North Dakota Rail Plan Sponsors • North Dakota Department of

Transportation (NDDOT) • North Dakota Public Service

Commission • North Dakota Department of

Commerce • North Dakota Department of

Emergency Services • North Dakota Pipeline

Authority • Upper Great Plains

Transportation Institute

Stakeholders • Railroads • Freight shippers • State agencies • Local agencies, MPOs,

economic development groups

• Tribal nations • Public • Others

Stakeholder and Public Participation

Outreach Activity • Website/On-line

survey • Listening Tour • Three regional

workshops • Three industry forums • Interest group

meetings • Industry interviews • Public meetings

Why Prepare A State Rail Plan

Required by 2008 Passenger Rail Investment and Improvement Act for certain categories of federal funding

Offers an opportunity for stakeholder and the public to influence the future of rail in the state

Identifies future rail service, infrastructure, and policy needs

Provides a road map for improving/expanding rail service and rail safety

Provides an education in rail transportation

North Dakota Rail Plan Elements

The role of rail in statewide transportation

North Dakota rail system and trends

Freight rail needs: infrastructure, service, policy, organization

Passenger rail needs: stations, routes, service

The State’s Rail Service and Investment Program

Goals and Objectives

•North Dakota’s multimodal transportation system is strategically developed and globally integrated

Vision

•Safe and secure transportation •Sustainable and reliable mobility •Diversified and sufficient funding •Communication and cooperation •Strong economic growth with consideration of environmental, cultural, and social impacts.

Goals

North Dakota Rail System North Dakota Railroads

Railroad Miles Operated in North Dakota BNSF 1,723 Canadian Pacific 484 Dakota Northern Railroad 51 Dakota, Missouri Valley, & Western 394 Northern Plains Railroad, Inc. 294 Red River Valley & Western Railroad 412

Class I Infrastructure Profile (Example)

DEVILS LAKE SUBDIVISION MAIN LINE

Rail Siding Locations and Lengths Emerado MP 12.3 7,380 ft. Michigan MP 50.3 8,575 ft. Lakota MP 60.7 8,695 ft. Devils Lake MP 85.3 10,530 ft. Churchs Ferry MP 104.2 4,361 ft. Leeds MP 115.7 8,115 ft. Rugby MP 142.4 6,160 ft. Towner MP 161.3 7,870 ft.

Devils Lake Subdivision The subdivision is a main line between the Devils Lake Switch in Grand Forks at MP 0.4 and Surrey for a length of 194.9 miles. The KO Subdivision connects with the Devils Lake Subdivision at Surrey. Maximum operating speed for freight less than 100 tons per car is 60 mph, and 45 mph for loads of 100 tons or more. The maximum operating speed for the Amtrak Empire Builder passenger line on the Devils Lake Subdivision is 79 mph.

Maximum gross weight per car is 286K over the entire 194.9 miles

Short Line Profile (Example)

Freight Rail Traffic Railroads have become increasingly important in the state’s commerce:

- 10.0 20.0 30.0 40.0 50.0 60.0 70.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Terminating Originating

North Dakota Rail Traffic Growth 2000-2015 (Mil. Tons)

• Crude Oil • Grain • Food • Chemicals

• Coal • Frac Sand • Petroleum Products

Role of Freight Rail

Transportation Modes

Inbound/Outbound/Within 2002 2015

Tons (000s) Mode Share Tons (000s) Mode Share Air 0 0.0% 16 0.0% Multiple Modes & Mail 152 0.1% 2,915 0.8% Other and Unknown 33,901 19.9% 11,340 3.2% Pipeline 18,994 11.1% 134,427 38.1% Rail 20,444 12.0% 73,573 20.8% Truck 97,143 56.9% 130,917 37.1%

Total 170,635 100.0% 353,187 100.0%

Type of Infrastructure Miles/Number Federal, State, County Roads 27,685 miles Primary Highway Freight System

461 miles

National Highway Freight Network

875 miles

Class I railroad trackage 2,180 miles Class III railroad trackage 1,151 miles Public use airports 8 certified for air carrier

operations

Traffic

Infrastructure Note: Pipeline tonnage may be overstated by the data source, FAF

Rail Traffic Profile (2014 Waybill Data) North Dakota Rail Traffic Directional Profile

North Dakota Through Rail Traffic Commodity Profile

Rail Traffic Profile (2014 Waybill Data)

North Dakota Inbound Rail Traffic Commodity Profile

North Dakota Outbound Rail Traffic Commodity Profile

Class I Rail Traffic (2015) BNSF Originated BNSF Terminated

Commodity Number of

Cars Number of

Tons Commodity Number of Cars

Number of Tons

Crude, Petroleum, Natural Gas

268,077 26,581,776 Nonmetallic Minerals

37,724 4,005,456

Grain 119,693 12,803,345 Coal 26,449 3,010,136 Coal 34,537 3,367,455 Chemicals and

Allied Products 13,788 1,332,332

Food and Kindred Products

30,917 2,887,520 Stone, Clay, Glass & Concrete Products

8,875 938,215

Petroleum and Coal Products

22,416 1,674,046 Farm Products 6,727 664,976

All Other 13,768 1,141,680 All Other 23,415 1,210,388 Total 489,408 48,455,822 Total 116,978 11,161,503

CP Originated CP Terminated

Commodity Number of

Cars Number of

Tons Commodity Number of

Cars Number of

Tons Grain 52,378 5,285,330 Nonmetallic

Minerals 7,682 842,899

Crude, Petroleum, Natural Gas

35,811 3,643,116 Stone, Clay, Glass & Concrete Products

3,909 427,713

Food and Kindred Products

8,179 817,299 Chemicals and Allied Products

4,655 407,825

Chemicals and Allied Products

5,017 474,288 Farm Products 2,207 216,022

Coal 2,898 289,899 Primary Metal Products

981 85,514

All Other 5,467 499,759 All Other 1,552 110,668 Total 109,750 11,009,691 Total 20,986 2,090,641

Rail Dependent Industries Outlook Petroleum • Bakken crude oil production is expected to increase • CBR is not expected to reach prior volumes again

New pipeline capacity Rail will be important in east and west coast markets

Agriculture • Unlikely that above-average growth in North Dakota rail shipments

will continue as major crop price increases are not expected in the long run

• North Dakota production which outpaced the country will track with U.S. production Wheat production is projected to grow 5.6 percent from

2014/15 to 2025/26 Corn is expected to grow 4.8 percent over the period shown Soybean production is expected to increase 3.5 percent

Rail Dependent Industries Outlook

Ethanol • Fuel prices have declined, which has lowered ethanol prices • USDA forecasts a moderate decline in ethanol production through

2025 and rail shipments – ND rail shipments will track the decline Coal • Double digit decreases in coal transported by rail – 12% in 2015, 19%

in 2016 • The outlook for coal is uncertain

Current administration is more favorable towards coal Low natural gas prices have triggered utility conversions

• Slight reduction in inbound coal • Coal passing through the state will remain at low volumes with

potential decrease

Other Rail Demand Considerations

• Potential increase in agriculture demand for containerized shipments

• Panama Canal expansion may shift some West Coast transcontinental port traffic to Gulf ports or the East Coast

• Railroads converting domestic truck traffic to intermodal

• Growing truck driver shortages

• Reshoring of manufacturing

• Adoption of new technologies – connected automated vehicle technology by trucking industry

Rail Dependent Industries Outlook • Rail recession since 2014 • In 2015, rail traffic excluding coal fell 2.4 percent; intermodal

increased 1,4 percent • In 2016, rail traffic excluding coal declined 1.5 percent; intermodal

also declined 1.5 percent • Starting to see a reversal – 1 percent quarter over quarter in 2017

North Dakota Rail Traffic Growth

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

2015 - 2020 2020 - 2025 2025 - 2030 2030 - 2035 2035 - 2040 2040 - 2045

ND Terminating ND Originating U.S.

Passenger Rail

Station 2008 2009 2010 2011 2012 2013 2014 2015 2016 Devils Lake 6,860 5,740 6,148 4,569 5,505 5,142 3,555 3,512 4,223 Fargo 24,142 21,514 21,286 16,968 20,304 22,497 23,314 22,829 21,495 Grand Forks 21,942 17,928 19,641 16,935 20,028 19,141 13,976 12,131 13,882 Minot 41,754 38,418 39,585 28,217 36,285 40,595 34,834 31,827 29,424 Rugby 7,048 5,906 6,409 6,106 7,057 5,637 4,053 4,254 4,161 Stanley 3,694 3,921 4,549 6,146 10,234 9,411 7,036 6,514 5,133 Williston 23,619 21,793 24,586 29,920 54,324 51,076 44,013 38,477 27,845

Total 131,067 117,229 124,214 110,872 155,749 155,512 132,795 119,544 106,163

• Significant ridership decreases since 2013 – 50,000 trip decrease in annual ridership

• Across the board decrease – Williston biggest reduction

North Dakota Amtrak Ridership

Grade Crossings (2016)

Type of Crossing Control Device

Type of Road Not Recorded Private Public Total

At-Grade No sign or signal 15 968 67 1,050 At-Grade Other signs or

signals 1 1

At-Grade Crossbucks 1 178 2,806 2,985 At-Grade Stop signs 93 57 150 At-Grade Flashing lights 1 20 21 At-Grade Gates 5 585 590 Railroad Under Not Applicable 3 1 75 79 Railroad Over Not Applicable 2 18 81 101

Total 22 1,264 3,691 4,977

Type of Crossing Control Device ND MN ID MT All US At-Grade No sign or signal 21.1% 22.1% 32.3% 39.2% 23.9% At-Grade Other signs or signals 0.0% 0.3% 0.2% 0.4% 0.8% At-Grade Crossbucks 60.0% 19.6% 19.0% 27.3% 21.6% At-Grade Stop signs 3.0% 25.2% 26.0% 6.6% 7.8% At-Grade Flashing lights 0.4% 4.1% 7.6% 5.3% 8.3% At-Grade Gates 11.9% 17.9% 7.6% 10.1% 20.6% Railroad Under Not Applicable 1.6% 4.5% 3.6% 6.3% 8.1% Railroad Over Not Applicable 2.0% 6.3% 3.7% 4.8% 9.0%

North Dakota Crossing Profile

Northern Tier Crossing Comparison

Grade Crossings (2016)

Type of Crossing Control Device

Type of Road Not Recorded Private Public Total

At-Grade No sign or signal 15 968 67 1,050 At-Grade Other signs or

signals 1 1

At-Grade Crossbucks 1 178 2,806 2,985 At-Grade Stop signs 93 57 150 At-Grade Flashing lights 1 20 21 At-Grade Gates 5 585 590 Railroad Under Not Applicable 3 1 75 79 Railroad Over Not Applicable 2 18 81 101

Total 22 1,264 3,691 4,977

North Dakota Crossing Profile

Crossing Comparison

Type of Control ND SD MN MT ID All US At-Grade No sign or signal 21.1% 28.4% 22.1% 39.2% 32.3% 23.9% At-Grade Other signs or signals 0.0% 0.1% 0.3% 0.4% 0.2% 0.8% At-Grade Crossbucks 60.0% 48.6% 19.6% 27.3% 19.0% 21.6% At-Grade Stop signs 3.0% 2.9% 25.2% 6.6% 26.0% 7.8% At-Grade Flashing lights 0.4% 7.1% 4.1% 5.3% 7.6% 8.3% At-Grade Gates 11.9% 2.4% 17.9% 10.1% 7.6% 20.6% Railroad Under Not Applicable 1.6% 2.9% 4.5% 6.3% 3.6% 8.1% Railroad Over Not Applicable 2.0% 2.9% 6.3% 4.8% 3.7% 9.0%

Rail Needs-Short Lines

• Short line railroad track condition 41 percent of track miles has speed limit of 10 mph 5 percent of track miles has maximum speeds less than 10 mph 50 percent of track miles cannot handle standard capacity rail cars 37 percent of bridges cannot handle standard capacity rail cars

Other short line issues Crossings Railcar availability Connecting service with major railroads Poor track condition/<286,000 pound track limitations Trespassers Funding

Rail Needs-Customers

• Uncertain empty railcar availability

• Railroad detention charges on railcars

• Inconsistent service

• Poor communications from railroads – notifications to shippers

• Inadequate switching frequency

The plan includes more than $300 million in projects of interest by a cross-section of stakeholders

Rail Service and Investment Program Number of

Projects Estimated

Cost

Major Railroads 1 NA

Short Line Railroads 32 $105 Million

Industrial Access 11 NA

Local Agencies 17 $192 Million

NDDOT STIP 8 $21 Million

In the last five years, major railroads have invested $1.2 billion in ND infrastructure

Rail Improvement Initiatives

Improved coordination and communications among state agencies, railroads, local authorities, shippers and the public

Continuation of the state rail inspection program

Rail performance measurement and enhanced planning

Improved safety of rail transportation

Leveraging the benefits of rail transportation

Complementing the investments are initiatives to improve performance directed towards

Rail Improvement Initiatives

Initiative Actions

Coordination with railroads: leverage NDPSC information to be more proactive in identifying rail issues

• Review NDPSC railroad information

• Periodically review the railroad annual report content

Review annual report content to ensure information is adequate for regulatory purposes

• To be conducted in conjunction with #1

Coordination with Metropolitan Planning Organizations/local agencies: invite MPOs/local agencies to the NDPSC annual meetings with railroads

• Include MPOs, local agencies as participants

Coordination with other states and Canada: actively seek out opportunities to cooperate with states – GNCC participation

• Continue NDDOT role in GNCC

Rail loan program: examine the need to improve the program; evaluate realized benefits to recipient

• Consider including Class I railroads in the loan program

• Request that recipients provide traffic volume information over life of loan

Equipment and resource availability information: develop a centralized source of federal, state, and local emergency response equipment and resources

• Develop specifications for database

• Develop database

Ongoing

Rail Improvement Initiatives

Initiatives • Actions

Local government-railroad coordination: encourage railroads to provide track maintenance program information to towns and counties when the programs are developed

• NDPSC facilitate communications between railroads and local agencies

Local government-railroad coordination: request railroads to contact local officials in advance of performing track maintenance

• NDPSC facilitate communications between railroads and local agencies

State inspection program: continue communicating to shippers the rationale NDPSC uses to select locations to inspect through the NDPSC’s annual meeting with shippers and the railroads and other venues.

• NDPSC communications

Local hazardous material spill mitigation plans: include railroad risks

• Initiate statewide program to address railroad risk in local mitigation plans

Government and railroad industry leaders working relationships: encourage local agencies coordination with rail carriers in advance of incidents

• Facilitate the development of relationships between local authorities and railroads

Ongoing

Rail Improvement Initiatives

Initiative Actions

Coordination within state government: continue to ensure that ND Department of Commerce leverages NDDOT rail related economic development capabilities

• Establish cross-agency working group on rail-related economic development

Coordination with railroads: leverage NDPSC information to be more proactive in identifying rail issues

• Establish objectives of NDDOT-railroad relationship

• Review NDPSC railroad information in context of objective

Coordination with other states and Canada: actively seek out opportunities to cooperate with states – GNCC participation

• Encourage Canadian membership

Rail planning: monitor changes in rail demand, industry structure, and logistics trends

• Introduce rail planning activities in addition to FRA rail plan updates

• Monitor rail industry issues that affect North Dakota Improved information: updateNDPSC website to better explain and clarify the agency’s roles in regulating the railroads and provide contact information for railroads and other regulatory agencies.

• Revise NDPSC website outlining jurisdiction and functions of NDPSC

• Develop and provide directory of rail contacts

Near Term

Initiative Actions

Firefighting foam capabilities across the state for rail incident response improvement: establish a statewide standard for firefighting foam

• Facilitate establishment of statewide standard

Response planning effectiveness: develop multi-jurisdiction coordination strategies to improve regional emergency response planning and capabilities:

• Facilitate the development of coordination strategies

Rail Improvement Initiatives Near Term

Rail Improvement Initiatives

Initiatives Actions

Coordination with Metropolitan Planning Organizations/local agencies: ensure that MPOs and other local agencies are included in all statewide planning processes

• Establish railroad planning advisory committee: NDDOT, MPOs, local government agencies, EDAs, railroads

Coordination with Metropolitan Planning Organizations/local agencies: encourage MPO/local agency participation in GNCC

• Promote GNCC participation to local agencies

Rail planning: monitor changes in rail demand, industry structure, and logistics trends

• Implement performance measures – work with railroads to obtain required information

Local Emergency Planning Committee role in response planning: develop local incident specific response plans

• Develop incident response planning committee to guide local incident specific response plans

First responder effectiveness: improve first responder staffing and capabilities in rural areas through increased funding

• Identify and evaluate funding alternatives for improved capabilities

Facility improvement: hospitals should seek federal trauma care funding

• Identify funding sources

Long Term