.E.

2. Passengers by Rail 1 2 3 4 5 6 7 8 Canada China EU India Japan Russia
Ukraine
USA

3. Freight by Rail Canada China EU India Japan Russia Ukraine USA
United States
Russia
China
India
Canada
European Union
Ukraine
Japan

4. Why? (Intercity) Passenger Rail Freight Rail
“Guests” on private infrastructure
Unbalanced public investment (interstate system, air subsidies)
Urban sprawl (no connectiveness) & Low price of gas
Freight Rail
System controlled/owned/maintained/financed by freight rail industry
Large volumes & long distances
Technological/productivity advances
Absence of passenger traffic

5. North American freight transportation
- By “Ton-Miles”

6. Rail uniquely combines speed and energy efficiency
(In North America) rail is the principal means of economically moving large, heavy freight long distances overland

7. Productivity, Volume, Revenue, Rates!!
Genesee & Wyoming Inc. owns or leases 121 freight railroads worldwide (collectively "G&W" or the "company")* organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.

8. Constant and Consistent Push for Improvement
Operating Ratio
“Holy Grail” of metrics
Consistent annual reductions
Precision Scheduled Railroading (PSR)
Prioritize delivery (fixed point to point schedules)
Minimize in-transit work events
Maximize use of assets
Strict cost control
Positive Train Control (PTC)
“Virtual” approach
83% of miles done
backbone of ‘digital railroad”
Safety, safety, safety!!!
Operating ratio is composed of expenses in “transportation, maintenance of equipment, way and structures, general and administrative……which one is better, lower or higher
Latest numbers (Q3)
CSX 71.5
UP, 64.8
KCS, 67.8
CN, 59.8
CPR, 65.9
NS, 69.9
STB measures can’t really be compared across railroads due to differences in network, terrain, design characteristics, traffic mix and volume….and calculation differences.

9. Importance of Intermodal/International Moves
Growth of intermodal since 1990s
Double-stack trains & containers
Greatest revenue generator since 2012
Over 30% of revenue international
U.S. to Canada: intermodal, motor vehicles, chemicals, coal, food
U.S. to Mexico: motor vehicles, intermodal, food, grain, chemicals
Mexico to U.S.: motor vehicles & parts, food, electrical machinery
Canada to U.S.: intermodal, chemicals, lumber & paper, motor vehicles, grains
NAFTA 2.0????
ASSOCIATION OF AMERICAN RAILROADS

10. Look to the Future?? Threats by advances of competing modes
Automated Trucks and Electric Vehicles
20% loss of intermodal market share
Reduction of fuel advantage by rail
Infrastructure bills and trade wars (limited capability to impact)
Short-termism by investors (rail assets are for decades)
Opportunities within
Turn PTC into capacity/safety enhancements
Toward ZERO derailments
Use automation principles to rail
Remote controlled trains (reduced fixed cost)
AV trucks for drayage
Shift back to shorter trains/improved service??
MOW automatization (drones, etc.)
ASSOCIATION OF AMERICAN RAILROADS

11. Copyright Restrictions and Disclaimer
Presentation Author
Pasi Lautala, Ph.D, P.E.
Associate Professor
Department of Civil & Environmental Engineering
Director - Rail Transportation Program (RTP)
Michigan Tech Transportation Institute
Michigan Technological University
318 Dillman Hall
Houghton, MI 49931
(906)
It is the author’s intention that the information contained in this file be used for non-commercial, educational purposes with as few restrictions as possible. However, there are some necessary constraints on its use as described below.
Copyright Restrictions and Disclaimer:
The materials used in this file have come from a variety of sources and have been assembled here for personal use by the author for educational purposes. The copyright for some of the images and graphics used in this presentation may be held by others. Users may not change or delete any author attribution, copyright notice, trademark or other legend. Users of this material may not further reproduce this material without permission from the copyright owner. It is the responsibility of the user to obtain such permissions as necessary. You may not, without prior consent from the copyright owner, modify, copy, publish, display, transmit, adapt or in any way exploit the content of this file. Additional restrictions may apply to specific images or graphics as indicated herein.
The contents of this file are provided on an "as is" basis and without warranties of any kind, either express or implied. The author makes no warranties or representations, including any warranties of title, noninfringement of copyright or other rights, nor does the author make any warranties or representation regarding the correctness, accuracy or reliability of the content or other material in the file.