Raising The BarInfrastructure In Harris County

October 23, 2014

MAKE THE MESSAGE PERSONAL

You are not just a driver!

DEVELOP A CULTURE OF APPRECIATION

“People covet the most that which they cannot buy.”

THE THREE T’S

Regulatory Compliance

SafetyExcellence

Metrics

Incident andClaims

Management

BehavioralManagement

WHERE ARE WE SPENDING OUR TIME?

At the end of the game, when it’s all over…

YOU.

Begin Your JourneyDriving to Perfection

Brian Fielkow713.676.1111

brian@brianfielkow.com

brianfielkow.com

Marcia Faschingbauer, President

Texas added 1.3 million people from 2010 to 2013,

more than any other state according to the U.S.

Census Bureau . . . and our state’s population has

pushed past 26 million and is projected to reach 40

million by 2050.

 

Houston alone added

34,625 residents

during the same

timeframe . . . a

growth rate that was

second only to New

York.

According to the data released by

the U.S. Bureau of Labor Statistics

this summer, Texas has gained

more than 20,000 oil and gas jobs

since July 2013.

 

And we have over 300,000 jobs in

the oil and natural gas sector as

the oil boom drives job growth for

a fourth straight year.

The financial burden of shouldering the

primary funding for an aging road

infrastructure . . . through ever-increasing

state roadway taxes and fees.

Hours of Service changes have constricted a

driver’s ability to stay flexible

 and . . .

 Laws governing CSA scores have made any

kind of violation OR WARNING a major liability

Compounding

that problem

are the

chokepoints

at terminals

and the ports.

Additionally, the new Hours of Service

regulations mean that we are operating

under very strict time constraints, and

that means we have to make every

minute count.

Carriers have invested heavily in the

kind of sophisticated IT systems that

can give you the absolute visibility

you need to make real time

decisions with your carrier partner.

Thank you!

18

Harris County International Trade and Transportation Conference

Brenda Mainwaring, VP Public Affairs, Union Pacific Railroad

19

When the topic is public infrastructure, how do railroads fit in?Fundamentally different….

• Privately owned

• Privately funded

• Constituencies: customers, investors and employees

But in many ways similar….

• Common carrier obligations

• Federally regulated

• Integral to communities

20

Do railroads really have an impact?

• 64,912 miles of high-density “A” Track– 47,432 miles of “principal arterials, Interstates” (2012)

• 161,980 total track miles– 1,314,000 miles “high-type” paved roads/streets (1996)

• 1.7 trillion ton-miles hauled by rail– 2.6 trillion (estimated) ton-miles

– 1.0 trillion ton-miles

– 499 billion ton-miles (domestic)

• 574 operating railroads

Sources: Rail: Association of American Railroads Other: U.S. Bureau of Transportation Stats (USDOT)

21

U.S. Class I Railroads/ Interstates

22

Texas Railroads/Roads(Source: TTI TAMU )

August 1999

October 2006

23

Source: TxDOT/HTNB study August 2007

Source: GHP Aug 2014

Harris CountyRailroads/Roads

24

Portland

Oakland

LA

SeattleEastport

Omaha

Twin Cities

Duluth

Pine Bluff

Memphis

Port access

Chicago

Calexico

El Paso

Eagle Pass

Brownsville

Houston

St. Louis

Laredo

Dallas

New OrleansBorder crossings

Linking Harris County to the Global Market

Nogales

Little Rock

25

An integrated system: Port of Houston to Plano, Baytown to Brownsville…

To DFW

To NOLA

To Galveston

To Brownsville

To Texarkana

To San Antonio

To Laredo

To El Paso

Port of Houston

26

Realities• 8% volume growth vs. 2Q 2013

• Strong growth in Texas origin/destination products – Frac sand +21%

– Lumber +17%

– Construction (aggregates, etc) +15%

– Industrial chemicals +7%

• Significant industrial expansioncoming online 2016

• Regional population growth

• Limited space for infrastructure

27

Responses

• Purchasing equipment – 229 locomotives in 2014

• Hiring – 5,000 new employees in 2014 (net +1,000)

• Investing in physical plant– $42 Billion capital spend since 2000

– $4.1 Billion capital investment in 2014

– $2.5 Billion capital investment in Texas since 2009, including $700 million for new capacity to grow with customers

– $600 million expended in Greater Houston/Harris County

28

Rail will continue to focus on meeting growing freight demands.

Is it possible to leverage limited resources for mutual benefit?

$20+ Billion – amount rail industry spends annually on transportation infrastructure

$43 Billion – amount US government allocates annually for roadway infrastructure (2009 USDOT)

The ability to transport goods, and people, efficiently throughout the greater Houston region affects both current and future economic development.

Texas.

Harris County International Trade & Transportation Conference

October 23, 2014

-Statewide Funds Needed-Houston Region’s Needs-Funding Landscape-Post Prop 1

Texas.-

The Big Picture

To Sustain Current Level of Service

• 2030 Committee Report– Over next 25 years– We Need (for same level-of-service) $270B– Have Funding for $100B– Local funds, tolls, etc. $50B– New Funding Required $120B

$5B/Year, Every YearSource: Texas Future

-Political Climate-The Usual Suspects

-Gas Tax-Vehicle Registration-Ending Diversions-Vehicle Sales Tax

-Additional Options

Texas.-

2015 Session

-Funding current needs-Funding a vision-MotionMaps

Texas.-

Local Funding

At stake is the lifestyle we want to enjoy in Texas

Source: TTI

With congestion

Without congestion

Business Cost of Congestion

Distance traveled to connect with customers in 30 minutes

Missed opportunity

Missed opportunity

Source: TTI

-Your Input-Ideas-Support

-Your Leaders -Business Leaders-Elected Officials

Texas.

Why We Need You

About that amendment . . .

. . . It’s a great FIRST STEP

Questions?

For more information www.TAGhouston.org