1. Presented by: MaineDOTHNTB Morris Communications December 7, 2009

2. Agenda Welcome/ Purpose of State Rail Plan Nathan Moulton, Project Manager, MaineDOT State Rail Plan Presentation Recap of TAC & Public Comments, Carol Morris, Morris Communications Key Findings, Draft Prioritization Criteria, Draft Vision Dennis Coffey, HNTB Funding Review and Draft Recommendations, Ray Tomczak, HNTB Next Steps, Carol Morris

3. Purpose of State Rail Plan What the Plan will provide: Identification of critical rail corridors in Maine Methodology to prioritize rail projects in Maine Recommended actions to enhance the rail system A list of possible projects that could qualify for federal funding opportunities over the next five years A list of creative funding opportunities for Maine to explore Flexibility, yet clear direction

4. Purpose of State Rail Plan What the Plan will not provide: Commitment to funding for specific projects Recommendations on new funding streams A list of specific projects that will be funded

5. Public Outreach Carol Morris, Facilitator Public Meeting Times & Locations Recap of Commonly Heard Public Comments

6. Public Meetings Expanded to include Presque Isle & Lewiston/Auburn One remaining round of meetings: Portland, South Portland Community Center: December 7 Bangor, Bangor Motor Inn: December 8 Lewiston/Auburn, Museum L-A, 35 Canal Street, Bates Mill Complex: December 14 Presque Isle, University of Presque Isle: December 15

7. Public Comments My region wants passenger rail My region needs better/more/some freight service My region needs track upgrades My region needs/deserves these things more than any other in Maine The State should focus rail investment in key areas

8. Public Comments ENHANCE ECONOMIC DEVELOPMENT Economic development potential should be key to investment decisions Economic development is needed to support building rail infrastructure A return on the public investment in rail lines should be measurable Public investment should require something back from beneficiaries

9. Public Comments PROVIDE GREATER FOCUS Leverage infrastructure that is already in place Focus investment in just a few critical locations – do not scatter it everywhere Assess benefit/cost/potential of rail corridors before investing Identify central rail facilities and ship the rest via truck

10. Public Comments DON’T FORGET “THE BIG PICTURE” Continue to improve Maine’s regional freight/land use planning & economic development coordination Make rail investments that tie into New England and Canadian plans Position Maine to take advantage of Class 1 & regional rail improvements elsewhere in the US and Canada by utilizing 286,000 gross weight capacity/Class 3 track speed

11. Public Comments FREIGHT RAIL Maine needs container-train corridors Freight rail shipping needs to be more reliable in terms of delivery time, cost, and reducing product damages Freight rail shipping needs better connectivity Business community needs to promise more freight rail utilization Diversification of shippers is necessary to expand freight rail usage Improve freight partnerships with existing and potential manufacturers, big business, and others

12. Public Comments PASSENGER RAIL Strong support for current & future Downeaster intercity passenger rail service Explore commuter rail opportunities radiating outward from Portland REGIONAL Maintain the state’s forest industry Preserve service on the MM&A proposed abandonment Grow L-A’s intermodal facility OTHER Enhanced shipper outreach is necessary Greater public interaction is needed in order for public to support/understand additional rail funding

13. TAC and Public Suggested Criteria Seek greatest public return on investment Priority for shared use rail lines Multimodal: Integrate other transportation modes Focus investments on Maine, NE & Canada rail plan priorities Ability to attract new business & retain existing customers Economic development impacts are key Invest in projects that will improve the volume of goods and number of people moved Focus rail investment on areas where capacity & reliability intersect Congestion mitigation

14. Rail System Dennis Coffey, HNTB, Rail Task Leader Key Findings Prioritization Criteria Funding Review

15. Identified Trends Changing markets: reduced demand for rail shipments Declining tonnage shipped by rail reduced railroads’ income and ability to operate/maintain the system North-South routes affected by multiple rail carriers East-West routes are primarily through-traffic Trucking dominates the region, offering timely service – flexibility

16. Current Situation Railroads are highly capital-intensive Tough for rail industry to make quick improvements to enhance market share Source: AAR. Included in the Northeast Rail Operations (NEROps) Phase 1 Study

17. Northeast rail freight tonnage Source: Northeast Rail Operations (NEROps) Phase 1 Study

18. Current Situation Pulp & paper industry still dominant for rail Rail traffic density centered in south central ME

19. Current Situation Deferred maintenance on tracks Increasing State of Maine ownership Limited heavy axle car loading available – “286” Two double stack clearance routes SLR, Portland to New Hampshire MMA, Searsport to Quebec province

21. Current Situation No Class 1 RRs in ME and most of New England means: Added cost of multiple interchanges Track speeds lower and time to market takes longer Service not as robust as customers would prefer

22. Source: Atlantic Institute for Market Study Presentation

23. Regional Connectivity Important! Source: Northeast Rail Operations Study, Phase II NS, CP, PAS and PAR Accessible Corridors

24. North-East Regional Connectivity Maritime Canada key partner St. John link critical NBSR & MMA through routes Potential for greater truck to rail diversion?

25. Source: Atlantic Canada Transportation Strategy 2008 - 2018 North-East Regional Connectivity

26. Current Situation – Passenger Rail Downeaster – one of the most successful new Amtrak services nationwide! Ridership is stable Need to find right funding balance for: Operations Maintenance Capital/service improvements

27. Long Range View System rationalization – “right-sizing” Product diversity – new markets Intermodal connections Three Port Strategy Critical Corridors Freight Villages – regional land use/economic development Shared use – freight and passenger operations Regional coordination – New England & Canada

28. Looking Ahead Critical Corridor Approach Corridors provide concentration of services Corridors connect multimodal gateways Gateways connect Maine to global trade partners Ports & Terminals are the nodes that feed gateways Corridors provide best opportunity for multimodal synergy Investment in corridor services promote density, efficiency & synergy Corridors provide biggest “bang for the buck”

29. Strategic Vision – Passenger Rail Maine’s passenger rail system is fully integrated with the North American passenger rail system, and includes high- speed passenger, intercity and commuter rail.

30. Passenger Rail Objectives Insure safety and security Enhance quality of services and markets served Link to smart growth development practices Plan high-speed passenger rail expansions connecting to US and Canadian points Protect critical corridors for future commuter needs Coordinate passenger and freight rail requirements Establish predictable funding source for operations, maintenance and expansion

31. Strategic Vision – Freight Rail Maine’s freight rail system is fully integrated with the North American rail freight system and enables its’ businesses to reach current and future markets and sources with timely and reliable services.

32. Freight Rail Objectives Enhance services to key industries Encourage product diversity and traffic density Develop and expand multimodal connections Enhance interchange between railroads Support community & regional economic development strategies

33. Freight Rail Objectives Projects must result in: Partnerships – cost sharing Community benefits Expanded job base Sustainable business model Environmentally sound investments

34. Prioritization Criteria Two-Tiered Assessment Tier 1: Prioritize critical rail corridors Tier 2: Prioritize critical projects Evaluate criticality of corridor network Focused analysis on specific cost/benefits Use measurable basis for assessments

35. Tier 1 – Corridor Screening Criteria General assessment of corridors Enhance passenger/freight mobility Maintain/enhance service to key industries Coordinate with New England/Canadian enhancements

36. Tier 2 – Project Evaluation Criteria Criteria builds on existing IRAP criteria, asking if the project: Shows a sufficient cost/benefit ratio to justify expenditure of public funds Has a positive effect on continuous and productive improvement of rail service Shows transportation and logistics cost savings Has a positive effect on employment and economic development opportunities for rail users and communities

37. Tier 2…Project Criteria continued Includes a high level of new investment and private cost sharing Increases intermodal efficiencies and opportunities Shows potential to divert freight/passengers to rail Shows a positive short and/or long-range effect on emissions (GHG), highway congestion and/or safety Supports and enhances state and regional land use and sustainable development policies Generates support from the public and private sectors

38. Funding Review & Draft Recommendations Ray Tomczak, HNTB, Consultant Team Project Manager

39. Maine Transportation Bond Critical Rail Corridors (new program) – $2 million Intended to encourage public-private partnerships Expected to leverage $2 million in private investment Industrial Rail Access Program (IRAP) – $1 million For matching grants to private businesses for freight rail infrastructure upgrades IRAP investment will leverage $1 million in private or local investment State-owned rail lines – $1 million For capital upgrades to state-owned rail lines

40. ARRA Federal Grant Requests High Speed and Intercity Passenger Rail (HSIPR) Downeaster Corridor - $53 million – capacity and geometric improvements to reduce transit time and increase reliability Brunswick Extension - $39 million -- track rehabilitation of freight lines to extend Amtrak operations to Brunswick Transportation Investments to Generate Economic Recovery (TIGER) $23 million – acquisition and rehabilitation of Madawaska Subdivision $57 million - reconnect the Port of Eastport to the North American rail network $28 million -- restore abandoned Mountain Division line connecting Portland to Fryeburg for freight and passenger services

41. Other Potential State Funding STAR (State, Transit, Aviation and Rail) Transportation Fund - Disbursements can be used for: Purchasing, operating, maintaining, improving, repairing, constructing and managing STAR Transportation Fund assets including buildings, structures & equipment Award of Federal funds for rail projects may “free up” STAR funds for other purposes

42. Funding Review Best practices review ongoing Federal practices State practices Local / regional practices

43. Amtrak Downeaster Funding 2008 Annual budget of $13.5 million: $6 million Federal Congestion Mitigation Air Quality (CMAQ) grant $1.5 million subsidy from the state $6 million in fare revenue CMAQ exemption allows Maine to use the funds for the Downeaster Maine has received an extension of this exemption through mid-December 2009 Major Issue: Need long term funding

44. Proposed Initiatives

45. Potential Passenger Rail Initiatives (2010 to 2020) Intercity Passenger Rail Services: Brunswick extension Lewiston/Auburn extension Portland passenger terminal locations Boston-Portland corridor improvements to enhance travel time and reliability Commuter Rail: Identify and protect key corridors Expand corridor planning at local & regional level

46. Source: A Regional Context for Intercity Passenger Rail Improvements in the Northeast

47. Potential Intercity Passenger Rail Projects Source: Northeast Rail Operations Study, Phase II, August, 2009 Source: A Regional Context for Intercity Passenger Rail Improvements in the Northeast Over 80% of Northeast population lives within 25 miles of intercity rail!

48. Opportunities for TRANSIT

49. Potential Freight Initiatives Bangor-Searsport corridor Lewiston/Auburn – inland port enhancements Critical Freight Corridors Criteria: State of good repair 286k carload capacity Double-stack – intermodal enhancements Possible improvements to state-owned rail corridors Eastport Lewiston Lower/Rockland Branch Mountain Division Acquisition of rights-of-way

50. Potential Freight Rail Projects Source: Northeast Rail Operations Study, Phase II, August, 2009 State Railroad Segment Project Description

51. Draft Recommended Actions FREIGHT Protect critical rail corridors (state acquisition as required) Develop approach to address 286k & double stack capacity Establish predictable and vigorous maintenance program on state-owned rail lines Develop stable funding for IRAP, FRIP, etc., and to match federal funds Coordinate with regional partners to create national trade corridors connecting Maine

52. Draft Recommended Actions PASSENGER Expand intercity services north of Portland to both Brunswick & Lewiston/Auburn Implement improvements in Boston-Portland corridor Assess regional commuter rail needs Act on analysis for Portland passenger terminals Develop stable funding sources Initiate regional coordination for high-speed rail planning

53. Draft Recommended Actions CROSS-CUTTING Identify strategies to enhance and integrate economic development, land use, & multi-modal transportation Evaluate air quality impacts for rail transportation improvements Consolidate unnecessary grade crossings and/or continue to improve their safety

54. Next Steps Complete public meetings Additional public/TAC input Continue freight shipper interviews Develop rail corridor carload volumes Conduct critical rail corridor screening Submit draft report January 2010 Study finalized mid to late Winter 2010 - available at www.maine.gov/mdot