rail freight and economic development - edr groupedrgroup.com/pdf/rail-freight-economic-dev.pdf ·...
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Rail Freight and Rail Freight and Economic DevelopmentEconomic Development
Glen WeisbrodGlen WeisbrodEconomic Development Economic Development Research Group, Inc.Research Group, Inc.2 Oliver Street, 92 Oliver Street, 9thth FloorFloorBoston, MA 02109 USABoston, MA 02109 USA
www. edrgroup.comwww. edrgroup.com
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Three ThemesThree Themes1. Underlying Trends: changing due to
national & global economic markets.
2. Intermodal Rail Freight Projects:reducing costs & expanding services to improve competitiveness.
3. Economic Development: depends on market access & cost competitiveness.
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1. UNDERLYING TRENDS1. UNDERLYING TRENDS
0%
5%
10%
15%
20%
25%
1992 1993 1994 1995 1996 1997 1998 1999 2000
Value of Mfg
Freight Ton-Miles
Population
Freight Growing Faster than Population
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PA PA ---- Freight OFreight O--D by ModeD by Mode
0%10%20%30%40%50%60%70%80%90%
100%
Truck Rail Water Air Truck-Rail
Courier-Mail
tofromwithin
0%10%20%30%40%50%60%70%80%90%
100%
Truck Rail Water Air Truck-Rail
Courier-Mail
tofromwithin
Tons
Dol
lars
Rail Freight Imbalance:
Ratio: outgoingincoming
Tons = 0.86$Val = 0.38
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Intermodal Importance (US)Intermodal Importance (US)Intermodal accounts for a small part of the tonnage, but a large part of the value moving by rail.
0
200
400
600
800
1000
1200
1400
Domestic Exports Imports
Intermodal
Rail
Billions of Dollars
0
500
1,000
1,500
2,000
Domestic Exports Imports
Millions of Tons
COFC: 83% of all IntermodalImports + Exports > Domestic
by 2035
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PA PA ---- Rail Freight FlowsRail Freight Flows
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Appalachian ExportsAppalachian Exports
FloridaFloridaTexasTexas
FOOD PROCESSING MACHINERYOrigin:• PA • GA• SC• OH
Key Ports:• Laredo TX• New York NY .• Detroit MI
FOOD PROCESSING MACHINERYOrigin:• PA • GA• SC• OH
Key Ports:Key Ports:• Laredo TX• New York NY .• Detroit MI
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PA PA ---- NAFTA Trade via Rail NAFTA Trade via Rail
PA to Canada $758 million (+83% from 2000)Canada to PA $2.698 Billion (+85% from 2000)
PA to Mexico $311 million (+44% from 2000)Mexico to PA $104 million (-21% from 2000)
International Trade Administration 2006
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PA PA ---- Exports to Canada by RailExports to Canada by Rail• Locomotives & Traffic Signals• Organic Chemicals• Iron & Steel and Products• Plastics• Mineral Fuels, Oils & Waxes• Wood and Wood Articles• Boilers, Machinery and Parts• Chemical Products
Contrast to Domestic Rail Flows that feature Coal, Petroleum, Pulp & Paper
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2. RAIL FREIGHT ROLES & PROJECTS
SPACE AIR TRUCK RAIL IMX RAIL CL WATER
HIGHER LOWERSERVICE CONTINUUM (Speed, etc.)
$10K $1.50 $.05 - .10 $.03 $.01 $.005
COST CONTINUUM ($ / LB)
Intermodal Strong in the 750+ mile range.Can it penetrate the 200+ mile markets?
Modal Spectrum: Service & Cost Tradeoffs
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Rail Freight to Reduce Hwy TrafficRail Freight to Reduce Hwy TrafficNCHRP Guide:• Converging interests: private carriers, public agencies• Motor carriers (facing labor shortages, truck delays,
rising fuel prices) see rail freight as a positive option.• Reducing congestion and road/rail conflicts can
enhance public safety & economic development
• Guide for evaluation & public-private partnerships
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170 Miles Seattle - PortlandNorthwest Container Services, Inc.• Daily dedicated service• 60,000 containers/year• Private terminals & equipment• Private, purchased train
Keys to Success:• Single-end dray• Stack economics• Economic geography•Turnkey set of services
Successful Short-Haul
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Regional Rail-Hwy Access Strategies– Vancouver Gateway System– Chicago CREATE
Inland Ports and Feeder Systems– Netherlands: European Container Port Venlo– Virginia Inland Port – Nilai Inland Port (Malaysia)– NY: Port Inland Distribution Network
Rail to Satellite Facilities– Betuwe Line - Netherlands– Alameda Corridor - California
Expanding Regional CapacityExpanding Regional Capacity
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Example: Vancouver BC International Trade Gateway
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Example: Chicago Rail YardsExample: Chicago Rail Yards
• 74 rail yards, 17 for intermodal
• delays at 600 grade crossings
http://http://hometown.aol.com/chirailfan/watchmap.htmlhometown.aol.com/chirailfan/watchmap.html
• Congestion from truck trips moving cargo from yard to yard
• Abandoned & under-utilized rail yards
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Inland PortsInland Ports
• European Container Terminal Venlo – 120 miles from Rotterdam
daily shuttle trains
• Virginia Inland Port – 220 miles from Hampton Roads
daily shuttle trains
• Nilai Inland Port (Kuala Lumpur)– 25 miles from Port Klangdaily shuttle trains
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Port Inland Distribution NetworkPort Inland Distribution Network
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Rail Service to Satellite Facilities
Betuweroute Freight Line 100 miles Netherlands port to GermanyShuttle trains
Alameda Corridor20 miles (future 55 miles) San Pedro Ports to Los AngelesShuttle trains
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• Business growth & attraction depends on many cost, quality and market size factors.
• Freight connections alone do not create economic development.
• But failure to provide access or service can constrains it.
• International trends will create more opportunities for intermodal services.
3. Economic Development
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PA PA –– Rail Intermodal TerminalsRail Intermodal Terminals
(Pittsburgh, Harrisburg, Scranton, Allentown, Philadelphia)
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Local Econ Assessment PackageLocal Econ Assessment Package
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LEAP: Barriers to Econ LEAP: Barriers to Econ DevelDevel
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PA PA –– Rail Freight & DevelopmentRail Freight & Development
• Rail Freight Properties Directory (205 listings)
• Rail Freight Assistance Program (track, bridge, siding, spurs for industrial development)
• Intermodal Warehousing & Logistics Centers
• Int. Port Connections (e.g., reverse logistics for military equip. repair (Phila to Ft. Drum, Dix…), future PIDN to Pittsburgh, etc.
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Future: Public-Private Cooperation
FAC & Rail CarriersPublic AgencyMedia coordinationPublic AgencyRail CarriersMulti-jurisdiction coordination
Public AgencyEnvironmentFreight Advisory CouncilPublic AgencyPublic educationFAC & Rail CarriersPublic AgencyNew market assessments
Rail CarriersPublic AgencyTrans-modal effects of investmentRail CarriersFAC & Public AgencyFreight market projections Public AgencyRail CarriersRail capacity investment needs
Rail CarriersRail capacity limits
SupportLeadershipElement