Sen. Peters (center) meets with Harsco Rail employees and UAW Local 811 President Janet Shinsky.

Ludington, MI — U.S. Senator Gary Peters (D-Michigan) wrapped up his third annual motorcycle tour of Michigan in Ludington on August 10 at Harsco Rail, a global supplier for railway track maintenance and construction. Alongside Harsco’s Ludington Plant Manager Alex Whitacre, as well as GoRail, the Michigan Railroads Association, NRC and REMSA, Sen. Peters received a firsthand look at the manufacturing facility and its rail maintenance of way equipment, which is manufactured on site and used by railroads and rail contractors to safely maintain and expand their networks.

Sen. Peters, a member of the Senate Committee on Commerce, Science & Transportation, met one-on-one with employees and received a demonstration of Harsco Rail’s 6700 Tamper machine, a high tech, refined machine known for top quality production, switch tamping, and transit system work. As the ranking member of the Subcommittee on Surface Transportation, Sen. Peters oversees infrastructure development related to both freight and passenger rail.

Before taking a tour of the facility, which has been in operation since 1923 and employs over 150 people, the senator met with employees and discussed how investments in short line railroads can boost America’s global economic competitiveness and create jobs.

“Michigan is strategically located to be a transportation and logistics hub, and suppliers like Harsco Rail are working every day to provide high quality products to repair and improve vital railways,” said Sen. Peters. “I’m working to ensure short line railroads and the businesses they serve have long-term certainty to make critical investments to upgrade their tracks, strengthen our rail infrastructure and help grow our economy.”

He also sat down with rail industry representatives to discuss legislative issues impacting rail freight transportation. The group thanked the Senator for cosponsoring the Building Rail Access for the Customers and the Economy (BRACE) Act, legislation that would make the Short Line Tax Credit permanent. The tax credit, which expired at the end of 2017, helps short line railroads preserve nearly 50,000 miles of track that connect more than 10,000 rail customers to the national main line rail network, benefiting Michigan communities and shippers that depend on affordable freight access. The BRACE Act currently has overwhelming bipartisan support in Congress with 56 cosponsors in the Senate and 261 cosponsors in the House of Representatives.

“Railways are a critical part of our nation’s infrastructure, and suppliers like Harsco play a vital role in helping businesses ship their goods by rail to new markets,” said Ludington Plant Manager Alex Whitacre. “Short line railroads are important customers for our business, and we appreciate Senator Peters’ work to ensure they are able to invest in maintaining their track, so our company can continue to supply them with high-quality, innovative equipment and tools.”

The group also talked about the need for balanced regulations and the rail industry’s opposition to increasing federal truck size and weight limits, which would cause extensive damage to our nation’s roads and bridges and cost taxpayers billions of dollars in additional infrastructure spending. Sen. Peters was supportive of rail industry’s position on truck sizes and noted the private nature of America’s freight railroad network which, unlike other modes of freight transportation, does not rely on federal support for the expansion or maintenance of its network.

Sen. Peters (D-MI) gives remarks and takes questions from Harsco Rail employees.

Tracy, CA — August 3, 2018 – California Congressman Jeff Denham, chairman of the House Transportation & Infrastructure Committee railroads subcommittee, today received the “Railroad Achievement Award” in recognition of his continued leadership on issues affecting both freight and passenger railroads. Rep. Denham is the first member of Congress this year to receive the award, which was created in 2017 and is presented by the Association of American Railroads and GoRail.

Flanked by leaders from the California business and railroad communities, as well as local policymakers, AAR and GoRail presented Rep. Denham with the award at the Tracy Transit Center.

“California’s diverse and enormous economy remains closely linked to overall U.S. competitiveness, and freight railroads continue to provide a safe, reliable and sustainable form of transportation for getting goods to and from market,” said AAR President and CEO Edward R. Hamberger. “Chairman Denham has long understood this reality and, to the benefit of his constituents, he has legislated in a manner that allows for the industry to provide the greatest public impact. His leadership on landmark legislation, chiefly the Fixing America’s Surface Transportation (FAST) Act of 2015, continues to serve Californians and Americans well through the presence of both privately financed freight railroads, as well passenger entities such as Amtrak.”

The Railroad Achievement Award is given to members of Congress who have shown leadership on policies that help ensure the vitality of railroads in the United States. Award winners like Rep. Denham have particularly shown an understanding of the distinct role railroads play in the American economy and the need for safe and efficient operations made possible through sustained investment, the organizers said.

“Businesses and consumers across California and the U.S. benefit from an innovative freight rail industry that invests large amounts of private capital into the nation’s rail network,” said GoRail President Russell McGurk. “Making this possible are sound public policies and elected leaders like Congressman Denham with the foresight to enact and protect those policies.”

In prepared remarks introducing Rep. Denham, Nate Kaplan – California state director for GoRail – commended the diverse representation of the rail sector at the event, including Union Pacific, BNSF and California Northern Railroad.

Kaplan specifically addressed the safety enhancements made possible through the FAST Act, which was shaped in large part by Rep. Denham, including tougher standards for tank cars carrying hazardous materials. Kaplan also pointed to the reauthorization of the Surface Transportation Board (STB) in 2015, which reinforced a balanced regulatory system that has facilitated over $660 billion of private sector investment into the nation’s freight rail network while vastly improving rail safety, service, productivity and efficiency.

Syracuse, NY — Morris Sorbello, who represents the 23rd district in the Oswego County Legislature, outlined the negative consequences of tariffs for New York industries, including its freight railroads, in a recent op-ed on Syracuse.com.

“Locally, aluminum and steel are also two of the larger commodities handled by the Port of Oswego. Tariffs mean diminished import traffic, directly affecting the port’s bottom line as well as the jobs of those who work there. Other sectors like agribusiness will similarly take a hit as countries look to retaliate with tariffs that maximize their impact on the U.S.”

He points out that while some companies may benefit from tariffs, the vast majority will be hurt by higher costs and long-term uncertainty.

“But while U.S. tariffs are meant to protect our own industries, we shouldn’t be surprised when other countries move to do the same for their workers. And therein lies the danger: Escalating these disputes into a broader trade war creates long-term uncertainty that makes it hard for any industry to plan for the future.”

“With escalating trade and tariff uncertainty, freight rail is operating in the same state of limbo that New York’s other critical industries are experiencing. Foreign and American businesses alike are determining how to respond, leaving freight rail operators unsure how their services will be affected. Without certainty, it will grow increasingly difficult for railroads to properly plan future business decisions, such as the allocation of rail cars, personnel and equipment.”

Read the Full Story.

Little Rock, AR — John Edwards, economic development director for the Helena Harbor and Phillips County Economic Development, delves into the economic importance of healthy infrastructure for Arkansas in a recent op-ed for the Arkansas Business Journal. While other aspects of the state’s transportation systems are faltering, he says, freight railroads demonstrate what can happen when infrastructure is fully funded:

“Rail’s massive investments, which total some $100 billion in the last four years alone, work to enhance efficiency and safety for shippers. Whether supporting intermodal freight through new facilities and added track capacity or faster service through precision routing and new technologies, this spending ultimately benefits the businesses that ship by rail, like our port customers. In 2018 alone, Union Pacific plans to spend $127 million on its Arkansas network.

That’s why Helena Harbor worked hard in recent years to restore our short line connection via a public-private partnership with the Delta Regional Authority, Walton Family Foundation and Genesee & Wyoming, the parent company of our local short line Arkansas Midland Railroad. Today, the port’s seven miles of new rail connect our local businesses to Union Pacific and the larger rail network, an efficient gateway to the West Coast and Gulf for Arkansas exports.”

Sorbello goes on to discuss rail in the context of Arkansas’s connections to international trade:

“Trains are also vital for Arkansas’ access to North American trade corridors. After all, Mexico and Canada are the state’s largest trading partners by value, with this trade supporting more than 110,000 jobs. Last year Arkansas exports to NAFTA countries increased by nearly 14 percent.”

Read the Full Story.

Cleveland, OH — In a recent op-ed for the Cleveland Plain Dealer, Ohio Soybean Association Executive Director Kirk Merritt and GoRail AVP Michael Gaynor discussed how an escalating tariff dispute between the U.S. and China could negatively impact Ohio’s family farmers and the industries that support agriculture, like freight railroads. They write:

“Soybeans — Ohio’s largest agricultural crop — is one of the most heavily tariffed goods under China’s new policy. With China as the single largest foreign market for U.S. soybeans, higher trade barriers stand to cripple the industry, which operates across the American Midwest.

But the debilitating effect of Chinese tariffs will not be limited to the soybean industry and farmers at large. Industries involved in the production, harvest and transportation of agricultural products throughout Ohio and the United States will similarly suffer if concrete measures are not taken to protect American businesses.

One such example is freight rail, one of the primary modes of transport for agricultural products in Ohio and nationwide. With soybeans constituting more than 20 percent of the grains moved by freight rail, China’s decision to target our soybean industry stands to have significant consequences for American farmers and freight railroad companies alike.”

Continued tariff escalation and the threat of a trade war also create uncertainty for U.S. businesses, which disrupts supply chains by interfering with planning and operational decisions. Railroads, for example, need lead time to decide where to position their assets and train crews to meet demand. Being in a state of limbo makes planning difficult and could lead to a deterioration in service.

Read the Full Story.

Houston, TX — Bob Mitchell, president of the Bay Area Houston Economic Partnership, writes about the importance of NAFTA to Texas’s economy and workers in a recent op-ed in the Houston Chronicle. He urges caution when it comes to “scrapping the deal altogether.”

“Since its inception in 1993, NAFTA has opened new markets and catalyzed enormous economic growth by lowering trade barriers between the U.S., Canada and Mexico,” he said.

“[Texas is] the top exporting state, with nearly half of these exports headed to Mexico or Canada. Withdrawal would also put nearly 1 million Texas jobs at risk.”

NAFTA generates $112 billion in export value for Texas annually,  he says, noting that new trade barriers would hurt the Port of Houston as well as logistics partners like freight railroads. Ultimately this would impact companies that rely on flowing supply chains.

“Our powerful ports and extensive freight rail network offer a unique look at the complex and vibrant supply chains fostered by low trade barriers. Everything from oil and gas to aluminum to agricultural products moves by rail in Texas and across borders.”

Read the Full Story.

House Transportation and Infrastructure Committee Member Rep. Weber tours Texas rail supplier.

Deer Park, TX — U.S. Representative Randy Weber (R-TX) toured RailWorks Track Systems’ facility in Deer Park today, with Bay Area Houston Economic Partnership President Bob Mitchell, grassroots advocacy organization GoRail, the Railway Engineering-Maintenance Suppliers Association (REMSA) and National Railroad Construction and Maintenance Association (NRC).

Congressman Weber (left) meets RailWorks employees.

The group learned about RailWorks’ efforts as a leader in track and transit systems construction, rehabilitation and maintenance services for U.S. rail infrastructure. They also discussed railroad operations in the region and the industry’s current legislative priorities.

“Railroads are a critical part of the greater transportation network that supports our entire economy. Texas absolutely knows the importance of our railways. We have over 10,000 miles of freight track — that’s more than any other state,” Rep. Weber said. “Rail infrastructure like this — and the many supply companies, like RailWorks, who support it — moves Texas’ economy forward. Starting at the points of energy production and manufacturing and traveling to the Port of Houston and other distribution centers across the state, goods are being moved on our impressive rail network.”

Over the last four years alone, freight railroads have invested $100 billion to build, maintain and enhance the nationwide rail network. This ongoing private spending helps support the rail supply industry, sustaining thousands of jobs nationwide. RailWorks employs 240 in Texas at its Deer Park, Beaumont and Dallas-Fort Worth facilities and, with customers in 48 states, they employ thousands more across the U.S.

“RailWorks is honored to host Rep. Weber today,” said Kevin Riddett, CEO of Railworks Corp. “RailWorks has grown to one of the largest rail maintenance and construction companies in Texas and throughout North America. We have invested heavily in the economic growth locally in Texas and look forward to continuing to support investment across the U.S. and Canada in modernizing all types of railway infrastructure.”

“We’re pleased to be able to provide Rep. Weber with a first-hand look at the important role RailWorks plays in supporting the 140,000-mile rail network, from track inspections to emergency repairs to track rehabilitation,” said Jay Gowan, senior vice president at RailWorks. “Our work is enabled by private spending from freight rail companies, so today was a great opportunity to connect with a policymaker and ask him to oppose policies that would jeopardize railroads’ ability to invest.”

In a meeting prior to the tour, the group discussed how smart public policy enables private railroads to provide public benefits. Railroads have spent a staggering $660 billion since they were freed from overregulation in 1980, leading to a 79 percent decrease in the train accident rate and the doubling of productivity.

Free trade and the regional importance of NAFTA were also discussed. In Texas, the top export state in the country, NAFTA is especially vital to jobs and the economy. Data from the U.S. Chamber of Commerce suggests that withdrawing from NAFTA would put nearly 1 million Texas jobs at risk. Similarly, a recent study conducted by the Association of American Railroads (AAR) found that 42 percent of rail carloads and intermodal units and 50,000 rail jobs depend on international trade.

“Continued rail investment is key to continuing Houston’s prominent role in exporting American products to global markets. Freight rail infrastructure helps make it possible for the Port of Houston to serve as a job-creating engine that contributes to over 1 million jobs throughout Texas,” said Bob Mitchell, president of the Bay Area Houston Economic Partnership.

In Texas, 52 freight railroads maintain 10,539 track miles and employ 16,826 individuals.

Chicago, IL — OK admit it, you are a member of Amazon Prime and you order something almost every day.  Lots of others in Chicago are doing the same thing.  An apartment building with 200 units can receive upwards of 20,000 packages a year. How do they get to you?  You may not realize the big role that trains play in getting you your stuff, and also moving people around the region.  Nearly every consumer product that comes to Chicago finds itself in a rail car at some point, with trucks delivering packages only the last few miles.

One of the biggest freight and passenger rail knots in the country is right in our backyard, at (75th Street between Pulaski and State Street). Luckily, when CMAP releases its draft ONTO 2050 plan for public review in June, the 75th Street Corridor Improvement Program (or 75th Street CIP) will be included among other priority transportation projects of regional significance. The 75th Street CIP is the biggest project of the Chicago Region Environmental and Transportation Efficiency Program (CREATE), a partnership between the freight and passenger railroads, Illinois DOT, Chicago DOT, and Cook County to build 70 freight and passenger rail and highway infrastructure projects to improve rail and traffic flow through Chicago. While many CREATE projects have been constructed since CREATE was announced in 2003, the 75th Street CIP is arguably the biggest freight and passenger rail knot in the country that still needs to be untangled.

“The freight rail networks form a parallel transportation system that most of us do not see in our daily lives.”

The 75th Street CIP will address multiple rail and roadway problems in this corridor, with some of the biggest being that six freight tracks converge into only two tracks in one location (80th street Junction) and five tracks into two in another location (Belt Junction). You know what happens to traffic when a highway gets squeezed from five lanes to two. It’s the same for trains, except that freight trains are up to two miles long and Metra passenger trains, which cross the freight tracks in several locations, are on a rigorous schedule with tens of thousands of commuters expecting to be on time. Amtrak trains that operate on adjacent tracks also suffer from the frequent long freight train backups that can block long-distance passenger trains heading toward the East Coast. Check out this fascinating 8-minute animation developed by an Amtrak Blue Ribbon panel showing how trains struggle to get through the 75th Street CIP area, which this project would fix.

The freight rail networks form a parallel transportation system that most of us do not see in our daily lives. On these often-hidden corridors, rail efficiently moves massive amounts of freight. One intermodal train carries the equivalent of 280 trucks — if we didn’t have trains all this freight would be in trucks jockeying for space on the highways. And in terms of passengers, Metra carries nearly 300,000 people per day; if we didn’t have those 11 commuter rail lines, we’d need 27 more lanes of highways to carry all that traffic.

“One intermodal train carries the equivalent of 280 trucks—if we didn’t have trains, all this freight would be in trucks jockeying for space on the highways.”

If Chicago wants to continue to call itself the transportation hub of the nation we’ve got to clean up major issues like the 75th Street CIP, or feel the impact on the economy and on our roads. These mega-investments require an increased financial commitment by Illinois, even if funded in innovative ways, like public-private partnership with the railroads. We have no time to waste in developing sustainable revenue sources for transportation like 31 other states have in recent years.  Then we’ll have a chance to fix the chokepoints that have challenged rail dispatchers for decades.  You want your packages to get there fast, don’t you?

Postscript:  On June 6, 2018, The CREATE Program partners were thrilled to be awarded a $132M Federal INFRA Grant for the 75th Street CIP Project. The Federal grant was matched by $11 from the Illinois Department of Transportation, $116M from the Association of American Railroads, $78M from Cook County, $23M from Metra, $9M from the City of Chicago, and $5M from Amtrak. This funding will enable design and construction of the CSX freight rail flyover over Metra (Project P3) and construction of a road-rail grade separation of 71st St. and the CSX freight line (GS 19). Additionally, the funding will enable design of a connection between the Metra Southwest Service (SWS) and the Rock Island District to enable SWS trains to operate in and out of the LaSalle Street station and reduce congestion at Union Station. Finally, design is funded to reconfigure the Belt Railway of Chicago main tracks between the Dan Ryan Expressway and Belt Junction, where four freight railroads conflict with each other and Metra’s SouthWest Service operations (Project EW2).

This post was originally published on the Metropolitan Planning Council’s website.

Public-Private Partnerships
Audrey Wennink
By Audrey Wennink
Director of Transportation, Metropolitan Planning Council

Audrey directs MPC’s transportation efforts and coordinates transportation initiatives with other facets of planning including affordable housing, land use, equity and the environment. She leads transportation research and advocacy efforts including pursuing sustainable funding for transportation in Illinois, integration of performance-based planning methods into transportation practice, and developing efforts to boost transportation equity.

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With its robust industries and coastal geography, Washington state continues to be a national leader in trade. A recent op-ed in the Seattle Times by Edward R. Hamberger, president and CEO of the Association of American Railroads, reminds us just how powerful of an economic driver international trade is for the state.

In the United States today, 41 million jobs — or more than 20 percent of all workers — depend on trade. While that is a significant percentage, one study recently found that an impressive 40 percent of Washington’s total job market is tied to international trade. For the Greater Seattle area alone, over 138,000 jobs are directly tied to exports.

There is no doubt that vibrant trade is essential for a healthy Washington economy. But to increase trade levels and grow the economy, infrastructure improvements will need to be made. With it being National Infrastructure Week, now is as appropriate a time as ever to consider this critical issue.

Overseas markets beckon for American goods that would ship from Washington ports. However, insufficient trade terminals limit our ability to take advantage of this economic opportunity. In some instances, proposed facilities that would remedy this problem are bogged down by undue regulations.

Infrastructure improvements would also produce a more efficient and reliable trade economy in Washington. Private railroads that stretch across the state are responsible for moving resources and final products. Local industries rely on freight transportation to both produce goods and ship them to buyers — many of which are overseas trade allies. In fact, more than 40 percent of traffic on private freight railroads is due to trade.

Washington’s rail network, which is privately financed and stands above the pack in its high quality infrastructure, has been instrumental to trade for many decades — which inevitably means that there are areas in need of updating. Choke-points and other sources of delay have emerged with increased traffic. Infrastructure investment from rail companies will play an important role in fixing these inefficiencies and priming Washington for a highly successful trade economy.

As the Seattle Times’ recent op-ed reminds us, trade is essential for Washington and will continue to be. Smart infrastructure development is necessary to accommodate this economic lifeline and ensure future prosperity.

This piece was originally published on www.keepwashingtoncompetitive.com.

Carson City, NV — Northern Nevada Development Authority (NNDA) today announced that Black Gold Rail Terminals: Northern Nevada, a subsidiary of Blacklands Railroad, has established a transloading and storage terminal at the Northern Nevada Railport & Logistics Center in Fernley, NV. With the ability to accommodate most products, Black Gold Rail Terminals can cost effectively help meet a company’s intermodal, logistics, and distribution needs. Texas-based Blacklands Railroad is already investing $1 million for additional railroad track and a locomotive.

The terminal is located at 1000 Reno Highway, and is served by both Union Pacific and BNSF. Already operational, the terminal will be available 24/7, with 5-day a week rail service. For trucks, there is major highway access, and an onsite certified truck scale with printout capability. Black Gold Rail offers onsite railcar switching and repair, along with the ability to track and trace railcars throughout the U.S.

According to Blacklands Railroad President Wayne Defebaugh, “Because Reno-Sparks and the Sierra Region are both bisected by key rail and interstate highways, it has a federal ‘port of entry’ designation. Establishing a Black Gold Rail Terminal in Fernley was a good fit as Northern Nevada’s logistics industry is quickly expanding to meet the multi-modal shipping and distribution needs of customers nationwide.”

Black Gold Rail Terminals: Northern Nevada provides onsite access to rail for the purpose of trans-loading all kinds of products from truck to rail or rail to truck for more cost effective and convenient transportation options.

“Railcars transport some of the ore utilized at our facility,” said Keith Lancaster, a representative of Dicaperl Minerals LLC, a Black Gold Rail Terminals: Northern Nevada customer. “The location of the Black Gold Rail Terminal makes it convenient to our plant. There is a scale onsite, which makes it convenient to weigh our trailers after offloading from the railcars, and the facility is well maintained.”

“We are pleased to welcome Blacklands Railroad to the Sierra Region,” said Robert Hooper, NNDA President & CEO. “The establishment of Black Gold Rail Terminals: Northern Nevada marks the 100th company, since 2010, that we have assisted with expansion or relocation.”

“The combination of Nevada’s rail network and more than 150 freight carriers offers cost-effective logistics for businesses, helping the Silver State attract new warehousing, distribution and manufacturing operations seeking a West Coast hub.”

Hooper continued, “Freight rail is integral to infrastructure, logistics and trade. The combination of Nevada’s rail network and more than 150 freight carriers offers cost-effective logistics for businesses, helping the Silver State attract new warehousing, distribution and manufacturing operations seeking a West Coast hub. This is creating growth opportunities for both rail and trucking operations.”

Trains are the most efficient way of transporting freight over land, moving a ton of cargo about 468 miles on a single gallon of fuel, according to the Association of American Railroads (AAR). In addition, railroads are the most environmentally friendly way to move freight over land. Private rail companies pay their own way with little help from taxpayers. On average, railroads reinvest 40 percent of every dollar they earn back into their infrastructure.

Class II and III small or mid-sized railroad companies, known as short lines, operate over a much shorter distance than larger, Class I national railroad networks. According to the American Short Line and Regional Railroad Association (ASLRRA), short lines operate 47,500 miles of track nationwide, with much of it in rural areas. This keeps these areas connected to the U.S. economy. Short lines invest on average from 25% to 33% of their annual revenues in rehabilitating their infrastructure.

The short lines can transport goods to a transloading facility, where a shipment is transferred from one mode of transportation to another, such as railcar to truck. This commonly occurs when one mode cannot be used for the entire trip, such as when goods must be shipped internationally from one inland point to another. Transloading facilities provide access to rail and other value-added services without a large capital investment by shippers, who do not need to be located directly on a rail line to access rail service.