1. Talking Freight Promoting Economic Revitalization through Enhanced Freight Transportation Eric G. Madden Deputy Secretary for Aviation and Rail Freight Pennsylvania Department of Transportation June 16, 2010

2. Why invest in rail freight?

3. National Highway System Estimated Peak-Period Congestion: 1998 Source: Federal Highway Administration (FHWA) www.FHWA.dot.govwww.FHWA.dot.gov

4. National Highway System Estimated Peak-Period Congestion: 2020 Source: FHWA

5. Domestic Freight Flow - 2002 (truck/day) Source: FHWA

6. Domestic Freight Flow - 2035 (truck/day) Source: FHWA

7. National Rail-Freight Trends If all freight rail were shifted to trucks tomorrow, it would add 92 billion truck vehicle-miles-of-travel to the highway system and cost federal, state and local transportation agencies an additional $64 billion for highway improvements over the next 20 years. Source: American Association of State Highway and Transportation Officials (AASHTO) www.transportation.orgwww.transportation.org

8. Rail Freight Flows, All Commodities Rail Freight Flows, All Commodities Density in tons Source: Association of American Railroads (AAR) www.AAR.orgwww.AAR.org

9. Major National Rail-Freight Choke Points and Congested Areas Source: AAR

10. Current Volumes Compared to Current Capacity

11. Source: AAR Current Volumes Compared to Current Capacity

12. What does this mean? States and stakeholders must now: Understand the true meaning of global logistics; Reach out to new partners; Realize the new consequences of various decisions; and Accommodate the rebirth of true planning.

15. Priority Rail-Freight Corridors

16. Rail-Freight Improvements PA Portion of National Freight Core System Removing double-stack clearance obstacles 286K-compliant Right-of-Way Preservation Intermodal yard capacity Track and bridge upgrades Regional and Short-Line Secondary Feeder System 286K-compliant Intermodal facilities Track and bridge upgrades Highway/Rail Crossings Economic/Business Development Connections Strategic siding locations

17. National Focus: TIGER I Transportation Investment Generating Economic Recovery (TIGER) discretionary grant program Top three awards were rail projects 1.Norfolk Southern Crescent Corridor Intermodal Freight Rail Project -- $105 million 2.CREATE Program Projects, Illinois -- $100 million 3.CSX National Gateway Freight Rail Corridor -- $98 million

18. Benefits of Freight Investment Economic - Every $1 freight-rail infrastructure investment yields a $3 return (AAR) - Freight rail employs more than 7,000 Pennsylvanians, with the potential for thousands more Environmental - A freight train can haul a ton of freight 457 miles on one gallon of fuel - If just 10 percent of highway long-distance freight switched to rail, national fuel savings would exceed one billion gallons a year and annual greenhouse gas emissions would fall by some 12 million tons. System Preservation - a single intermodal train can haul the equivalent of 280 trucks (AAR) - less highway maintenance costs, fewer accidents

19. CSX National Gateway An $842 million public ‐ private partnership that will upgrade tracks, equipment and facilities, and provide double ‐ stack clearance. CSX estimates that Pennsylvania will see more than $650 million in public benefits: 250,000-ton CO 2 -emissions reduction; New intermodal terminals in Chambersburg and Pittsburgh; Freight from nearly one million trucks shifted to the railway, saving more than $40 million in highway-maintenance costs; and $35 million savings in logistics costs.

20. Norfolk Southern Crescent Corridor Project includes straightened curves, added passing tracks, improved signal systems and new terminals. Norfolk Southern estimates Pennsylvania will annually see: 651,000 long ‐ haul trucks diverted to rail; 10.5 million gallons of fuel saved; 116,000 tons CO 2 reduction; more than $35 million in traffic congestion savings; estimated $9 million in accident cost avoidance; and 26,000 jobs created or enhanced over the next 10 years.

21. Crescent Corridor, Parallel Interstates 21 Interstate Highways NS Rail Lines New Intermodal Terminals Expanded Intermodal Terminals Other Crescent-Served Terminals The East’s most comprehensive public-private partnership to improve rail-freight transportation 300 miles of new passing track and double track when fully developed New or expanded terminals in 11 markets $2.5 billion in new investments through full corridor development as early as 2021 depending on matching public funds More domestic shipping options 2,500 mile network from New Jersey to Louisiana parallels Interstates 20,40, 59, 75, 76, 77, 78, 81, 85 and 95 Most-direct intermodal rail route between the Northeast and South

22. 651,000Annual Trucks Diverted 10.5 Million Gallons of Fuel Saved 116,000 TonsReduced Tons of CO 2 $7.1 MillionPavement Savings $35.6 MillionCongestion Savings $9 MillionSafety Savings $177 MillionLogistics Savings 583,000 Fewer Trucks 7,000 Fewer Trucks 335,000 Fewer Trucks 99,000 Fewer Trucks 1,100 Fewer Trucks 62,000 Fewer Trucks 125,000 Fewer Trucks 5/3/10 *Public benefits derived from Cambridge Systematics analysis Crescent Corridor

23. Thank you Contact: Eric Madden – emadden@state.pa.usemadden@state.pa.us Pennsylvania State Intercity Passenger and Freight Rail Plan