1. Regional and Short Line Railroads
Introduction
Mario unavailable
Gil Wilson
Rail Operations Specialist
TxDOT Rail Division

2. 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

3. 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

4. Texas Freight Railroads
10,743 miles of track (#1 in U.S.)
44 freight railroads
Rail freight currently = 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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