Washington, DC — Kicking off today, the sixth annual Infrastructure Week (May 14-21) elevates infrastructure as an issue affecting every aspect of our society. It’s also an opportune time to reflect on why the nation’s railroad connections matter — for businesses and the economy as well as drivers, consumers and the environment.

Across America, freight railroads handle over 2.2 billion tons of freight annually, hauling everything from consumer goods and food products to pulp and chemicals. These economic engines, fueled by steady investments, are often overlooked despite their vital infrastructure role across the country. Here are five reasons freight railroads are leading the infrastructure pack.

1. They’re privately owned and invest what it takes to keep the economy moving

Believe it or not, the dozens of large and small freight railroads that operate across America’s 140,000-mile rail network are nearly all privately owned. That means they’re paying their own way — a point of departure from other transportation modes that utilize publicly funded roads and waterways.

So when freight travels via rail to markets around the country (and eventually the world, in some cases), it moves along a network that is built, maintained and operated by private dollars. And like most infrastructure, the rail network requires massive spending: Class I freight railroads have collectively invested $100 billion over the last four years alone.

 

2. Rail is the top infrastructure student in the class

In its 2017 Infrastructure Report Card, the American Society of Civil Engineers (ASCE) awarded top marks (a “B” grade) to America’s rail system, while giving the nation’s overall infrastructure a D+. This trend continues if you compare the U.S. freight rail network to its counterparts across the world, with data showing that U.S. rail service is the world’s safest, most productive and lowest-cost.

The explanation behind these successes is simple: consistent, massive infrastructure spending. ASCE, in its report, gets at the heart of why rail companies are able to make these investments, recommending that policymakers “support a regulatory and financial environment that encourages continued private investment in the nation’s freight railroad system.” That is to say, good public policy around rail should strike a balance, allowing rail companies to earn enough to put back into the system while still protecting shippers – a principle enshrined in the Staggers Rail Act of 1980.

 

3. Iron horse innovation advances safety and efficiency

Trains have come a long way since the days of the Iron Horse. Today’s railroads rely on smart sensors that constantly monitor the health and integrity of railcars, locomotives and track, ensuring all parts of the network are at safe and optimal performance. Data and analytics are being used to spot patterns, identify maintenance needs and predict problems before they happen, which helps railroads improve safety and better serve customers.

In Pueblo, Colo., railroads jointly support the Transportation Technology Center, Inc., or TTCI, the world’s leading rail research and testing facility. Many new U.S. rail technologies — like the world’s first laser-based rail inspection system, or on-board computer systems that analyze track geometry — are developed and tested at TTCI. Also housed at TTCI, the Security and Emergency Response Training Center (SERTC), trains thousands of first responders every year, through both hands-on programs and free, web-based training for those who cannot attend in person.

Innovation in the rail industry not only makes it safer — contributing to a 28 percent decrease in the train accident rate over the past 10 years — but means customers can move more for less.

Track health

 

4. Rail is the greenest way to move freight over land

By design, trains have an efficiency edge on moving a lot of freight over long distances. This inherent characteristic, coupled with technological advances, means that railroads today can move a ton of freight 479 miles per gallon of fuel, double what was possible in 1980 and four times the efficiency of trucks. In fact, freight railroads’ 2017 volume was much higher than it was in 1980 while their fuel consumption fell over those 37 years.

Cleaner locomotives, engine shutdown and startup systems and advanced trip planning software also minimize rail’s carbon footprint. If just 10 percent of the freight shipped by the largest trucks instead moved by rail, annual greenhouse gas emissions in the United States would decrease by about 17 million tons—the equivalent of planting 400 million trees.

How far can a gallon take you?

 

5. Trains pack an economic impact punch

Communities benefit when they have access to the nationwide rail network. Local businesses are strengthened by reliable and affordable service, bringing economic development and new jobs. Trains cut down on roadway congestion and save taxpayer dollars by moving freight over rail lines rather than publicly funded highways. They also move one-third of U.S. exports and 40 percent of intercity freight.

Research from Towson University found that, in addition to the 165,000 direct rail employees, major U.S. railroads supported approximately 1.5 million jobs across the country in 2014. Rail’s private investments also generated nearly $274 billion in annual economic activity and $33 billion in tax revenues. That means that for every dollar rail companies invest, $10 is produced across the U.S. economy.

The modern world is fast-paced, interconnected and competitive. So is freight rail.

Railroads apply cutting-edge technology across the entire freight rail network — from tracks to trains and everything in between — enabling a 200-year-old industry to deliver for the U.S. economy in the 21st century.

Privately owned freight railroads have spent and invested more than $660 billion on upgrades to their infrastructure and equipment since 1980, making America’s freight rail network the finest in the world. Much of these funds have been dedicated to the development, adoption and implementation of new technologies aimed at making freight rail safer, more environmentally friendly and more efficient.

Today’s railroads rely on smart sensors that constantly monitor the health and integrity of railcars, locomotives and track, ensuring all parts of the network are at safe and optimal performance. Data and analytics identify maintenance needs, which helps railroads improve safety and better serve customers. Fuel management systems, improved fuel efficiency and cleaner locomotives also minimize rail’s carbon footprint.

The benefits of these advances extend far beyond the 140,000-mile rail network. Automakers, energy producers, farmers and other important American industries have benefited from rail’s use of technology, which allows them to move more products faster and more affordably than ever before.

Big Data, Smart Sensors and the Safest Network Ever

Using a combination of smart sensors, industry-wide data sharing and advanced analytics software, railroads monitor the health of the rail network and equipment in real-time. This data enables railroads to spot patterns, predict problems and improve safety.

  • Ultrasound, radar and the foundation of rail safety — Tiny flaws imperceptible to the human eye can lead to accidents, so railroads rely on technology, such as ultrasound and radar, to look deep inside a track. Similarly, ground-penetrating electromagnetic radar allows railroads to assess the health of ballast and detect any abnormalities, such as water intrusion, which can cause erosion.
  • Data-sharing and the big picture — The Asset Health Strategic Initiative (AHSI) was launched by railroads to track the health of the nation’s 1.6 million railcars. Thousands of smart sensors monitor the integrity of railcars and, as part of AHSI, this data is fed to Railinc, an industry-owned information technology and services company. Railinc uses software to glean insights, taking a bigpicture view to identify patterns, predict problems and guide component manufacturing.
  • PTC, a high-tech solution to combat human error — Positive Train Control (PTC), a transformative technology designed to automatically stop a train in cases involving human error, will not only help to prevent accidents, it will also serve as the foundation for future innovation to enhance the safety and efficiency of the network. By the end of 2018, Class I freight railroads will have all hardware installed, all spectrum in place, all employees trained and at least 80% of PTC-required route miles in operation, well beyond the 50% mandated by the federal government.
Rail Technology Lifts Other Industries

Rail technology allows railroads to move more goods faster and more affordably than ever before, providing clear benefits to customers.

  • Software calibrates train trips by the minute — Freight rail dispatchers use advanced trip-planning software to develop ideal routes for trains traveling in a region. The software analyzes a train’s schedule, the area’s topology, speed restrictions, the crew’s schedule and other factors, using an algorithm to determine the best plan for each train to follow over the next eight hours — and shares it with dispatchers.
  • Preventative maintenance keeps trains moving — With wayside detectors identifying problems on passing trains, railroads can react quickly, preventing bigger fixes or even accidents. By performing maintenance early, railroads are able to prevent disruptions in service and create a fluid, seamless system.
  • Maximizing efficiency minimizes costs — North American rail rates are the lowest in the world. U.S. freight rail rates (measured by revenue per ton-mile) are well below those in Europe, China and Japan. This gives U.S. industries a significant competitive edge in the global marketplace.
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Sacramento, CA — Rail officials and advocates, led by the California Short Line Railroad Association (CSLRA), gathered at the Capitol in Sacramento today to discuss California’s freight railroads, their role in moving the state and local economies, and current legislative proposals that would affect railroads at the state level.

California’s 26 freight railroads move millions of tons of freight each year, connecting California ports, businesses and customers with domestic and international markets. The state’s two Class I railroads, BNSF and Union Pacific, plan to collectively spend over $350 million in California on their infrastructure and operations in 2018, bringing their total investment in the state to just under $2 billion in the last five years.

CA Rail Day

The state’s many short line railroads, which are often locally owned and operated, are vital to the communities through which they operate. CSLRA discussed a number of state legislative issues today, including ACA 22, or the “Middle Class Fiscal Relief Act.” CSLRA opposes the proposal because it would represent one of the largest tax increases in the state’s history, adding to an already high corporate tax rate and discouraging corporations from locating in California, which would negatively impact most of CSLRA’s member companies.

“From San Diego to Shasta, from San Francisco Bay to the Sierra Foothills, short line railroads haul a wide variety of products: everything from imported goods in containers to agricultural products, lumber to petroleum products, and even passengers on a few tourist operations,” said CSLRA Executive Director Don Norton.

Freight rail is also fundamental to California’s flourishing intermodal industry, which ranks first for tons of intermodal cargo entering and exiting the state. Working in concert with California’s ports, trains reduce congestion and pollution while providing efficient and cost-effective connections for California’s goods movement industry. Without rail service, according to a 2017 report by the California Department of Transportation, container flows through the ports of Los Angeles and Long Beach would be reduced by 38 percent and truck traffic would increase by 44 percent.

Railroads’ private investments not only bolster efficiency across the network, they also enhance safety and promote the development and use of innovative new technologies. Ultrasound track technology, unmanned aerial vehicles (UAVs) and positive train control are just a few of the innovations railroads deploy to make a safe network even safer.

“At the core of California’s intermodal infrastructure is freight rail, which is also the nation’s only privately funded transportation mode,” said Nate Kaplan, California State Director for GoRail. “While many of our highways, waterways, runways and other publicly funded infrastructure have been starved for cash, freight railroads doubled down in recent years with record investments in track, equipment and technology to hold up their end of the intermodal bargain.”

California’s 26 freight railroads operate over 4,800 miles of track and employ 8,877 in the Golden State. Intermodal shipments comprise the majority of freight rail shipments both beginning and ending in California.

Hamel, MN — Senator Amy Klobcuhar (D-MN), a member of the Senate Commerce, Science and Transportation Committee, which oversees railroad policy, joined representatives from Loram Maintenance of Way, Inc., United Steel Workers Local 2002-9, Operation Lifesaver, Inc., Amtrak and local Minnesota railroads for a tour of Loram’s state-of-the-art manufacturing facility and a discussion on rail safety programs and continued economic development in greater-Minneapolis. The American Short Line and Regional Railroad Association (ASLRRA), GoRail, the National Railroad Construction and Maintenance Association (NRC), the Railway Engineering-Maintenance and Suppliers Association (REMSA), and the Railway Supply Institute (RSI) coordinated the event. Together the groups represent a diverse group of railroad stakeholders in Minnesota: Class I railroads, short line railroads, railroad contractors, and railroad suppliers.

Founded in 1954, Loram Maintenance of Way started out as a small operation consisting of two simple machines, and a handful of employees. Today, Loram has become one of the leading suppliers of track maintenance machinery and services in North America and the global market. Loram provides maintenance of way services to Class I and short line railroads, transits, and commuter rails. They employ over 1,200 globally, with over 368 residing in Minnesota. Loram is a proud member of ASLRRA, GoRail, NRC, REMSA and RSI.

The facility tour was led by Loram President & CEO Phil Homan.

“Senator Klobuchar serves in a crucial oversight role and we appreciate her leadership advocating for increased infrastructure investments and encouraging the use of cutting-edge technologies on the rail network” said Homan. “The privately funded and maintained freight railroad network is one of the few bright spots in America’s infrastructure network and recently received a ‘B’ grade from the American Society of Civil Engineers. It is critical that our lawmakers encourage policies that allow railroads to earn an appropriate return on their infrastructure investments so we can continue to safely expand and upgrade the network. Loram and our employees are extremely proud to provide railroads and transit systems innovative and reliable track maintenance machines and create jobs here in Minnesota.”

U.S. Senator Amy Klobuchar was elected in 2006 and is serving her second term. She is the first woman elected to represent the state of Minnesota in the United States Senate. As a member of the Senate Commerce Committee, Sen. Klobuchar has been a leader in working to implement a competitive agenda to ensure businesses have the tools they need to grow and create good jobs in their communities.

The group highlighted Senator Klobuchar’s support of the BRACE Act, S.407, which would make permanent the Short Line Tax Credit. The credit was retroactively extended to cover 2017 in the recently passed budget deal, but is currently off the books for 2018 and beyond. Sen. Klobuchar is a co-sponsor of S. 407.

The group also spoke about the possibility of a Congressional infrastructure package. As a part of the package, the group called for predictable and dedicated capital investments for intercity passenger rail and no increases in truck weight or size. At current weight and size limits, trucks already cause more damage than they pay for to our nation’s highways.

“Loram Maintenance of Way is a key supplier partner, providing equipment and services short lines need to maintain their rail infrastructure and operate safely and reliably,” said Linda Bauer Darr, president of ASLRRA. “The short line railroad tax credit, which would be made permanent by the BRACE Act, is an essential piece of the economic puzzle, allowing short lines to invest more of their own capital in rail improvements and maintenance to provide ever-safer and more robust service capabilities for their customers. Increased capital investments supported by the short line tax credit benefit the entire US rail supply industry.”

“Hands-on, local experiences like this are invaluable for demonstrating the freight rail story to policymakers,” said Larry Lloyd, Minnesota state director at GoRail. “Like Loram, thousands of businesses across the U.S. are directly and indirectly supported when railroads spend private dollars that create public benefits, from more efficient and cost-effective transportation for shippers to less congestion and pollution for citizens.”

“Thank you to Loram for hosting Senator Klobuchar today to share the importance of well-paying rail construction and supply job creation,” said Matt Bell, COO, NRC. “Railroad contractors in Minnesota and across the United thank Senator Klobuchar for being supportive of federal rail infrastructure investments. We also encourage Senator Klobuchar to continue to fight against increasing the federal limit of the size and weight of trucks that are allowed on our nation’s highways. Increasing federal truck size or weight limits would raise costs to Minnesota state and local transportation agencies and create unsafe conditions on our highways.”

“We greatly appreciate Loram’s leadership in hosting Senator Klobuchar to share their Minnesota rail supply success story,” said Sean Winkler, director of advocacy, REMSA. “Forward-thinking, evidence-based federal policies are critical to the continued success of the rail supply industry. Our stakeholders here today look forward to continuing to work with Senator Klobuchar to ensure Minnesota businesses can efficiently and safely access the world market by rail.”

“Rail supply companies are a vital component of the U.S. rail industry,” said Nicole Brewin, vice president government affairs, RSI. “America’s railway suppliers represent a $28 billion/year industry supporting more than 100,000 American workers. Investment in rail helps support rail supply jobs in heartland communities in more than 44 states and hundreds of congressional districts.”

The group was also joined by Minnesota Operation Lifesaver, Inc., a statewide nonprofit, affiliated with Operation Lifesaver, Inc. whose mission is to raise awareness and provide free education to drivers and pedestrians alike about how to make safer decisions around tracks and trains in an effort to bring the number of preventable tragedies closer to zero. Since the organization began educating people nationwide in the 1970’s there has been an over 80% reduction in collisions between vehicles and trains. However, grade-crossing collisions remain a continuing concern.

In Minnesota, 19 freight railroads operate over 4,200 track miles and employ over 4,500.

Washington, D.C. — While GoRail is just a small piece of a tremendous effort during the annual Railroad Day on Capitol Hill, we convene a group of constituents that packs a punch in conveying how freight rail investments ultimately impact local communities. For over 10 years now, our focus for the day is elevating the voices of our local rail advocates, who are leaders in their own communities and see the public benefits of railroads first-hand every day.

Sen. Cortez Masto speaking with NNDA's Rob Hooper.
Sen. Cortez Masto speaking with NNDA’s Rob Hooper.

This year, this group included Alan Cobb, President & CEO of the Kansas State Chamber of Commerce; Mayor Derek Armstead of Linden, NJ; Commissioner Michael Beard of Scott County, MN; Clayton Harris III, Executive Director of the Illinois International Port District; Eric Poole, Executive Director of the Florida Association of Counties Foundation; Theresa Zajac, Vice-President of the Southwest Detroit Business Association; Chris Cap, Executive Director, Pennsylvania Association of Boroughs; and Rob Hooper, Executive Director of the Northern Nevada Development Authority.

Throughout dozens of Hill meetings, these advocates tried to cut through some of the more abstract and technical policy details on the docket and provide a tangible perspective on rail’s local impact.

An efficient intermodal system – fueled by private freight rail spending – supports success at the Illinois International Port District and helps decongest the massive Chicagoland freight complex. In Scott County, MN and across the state, freight rail is a key partner for farmers and helps to keep shipping prices affordable. In New Jersey, one of the most densely populated U.S. states, freight rail keeps about 2.6 million trucks off the road annually.

These personal stories were well received by legislators and staff, who almost universally appreciate freight railroads’ privately-owned infrastructure – especially when contrasted with U.S. roads and highway systems, which suffer from chronic underfunding. Our advocates are able to plainly make the connection between local economic success and the balanced economic regulations that enable high levels of steady rail investment. Because, as most policymakers realize, infrastructure is expensive and requires on-going commitment.

Mayor Derek Armstead of Linden, NJ (center) with Senator Cory Booker (left).

Indeed, this was one of the main messages of the day: freight rail’s user-pay example should serve as a model as we consider broader infrastructure policy.

The group did experience limited pushback on the regulatory piece, with some offices looking for clarification on current proposals before the U.S. Surface Transportation Board, particularly mandatory reciprocal switching, or “forced access.” We conveyed how these proposals would ultimately undermine competition, lead to network-wide inefficiencies and risk long-term rail investment. Most offices seemed unwilling to upend the current balanced framework after this discussion.

All in all, GoRail had a productive Railroad Day on Capitol Hill. Our advocates made valuable connections with their legislators and were able to explain exactly how that $1 of rail investment amplifies to $10 more in their communities.

Note: This piece was originally published in Railway-News.com.

Tallahassee, FL — Rail officials and advocates gathered at the Capitol in Tallahassee today to discuss Florida’s freight railroads and their role in moving the state and local economies. Freight rail companies have collectively invested $25 billion annually over the last five years into the 140,000-mile nationwide rail network, fueling steady efficiency and safety gains.

Florida’s 14 freight railroads, including Jacksonville-based CSX, move millions of tons of freight each year, connecting Florida ports, businesses and customers with domestic and international markets. CSX alone serves 12 ports in Florida. Rail connections like these supported over $130 million in new or expanded rail-served facilities on CSX or its connecting regional and short lines in 2015, per the most recent data available.

Florida Rail Day 2018
Robert Ledoux, Florida East Coast Railway; State Sen. Denise Grimsley; Pete Petree, Pinsly Railroad Company

Railroads’ private investments not only bolster efficiency across the network, they also enhance safety and promote the development and use of innovative new technologies. Ultrasound track technology, big data and unmanned aerial vehicles (UAVs) are just a few of the innovations railroads deploy every day to make a safe network even safer.

Freight rail is also a key piece of Florida’s booming intermodal freight industry. Jacksonville, for example, was recently named one of the top cities in the U.S. for intermodal access – this distinction supported by Jaxport’s new CSX-served intermodal container facility.

“At the core of Florida’s intermodal infrastructure is freight rail, which is also the nation’s only privately funded transportation mode.”

“At the core of Florida’s intermodal infrastructure is freight rail, which is also the nation’s only privately funded transportation mode,” said Christy Sammon, Florida State Director for GoRail. “While many of our highways, waterways, runways and other publicly funded infrastructure have been starved for cash, freight railroads doubled down in recent years with record investments in track, equipment and technology to hold up their end of the intermodal bargain.”

Florida’s 14 freight railroads operate over 2,818 miles of track and employ 4,981 in the Sunshine State. Intermodal shipments and nonmetallic minerals comprise the majority of freight rail shipments both beginning and ending in Florida.

Port Hueneme, CA — Situated on the scenic California coastline just 60 miles north of Los Angeles, the Port of Hueneme has carved out a niche for handling automobiles, fresh produce, cargo, bulk liquids and fish.

The port’s strategic location on the Pacific Rim facilitates trade with Asia and Australia and its robust, uncongested rail and road connections have made it a magnet for automobile and agricultural shipments. In particular, the port’s own Class III short line railroad, the Ventura County Railway, connects to Union Pacific’s North American rail network – meaning quick turnaround and efficient intermodal service to markets across the country.

Hueneme also hosts the largest cold storage capacity on the west coast, providing California’s Central Coast agriculture industry with weekly ocean services to global markets. And it boasts the top rank among West Coast ports for banana imports, receiving about 3.3 billion bananas annually. It’s no surprise that shippers are attracted to the only commercial deep-water port between Los Angeles and San Francisco.

While Hueneme is a native Chumash word meaning “resting place” or “half-way place,” the staff at Port of Hueneme are hardly resting. The $9 billion worth of goods that travel through the port annually supports 13,633 trade-related regional jobs and, in 2017, generated $1.5 billion in economic activity.

Leading the effort is Port Director & CEO Kristin Decas. Decas was recently selected as Top Port Director of the Year by the International Association of Top Professionals, in addition to being named Outstanding Woman of the Year in International Trade by the Los Angeles chapter of Women in International Trade. We asked Decas a few questions about her role at the Port of Hueneme, how the port uses rail and the effect of free trade policy on port business.

Why has increased rail capacity been important for the POH?

Decas: The Port of Hueneme’s rail connectivity is key to our expansion capabilities and environmental initiatives. Through Ventura County Railway and its connection to Union Pacific, the increased rail capacity has the potential to put more cargo on rail – such as cars, heavy machinery and even fruit – and moving it out further distances, to the Pacific North West, Midwest and Southeast. The rail capacity increases the ability of our customers to extend their reach into the United States’ supply chain and expand their market of sales and sourcing. The efficiency of rail connections and the ability to load near-dock is a key strategic competitive advantage for the Port of Hueneme as we endeavor to grow cargo throughput and move more cargo without creating congestion on traffic patterns or putting pressure on the environment. Our relationships with top customers have been able to flourish in recent years because of their ongoing and increased use of the rail asset.

“Our relationships with top customers have been able to flourish in recent years because of their ongoing and increased use of the rail asset.” 

We appreciate the partners we have in the rail operators – Genesee and Wyoming and Union Pacific railroads. Through our mutual open and communicative style of business development, we have been able to secure more business, increase productivity of our rail spurs and plan for long term development of new rail capacity on and off dock to serve the Port of Hueneme.

How do international trade policy decisions made in Washington, D.C. affect business at the POH?

Decas: International trade policy decisions made in Washington, D.C., play a crucial role in the long-term planning and decision making of our customers, especially on how they choose to route their cargo and best compete in their markets. Many of our shippers and exporters are global companies that have worldwide operations and they can source their products and supplies from multiple countries and locations. Tariffs, limited trade policies and unfavorable trade actions can sometimes create challenges for international trade if they make it harder to compete in the global marketplace. Effective trade policies create the opportunity for increased business and economic growth.

We work well with our stakeholders in the state of California and in Washington, D.C., to continue to elevate the level of visibility and understanding for ports like ours that provide good-paying jobs, increase communities’ economic viability and provide ladders of opportunity for our youth. Rail is an important part of this discussion.

How did you prepare for your role at the POH and what’s your advice for young women interested in working in the goods movement industry?

Decas: I was fortunate to have great mentors throughout my career who have instilled in me the value of remaining strong and adaptive in different situations. When I was in Port of New Bedford, MA, one of the largest fishing ports in the nation, I worked with the mayor. He once advised me to stay strong and “Make a fist!” to remind myself of the strength that I have within me – that I am able to take on any challenge that comes my way.

My simple advice is to work hard, listen, learn and go for it. I was the only woman that applied for my position out of 60 applications. If you grasp opportunities and “Make a fist,” you will go far!