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© 2015 HDR, Inc., all rights reserved.
Ron O’Blenis, PE
Senior Rail Project Manager(617) 357-7758
Ronald.Oblenis@hdrinc.com
Presentation Focus:
Expansion of Northeast Rail Lines and Local
Impact on Communities:
How to Promote Smarter Freight Connections,
Strategic Partnerships & Cleaner Technologies
The Guardian
Omaha- “It’s a very efficient way of moving
goods.” said Buffett. “I just believe this country
will prosper; that you’ll have more people moving
more goods 20 to 30 years from now …
Matthew Rose, BNSF’s chief executive, said the
railway company believed its future would be a
“three logged stool” of carbon pricing, high fuel
costs and traffic congestion, all of which are likely
to encourage a search for alternatives to road
transport.
Buffett in $44B Deal for Burlington Northern Sante Fe
World’s Second Richest Man Sees Bright Future for Rail
Source: theguardian.com
Interstate Highway Improvements –
Truck Mode Share Increase
Deregulation of transportation modes of 1978 -1980
Transformation to respective modes can be complementary
“Private Railroads” have public benefits
State “Highway Departments” become “Departments of Transportation” – total
system view
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Truck Rail Air Water
Share
MA Share US Share
Major Policy Changes Affecting Modal Transportation
U.S. Highway Congestion Increasing
High Volume Freight Truck Routes to
Increase 230% from 2002 to 2035
Source: Federal Highway Administration, Office of Freight Management and Operations,
Freight Analysis Framework, Version 2.2, 2007
U.S. Rail Corridors and Congestion
Rail Volumes Expected to Increase 88% from 2002
to 2035 – 1.7 billion tons to 3.2 billion tons
Source: Federal Highway Administration, Office of Freight Management and Operations,
Freight Analysis Framework, Version 2.2, 2007
Importance and Needs of Freight
Trade as percent of US GDP increased from 10% to 30% during the
last 40 years
Freight tons to grow 70% by 2030
National Transportation Policy & Revenue Commission
o “US needs …$225 billion per year ...upgrade to good state of repair.
Currently spending less than 40% of that.”
o Recommended Freight Transportation Program to enhance global
competitiveness
American Association of Railroads (AAR) estimates $148 Billion
capacity investments for future demand
Trends of Rail Freight
Benefits of Rail and Marine Shipping
Shipper cost savings – rail costs approximately 50% lower than truck &
water 75% lower than truck
Efficiency – rail fuel efficiency is 1.9 to 5.5 times higher than truck per
ton-mile
Emissions reductions – rail and marine produce fewer greenhouse
gases per ton of freight moved
Congestion relief – allows for faster travel times to remaining vehicles
Pavement maintenance costs are 0.2 cents per car mile vs 59 cents per
truck mile
“Comparative Evaluation of Rail and Truck Fuel Efficiency on Competitive Corridors”
Federal Railroad Administration, November 19, 2009
CSX & NS Class 1 Operators
Significant regional and short lines
Limited Hudson River Crossings
Shore lines are passenger-focused
Major intermodal terminals:
o Mechanicville, NY; Ayer, MA;
Worcester, MA and Auburn, ME
NE Freight Rail Network
Downeaster improvements
Knowledge Corridor/Conn River Line
Capitol Corridor to Nashua, Manchester
and Concord, NH
South Coast Rail
Inland Route Boston to Springfield
Extension to Montreal
NE High Speed and Intercity
Passenger Rail Vision - 2009
Capacity, operations and liability challenges
Can work well together – Downeaster/Pan Am/MBTA
Most Passenger Rail is Shared Use with Freight
Massachusetts Freight Volumes Projected to Increase
Freight volumes projected to increase by 70% by 2030
Each mode to grow with trucks increasing mode share
Considerations for Modal Shifts
Rail and marine more competitive on long-distance goods movement
Significant reduction in shipping heavy bulk loads that favor rail
Large distribution markets in NJ, NY, PA
Infrastructure constraints such as:
o Weight on rail (286k)
o Vertical clearances (double-stack) for rail corridors
o Port and navigational channel depth
o Landside access and intermodal connections
Policy Issues and Recommendations
Land use development
o Identifying, preserving and facilitating freight-intensive uses in Massachusetts
Funding and financing
o Freight considerations in prioritization of projects
o Public benefits justify participation in public-private partnerships
Regulatory environment
o Truck routes, regional multi-modal planning, etc.
Passenger rail
o Reverse commute, operations, TOD/Smart Growth
Industrial incentive areas to preserve freight land uses
Funding and Financing Policy Initiatives
Strategic multi-modal investments
o State funding support for key multi-modal investments
Industrial Rail Access Program (IRAP)
o Matching funding and low-interest loans for economic development
opportunities
Increased use of public-private partnerships
o Public participation in funding private freight facilities based on anticipated
public benefits
Passenger service benefits for freight
o Added public benefits from improved freight service
Public Benefits of Improved
Rail System
Economic Benefits
o Shipper cost savings
o Truck congestion benefits
o Freight logistics benefits
o Jobs: Near-term and long-term
Transportation
o Auto congestion benefits
Environmental
o Reduced Green House gases
o Reduced emissions
Northern Tier Benefit-Cost Example
Stars indicate Return on Investment (ROI) magnitude
o Three stars: ROI is above 3
o Two stars: ROI is above 1.5
o One star: ROI is less than 1.5
Northern Tier Benefit-Cost Example
$0
$50
$100
$150
$200
$250
$300
$350
$400
Total Benefits Total Costs Net Present Value
Mil
lio
ns
Econ Benefits Environment
Total Costs Net Present Value (NPV)
Transportation
Economic Benefits
o Shipper cost savings $315M
o Truck congestion relief $2M
o Freight logistics $2M
o Near-term 150 jobs
o Long-term 100 jobs
Transportation
o Auto congestion relief $15M
o Accident reduction $3M
o Highway maintenance $9M
Environmental
o Green House gas emissions CO2: 3,494
ton reduction
o Emissions reduction $2M
Benefit-Cost Ratio: 3.7
New Haven-Hartford-Springfield Rail Program
Improve the high speed and passenger
rail system serving the Northeast
Expand intermodal transportation options
Encourage economic development
Create more livable and sustainable
communities
Summary Thoughts
Warren Buffett’s vision seems very good
o Rail will be a significant part of future transportation system
The public benefits are foundation of transportation investments
Substantial progress made on integral approach to transportation planning
System view best for transportation improvement assessments
Recommended