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Rail and Aviation The “Other White Meat” of Economic Development Infrastructure

Rail and Aviation The “Other White Meat” of Economic Development Infrastructure. Terry L. Clower, Ph.D. Director Center for Economic Development & Research University of North Texas. Purpose. Review economic development perspectives for non-roadway based transportation infrastructure

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Rail and Aviation The “Other White Meat” of Economic Development Infrastructure

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  1. Rail and AviationThe “Other White Meat” of Economic Development Infrastructure Terry L. Clower, Ph.D. Director Center for Economic Development & Research University of North Texas

  2. Purpose • Review economic development perspectives for non-roadway based transportation infrastructure • Define some terminology • What does it take to be competitive? • Describe economic development strategies based on these infrastructures. • May even talk about water transport, if we have time.

  3. Rail • Two types to consider • Passenger • Long haul • Commuter • Transit • Freight • Intermodal • Bulk

  4. Passenger Rail – Long Haul • If you got it, great • If you ain’t got it, forgedda about it! • Outside of northeast corridor (DC to New York, with Philly tossed in), not a competitive advantage. • HSPR: Hype, hype and more hype • Expensive • Tough to route • What’s the advantage?

  5. Passenger Rail -- Commuter • Works great in high density corridors • Where existing trackage rights can be obtained. • Spreading to non-traditional markets • Share tracks with freight rail • Effectively extends the labor shed, in some cases greatly • Some businesses may want to be near stations

  6. Passenger Rail -- Transit • Light rail • Extends effective labor shed – slightly • Increasingly is seen as a necessary amenity for being a world class city • Does not have a meaningful impact on traffic congestion • Pure economic justification (fare box revenue sufficiency) not really possible • Institutional employers (hospitals, universities, government, corporate offices) are a part of TOD, though causal order is mixed. • Main question: system designed for commuting or social engineering? • Cannot share with freight, can negatively impact industrial properties

  7. Freight Rail -- Intermodal • Some national long haul truckers move the majority of their shipments via TOFC (trailer on flat car, piggyback) • Increasingly, COFC (container on flat car) is displacing TOFC plus movement of ocean shipping containers. Single train can take 280+ trucks off the road.

  8. Freight Rail -- Intermodal • Number, capacity and proximity to intermodal terminals are key stats. • Number of rail carriers • Network characteristics • To be highly competitive: • 2 or more railroads • Multiple terminals • Good roads supporting drayage operations • Efficient processing (minimal drayage delays) • World class is to have an “inland port”

  9. Freight Rail -- other • Railroad classifications • Class I: revenue greater than ≈ $300 million • BNSF, UP, CSX, NS, KCS, CN, CP • Class II: $25 mil to $300 mil • Florida East Coast, Wisconsin & Southern, Central Oregon & Pacific, Iowa Interstate • Class III: <$25 mil • Includes terminal railroads • Mississippi Southern, Kyle, Arcade & Attica, TNM

  10. Freight Rail -other • Key features for business attraction • Multiple railroads serving region • Captive shipper problem • Open to reciprocal switching • Shipping performance (delays) • Availability of equipment • Note on line abandonment • Ability to generate unit train quantities

  11. Aviation • Commercial • Scheduled passenger service, at least 2,500 boardings/year • Number of carriers • Daily flights • Number of destinations with direct service • Type of equipment (jets good, RJs okay, turboprop not okay) • Air freight

  12. Aviation • FAA designations • Primary: >10,000 boardings • Large hub: ≥1% of all national boardings • Medium hub: 0.25% ≤ boardings < 1% • Small hub: 0.05% ≤ boardings < 0.25% • Non hub: 10,000 < boardings < 0.05% • Non-Primary: 2,500 ≤ boardings ≤ 10,000 • Reliever: can relieve congestion (public or private) • Cargo service: >100 million pounds landed in cargo only aircraft • General Aviation

  13. General Aviation • Key characteristics for economic development • Runway length/width • Visual or Instrument • Tower • Services: Multiple FBOs (fixed based operators) available, repair, fuel prices • Hanger space and rental rates • Property tax structure • Customers/immigration clearance on-site • Medical air evacuation

  14. General Aviation • Clower’s taxonomy of economic development for GA airports: • Business support • corporate flight ops • remote business support • Aviation equipment (supplies, testing, refurbishment) • Government (CBP, other) • Ag support • Tourism (including vacation homes) • Trade support (FTZ, CBP office) • Land plays

  15. Conclusions • Know service characteristics of rail and aviation infrastructure in your community • Monitor service performance • In smaller communities pay close attention to rail abandonment. • In mid-size communities watch for commercial air service equipment downgrades • Aviation capital improvement programs are good deals for communities • Work with carriers to promote your community

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