Presentation is loading. Please wait.

Presentation is loading. Please wait.

Denver Chamber of Commerce Joseph Bateman, VP Public Affairs – Northern Region January 16, 2009.

Similar presentations


Presentation on theme: "Denver Chamber of Commerce Joseph Bateman, VP Public Affairs – Northern Region January 16, 2009."— Presentation transcript:

1 Denver Chamber of Commerce Joseph Bateman, VP Public Affairs – Northern Region January 16, 2009

2 Portland Oakland LA Calexico Nogales El Paso Seattle Eagle Pass Laredo Brownsville Dallas Houston New Orleans KC Memphis St. Louis Chicago Omaha Denver SLC Eastport Twin Cities Duluth Fast Facts Miles of Track32,200 in 23 States Employees49,000 Annual Payroll$3.9 B Customers25,000 Locomotives 8,700 Freight Cars 106,000 Union Pacific System

3 Granger S.Morrill Sioux City Shawnee Jct. Sharon Springs Bond Wichita Pueblo Stratford Hutchinson Herington Arco North Platte Denver O’Fallons Gibbon Jct. Council Bluffs Fremont Topeka Lincoln Marysville Paola Provo Grand Jct. Walsenburg Rawlins Cheyenne Salina Phippsburg Dalhart Denver Service Unit

4 Denver Service Unit 2008 Revenue - $2.2 Billion

5 Denver Service Unit Facts Employees:2354 Miles of Track:2937 Main Track:2448 Branch Line: 489

6 Subdivision Train Mix Moffat Tunnel Subdivision Union Pacific: 16 / 17 Trains per day Amtrak: 2 Trains per day Ski Train: 2 Trains, 4 days a week BNSF: 4 Trains per day

7 Subdivision Train Mix Colorado Springs Subdivision Union Pacific: 6 / 7 Trains per day BNSF: 40 Trains per day

8 Subdivision Train Mix Greeley Subdivision Union Pacific: 16 / 17 Trains per day Limon Subdivision Union Pacific: 14/16 Trains per day

9 Freight Railroads in Colorado 2006 Number of Freight Railroads 14 Miles Operated* 2,645 Total Carloads Carried 2,873,787 # of Freight RR Employees 3,042 Average per Freight RR Employee –Wages $69,900 –Benefits $27,100 Total Compensation $97,000 Total Wages of Freight Employees$ 212 M RR Retirement Beneficiaries 7,349 RR Retirement Benefits Paid $112 M * excludes trackage rights

10 Freight Railroads in Colorado, cont. Millions of Rail Tons Carried % Coal24.373%Coal16.149% Food Products2.06Nonmet. Minerals2.99 Petroleum Products1.34Glass & Stone Prod.2.37 Nonmetallic Minerals1.44Lumber & Wood1.86 Glass & Stone Prod.1.13Chemicals1.34 All Other3.210All Other8.426 Total %Total % Millions Tons Terminated 2006Tons Originated 2006

11 UP Colorado Capital Spending $64 $108 $65 $53 $64 Total 5 years $354M or Average $71M/year

12 Freight Railroads Are the Transportation Backbone of America  Connect businesses and consumers across the country and overseas  Most efficient and cost- effective in the world  ~$25 billion in wages and payments to retirees each year  Billions of dollars in local purchases and taxes  Connect businesses and consumers across the country and overseas  Most efficient and cost- effective in the world  ~$25 billion in wages and payments to retirees each year  Billions of dollars in local purchases and taxes

13 The Fundamentals of Railroad Economics Cannot be Ignored  Railroads are networks: what happens in one place affects many others.  Can’t be easily picked up and moved.  “Density is the god of transportation.”  Huge differences in customer demands and options.  Railroads are networks: what happens in one place affects many others.  Can’t be easily picked up and moved.  “Density is the god of transportation.”  Huge differences in customer demands and options.

14 U.S. Freight Railroads Have Certain General Characteristics  Vast majority privately-owned  Typically, same company owns the track and operates trains over it  No forced access  Low government funding  Freight & passenger are separate  Vast majority privately-owned  Typically, same company owns the track and operates trains over it  No forced access  Low government funding  Freight & passenger are separate

15 Pipeline does not include natural gas. Source: Bureau of Transportation Statistics America’s Freight Railroads: Freight Transportation Leaders Railroads Trucks Water Pipeline (ton-miles)

16 U.S. Freight Railroads in 2007

17 Source: AAR Revenue Volume Productivity Price Staggers Act Passed Oct U.S. Railroad Performance: (Index 1981 = 100)

18 A Variety of Forces Have Been Pushing Freight to Railroads

19 Armour Yellow Outside -- Green Inside Rail Transportation Is Three Times More Fuel Efficient Than Trucks. UP Can Haul One Ton 790 Miles on One Gallon of Diesel Fuel. One Intermodal Train Takes up to 280 Trucks off the Highway, the equivalent of 1,100 automobiles. One slot for a passenger train consumes 2 freight train slots. 2 freight train slots therefore equal 560 trucks or the equivalent of 2,220 autos. Rail Transportation Is Three Times More Fuel Efficient Than Trucks. UP Can Haul One Ton 790 Miles on One Gallon of Diesel Fuel. One Intermodal Train Takes up to 280 Trucks off the Highway, the equivalent of 1,100 automobiles. One slot for a passenger train consumes 2 freight train slots. 2 freight train slots therefore equal 560 trucks or the equivalent of 2,220 autos. UP “Green Goat” Hybrid Locomotive

20 Double the Freight on Same Amount of Fuel! Volume = revenue ton-miles. Source: AAR (Index 1980=100)

21  New locomotives “Gensets” Hybrids  Technology Monitoring systems Idle reduction Trip planning software  Training  Component design  New locomotives “Gensets” Hybrids  Technology Monitoring systems Idle reduction Trip planning software  Training  Component design Ways Railroads Conserve Fuel

22 *Volatile organic compounds Source: Univ. of Iowa Public Policy Center for the U.S. DOT Freight Rail is Cleaner 1:4 1:7 1:1 3 1:2 2

23 Source: EPA U.S. Greenhouse Gas Emissions by Source: 2006 Non-transportation 72.4% Trucking 5.7% Passenger transport* 20.0% Freight RRs - 0.7% Other freight transport 1.2% *On-road vehicles, aircraft, recreational boats, passenger rail Freight RRs Account for <1% of Greenhouse Gas Emissions

24 Steady Rise in Rail Carloads (millions of carloads originated) Data are for Class I railroads. Includes WRPI from Source: AAR

25 One Result of Traffic Growth: Tight Capacity on Parts of the Rail Network Source: AAR Millions of Class I Ton-Miles Per Mile of Road Owned

26  Aggressive hiring  Massive equipment and infrastructure investment  Aggressive hiring  Massive equipment and infrastructure investment  New operating plans  Cooperative alliances  Working with customers  Technology What Are Railroads Doing to Increase Capacity?

27 Record Capital Spending Class I RR Capital Spending ($ Billions) Source: AAR $9. 2

28 Railroads Spend More Than Most State Highway Agencies! *Data include capital outlays and maintenance expenses. Sources: FHWA Highway Statistics Table SF-12, AAR Class I Railroad Spending* on Way & Structures vs. State Highway Agency Spending* ($ billions) 1.Texas$ Florida $ California $4.19 Union Pacific $4.17 BNSF $ New York $ Pennsylvania $ Illinois $3.30 CSX $ Michigan $ North Carolina $ Ohio $2.14 Norfolk Southern $ Georgia $1.88

29  Prepared for the National Surface Transportation Policy and Revenue Study Commission.  First effort of its kind involving the freight railroads.  Objective: estimate cost to expand rail infrastructure to handle traffic forecast by DOT for 2035 National Rail Freight Infrastructure Capacity and Investment Study

30 % Growth in Trains Per Day From 2005 to 2035 by Primary Rail Corridor ,500

31 Future Corridor Volumes Compared to Current Corridor Capacity Below capacity Near capacity At capacity Above capacity 2035 without improvements

32 Support Passenger Rail - But Not at the Expense of Freight Rail  Passenger service should complement, not conflict with, freight service.  Adequate liability protection.  Fully compensate freight railroads for passenger use of their property.  No forced commuter rail access to freight-owned property.  Freight railroads should not be expected to subsidize passenger service.  Passenger service should complement, not conflict with, freight service.  Adequate liability protection.  Fully compensate freight railroads for passenger use of their property.  No forced commuter rail access to freight-owned property.  Freight railroads should not be expected to subsidize passenger service.

33 True High-Speed Passenger Rail Can’t Work on Freight Tracks  Safety  Operating differentials  Capacity and efficiency  Engineering requirements  Safety  Operating differentials  Capacity and efficiency  Engineering requirements

34 Points to Remember Regarding High-Speed Passenger Rail  If we’re going to do it, do it right.  Fast, dependable service necessary to compete with air and highway.  Piggy-backing on freight railroads will give yield a third-rate passenger rail system.  Goals of reducing pollution and highway congestion can be realized if we ensure that passenger trains don’t interfere with freight service.  If we’re going to do it, do it right.  Fast, dependable service necessary to compete with air and highway.  Piggy-backing on freight railroads will give yield a third-rate passenger rail system.  Goals of reducing pollution and highway congestion can be realized if we ensure that passenger trains don’t interfere with freight service.

35 Denver Chamber of Commerce Joseph Bateman, VP Public Affairs – Northern Region January 16, 2009


Download ppt "Denver Chamber of Commerce Joseph Bateman, VP Public Affairs – Northern Region January 16, 2009."

Similar presentations


Ads by Google