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U.S. Railroad Industry Federal Railroad Administration. The Roles of FRA, DOT and the U.S. Rail Industry. Federal Railroad Administration (FRA), U.S. Department of Transportation FRA Organization Structure. Administrator. Public Affairs/ Civil Rights. Chief Counsel. Administration/
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U.S. Railroad Industry Federal Railroad Administration
Federal Railroad Administration (FRA), U.S. Department of TransportationFRA Organization Structure Administrator Public Affairs/ Civil Rights Chief Counsel Administration/ Finance Safety Policy and Communications Railroad Development
Federal Railroad Administration (FRA), U.S. Department of TransportationFRA Regions
Federal Railroad Administration (FRA), U.S. Department of TransportationFRA Mission Statement • Promulgate and enforce rail safety regulations • Administer railroad financial assistance programs • Conduct research and development in support of improved rail safety • Develop national rail transportation policy • Administer grant agreements to Amtrak
Federal Railroad Administration (FRA), U.S. Department of TransportationSelected 2006 Rail Freight Statistics • 140,490 miles of road owned by railroads • 23,732 locomotives* • 1.3 million rail freight cars* • 99 average tons per carload* • 186,957 workers [Class I – 168,438] • 2.0 billion ton-miles carried* • 32.1 million freight cars originated • $52.2 billion annual operating revenue • 11.3% rate of return on shareholders equity* *Class I only
Federal Railroad Administration (FRA), U.S. Department of TransportationGIS – Rail Density Map (Volume in Millions of Tons)
Federal Railroad Administration (FRA), U.S. Department of Transportation2002 Freight Comparisons [in 000,000 ton/km] Billions of ton/km Source: UIC
Federal Railroad Administration (FRA), U.S. Department of Transportation2001 Passenger Comparisons [in pax/km] Source: UIC
Federal Railroad Administration (FRA), U.S. Department of TransportationFreight Market Share .4% = Oil Pipelines
Federal Railroad Administration (FRA), U.S. Department of Transportation Commodities Tons Carried Vehicles 1.9% Other Commodities 9.9% Waste 2.3% Metal & Metal Products 3.1% Lumber, Wood & Paper 4.7% Chemicals & Petroleum 11.8% Farm & Food Products 13.6% Minerals & Ores 9.2% Coal 43.6%
Federal Railroad Administration (FRA), U.S. Department of TransportationU.S. Railroad Net Investment [cumulative in billions of $] Staggers Act
Federal Railroad Administration (FRA), U.S. Department of TransportationU.S. Railroad Industry Staffing [in thousands] Others Class I
Federal Railroad Administration (FRA), U.S. Department of TransportationStaggers Act: Productivity [ton-miles/employee-hour] Staggers Act
Rail Rates • Rail freight rates adjusted for inflation declined an average of 0.6% per year • from 1990 through 2005 Staggers Act 1980 Sources: Bureau of Labor Statistics, Producer Price Index for Line-Haul Railroads; Bureau of Economic Analysis, Implicit Price Deflator for Gross Domestic Product
Federal Railroad Administration (FRA), U.S. Department of TransportationIntermodal Traffic • Intermodal traffic second only to coal • 1980: 3.0 million trailers and containers originated • 2005: 11.7 million trailers and containers originated • Double-stack container loads increasing, including expansion from the Midwest to the Eastern Seaboard • advantage of 1 train with a crew of 2 hauling 200 containers versus 100 truck drivers and trucks hauling 100 double trailers
INTERMODAL GROWTH:LOADINGS IN MILLIONS OF UNITS Source: Association of American Railroads, “Railroad Facts”
Federal Railroad Administration (FRA), U.S. Department of TransportationA Question of Congestion andCapacity Truck Freight Flows, All CommoditiesAll truck types; highway freight density in tons Rail Freight Flows, All CommoditiesRail freight density in tons
The Future • Freight traffic is expected to double by 2020. • Population growth and economic growth mean that the domestic transportation system will be further strained. • Funding for expansion not identified. • Environmental issues will slow increases in capacity.
Railroad Freight Growth 2003 - 2008 Rail ton-miles: 3.0 % per year Rail intermodal units: 4.9 % per year Rail tons carried: 2.2 % per year Rail carloads 1.9 % per year
Rail Capacity Growth • Railroads are expanding workforces and infrastructure. • Rate of expansion determined by profitability. • Demand for intermodal and coal are the key factors. • Railroads reluctant to invest “speculatively” – will the demand be there in the future? • Railroad profits do not justify rapid increases in capacity.
In Closing: Economic strength and trade relationships will increasingly define global influence in the 21st century…and influence can help guide change • 16th-19th century….age of locational advantage • 20th century…age of competitive advantage • 21st century…age of competitive & collaborative advantage
The End http:\\www.fra.dot.gov