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Mid-Atlantic Rail Operations Study -- Benefit Assessment Presented by: Jack Lettiere, Commissioner New Jersey Department of Transportation Presented to:

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Presentation on theme: "Mid-Atlantic Rail Operations Study -- Benefit Assessment Presented by: Jack Lettiere, Commissioner New Jersey Department of Transportation Presented to:"— Presentation transcript:

1 Mid-Atlantic Rail Operations Study -- Benefit Assessment Presented by: Jack Lettiere, Commissioner New Jersey Department of Transportation Presented to: AASHTO Annual Meeting September __, 2003

2 Mid-Atlantic Rail Operations Study ■Cooperative effort: 5 states (Virginia, Maryland, Delaware, Pennsylvania, and New Jersey) 3 railroads (Amtrak, Norfolk Southern, CSX) I-95 Corridor Coalition ■Study objectives: Transportation conditions & needs Rail system improvements to reduce need for highway investments Benefits of multi-state rail program Innovative partnership & funding strategies

3 A Capacity Crisis for Passenger & Freight in the MAROPS Region ■20% of the nation's population ■Congestion among worst in US ■Opportunities to build new capacity limited ■Heavy rail transit use, often over freight rail lines ■Rail bridges & tunnels antiquated ■Mainline capacity inadequate ■At-grade crossing conflicts ■Substantial growth projected

4 Mid-Atlantic Highways In 2020 Many at Level of Service "E" and "F" Source: FHWA HPMS Data and Freight Analysis Framework 2020 Forecast

5 ■250 M tons into/out of, 100 M tons through the region in 1998 ■> 100 M passengers per year on Amtrak & commuter lines ■ Rail could do even more -- but... Rail Plays a Major Role in the MAROPS Region

6 Rail Infrastructure is Antiquated ■Major choke points limit trains & speed -- antiquated bridges & tunnels -- lack of mainline capacity -- mix of passenger & freight traffic ■Weight & height limits hinder freight movements locally Howard St. Tunnel, Baltimore

7 Intermodal Rail Flows, Year 2000 (Millions of Tons) North-South Intermodal Rail Service is Very Limited Source: Reebie TRANSEARCH and FHWA Freight Analysis Framework

8 The MAROPS Vision ■Improve rail capacity and operations at the system level: North-south corridors through all five states Shared benefits for passengers and freight ■Focus on eliminating key chokepoints: Obsolete bridges & tunnels Mainline capacity, connections, & height/weight restrictions Congested passenger stations, freight terminals, & grade crossings Impediments to information sharing

9 The MAROPS Program ■$6.2 B in improvements jointly developed by study participants ■$2.4 B near-term [ < 5 years] -- Immediate construction and project planning ■$1.9 B medium-term program [5 to 10 years] -- Major projects ■$1.9 B long-term program [10 to 20 years] -- System growth & expansion

10 Near-Term Program -- North End

11 Near-Term Program -- South End

12 The MAROPS Benefits ■Growth in passenger & freight rail traffic ■Reduced: Highway congestion Public highway investment Emissions & fuel use Cost to highway users & economy ■Improved: Connectivity for ports, shippers & customers Choices & redundancy for passengers Development for industrial areas

13 Rail Freight in MAROPS States (North-South Direction, In/Out/Thru/Internal Traffic) Tons (million) Ton-Miles (million) Loaded Units (millions) 2001 Current 24997, Without MAROPS (Rail Retains Current Volume, Loses Market Share) 24997, With MAROPS (Rail Retains Market Share, Diverts 10% Intermodal from Truck) , MAROPS Impact (includes miles within and outside of the MAROPS states) 8850, Source: PRELIMINARY ANALYSIS OF TRANSEARCH DATA

14 Rail Freight in MAROPS States (North-South Direction, In/Out/Thru/Internal Traffic) Class I's believe MAROPS will provide capacity to accommodate this level of future growth Full utilization of MAROPS capacity will depend on market willingness to buy offered rail services Source: PRELIMINARY ANALYSIS OF TRANSEARCH DATA

15 Truck Flows in MAROPS States (North-South Direction, In/Out/Thru/Internal Traffic) Tons (million) Ton-Miles (million) Loaded Units (millions) Highway VMT (millions) Current 1,420321, , Without MAROPS (Trucks Gain Market Share) 2,439603, , With MAROPS (10% of IMX Diverted to Rail) 2,351553, ,456 MAROPS Impact (About 67% of VMT Change is Outside the MAROPS states) (88) (50,007) (6) (3,585) Source: PRELIMINARY ANALYSIS OF TRANSEARCH DATA

16 User Benefits from MAROPS Changes in Truck Flows ($ Millions, Cumulative Through 2025) MAROPS RegionNational Shipper Costs * $ (5,230) $ (15,847) Highway User Costs ** Auto Delay $ (316) Truck Delay $ (799) Truck Operating $ (10,543) Other $ (7,090) Total $ (18,748) * - shifting VMT from truck at $0.08 per ton-mile to rail at $0.045 per ton-mile ** - travel time and delay, operating, crash Source: PRELIMINARY ANALYSIS USING HIGHWAY ECONOMIC REQUIREMENTS SYSTEM (HERS) MODEL

17 Economic Benefits from MAROPS Changes in Truck Flows Source: PRELIMINARY ANALYSIS USING REGIONAL ECONOMIC MODELING INC. (REMI) MODEL ($ Millions, Cumulative Through 2025) Direct, Indirect & Induced Costs, Change Throughout Economy from: MAROPS RegionNational Reduced Shipper Costs $ (9,828) $ (29,781) Reduced Delay $ (1,400) -

18 Highway Benefits from MAROPS Changes in Truck Flows Source: PRELIMINARY ANALYSIS USING HIGHWAY ECONOMIC REQUIREMENTS SYSTEM (HERS) MODEL ($ Millions, Cumulative Through 2025) MAROPS Region With Elasticity MAROPS Region No Elasticity Highway Construction No change (Analysis in progress) Highway Maintenance $ (11) Pollution $ (207) (Auto VMT "backfills" available highway capacity) (Auto VMT does not "backfill" available capacity)

19 Funding the MAROPS Program ■Railroads can fund some but not all: Amtrak future uncertain Investment need is near-term, but payback on investment is long-term Railroad access to capital limited ■Public/private partnership needed: Bridge the gap Facilitate public investments Innovative financing structures

20 Key Findings and Next Steps ■A 20-year, $6 billion program to address railroad system choke points ■Potential for significant public benefits ■Opportunity to continue innovative regional public and private partnership: Funding strategies Technical studies Fast-track projects State and Coalition action


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