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Chris Herman Freight Rail Policy & Program Manager, Freight Systems Division

The Public Benefit of Freight Rail. Chris Herman Freight Rail Policy & Program Manager, Freight Systems Division. Lynn Peterson Secretary of Transportation. Barbara Ivanov Freight Systems Director. Katy Taylor Interim Chief of Staff. PSRC Freight Roundtable Seattle, Washington

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Chris Herman Freight Rail Policy & Program Manager, Freight Systems Division

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  1. The Public Benefit of Freight Rail Chris Herman Freight Rail Policy & Program Manager, Freight Systems Division Lynn Peterson Secretary of Transportation Barbara Ivanov Freight Systems Director Katy Taylor Interim Chief of Staff PSRC Freight Roundtable Seattle, Washington April 5, 2013

  2. Economic significance of freight rail • In Washington, the freight rail industry provides: • $396 million in Class I wages and retirement benefits in 2010 • 3,700 jobs from Class I railroads • Tax revenue from $19 Billion in real and personal property • Rail and other freight modes support goods movement industries that comprise 41% of Gross State Product and 40% of total state employment.

  3. Factors to consider about public investment in freight rail • Vast majority of freight rail infrastructure in US is privately owned • Use of private infrastructure for public transportation • Freight rail is an integrated part of a multimodal transportation system • Public ownership has been an increasing part of ownership of marginal or unprofitable freight rail infrastructure

  4. The Benefits of Investment in Freight Rail • Economic • Transportation/Infrastructure • Safety/Security • Environmental • Other

  5. Economic Benefits of Investment in Freight Rail • Attracts new/expands/retains business • Creates/retains jobs • Increases revenue (taxes) • Expands economy • Reduces logistics/transportation costs • Avoids/delays new highway construction • Reduces highway maintenance costs

  6. Transportation Benefits of Investments in Freight Rail • Reduces transportation system delays • Increases capacity • Improves service reliability • Improves carrier efficiencies • Improves competitiveness • Upgrade to meet industry standards • Eliminates bottlenecks

  7. Example: Economic Benefit of Freight Rail Investment in Vancouver • The Vancouver Freight Access Projects are beginning to demonstrate benefit • Port has announced new business that will creates jobs and expand the regional economy • Reducing delays to Amtrak Cascade passenger trains on the I-5 corridor by grade-separating freight trains entering and exiting the port

  8. Example: Ag shippers in Central Washington benefits from freight rail investment • The development of both Railex and Cold Train have provided benefits for Washington Shippers • Opened new markets for Washington-grown products • Expands regional economy by creating jobs and expanding business • Reduces logistics costs

  9. Example: Wheat Shippers in Eastern Washington benefit from investment in freight rail • Washington State’s investment in shortline rail provides public benefit • Reduces preservation and maintenance of all-weather roadways by $4 to $6 million/year* • Reduces logistics cost by maintaining transportation options * http://www.wsdot.wa.gov/NR/rdonlyres/F45EB6CC-C7C3-4315-A2B5-C308123EF28/0/PCCMarketAnalysisFullStudyFinal.pdf

  10. American Recovery & Reinvestment Act (ARRA) funding for Passenger Rail in Washington State • Nearly $800 million in funding • Increase speed of service • Increase number of trains/day by two • Improve on-time reliability of trains (target - 88% by 2017) • Challenges to calling this public investment in freight rail • Projects are geared to respond to passenger program needs; freight benefits are indirect or incidental

  11. What are the challenges to considering HSIPR-funded projects as public investment in freight rail? • HSIPR program was not designed to improve freight rail or make it more competitive with other transportation modes • Majority of improvements are designed to increase passenger train speeds to 79-mph. Freight trains, however, will not operate at higher speeds as a result of these improvements • BNSF has stated they do not have bottlenecks or capacity issues alongthe passenger (I-5) corridor. Most recent third party capacity analysis supports this. BNSF Washington State capital program is focused on other lines in the state

  12. Public-Private Partnership Case Studies • Heartland Corridor • I-81 Corridor Improvement Study

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