Download presentation
Presentation is loading. Please wait.
Published byCameron Gregory Modified over 9 years ago
1
Rail Study: Northern Wisconsin & Upper Peninsula, MI Institute of Supply Management Lake Superior Chapter March 22, 2007 Superior, WI
2
Presentation Research Team Research Team Rail and other transportation trends Rail and other transportation trends Rail developments in the study area Rail developments in the study area Northern Wisconsin and Upper Peninsula of Michigan Rail Study Northern Wisconsin and Upper Peninsula of Michigan Rail Study Study activities Study activities Conclusions and Recommendations Conclusions and Recommendations
3
Growing Rail Freight: Tools for Shippers Research Team University of Wisconsin – Superior: University of Wisconsin – Superior: Transportation and Logistics Research Center Transportation and Logistics Research Center Richard D. Stewart, Ph.D. Xiubin Wang, Ph.D. William Bajjali, Ph.D. Libby Ogard, MBA (Prime Focus) Michigan Technological University: Michigan Technological University: Dept. of Civil and Environmental Engineering, Railroad Engineering Program Dept. of Civil and Environmental Engineering, Railroad Engineering Program William J. Sproule, Ph.D. Pasi T. Lautala, Ph.D. candidate Student Researchers from UW-Superior and Michigan Tech Student Researchers from UW-Superior and Michigan Tech Acknowledgments Acknowledgments CN Railroad and short line railroads Shippers and shipper associations Wisconsin and Michigan DOTs Economic Development Agencies in the Region
4
Current State of Truck and Rail Transportation Network Rail and truck capacity becoming tight for the first time since 1979 Rail and truck capacity becoming tight for the first time since 1979 Rate rising for both modes Rate rising for both modes Trucking industry is using Trucking industry is using rail for intermodal rail for intermodal Coal and grain resurgence Coal and grain resurgence Industrial products are Industrial products are outpacing US GNP outpacing US GNP Long lead time for rail Long lead time for rail infrastructure infrastructure improvements improvements
5
Transportation Trends Trucks on Road, 1999 - 2003 Class 1 Railroad Cars, 1960-2000 Ton Miles per Mile of Track Ton Miles Track Miles Source: USDOT, National Transportation Statistics Increase in volumes Increase in volumes Decrease in: Decrease in: Infrastructure capacity Equipment Vehicle Miles Traveled (VMT) Lane Miles VMT Per Lane Mile DOT ATA AASHTO
6
Railroad Trends Long period of inadequate Return On Investment (ROI) Long period of inadequate Return On Investment (ROI) Record profits and investments in 2006 Record profits and investments in 2006 Most capital intensive industry Most capital intensive industry ~15% of capital spending for new capacity Raising costs Concentration on main corridors Concentration on main corridors Source: Surface Transportation Board Source: U.S. Census Bureau; AAR
7
Declining Rail Car Capacity Class 1 Railroad Cars 1960 – 1,658,292 1960 – 1,658,292 1980 – 1,168,114 1980 – 1,168,114 1990 - 658.900 1990 - 658.900 2000 – 560,154 2000 – 560,154 Net loss 1,098,138 cars Net loss 1,098,138 cars Short Line Railroad Cars 1960 – 32,114 1960 – 32,114 1980 – 102,161 1980 – 102,161 1990 - 103,527 1990 - 103,527 2000 – 132,448 2000 – 132,448 Net Gain 100,334 cars Net Gain 100,334 cars Overall the rail industry has lost 997,904 rail cars in past 40 years. (BTS 2003) New rail cars have more capacity per car, 1 rail car > 3 Semi-trucks. Railroads have improved use of cars… but fewer cars = less system versatility and resilience to handle smaller markets
8
Source: AAR U.S. Railroad Performance: 1964-2002 (Index 1981 = 100) Revenue Volume Productivity Increases Price Staggers Act Passed Oct. 1980
9
Two Scenarios: 1) Downward Spiral Rail CarriersShippers Lower rail volumes Service deterioration
10
2) Upward Spiral? Higher rail volumes Increased investments and service DOT EDA Others Rail CarriersShippers Co-operation Research MRUTC Univ.
11
Northern Wisconsin and UP Michigan Rail Study - Background Federally funded rail study Federally funded rail study Initiated by regional shippers and economic development agencies Initiated by regional shippers and economic development agencies Dissatisfaction and concern for continuing rail service in the region Dissatisfaction and concern for continuing rail service in the region Transfer from regional to national carrier Commodity mix Shipping quantities Diversion of rail traffic to other modes
13
Objectives and Methodology Objectives: Objectives: Find methods to increase regional shippers’ use of rail services Create potential for regional economic benefits and growth Methodology: Methodology: Practical approach Collect stakeholder input Collect stakeholder input Encourage cooperation between groups Encourage cooperation between groups Identify and develop beneficial tools and processes Identify and develop beneficial tools and processes
14
Growing Rail Freight Study: Action Plan I. Evaluate rail infrastructure and hold Stakeholder meetings Assess the current rail service and condition of rail lines Share ideas for addressing concerns – communicate II. Shipper/carrier/government associations Develop new or expand existing associations III. Survey to ascertain rail issues Examine possible solutions and recommendations based on findings IV. Develop data base of supply chain providers and other support business Catalog and disseminate companies and education programs V. Create Model of Rail Development GIS System Stimulate future and expanded rail usage Regional economic development
15
Shipper Meetings Preceded by interviews with Rail and Shippers Preceded by interviews with Rail and Shippers Shippers, Rail, Government Agencies active participants Shippers, Rail, Government Agencies active participants 9 meetings at 8 locations 9 meetings at 8 locations Research team an impartial facilitator Research team an impartial facilitator Power Point presentations Questions & answers Open dialog
16
171 participants total 171 participants total Well received Well received Public environment to present viewpoints Presentations enabled to validate trends Direct communication between Carriers, DOTs, EDAs and shippers Benefits for research team Benefits for research team Adjusting and reprioritizing study activities Encouragement to participate in shipper survey Organizing additional communication opportunities Immediate outcomes in log transportation Immediate outcomes in log transportation More focus on railroads in transportation discussion More focus on railroads in transportation discussion Stakeholder Meeting Outcomes
17
Findings Inadequate data Inadequate data Current rail facilities Future demand & supply Challenging to motivate stakeholder participation Challenging to motivate stakeholder participation Limited understanding of rail industry and operations Limited understanding of rail industry and operations Only negative publicity sees daylight Only negative publicity sees daylight Need to improve communications and information transfer Need to improve communications and information transfer Education – Rail User Tool Kit
18
Question 24: If you are unable to provide a back haul shipment for the carrier making a delivery to you, do you coordinate with other local companies to provide a back haul for the carrier? Action Item III: Survey to ascertain rail issues 43 Companies Responded
19
Action Item IV Develop tools and database of supply chain managers and other transportation support business 1. Catalog and disseminate third party provider companies and education programs 2. Work with extension offices to set up programs 3. Provide model of rail costing decision tool for shippers Resulted in the “Rail User Tool Kit”
20
Rail User Tool Kit Includes information on: Includes information on: Getting started Equipment and investments Resources Case study of a new user Copies available: Copies available: In the printed report On the CD-ROM Online: www2.uwsuper.edu/trans
21
Action Item V Create Model of Rail Development GIS System I. Stimulate future and expanded rail usage II. Regional economic development tool III. Modeled on proven systems in other states Pennsylvania Rail Freight Properties Directory Pennsylvania Rail Freight Properties Directory Online at: http://www.dot.state.pa.us/ Online at: http://www.dot.state.pa.us/http://www.dot.state.pa.us/
22
Rail Development Geographic Information System (GIS) Purpose: Identify properties along or near existing railroads that have the potential to be rail served Act as a central storehouse – so all parties could easily access pertinent information Present the relevant information in an easy-to-use, convenient, and graphic-rich way Internet-based GIS system was selected Reach the largest possible audience Ease of use, familiar online tools Utilize the latest IT methods
23
GIS Focus Area: 3 GIS base maps were used as a starting point – 2 commercial ones, and WisDOT data Teams of student researchers went out in the field to verify what rail sidings and spurs actually existed or did not exist About 120 sites were identified and examined Over 60% of the sidings & spurs in this area were found to have significant discrepancies compared to base maps Ashland Subdivision Ladysmith - to - Rhinelander section
24
How Bad Can It Be…? The only useable track in the whole area
25
Example: Town of Mellen We found that these two sidings no longer exist at all… Base maps indicate the purple-shaded track:…and these sidings and spurs do exist, but are not shown at all on the base maps.
26
Rail Study: an Education Process Student involvements: Student involvements: Graduate student at Michigan Tech PhD candidate studying railway issues PhD candidate studying railway issues Undergraduates at UW Superior More than 10 undergraduate students in the new Transportation and Logistics major were involved More than 10 undergraduate students in the new Transportation and Logistics major were involved Students learned GPS and GIS applications, data analysis, and general transportation planning and operation in relation to regional economy Students learned GPS and GIS applications, data analysis, and general transportation planning and operation in relation to regional economy Students participated in work report preparation, editing, and field tours Students participated in work report preparation, editing, and field tours
27
Research Teams in the Field
28
Conclusions Stakeholder meetings effective forum to educate and discuss issues Stakeholder meetings effective forum to educate and discuss issues Importance of multi-way facilitated communications Importance of multi-way facilitated communications New as well as current customers vital to rail health - New as well as current customers vital to rail health - Rural areas with natural resource based economies dependent on rail service Rural areas with natural resource based economies dependent on rail service Rail service in Northern Wisconsin and UP Michigan can not be taken for granted Rail service in Northern Wisconsin and UP Michigan can not be taken for granted
29
Recommendations 1. Improve communications – Long and short term plans for carriers and shippers 2. Rail Carriers expand outreach to seek customer input 3. Tools are needed to support Supply Chain Management 4. Support shipper’s and rail carriers interaction with regional communities 5. Formally recognize the external costs of transportation 6. Explore the feasibility of adding Transload Centers 7. Shortline or regional railroad options 8. Promote economic development by enhancing rail access
30
Thank You! Questions? UW-Superior Website: Tool Kit and Study www2.uwsuper.edu/trans
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.