1. The 2011 Rail Conference: Moving Freight and Passengers in the 21 st Century Seaports and Freight Rail Eric D. Johnson Executive Director Washington Public Ports Association

2. An Overview of Seaports: Governance  Nearly all of the nations major seaports are publically-owned enterprises  The governance model varies:  Division of state  Regional city organization  Departments of cities  Independent local governments

3. Operations:  Ports build and maintain the transportation infrastructure that enables water-borne commerce to move to and from highway and rail modes:  Marine terminal docks  Near-dock rail  Near-dock roads  Shipping channels

4. Business Models:  Lease land, buildings and equipment to private companies  Occasionally a port operates its own terminals  Most ports subsidize these investments in order to create jobs and regional prosperity

5. Overview of North America’s Rail Network:  We have competing gateways, especially for Mid-west cargo

6. Class I Railroads US Operations Railroad U.S. Route Miles Revenue Ton- Miles (billions) Operating Revenue ($ millions) Number of Employees BNSF Railway (BNSF)32,14059414,12437,095 Union Pacific Railroad (UP)32,09447914,11747,117 CSX Corporation (CSX)21,1902098,17927,752 Norfolk Southern Corporation (NS)20,6231597,96928,323 Canadian National Rail Service (CN)6,898431,9115,857 Canadian Pacific Railway (CP)3,154206992,428 Kansas City Southern Railway Company (KCS)3,076298602,735 *Association of American Railroads - Railroad Facts 2010 edition

7. National Rail Commodity Flow

8. Port Related Canadian Commodities

9. Emerging Themes:  Canadian Competition

10. Emerging Themes:  Panama Canal widening (completed in 2014)

11. Eastern U.S. and Gulf Ports are Making Strategic Investments for Competitiveness:  Deeper shipping channels  Larger terminals  Inland corridor improvements Houston Mobile New York Jacksonville Jasper County Savannah Charleston Norfolk

12. Emerging Themes:  Direct Trans-Atlantic routes through Suez Canal  Asian – especially Chinese – demand for raw materials  Shifting manufacturing trends  Southward in Asia  Southward in U.S.

13. AMTRAK Passenger trains operate on freight lines in most corridors Passenger trains use much more capacity than freight trains due to speed/schedule requirements

14. Importance of Rail Yards Disassemble and reassemble trains for ultimate destination Location where crews go on/off duty Holding area for trains when destination not ready to receive (staging) Locomotive and railcar maintenance

15. Unit Trains Trains of 100 + railcars of single commodity going point to point – Trains lengths up to 8,600 feet – Trend is towards longer trains Most efficient operation Pricing incentives to shippers due to efficiencies Length of trains demands longer track configurations at origin/destination and sidings

16. Emerging Themes:  Scale of investment in key rail corridors leads to multi-state public/private coalitions. Examples:  Heartland Corridor (Norfolk Southern)  National Gateway (CSX)

17. What does it mean?  Our nations seaports exist in a dynamic economy  Many key factors and variables are out of our control  We rely on timely investments from the Class I railroads  Public partnerships with the private sector are more important than ever

18. Questions? Eric Johnson, Executive Director Washington Public Ports Association PO Box 1518 Olympia, WA 98507 360-943-0760 ericj@washingtonports.org