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A New Vision for State Rail “Transportation Action Plans”

A New Vision for State Rail “Transportation Action Plans”. Goals, Measures, Commitments, and Results for Commerce, the Environment, and the Community. Michael Sussman , President OnTrackAmerica and Strategic Rail Finance. AASHTO, Standing Committee on Rail Transportation, 2014, Denver, Co.

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A New Vision for State Rail “Transportation Action Plans”

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  1. A New Vision for State Rail “Transportation Action Plans” Goals, Measures, Commitments, and Results for Commerce, the Environment, and the Community Michael Sussman, President OnTrackAmerica and Strategic Rail Finance AASHTO, Standing Committee on Rail Transportation, 2014, Denver, Co.

  2. Rail Line Abandonment 2005-2013

  3. Ford Supply Chain (Inbound Freight) • “Inbound Freight” is production material shipped into Ford Manufacturing Plants • Approximately 58% of total inbound freight is shipped via Truck, 22% Rail, 20% Water

  4. Steel is Moving by Truck • It’s not just consumer goods that are moving by truck • Here is how the largest steel company in the world spends its transportation budget  • ArcelorMittal ships more outbound steel by truck 55% than by rail 43%

  5. Planned State Freight Modal Share (Million Tons)

  6. The world’s largest automatedand refrigerated facilityYork County, PA Built without rail service; requested later (too late)

  7. Convenient to I-83, Not to a Railroad:

  8. Bumper to Bumper Truck Traffic on I-83

  9. ToysRUs warehouse built on Morristown & Erie Railroad, NJ in 1996

  10. Typical State Rail Plan Elements • Inventory of existing system • History of railroads in the state • General description of freight flows in/out of state • Freight trends projected to 2040 based on 3rd-party data • Higher truck growth projected than rail • Project wish list… adds up to much more than anyone can afford • Short description of existing funding sources • This is a good foundation for the next step…Transportation Action Planning

  11. Transportation Action Planning Process Elements 1-5: • Involves all stakeholders in the entire process from inception to implementation. • Advances stakeholder collaboration beyond outdated “anti”-trust limitations, and toward the level of trust now needed to address critical infrastructure issues. • Requires stakeholder participants to commit to a specific set of participation requirements to ensure a productive planning process. • Does not proceed until participants have identified the specific opportunities to be advanced for that region’s commerce. • Establishes a new set of “Freight Transportation Land Use Strategies” for the state.

  12. Transportation Action Planning Process Elements 6-9: • Includes the creation of an “action plan”, complete with targets, dates, action steps, and responsible parties. • Converts plans into results by asking stakeholder representatives to commit their entities to take the plans’ action steps. • Considers diverse interests as the building blocks of wise plans, not an impediment to agreement. • Utilizes a facilitation team to guide discussions, lead participants thru negotiations, stimulate idea refinement, and synthesize and digest participant input for maximum efficiency of the whole process.

  13. Pinpointing Commercial Opportunities within a Transportation Action Plan • Identify current freight movement by shipper and lane through granular analysis • Distinguish through-traffic from in-state origination and destination • Identify opportunities to support specific new economic development initiatives • Identify existing and potential shippers’ needs to economically reach a greater marketplace

  14. 10 Steps of a Transportation Action Plan • Get Seated • Assess • Measure • Target • Strategize • Plan • Commit • Enact • Capitalize • Act

  15. Sample Action Plan Metrics p.1 Example Metrics for Commerce • Total costs to ship ($/ton/mile) • Service reliability • Direct rail, truck, and water service • Economical, equitable access to maximum market geography Example Metrics for Land Use • Footprint per tonnage shipped • Impact on transportation system congestion • Industrial and commercial concentration/sprawl

  16. Sample Action Plan Metrics p. 2 Example Metrics for the Environment • Air emissions per ton-mile • Water quality impact Example Metrics for Communities • Jobs and economic revitalization • Noise, vibration, and light pollution • Public safety • Public tax burden per ton-mile by mode

  17. State Rail Loan Program Repayment History

  18. Thank you for all of your good work! Michael Sussman, PresidentLeo Penne, OTNA Board MemberOnTrackNorthAmericaPhiladelphia, PAmsussman@ontracknorthamerica.orgSCORT 2014 Annual MeetingDenver, Colorado

  19. Questions I would like to ask you! • What entity in your state could be enlisted to enact freight transportation land use strategies? • What legal and regulatory barriers need to be addressed to allow increased coordination between your agency and the private sector? • What has to happen for road, rail, and water to be valued and supported objectively and apolitically? • What challenges do you face in enrolling the state in getting behind rail as a conscious modal choice?

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