1. State of Rail in Texas STATE OF RAIL IN TEXAS Erik Steavens Rail Division Director, TxDOT

2. State of Rail in Texas TxDOT’s Rail Division mission Mission of the Rail Division “To facilitate the continuing development, improvement, and maintenance of a best in class rail system for the state of Texas.” 2

3. State of Rail in Texas RRD Structure  13 FTE positions allocated to RRD – $1,125,528 salaries & overheads budget fy 15 – $38,954,547 project budget – varies annually by federal grant amounts & Legislative appropriations  Rail Administration – 4 FTEs  Rail Programs Section – 5 FTEs – Project management/oversight for state & fed funded rail programs & projects – Management of lease/operating agreements on state owned/funded facilities – Analysis & needs assessments of existing infrastructure – Technical expertise for DDO’s, local governments  Rail Planning Section – 4 FTEs – Freight & passenger rail system wide planning – Coordination of planning efforts with Federal, State, Local, Private entities – Analysis of federal & state legislation & impacts on rail system 3

4. State of Rail in Texas Texas Rail Trivia 4  10,469 miles of track in Texas, 1 st in nation  9,728 public, 4,801 private at-grade highway-rail crossings; 2,378 grade separated; most crossings in nation  92.9 million tons of rail freight originated in Texas annually, 1.9 million carloads (2012 most recent data); 3 rd in nation  206.6 million tons of rail freight terminated in Texas annually, 3.1 million carloads (2012 same data); 1 st in nation  2040 projected rail freight at 764 million tons, exceeds system capacity  Rail Division (RRD) formed in 2009 per a Sunset Advisory Commission recommendation

5. State of Rail in Texas Challenges  Funding Constraints  Strong Property Rights State  Conservative Culture  Energy Sector Growth 5

6. State of Rail in Texas Rail Project Funding Federal Funding  No dedicated rail funding source  Limited competitive grant opportunities (TIGER, HSIPR)  Railroad Relocation & Improvement Funds – FRA loan program State Funding  Most TxDOT revenues constitutionally dedicated to highways  Texas RRIF established in 2005 but remains unfunded  Some specific legislative appropriations, minor vs needs 6

7. State of Rail in Texas Tower 55 Project - Complete  $101 million = $33M Federal, $1M state administered by TxDOT, balance BNSF & UPRR – New track construction, rehabilitation, bridge work, roadway construction, roadway underpass improvements, bicycle-pedestrian improvements  Construction completed Sept. 30, 2014; dedication ceremony Nov. 7, 2014 7

8. State of Rail in Texas Houston Belt Junction Project  Single track bottleneck with 100 grade crossings in area  Project double tracks thru junction & new turnout connecting 4 th quadrant  $6.87 million project, 50% railroads, 50% CMAQ  Improves train fluidity  Reduces train delays  Reduces blocked crossing times 8

9. State of Rail in Texas South Orient Rail Line  391 mile facility owned by State  Leased to Texas Pacifico Transportation  $26 million rehabilitation east end, 2009 – 2012  Increased carloads from 2,031 average to 25,360 in 2014 (+1,148%)  Additional $5M rehabilitation currently in construction, San Angelo – west  Seeking additional state & federal funds for rehab to border at Presidio  1 of 8 international rail bridges between U.S. & Mexico 9

10. State of Rail in Texas Northeast Texas RRTD Line - NETEX  66.5 mile state owned facility  Operated by Blacklands Railroad  Good rail, poor ties & bridges  $57 million rehabilitation needs  Goal is 25 mph speeds  Seeking state/fed funds  Alternative funding mechanisms 10

11. State of Rail in Texas Amtrak’s Heartland Flyer  Fort Worth to Oklahoma City  Once daily service in each direction  Subsidized by TxDOT & ODOT  Ridership trending downward past 3 years  Revenues trending downward past 3 years  Schedule not conducive for commuter service  Questionable long-term future 11

12. State of Rail in Texas Neches Rail Bridge  Sunset Route from LA to New Orleans  Single track, 20 mph lift bridge at Beaumont  Double track in each direction one mile from bridge  Significant capacity constraint for freight & Amtrak  PE/NEPA project currently underway  Identify & clear 2 nd crossing location  Facilitate funding & construction 12

13. State of Rail in Texas Lone Star Regional Rail Project  Project to develop commuter rail from Austin to San Antonio  Lone Star Rail District has contracted for PE/NEPA work  RRD provides fiscal oversight of state/fed funding  Scoping meetings completed in June 2015  Goal to use existing UP tracks for commuter rail service  Looking at alternatives to relocate UP from existing alignment 13

14. State of Rail in Texas Texas-Oklahoma Passenger Rail Study  IH-35 is congested and will continue to get more congested as Texas grows.  Higher-speed passenger rail service could fit the needs of many travelers and reduce demand on the state’s roadways.  Tier One, program-level NEPA study will provide a blueprint for feasible rail improvements. 14

15. State of Rail in Texas Potential Investor Driven High-Performance Rail Corridors

16. State of Rail in Texas Looking Ahead Projects under development  TRE Valley View double track – diverts Amtrak from T-55  Laredo sealed corridor  Improvements to State Owned Rail facilities  High Performance Rail – Work with public and private sector interests to facilitate the implementation of investor driven corridors  Freight Rail – Proactively manage state-owned facilities, facilitate the development of a strategic rail network, and coordinate the interaction of rail with other modes. 16

17. State of Rail in Texas Questions? Erik.Steavens@txdot.gov 17