1. U.S. Railroad Industry Federal Railroad Administration U.S. Railroad Industry Federal Railroad Administration

2. The Roles of FRA, DOT and the U.S. Rail Industry

3. Federal Agencies –Federal Railroad Administration –Surface Transportation Board –National Mediation Board Industry Associations –Association of American Railroads –American Short Line & Regional Railroad Association –Railway Supply Institute Major Shipper Associations –National Industrial Transportation League –Edison Electric Institute –American Chemistry Council Federal Agencies –Federal Railroad Administration –Surface Transportation Board –National Mediation Board Industry Associations –Association of American Railroads –American Short Line & Regional Railroad Association –Railway Supply Institute Major Shipper Associations –National Industrial Transportation League –Edison Electric Institute –American Chemistry Council Federal Railroad Administration (FRA), U.S. Department of Transportation Key Players

4. Administrator Public Affairs/ Civil Rights SafetyChief Counsel Administration/ Finance Policy and Communications Railroad Development Federal Railroad Administration (FRA), U.S. Department of Transportation FRA Organization Structure

5. Federal Railroad Administration (FRA), U.S. Department of Transportation FRA Regions

6.  Promulgate and enforce rail safety regulations  Administer railroad financial assistance programs  Conduct research and development in support of improved rail safety  Develop national rail transportation policy  Administer grant agreements to Amtrak Federal Railroad Administration (FRA), U.S. Department of Transportation FRA Mission Statement

7. Operating Statistics and Financial Results of the U.S. Rail Freight System

8. 140,490 miles of road owned by railroads 23,732 locomotives* 1.3 million rail freight cars* 99 average tons per carload* 186,957 workers [Class I – 168,438] 2.0 billion ton-miles carried* 32.1 million freight cars originated $52.2 billion annual operating revenue 11.3% rate of return on shareholders equity* * Class I only 140,490 miles of road owned by railroads 23,732 locomotives* 1.3 million rail freight cars* 99 average tons per carload* 186,957 workers [Class I – 168,438] 2.0 billion ton-miles carried* 32.1 million freight cars originated $52.2 billion annual operating revenue 11.3% rate of return on shareholders equity* * Class I only Federal Railroad Administration (FRA), U.S. Department of Transportation Selected 2006 Rail Freight Statistics

9. Federal Railroad Administration (FRA), U.S. Department of Transportation GIS – Rail Density Map (Volume in Millions of Tons)

10. Billions of ton/km Source: UIC Federal Railroad Administration (FRA), U.S. Department of Transportation 2002 Freight Comparisons [in 000,000 ton/km]

11. Source: UIC Federal Railroad Administration (FRA), U.S. Department of Transportation 2001 Passenger Comparisons [in pax/km]

12. .4% = Oil Pipelines Federal Railroad Administration (FRA), U.S. Department of Transportation Freight Market Share

13. Federal Railroad Administration (FRA), U.S. Department of Transportation Commodities Tons Carried Vehicles 1.9% Other Commodities 9.9% Waste 2.3% Metal & Metal Products 3.1% Lumber, Wood & Paper 4.7% Chemicals & Petroleum 11.8% Farm & Food Products 13.6% Minerals & Ores 9.2% Coal 43.6%

14. Staggers Act Federal Railroad Administration (FRA), U.S. Department of Transportation U.S. Railroad Net Investment [cumulative in billions of $]

15. Others Class I Federal Railroad Administration (FRA), U.S. Department of Transportation U.S. Railroad Industry Staffing [in thousands]

16. Federal Railroad Administration (FRA), U.S. Department of Transportation Staggers Act: Productivity [ton-miles/employee-hour] Staggers Act

17. Rail Rates Staggers Act 1980 Sources: Bureau of Labor Statistics, Producer Price Index for Line-Haul Railroads; Bureau of Economic Analysis, Implicit Price Deflator for Gross Domestic Product Rail freight rates adjusted for inflation declined an average of 0.6% per year from 1990 through 2005

18. Rail, Maritime, and Intermodalism

19. Intermodal traffic second only to coal 1980: 3.0 million trailers and containers originated 2005: 11.7 million trailers and containers originated Double-stack container loads increasing, including expansion from the Midwest to the Eastern Seaboard advantage of 1 train with a crew of 2 hauling 200 containers versus 100 truck drivers and trucks hauling 100 double trailers Intermodal traffic second only to coal 1980: 3.0 million trailers and containers originated 2005: 11.7 million trailers and containers originated Double-stack container loads increasing, including expansion from the Midwest to the Eastern Seaboard advantage of 1 train with a crew of 2 hauling 200 containers versus 100 truck drivers and trucks hauling 100 double trailers Federal Railroad Administration (FRA), U.S. Department of Transportation Intermodal Traffic

20. INTERMODAL GROWTH: LOADINGS IN MILLIONS OF UNITS Source: Association of American Railroads, “Railroad Facts”

21. Freight Volumes Growing Faster than Passenger

22. Issues Facing the Industry

23. Federal Railroad Administration (FRA), U.S. Department of Transportation A Question of Congestion and Capacity Truck Freight Flows, All Commodities All truck types; highway freight density in tons Rail Freight Flows, All Commodities Rail freight density in tons

24. The Future Freight traffic is expected to double by 2020. Population growth and economic growth mean that the domestic transportation system will be further strained. Funding for expansion not identified. Environmental issues will slow increases in capacity.

25. Railroad Freight Growth 2003 - 2008 Rail ton-miles:3.0 % per year Rail intermodal units:4.9 % per year Rail tons carried:2.2 % per year Rail carloads1.9 % per year

26. Rail Capacity Growth Railroads are expanding workforces and infrastructure. Rate of expansion determined by profitability. Demand for intermodal and coal are the key factors. Railroads reluctant to invest “speculatively” – will the demand be there in the future? Railroad profits do not justify rapid increases in capacity.

27. Economic strength and trade relationships will increasingly define global influence in the 21 st century…and influence can help guide change –16 th -19 th century….age of locational advantage –20 th century…age of competitive advantage –21 st century…age of competitive & collaborative advantage In Closing:

28. http:\\www.fra.dot.gov The End