News & Resources

David Brooks hit the nail on the head in "A National Mobility Project" (column, Oct. 31) when he said developing a long-term strategy to address our nation's infrastructure should be a top priority for our next president.

Our economy cannot prosper if our transportation infrastructure lacks sufficient capacity. As the American population grows, so will the demand for transportation services; in fact, the Department of Transportation has projected that demand will rise 92 percent by 2035.

Without a strong, healthy transportation system in place to meet this demand, American businesses won't be able to import and export goods efficiently, and our ability to compete in a global economy will be hindered.

It's imperative that the next president make addressing our nation's infrastructure needs an urgent priority when he arrives in Washington. In addition to repairing our nation's aging highways and bridges, a smart plan should not overlook the importance of expanding capacity on the freight rail network to ensure productivity growth and the efficient and economical movement of freight.

Norman Mineta
Washington, Nov. 3, 2008

The writer is a former secretary of transportation in the Bush administration.

Intermodal Bolsters Railroad Profits

FleetOwner

By Sean Kilcarr, senior editor

October 29, 2008

Continued growth in demand for intermodal services boosted revenues and profits for the major railroads in the third quarter this year – demand driven in large measure by shippers seeking to cut transportation costs.

"In today's environment, manufacturers and distributors are highly focused on gaining greater efficiency in their supply chains and railroads offer them the best transportation alternative," said Michael Ward, chairman, president and CEO of Jacksonville, FL-based CSX Corp.

CSX reported third quarter earnings of $382 million – a 40% increase from the same period in 2007 – on an 18% gain in revenue to $3 billion. Ward noted that nine of the CSX's 10 market segments producing revenue gains despite ongoing softness in the housing and automotive sectors of the economy – led by shipments of export coal, grain, ethanol and metals, as well as strong yields and fuel recovery in all markets.

Norfolk, VA-based Norfolk Southern said that, despite flat volumes, intermodal revenues were up 16% to $560 million for the third quarter compared with the same period of 2007. The railroad reported net income increased to $520 million in the third quarter – up from $386 million in the same period last year – as operating revenues increased 23% to $2.9 billion compared to the third quarter in 2007.

Norfolk Southern noted it hit those numbers despite continued weakness in the automotive and housing-related industries, contributing to a 1% reduction overall traffic volumes compared to this time last year – though those declines were mostly offset by strength in coal shipments.

Omaha, NE-based Union Pacific also did well, achieving record quarterly financial results despite a challenging economic environment and record-high diesel fuel prices, said Jim Young, UP's chairman and CEO. "Solid pricing, increasing fuel cost recoveries and strong operating productivity all made positive impacts on our third quarter earnings," he said.

Young noted freight revenue grew 16% to a best-ever $4.6 billion in the third quarter this year as five out of the UP's six business groups – agricultural, chemicals, energy, industrial products, and intermodal – posted all-time record revenues and boosting average revenue per car to a record $1,931. Though business volumes in the third quarter, as measured by carloads, were 5%t lower than the same period in 2007 due to the slower economy and disruptions from hurricanes, growth in higher density, long haul shipments boosted UP's, revenue ton-miles by 1% to 145.8 billion.

Overall, UP's net income soared to $703 million in the third quarter this year, compared to $532 million in the same period of 2007.

Even Canadian railroad giant CN benefited from intermodal growth, as its third-quarter net income increased to C$552 million (US$433.4 million) from C$485 million (US$380.4 million) in the same period last year – based on a 12% jump in third-quarter revenues to over C$2.25 billion (US$1.76 billion) Those numbers resulted from big revenue growth in five of CN's seven commodity groups, led by coal (41%), metals and minerals (29%), intermodal (24%), petroleum and chemicals (9%), and automotive (3%).

"Looking forward, the uncertain economic landscape in North America and around the world will pose challenges to CN and its customers," said E. Hunter Harrison, Montreal-based CN's president and CEO. "But we believe CN is well positioned to weather the headwinds – we have a unique business model anchored on precision railroading, and a strong freight franchise with growth prospects in intermodal, bulk commodities and energy-related developments in Western Canada."

North Baltimore to Fund Rail Site Improvements

The Toledo Blade (OH)

October 16, 2008

Village Council and Henry Township trustees have approved a plan to help pay for nearby improvements for the $80 million rail terminal CSX Transportation intends to build just west of North Baltimore.

The village and township agreed Tuesday night to create the Henry Township-Village of North Baltimore Joint Economic Development District, which will allow it to collect a 1 percent income tax from workers employed at the 500-acre CSX site during the construction of the intermodal hub.

The funds generated will be used to pay for roads, signage, and related projects. Construction is expected to begin early next year and take more than a year.

Ohio Lt. Gov Lee Fisher Endorses the National Gateway

Intermodal rail: the long-term solution

The Journal of Commerce

By W. Gordon Fink

September 1, 2008

Container dwell time is a growing challenge to the efficient operation of the marine terminal. It is a major deterrent to the ability to improve supply-chain velocity. Studies have found that the average container dwell time ranges from five to eight days. Forecast increases in vessel size will add to the long-term impact of failure to improve container dwell time.

Most U.S. ports are in heavily populated urban areas. Available land adjacent to deep water is scarce. Terminal expansion is expensive and time-consuming. Port area residents feel that they carry unfair environmental burdens, especially increased road congestion and reduced air quality. They push back when ports want to expand operations in their "back yard."

Truck appointment systems at terminals, extended gate hours, chassis pools and the West Coast's PierPass penalty fees are short-term improvements. Acute shortages of drayage drivers are predicted as a result of new federal security regulations that include immigration, criminal and terrorism background checks for credentials. Increased fuel costs add to these challenges, seriously impacting the use of truck for both short- and long-haul movement of marine containers.

The long-term solution is rapid rail transfer of freight containers to and from remote inland intermodal rail transfer yards. Space-consuming reconsolidation and distribution activities can be performed at lower-cost locations close to newly established distribution centers and cross-docking facilities. This can create business areas that will be new sources of employment and tax revenue. The same marine terminal advantages accrue to the staging of loaded or empty export containers at the off-terminal location.

The challenge is how to manage and fund these new "regional systems." The current Department of Transportation management is strongly on the side of selling existing highways and using tolls to repay long-term investment. There has been strong local objection to this principle where it has been applied to our current highway infrastructure. The proposed systems using rail transfer and remote terminals have the advantage of being "new." Additionally, ports are generally viewed as good, long-term investments, with fairly steady volumes and existing waterside infrastructure.

No one solution will fit all regions, but the following attributes should be a catalyst either to using an existing organization such as Southern California's Alameda Corridor, or creating a new one that will bring local partners together and obtain the required innovative financing. The proposed solution is not only "new" but should quickly gain public support by reducing congestion and environmental pollution while being an efficient means of transportation for marine freight. Public-private partnerships are in vogue and allow joint relationships to be established with the local port authorities, state governments and the private sector. Local public funding will be hard if not impossible to obtain in the current financial environment - state bonding action will take time and lots of debate.

The proposed projects should be eligible for federal credit through the Transportation Infrastructure Finance and Innovation Act. TIFIA approval should not take as long since the proposed systems are innovative, use state-of-the-art technologies, and meet local, state and national goals. The projects certainly meet the goal of being important for improving the efficiency of port operations, contributing to the local economy, improving the environment and meeting the needs of U.S. consumers.

We do not have a national freight transportation plan. Recent commissions and mode-advocacy groups have supported the need for such a plan, but the DOT has taken the position that no new federal funds are available for infrastructure investment. This means that regional solutions are going to be the only way to create urgently needed improvements in port efficiency and the transportation of marine freight.

Hopefully, the current DOT position will spawn new regional organizations that will take the initiative to: provide operational oversight and establish creative funding sources; use rail to rapidly move containers from the marine terminals to remote intermodal railyards; and adopt rail as the most efficient and environmentally responsive way to move marine freight to its final inland destination.

It is a win-win solution - increasing the efficiency of the nation's marine terminals and ports, reducing local area congestion and environmental pollution, and developing a more efficient means to transport marine freight to its destination.

Meeting Challenges That Face the Port

The Baltimore Sun (Letters)

By, Rochelle "Rikki" Spector

August 20, 2008

In response to The Sun's editorial "Double port trouble" (Aug. 7), I would note that we need to make all investments possible for the port of Baltimore's future. The port is critical to the Mid-Atlantic region and tremendously important to the region's economy.

Railroads are a crucial mode of transportation for the port, especially today, as highway congestion in the region worsens. I support increasing freight railroad capacity at the port.

According to The Sun's editorial, the port's capacity to double-stack freight containers on rail cars is limited because of aging tunnel infrastructure. But there is hope.

There is legislation before Congress, the Freight Railroad Infrastructure Capacity Expansion Act, that could help spur infrastructure expansion by providing tax credits for projects that increase capacity.

Perhaps this bill could help us meet some of the port's challenges.

Rochelle "Rikki" Spector, Baltimore

The writer is a member of the City Council.

CSX to Begin $724M Double-Stack Initiative to Lift Service

The Jacksonville Business Journal (FL)

By Mark Szakonyi

July 28, 2008

What's happening?

CSX Corp. is gearing up its $724 million public-private infrastructure initiative to create an efficient freight railroad link between Mid-Atlantic ports and the Midwest.

Why does it matter?

By improving its rails, the railroad company will be able to double-stack transportation containers on the rail cars on routes from east to west, thus saving fuel, cutting down on pollution and increasing train use. Double-stacking means stacking one container on top of another.

What's driving it?

Because of increased traffic through the Suez Canal, Mid-Atlantic ports are receiving more cargo, and are expected to receive even more when expansion of the Panama Canal is completed in 2014. Plus, the weaker dollar is boosting manufacturing in the Midwest, creating a need for better routes back to the East Coast.

Lastly, competitor Norfolk Southern Corp. has launched a similar initiative to open up the Midwest to Mid-Atlantic ports.

Aside from expanding and adding new terminals, what else needs to be done?

Overpasses and bridges will have to be raised, and tunnels will need to be bored out to allow the taller double-stacked trains to pass through.

Where is the funding coming from?

CSX is investing $362 million of its own money, and it is expecting the federal government and involved state governments together to match it.

What is the likelihood of the federal government and state governments kicking in?

Good, considering the government agencies realize the economic impact potential of strengthening the rail infrastructure. Plus, the rising cost of diesel fuel is making rail transport more attractive.

What's the time frame?

The initiative kicked off last year and is expected to be completed in 2015.

Key to getting the necessary federal funding is the Highway Authorization Bill in 2010. Construction will begin in 2010.

How is CSX working to get the government agencies involved?

CSX has been in talks with the involved states' transportation departments and various congressional staff members. The most promising news came several weeks ago, when Ohio Gov. Ted Strickland announced he was trying to secure funding for his state's share.

How would the initiative make freight transport safer?

It would increase the amount of cargo that could be shipped by rail, which is the safest mode of ground transportation.

Fewer trucks on the road translate to less congestion and less chance of accidents.

CSX estimates states would see up to $251 million in safety cost savings over 10 years because of the shift.

What does a railway expert think of the initiative?

It's a good idea because it will allow CSX to be "coastally agnostic," Anthony Hatch, ABH Consulting principal, said.

The current administration hasn't been supportive enough of improving the country's railway system, Hatch said, but both presumptive presidential candidates are expected to be more helpful.

Analysis-US Rails Benefit From Fuel, Trucks Awaiting Recovery

Reuters

By Nick Carey

July 18, 2008

For decades, trucks have been the undisputed choice of most companies for hauling freight long distances in the U.S. economy, carrying more than 80 percent of all goods.

But with oil prices at record levels and trucking costs so high, shippers are beginning to look to the railroads as a far cheaper, if less reliable, alternative.

"What we're seeing is the start of a modal shift," said Jason Seidl, an analyst at investment bank Dahlman Rose. "In the past, shippers have been reluctant to move freight to trains from the highway because they are slower and less reliable."

"But the price differential is now so wide that they are reexamining trains as an option," he added.

"We're looking at the trucking sector being a 2009 recovery story at this point," said Lee Klaskow, an analyst at Longbow Research. "We're being more conservative on these stocks until it looks like the U.S. economy is on firmer ground."

Once that happens, truckers that survive the downturn will be able to charge more as demand recovers, even if oil prices remain high.

While the price of oil has tailed off since last Friday's all-time peak of $147.27, it is still about double what it was a year ago.

That hurts truckers, especially when combined with weak demand thanks to sluggish retail sales, a home construction slump and the worst U.S. auto sales in a decade.

As rail officials never tire of pointing out, trains only use around a third of the fuel it takes trucks to move the same freight. This makes them attractive to shippers hurt by the fuel surcharges transport companies have imposed because of higher oil prices.

Trend toward Intermodal

Analysts say this week's second-quarter results from U.S. trucking company JB Hunt Transport Services Inc and railroad CSX Corp (nyse: CSX - news - people ) highlight this trend.

Truckload, or long-haul truck firm, JB Hunt reported a higher-than-expected profit, thanks to a 28 percent jump in intermodal revenue. Intermodal services use standardized containers -- holding consumer or finished goods -- that can be hauled by ship, truck or train.

In a statement JB Hunt said using intermodal to send goods by train had "allowed our customers to partially mitigate the impact of historically higher fuel prices."

The company also said it had reduced its truck fleet by nearly 11 percent over the previous year because of declining business at one of its two trucking divisions.

"We believe much of the trend toward intermodal has been aided by high fuel costs, which have made intermodal considerably more cost effective," Wachovia (nyse: WB - news - people ) analyst Justin Yagerman wrote in a note for clients.

CSX reported a higher net profit this week despite a 3 percent decline in freight volume but said domestic intermodal shipments were up 12 percent on the year.

Analysts expect the other major railroads -- Union Pacific Corp (nyse: UNP - news - people ), Burlington Northern Santa Fe Corp (nyse: BNI - news - people ) and Norfolk Southern Corp (nyse: NSC - news - people ) -- to post solid results next week thanks to strong pricing, despite disruptions caused by major flooding in the Midwest that primarily affected Union Pacific and BNSF.

The railroads have all maintained pricing power in recent quarters, even though freight volumes have declined, because capacity is still relatively tight.

Trucking companies, however, are not expected to report stellar results.

"None of the big trucking companies are at risk of going under," Dahlman's Seidl said. "But in the short-term we're going to see some challenged results on the truckload side."

Analysts have predicted that falling demand would push weak truck firms out of the market and the remaining companies would benefit because that would aid the supply-and-demand equation.

Some 1,000 small U.S. truck companies went bust in the first quarter and two larger firms -- Delano, New Jersey-based Jevic Transportation Inc and Kalamazoo, Michigan-based Alvan Motor Freight Inc -- shut up shop in the second quarter.

The disappearance of these trucking firms has reduced competition for the remaining truckers, but there has been little uptick in demand. And with the economy continuing to look shaky, conditions may not improve soon.

"(G)iven general economic pressures, we now believe industry demand will ramp more slowly than our original expectations and consequently are taking a more conservative view of 2009 for our coverage universe," R.W. Baird & Co analyst Jon Langenfeld wrote in a research note.

Trucking firms are on the U.S. economy's front line. When things go bad, they suffer first, but when recovery comes they are among the first to benefit.

Analysts said that when the economy does eventually pick up, truck demand will outstrip supply, allowing trucking companies to increase their rates.

"When the U.S. economy recovers the truckers will have pricing power like the railroads do today," Longbow's Klaskow said.

Virginia Rail Agency to Unveil Draft Edition of Statewide Rail Plan

ProgressiveRailroading.com

July 15, 2008

The Virginia Department of Rail and Public Transportation (DRPT) will present a draft statewide rail plan during five public meetings to be held around the commonwealth this month.

Hosted by the Commonwealth Transportation Board, the meetings also will enable DRPT officials to obtain feedback on the plan, which outlines proposed freight- and passenger-rail projects. An update to DRPT's 2004 statewide rail plan, the 2008 version reviews the current state of the commonwealth's rail system and challenges facing the system, such as increasing demand for freight and passenger service, population growth and capacity constraints.

Projects identified in the plan — which represent $4.9 billion in potential investments — involve Class Is, short lines, passenger railroads, the Port of Hampton Roads and a high-speed rail initiative. Class I projects include CSX Transportation's National Gateway Corridor, which would parallel Interstate 95 through Virginia; and Norfolk Southern Corp.'s Crescent Corridor along I-81, Heartland Corridor along U.S. Route 460 and Coal Corridor along Route 460.

Estimated to cost $68 million, proposed short-line projects would bring all of the commonwealth's short-line rail systems up to federal freight and passenger standards, boost small railroads' capacity, and improve Amtrak service between Orange and Clifton Forge. Estimated to cost $178.9 million, port projects include an expansion of the Norfolk International Terminal's central rail yard, construction of the Craney Island rail connection and improvements to the Norfolk Portsmouth Belt Line Railroad.

Passenger-rail projects — which would total $1.7 billion — include commuter-rail improvements on Virginia Railway Express between Alexandria and Manassas, Manassas and Gainesville/Haymarket, and Fredericksburg and Washington, D.C.; and intercity rail initiatives Urban Crescent Express and TransDominion Express. Finally, the proposed $1.2 billion Southeast High-Speed Rail Project calls for establishing high-speed service between Washington and Raleigh, N.C., including a connection between Hampton Roads and Richmond, Va.

DRPT will accept public comments and responses to surveys on the plan until Aug. 25. The agency expects to release a rail action plan in September.

Fuel-efficient freight rail deserves more federal support

The Hill

By Sen. Tom Carper (D-Del.)

July 10, 2008

Today, across the country, policymakers, industry and consumers alike are all looking for more affordable ways to move people and goods.

Consider this: America's railroads can move one ton of freight roughly the distance between Washington, D.C., and Boston on just one gallon of diesel fuel.

That's pretty amazing energy savings in this time of gas prices topping $4 a gallon and airlines slashing schedules.

It's time we take full advantage of more fuel-efficient forms of transportation and start to think beyond just our highways and airways.

Rail has always been an efficient form of transport, and our nation's railroads continue to make improvements. Today, our trains are 3.1 percent more efficient than they were last year and a whopping 85 percent more efficient than they were in 1980.

Think of how much better off our country would be if all energy users had improved their efficiency by 85 percent since 1980.

And while much has been said recently about more Americans riding Amtrak and our nation's other passenger rails, that is just one half of the track, so to speak.

I'm convinced that robust freight rail service is one of the keys to a sustainable future for our country and our planet.

While trucks will remain a vital component in our nation's transportation system for a long time to come, freight trains help Americans beat congestion by reducing the number of trucks on our roads and saving drivers time, money and fuel costs. For example, one single intermodal train takes some 280 trucks off the road.

And, being so fuel-efficient, freight railroads emit fewer greenhouse gases than cars and trucks. In fact, the Environmental Protection Agency says freight trains emit only one-third the greenhouse gases emitted by trucks.

This means that for every ton-mile of freight that moves by rail and not on highways, greenhouse gas emissions are reduced by two-thirds. The efficiency of rail also means fewer emissions of nitrogen oxide and other particulate matter.

But if freight and passenger rail are to play a bigger role in our nation's future, we must invest in rail infrastructure to keep up with that expanded role. Already some of our county's rail corridors are congested, and freight traffic continues to grow. According to a study completed last year by Cambridge Systematics, unless capacity is increased, at least one-third of the nation's main rail corridors will be congested by 2035.

Freight railroads are reinvesting large amounts of their own funds into America's rail systems, but that will not be enough funding to take full advantage of railroads' potential to meet our transportation needs. We in the government must do a better job of addressing our nation's aging rail infrastructure.

Recent congressional proposals have included providing a tax credit for projects that expand freight rail capacity or encouraging more public-private partnerships for freight railroad infrastructure projects.

Public-private funding partnerships reflect the fact that cooperation among the railroads and government is far more likely to result in timely, meaningful solutions to transportation problems than a go-it-alone approach.

Yet another option is to ensure that federal climate change legislation directs a portion of funding generated by the sale of emissions credits to rail infrastructure. With today's high energy prices and greater attention focused on climate change, we cannot continue to wait to enhance freight rail capacity.

Next year, when Congress considers legislation to reauthorize the surface transportation program, fight climate change and address high gas prices, it will be vitally important that lawmakers remember the key role that transit, passenger rail and freight rail play in reducing our nation's reliance on foreign oil, while cutting harmful emissions and getting people and goods where they need to go.

Carper is a member of the Senate Commerce, Science and Transportation Committee.

Statement by Senator George Voinovich (R-OH)

The United States Senate

Jun 6, 2008

Mr. President, I rise today to address the impact the freight rail industry has on reducing our greenhouse gas emissions. According to a recent Department of Transportation study, freight traffic is expected to increase 67 percent by 2020--against a backdrop of concerns about global climate change, the stringency of clean air standards, increased traffic congestion, high energy prices, and the need for greater energy independence. Freight rail is the most energy efficient and environmentally friendly mode of land transportation. Today, freight rail can move a ton of freight 436 miles on a single gallon of diesel. U.S. freight railroads have significantly reduced their carbon intensity and fuel efficiency. In 1980, 1 gallon of diesel fuel moved 1 ton of freight by rail an average of 235 miles. In 2007, the

I am pleased that CSX is working with Ohio, Virginia, North Carolina, West Virginia, and Pennsylvania on the National Gateway. The National Gateway is a plan to create a more efficient rail route linking Mid-Atlantic ports with midwestern markets, improving the flow of rail traffic between these regions by increasing the use of double-stack trains. This public-private partnership will upgrade tracks, equipment and facilities, and provide clearance allowing double-stack intermodal trains.

The National Gateway proposes preparing three major rail corridors for double-stack clearance: I-95 corridor between North Carolina and Baltimore, MD, via Washington, DC; I-70/I-76 corridor between Washington, DC, and northwest Ohio via Pittsburgh, PA; and Carolina corridor between Wilmington, NC and Charlotte, NC. The result will be thousands of new jobs, improved railway reliability, and the diversion of heavy trucks from crowded highways leading to reduced emissions and highway maintenance costs and improved road safety.

Since the I-70/I-76 corridor between Washington, DC, and northwest Ohio is a highly traveled route, it is well-located to become an efficient link between the east coast and midwestern markets. Expansion of rail infrastructure in Columbus, OH, and North Baltimore, OH, will help alleviate some of the freight congestion in the Chicago, Cincinnati and Cleveland areas. The National Gateway project would build a new rail terminal in North Baltimore, OH, and expand intermodal capacity in Columbus, creating thousands of new jobs. I look forward to working with the Virginia, North Carolina, West Virginia, and Pennsylvania delegations to make this partnership a reality.

Study: freight rail would save D.C. drivers nearly $1,000 per year

Washington Business Journal

by Tierney Plumb

June 30, 2008

Freight rail can help reduce time spent in traffic gridlock and save drivers hundreds of dollars in gasoline and hours behind the wheel, according to a traffic congestion study of 82 major urban areas.

If 25 percent of freight volume is shifted from trucks to rail by 2026, each driver in the D.C. area would annually save 38 hours in their car, 71 gallons of fuel and $891 in fuel costs, according to the study released by D.C.-based Association of American Railroads.

Since modern freight locomotives emit less nitrogen oxide and particulate matter than trucks, they would decrease air pollutant emissions by 22,000 tons in the area, and 920,500 tons across the U.S.

Freight trains, which are at least four times more fuel efficient than trucks, can move one ton of freight 436 miles on one gallon of fuel.

"Because one intermodal train can take nearly 300 trucks off our highways, shifting freight from trucks to trains reduces competition between commuters, drivers and freight traffic for space on the road," said Wendell Cox, author of the study and principal of Demographia. "Freeing up space on our highways increases the flow of traffic and saves commuters' time, money and gasoline."

Want to Reduce Greenhouse Gasses by 12 Million Tons A Year? Ship by Rail, Not by Truck

The Lindberg Report

By Max Lindberg

May 22, 2008

"Railroads are the most environmentally friendly and energy efficient way to move goods on land."

Freight trains have evolved over the years, carrying freight in a variety of ways, including taking semi-trailer rigs off the highways and shipping them on flat-cars. If you're anywhere near a railroad track, you'll see what are called intermodal trains carrying shipping containers stacked on top of one another, along with trailers and the usual box cars and other forms of equipment.

However, the physical infrastructure in some areas of the country creates a barrier for some railroads who want to stack shipping containers in order to carry more freight.

Such is the dilemma of mid-Atlantic coast rail line CSX, anticipating completion of the Panama Canal Upgrade project. When completed, ships with more than double the capacity of freight containers will be able to make the transition between the two oceans, increasing the amount of goods delivered to and shipped from mid-Atlantic ports.

CSX has launched it's National Gateway program, a $700 million project to expands the railway's freight carrying capacity.

I spoke with Mr. Robert Sullivan of CSX, about the project, what it will mean to the mid-Atlantic-Midwest shipping corridor, and to the environment.

"One immediate benefit is as this gets built, it takes trucks off the interstates, including Interstate 68," Bob Sullivan, CSX spokesman, said. "There are different benefits, and one of the main ones is the environment because this will reduce some of the material that goes into the air. It also will reduce the wear and tear on highways."

Click here to listen to the podcast interview.

I've posted a written version of the podcast on Gas2.0.

National Gateway; $700 million CSX initiative to have local impact

The Cumberland Times-News (MD)

By Maria Smith

May 20, 2008

It's a $700-million venture that while it may not involve construction along the rails through Cumberland, it will have an impact on them.

Earlier this month, CSX Corp. revealed its plans for what's known as the National Gateway, a public-private partnership designed to "create a highly efficient transportation link between the Mid-Atlantic ports and the Midwest."

Annually, railroad tracks carry about 76 million tons of freight through Maryland. By 2020, it's estimated that the rails will carry more than 25 billion tons of freight nationwide.

National Gateway would allow CSX to "double stack" its intermodal trains, which is transportation that uses more than one carrier, such as rails and tractor-trailers.

An obvious problem is clearance and the need to make sure trains have room to move through tunnels.

National Gateway has two phases, one of which would require CSX to build or expand intermodal terminals where product is exchanged between the trains and trucks. At the same time, CSX, state and federal governments would work to create the "double-stack clearance" necessary for such trains. These would be below public overpasses along the railroad.

CSX has committed $300 million to the project and will work with several states and the federal government to secure the remaining $400 million. To date, Ohio is the only state to sign on for the effort and CSX chose Pacer International, a CSX customer in Dublin, Ohio, as the site of the announcement.

"We're talking with all states and it's being well received and well thought of," Sullivan said, noting the plan is to have the project completed by about 2015.

The rail corridors to be enhanced include the Interstate 70/Interstate 76 corridor between Washington and northwest Ohio through Pittsburgh; I-95 corridor between North Carolina and Baltimore through Washington; and what's known as the Carolina corridor between Wilmington and Charlotte, N.C.

CSX expects the initiative to create thousands of jobs.

"More and more, the nation is becoming aware of the tremendous safety, economic and environmental benefits that railroads create," Michael Ward, chairman, president and chief executive officer of CSX, said in a news release. "Our trains can move a ton of freight 423 miles on a single gallon of fuel, and one train can carry the load of more than 280 trucks."

Cambridge Systematics, a transportation research firm, conducted a study of the National Gateway and found that for every $1 in public monies invested, $8 will be seen in public benefits. The study noted that by "improving the flow of freight and shifting freight transportation from the highway to the railway, the initiative will improve safety, relieve congestion, benefit the environment and reduce highway maintenance costs."

CSX rails cover about 21,000 miles in 23 eastern states and Washington and connect to more than 70 ocean, river and lake ports.

Transportation infrastructure: CSX launches National Gateway

Rail carrier says $700 million PPP will provide efficient transportation link between Mid-Atlantic ports and Midwest

Logistics Management

By: Jeff Berman, Group News Editor

May 12, 2008

DUBLIN, Ohio-Earlier this month, Class I railroad carrier CSX Corporation unveiled its plans for the National Gateway, a $700 million public-private partnership (PPP) infrastructure initiative that it said will provide a highly efficient transportation link between the Mid-Atlantic ports and the Midwest. The railroad carrier has committed $300 million to the National Gateway and plans to work with various states and the federal government for the remaining funding needed.

CSX said that when the National Gateway is completed, it will provide greater capacity for product shipments in and out of the Midwest, reduce truck traffic on congested highways, as well as create thousands of jobs that will directly or indirectly support the National Gateway.

The company explained that the National Gateway will be comprised of the following: the building or expansion of several high-capacity, job-producing intermodal terminals where product shipments are exchanged between trucks and trains; and CSX collaborating with state and federal government agencies to create double-stack clearances beneath public overpasses along the railroad, which allow each train to carry roughly twice as many cargo boxes, according to a company statement.

The announcement introducing the National Gateway was made at the offices of CSX customer, Pacer International, a provider of freight transportation and logistics services with a major presence in the intermodal transportation marketplace. Anthony B. Hatch, principal of ABH Consulting in New York, told LM that the National Gateway, continues the model to bring in a wide variety of constituents to support efforts to add infrastructure capacity and plan for a future where rails will take a greater role.

"What's striking to me is that not only is this an interesting public-private partnership but that by announcing at Pacer's HQ it clearly demonstrates the intermodal (ship-truck-rail) cooperation that will be critical today and even more so in the future to make these corridors (and really, freight movement in an increasingly congested world) work," said Hatch. "CSX is spending for the future, even in a freight recession, and as an analyst who believes in the "rail renaissance" I find that highly encouraging."

CSX said that the National Gateway will focus on three existing rail corridors that run through Maryland, Virginia, North Carolina, Pennsylvania, Ohio, and West Virginia: the I-70/I-76 Corridor between Washington, D.C. and northwest Ohio via Pittsburgh; the I-95 Corridor between North Carolina and Baltimore via Washington, D.C.; and the Carolina Corridor between Wilmington and Charlotte, North Carolina.

Similar in scope: The National Gateway in some ways-most notably creating double-stacked clearances-is similar to Norfolk Southern's Heartland Corridor, which runs between the port of Hampton Roads, Virginia and Chicago. NS began working on the Heartland Corridor last November. It is expected to be completed in 2010 and is expected to increase capacity by raising vertical clearances in 28 tunnels along the Heartland Corridor.

Ohio Town Feels Economic Pinch

Ohio News Network

May 13, 2008

Most everyone is feeling the strain of the economy, whether it is high gas prices, grocery store costs or jobs cuts.

In one month, the northwest Ohio town of North Baltimore saw a 10 percent loss of it's job force.

ONN's Denise Alex visited the town now hoping one company can keep the village financially on track.

At 83, Dorothy Franks can't think of anywhere else she would rather be than North Baltimore.

Her 88-year-old husband, Merle Franks, agrees.

"It is a nice town, nice people," said Mr. Franks.

Still, nice doesn't cut it when it comes to keeping jobs in a village of 3,300.

"Things have changed a lot here," said Mrs. Franks.

In just the past month, two of the village's big employers announced cuts or closures.

The Johnson Rubber Company folded last month, taking 130 jobs with it.

Now, North Baltimore's Continental Structural Plastics Plant is laying off 200 of it's 270 person workforce by the end of the year.

A plastics worker who didn't want to be identified is among those soon-to-be out of work.

"I've got a back up plan," said the worker of 25 years. "But I feel really sorry for a lot of those other folks that don't. The way these companies don't care about your loyalty to them."

Many hope construction expected to begin at the end of the year on a new $80 million CSX Rail terminal, with 100 possible jobs available just west of North Baltimore, will help the area.

"Anything to boost, you're glad to get anything," said Merle Franks.

Mr. Franks remembers a booming North Baltimore. At that time, there were lots of grocery stores, banks, and very few vacant buildings.

"Now there are a lot of people out here who drive to Findlay, 18 miles, to buy groceries," said Mr. Franks.

Many hope the new CSX Rail terminal will get this village's economy back on track, but it won't be open until 2010.

Just a couple of years to some, but it is an eternity for others waiting for work.

"You see it happening in other communities, it's happening everywhere," said the soon-to-be laid off worker. "Things have got to change."

The First Step Toward a New Economic Future for Northwest Ohio

CBS WTOL 11 Editorial

By: Bob Chirdon, Vice President and General Manager WTOL 11

May 9, 2008

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"CSX announces Wood County terminal as part of bigger plan"

The Toledo Blade

By David Patch

May 1, 2008

CSX Transportation's planned rail terminal west of North Baltimore, Ohio is part of a broader "National Gateway" campaign to improve freight transportation between mid-Atlantic ports and the Midwest, the railroad announced during a news conference Thursday in Dublin, Ohio.

Of $300 million of its own money that CSX has committed to the project, $130 million is to be spent in Ohio, including $80 million for the new North Baltimore terminal and $50 million for expansion of an existing rail yard in south Columbus.

But CSX also is seeking public funds, primarily to replace road overpasses that are too low for trains carrying freight containers stacked two-high on flatcars to pass beneath.

Over the past quarter century, so-called "double-stack" trains have become the railroad industry's most efficient means for transporting containerized freight, both in conjunction with ocean ship lines and on routes within North America.

In meeting with local officials to plan for the North Baltimore terminal, CSX officials indicated that one of its key purposes would be sorting shipments received at Chicago from railroads serving Pacific ports into new trains bound for points throughout CSX's network.

Such shipments today are often unloaded at the western railroads' terminals, trucked across Chicago's congested expressways, then reloaded onto trains at CSX's Chicago yards.

Cargo bound for destinations less than a day's drive from Chicago often takes the highway the rest of the way from the Windy City - business the railroad would like to tap into.

Yesterday's news conference, however, revealed an eastern dimension to the North Baltimore facility.

To allow freight to flow between North Baltimore and ports in North Carolina, Virginia, and Maryland, CSX has requested that Ohio spend about $60 million to raise or replace 16 low bridges that span its Chicago-Pittsburgh-Washington main line in eastern Ohio, spokesman Bob Sullivan said.

Similar requests have been made for such "clearance projects" along the same route in Pennsylvania, Maryland, and West Virginia and on connecting routes in other eastern states. CSX estimated the combined cost of building terminals, raising bridges, and other improvements at $700 million.

Gov. Ted Strickland responded favorably to the plan's Ohio portion.

"This is a major competitive advantage that can greatly benefit the citizens of Ohio, and the state of Ohio is committed to doing its part to help build this sort of needed infrastructure," he said in prepared remarks. "In doing so, we'll also be setting an example for other states around the nation."

The North Baltimore facility, for which CSX hopes to break ground late this year and plans a 2010 opening, is expected to employ about 100 people and stretch along the north side of State Rt. 18 between Liberty Hi and Range Line roads in southwestern Wood County.

Last week, a CSX subsidiary purchased 77 acres in the middle of the site that had been the largest missing piece among an estimated 500 acres to be used for the terminal.

"CSX's National Gateway initiative to include South Side rail yard"

The Columbus Dispatch

By Mike Pramik

May 1, 2008

CSX Corp. plans to invest $50 million in its South Side rail yard as part of a multistate project designed to increase the flow of goods through the Midwest.

The National Gateway initiative, as the company calls it, spans six states and involves building several new rail terminals and solidifying miles of track to support double-stacked shipping containers. The result would be more goods coming to Ohio from the East Coast, the company said today.

The project would include construction of "intermodal" terminals in northwestern Ohio and at the CSX yard at Groveport Road and Parsons Avenue that allow the company to move shipping containers back and forth between rail cars and tractor-trailer trucks.

The Ohio investment is expected to total $190 million, and the projects could bring thousands of new jobs to the state by the time they are completed in 2015, the company said.

The CSX project is larger than Norfolk Southern's $150 million Heartland Corridor effort, which resulted in a new terminal accommodating both rail and over-road shipping near Rickenbacker Airport.

"I think we both see that central Ohio is a key area for logistics development in the future, and we both want to play," said CSX Chief Executive Michael J. Ward.

After decades of cutbacks and business lost to trucking companies, railroads are making a comeback thanks in part to high gasoline prices. Ward said railroads can ship a ton of freight 423 miles on one gallon of fuel and one train can carry the load of more than 280 trucks.

Gov. Ted Strickland helped CSX roll out the plan, in the works for at least a year, at the Dublin offices of Pacer International Logistics. Strickland said the state "is committed to doing its part" to build the infrastructure.

"This is a major competitive advantage that can greatly benefit the citizens of Ohio," Strickland said.

Ohio will be asked to contribute $30 million toward rebuilding rail lines, an amount that would be matched by federal funding, said Lisa Mancini, CSX vice president of strategic infrastructure initiatives. The $60 million in infrastructure improvement work in Ohio would cover 16 sites outside central Ohio.

"No one has written a check, but so far we have gotten very favorable response (in Ohio)," Mancini said.

While the expanded rail yard could give central Ohio's logistics industry a boost, the National Gateway actually bypasses Columbus. It unites the East Coast ports of Wilmington, N.C.; Portsmouth, Va.; and Baltimore, and it will send goods westward through Pittsburgh and to million terminal in New Baltimore, in northwestern Ohio.

CSX has 4,000 miles of track in Ohio, including two lines that run from Toledo to Columbus. One of them goes through Marion, where CSX opened a terminal for mixing road and rail shipping in 2006.

The project might not increase the amount of freight that moves through Columbus, but it " certainly will change the direction from which it comes and will certainly let the cargo move in its most-efficient route," said Mike Uremovich, CEO of Pacer Logistics.

CSX said it has started clearing the South Side site. Part of the project involves moving Sills Park, a 23-acre baseball field operated by Columbus Recreation and Parks Department. Parks spokeswoman Terri Leist confirmed the department has had an initial meeting with CSX about moving the diamonds nearby.

However, Mancini said, it's unclear when the new terminal will be completed. Ward said it's possible the future of CSX's West Side yard could be as an expanded "transflow" terminal, where goods are broken down into smaller shipments.

CSX said that by allowing for double-stacked container shipments, the National Gateway will enhance existing rail corridors running through Ohio, Pennsylvania, West Virginia, Virginia, Maryland and North Carolina.

"Last year our operating income was $2.2 billion, and we put $1.7 (billion) back into the infrastructure," Ward said. "We really think it's going to be required for the long term."

"CSX plans Ohio terminals"

The Associated Press

By Julie Carr Smyth

May 1, 2008

COLUMBUS, Ohio - CSX Corp. said Thursday it will spend $300 million on upgrades that would allow trains with double-stacked cars to run from the East Coast to the Midwest.

For the effort to go forward, the federal government would have to provide an additional $400 million to change 70 overpasses in six states that would be too short for the double-stacked cars to pass under.

The Florida-based railroad points to its plan to invest in two Ohio freight terminals that would handle the trains with taller cargo cars as proof it is serious about the issue. Those terminals would be in North Baltimore in northwest Ohio and in Columbus.

The railroad says double-stacked trains use about the same amount of fuel to carry more freight faster.

New map promotes Appalachian attractions by car "Interestingly, a lot of states are starting to realize more and more that some relatively small investments in rail infrastructure can be very cost-effective in relieving congestion," Michael Ward, CSX's chairman, president and chief executive, said in an interview.

The company's National Gateway project would prepare three major rail corridors in the eastern United States to handle train cars stacked boxes high.

Overpasses in six states - Ohio, Pennsylvania, West Virginia, Virginia, North Carolina and Maryland - would have to be dealt with to make the project happen, either by lowering railroad beds or by notching or replacing bridges, said vice president Lisa Mancini.

CSX will invest a combined $130 million in the two Ohio terminals that would sit at the western end of the double-stacked network.

The Wood County facility would serve as a rail hub to points north and south, including Cincinnati and Detroit. Mancini said both will be built regardless of whether funding is secured for the entire project.

Freight and passenger rail traffic have been on the rise in recent years, said CSX spokesman Robert Sullivan, in the face of increased traffic congestion, deteriorating highway infrastructure and high gas prices.

The three rail corridors CSX has targeted with its effort are Interstate 95 between North Carolina and Baltimore via Washington, D.C.; I-70/I-76 between Washington, D.C., and Wood County, Ohio, via Pittsburgh; and the Carolina corridor from Wilmington, Del., and Charlotte.

CSX plans Ohio terminals to handle double-stacked trains

The Associated Press

May 1, 2008

COLUMBUS, Ohio - CSX Corporation says it will spend $300 million on upgrades that would allow trains with double-stacked cars to run from the East Coast to the Midwest.

The Florida-based railroad points to its plan to invest in two Ohio freight terminals that would handle the trains with taller cargo cars as proof it is serious about the issue. Those terminals would be located in North Baltimore in northeast Ohio and in south Columbus.

The railroad says double-stacked trains use about the same amount of fuel to carry more freight faster.

CSX plans $190 million rail upgrade in Ohio

The Plain Dealer

By Frank Bentayou

May 1, 2008

Transport company CSX Corp. announced plans Thursday for $190 million in improvements along key Ohio rail lines as well as development of two major freight terminals in the state.

The projects, which the railroad said it will finance with its own resources along with what it hopes will be federal and state contributions, are part of a larger initiative the Jacksonville, Fla., company calls "the national gateway."

An expected $130 million to build the two Ohio terminals and another $60 million to widen rail bridges and tunnels to accommodate larger loads, the company said, are part of a bigger plan. It's an estimated $700 million initiative to link Great Lakes and Midwest manufacturing venues with the East Coast and some of its deep-water ports.

Once the terminals and rail improvements are completed, within seven years, company Vice President Lisa Manikin said, "the gateway will provide a highly efficient freight transportation link" for containers of products and commodities that will move longer distances on rail, shorter hauls on trucks.

The ports included in the initiative are in Baltimore, Portsmouth, Va., and Wilmington, N.C. CSX's goal is to create easier access for more heavily laden freight cars between manufacturing centers in all parts of Ohio and the rest of the United States and the world.

The rail company already has purchased land in Wood County near North Baltimore and in Dublin, west of Columbus, on which to build the intermodal terminals that will facilitate transfer of containers between rail cars and trucks.

Mancini, vice president of strategic infrastructure initiatives, did not commit to a date when construction would begin. But the Wood County terminal is scheduled for completion by 2010.

She said the terminals are likely to spur development of distribution and logistics centers nearby, bringing jobs to both parts of the state.

The terminals themselves typically are not big employers, she said. "But we would expect each one could draw 2,000 outside jobs" to any neighboring distribution facilities that companies like Wal-Mart, Home Depot and The Limited might build.

Creating more jobs is an often-mentioned goal of Gov. Ted Strickland and his administration. The governor spoke at Thursday's announcement, which took place in the offices of Pacer International, a CSX customer and logistics and freight-transportation provider in Dublin.

The state has not made any commitment of resources to the railroad's ambitious project. "The governor is there to support the company's investment in Ohio," said Keith Daily, a Strickland spokesman.

Railroad transport of the products made in Ohio and of the materials used in their manufacture has many advantages, including fuel efficiency, low levels of harmful air emissions and fewer trucks on highways, according to the U.S. Department of Transportation.

Companies like CSX are getting more long-haul freight business each year. The transportation department has predicted rail freight will nearly double in the next 20 years.

Refinements over the past decade in the intermodal method of freight transport has simplified and rendered more efficient and reliable the transfer of containers between trucks and train cars.

Norfolk Southern, a railroad with an intermodal terminal in Maple Heights, smoothly transfers hundreds of carloads of containers each week. Big, modern terminals like those CSX plans will handle thousands of such carloads.

Most of the infrastructure improvements the company intends are to make room in tunnels and on bridges for double-stacked rail cars, which pile containers on top of containers to ship long distances. Conventional container cars lug as many as 280 boxes. Double-stacked cars can handle 400 and stand 22 feet high.

The 79 bottlenecks CSX has identified along its 6,000 miles of Ohio track include bridges and tunnels that need relatively small refinements to provide the clearance such loads require.

Benefits to Ohio industry could be less-expensive transportation for goods in and out of the state via less fuel-hungry vehicles and a possible inducement for shipping and distribution companies to open operations here.

Freight by Rail Enjoys Comeback

Track being laid for first time in 80 years as fuel costs hurt truckers

Wednesday, April 30, 2008 3:12 AM

By Frank Ahrens

THE WASHINGTON POST

RADFORD, Va. -- When Bob Billingsley hired on with Norfolk Southern railway 31 years ago, he was a rookie on work crews that were closing unused lines as the nation's economy turned its back on the railroads.

Now, he's in charge of raising the roof of a Norfolk Southern tunnel in southwestern Virginia to clear headroom for the double-stacked container cars that have become the symbol of the industry's surge, thanks to a confluence of powerful global factors.

"For years, we were looking for ways to cut costs to increase profits," said Billingsley, as a train rumbled by. "Now, we're building business to increase profits."

The freight railway industry is enjoying its biggest building boom in nearly a century, a turnaround as abrupt as it is ambitious. It is largely fueled by growing global trade and rising fuel costs for 18-wheelers. In 2002, the major railroads laid off 4,700 workers; in 2006, they hired more than 5,000. Profit in the industry has doubled since 2003, and stock prices have soared. The value of the largest railroad, Union Pacific, has tripled since 2001.

This year, railroads will spend nearly $10 billion to add track, build switchyards and terminals and open tunnels to handle the coming flood of traffic. Freight rail tonnage will rise nearly 90 percent by 2035, the U.S. Transportation Department forecasts.

In central Ohio, rail activity is big and could get bigger. Norfolk Southern has operations in the Rickenbacker area, and CSX, which operates a West Side terminal, has expressed interest in expansion elsewhere in central Ohio. In Marion, CSX and others operate an "intermodal" center, moving shipping containers between trucks and railroad cars.

In the 1970s, tight federal regulation, cheap truck fuel and a wide-open interstate highway system conspired to cripple the railroad industry, driving many lines into bankruptcy. The nation's 300,000 miles of rails became a web of slow-moving, poorly maintained lines, so dilapidated in spots that tracks would give way under standing trains.

The Staggers Rail Act of 1980 largely deregulated the industry, leading to a wave of consolidation. More than 40 major lines condensed into the seven that remain, running on 162,000 miles of track.

But the changing global market has fueled prosperity and the need to add track for the first time in 80 years. Soaring diesel prices and a driver shortage have pushed freight from 18-wheelers back onto the rails. At the same time, because of China's unquenchable appetite for coal and the escalating U.S. demand for Chinese goods, more U.S. rail traffic is heading to and from ports in the Northwest.

Coal still accounts for the most tonnage hauled by U.S. railroads, but it is the ocean-crossing shipping container -- carrying autos, toys, furniture and nearly every other product a consumer will buy -- that has lit a rocket under the railroad industry. Passenger rail traffic is also increasing; 2007 was Amtrak's fifth consecutive year of increased ridership, up 6 percent from 2006.

Fortune has even dropped a "green" gift in the industry's lap. A train can haul a ton of freight 423 miles on a gallon of diesel fuel, about a 3-to-1 fuel-efficiency advantage over 18-wheelers, and the railroad industry is increasingly promoting itself as an eco-friendly alternative. Trucking firms also use the rail lines; UPS is the railroad industry's biggest customer.

Rail traffic, revenue and profit began to soar in 2002 and '03 and seem largely immune to the economic downturn. CSX reported a record first-quarter profit. This week, the stock price of Western rail giant Burlington Northern Santa Fe hit an all-time high. At the industry's nadir in the 1970s, railroad companies' average annual rate of return on investment was 1.2 percent. By 2006, it was 10.2 percent.

Even though the economic slump has reduced key traffic about 4 percent this year from last year, it has not slowed the railroads' urgent laying of track. Capital expenses this year are up, as the railroads think the downturn is temporary, said the industry's trade group, the Association of American Railroads.

The industry estimates that $148 billion worth of expansion is needed to carry the amount of traffic expected by 2035. Of that, the railroad companies will contribute $96 billion, said the industry's trade group. The rest would have to come from the federal and state governments.

The railroads say that more trains mean fewer trucks on the road and less air pollution, public benefits that the public should help pay for.

They also say they could not achieve the profits Wall Street demands without government subsidies. The railroads seek a tax credit that would help them expand.

The industry's long-standing antitrust exemption has attracted the attention of lawmakers who want to eliminate it and closely examine the rates that railroads charge to haul freight. The industry contends that would cripple its expansion at a critical time.

Information from Dispatch research was used in this story.

Americans for Transportation Mobility Study Finds the Lack of a National Transportation Strategy and Investment Harms U.S. Economy

WASHINGTON, April 8, 2008 /PRNewswire-USNewswire/ - The U.S. transportation system is failing to keep pace with the demands of a 21st century economy and a piecemeal approach to improving the nation's transportation infrastructure no longer works, concluded a study released today by the Americans for Transportation Mobility Coalition, and the National Chamber Foundation of the U.S. Chamber of Commerce.

"If the United States declines to invest in transportation infrastructure and ignores the transportation needs of key industry sectors, our economy will become less productive and less competitive," warned ATM Executive Director Janet F. Kavinoky. "Without an adequate transportation system, the nation's economic growth is at risk" Kavinoky added.

Meanwhile, global competitors have increased investment in transportation infrastructure. Economic powerhouses like China are building highways and rail lines, developing ports, and constructing airports while the U.S. transportation system erodes, the study said. As a result, "the margin of the U.S. competitive advantage is shrinking," noted the study.

The study, "The Transportation Challenge: Moving the U.S. Economy," attributed the poor performance of U.S. transportation system to the growing imbalance between supply and demand and the increasing age of the nation's infrastructure. Without investment guided by new policies, the U.S. transportation system will fall further behind the growing demand of five major economic sectors -- agriculture and natural resources, manufacturing, retail, services, and transportation -- that account for 84 percent of the U.S. economy.

Given population growth, shifting demographics and steady economic growth, a high-performance transportation system is a necessity. The U.S. population is projected to grow from 300 million today to 380 million people in 2035, while the economy is likely to double over the next 30 years, as is demand for freight transportation. These changing demographics create a more global, a more urban economy with a more diverse and aging workforce. Expanding demand and shrinking capacity for both freight and passengers across every mode of transportation raises fears about increased congestion, less reliability, and higher costs.

The report urged policymakers to become much more strategic in planning and investing in the U.S. transportation system. "If we do not, our transportation system will become a competitive disadvantage for U.S. industries, and it will be harder to sustain the growth of our regions and the national economy," the report said.

The study made a number of recommendations to address the transportation problem.

-- Greater emphasis on economic needs and issues, including attention to regional mobility, in formulating national transportation initiatives

-- Development of a national consensus among citizens, businesses, and political leaders on the importance of increased investment in transportation infrastructure

-- Immediate attention to the approaching deficit in the federal Highway Trust Fund

-- Greater emphasis on investments in a national freight transportation program that would implement highway, rail, and marine transportation improvements to benefit commerce

-- More public investment in infrastructure, using all potential revenue sources, including user fees and other revenues collected at different levels of government

-- Increased use of financing and credit options including tax credits and public-private partnerships, to leverage an estimated $200 billion in private capital available for transportation infrastructure investment

"We must act now," Kavinoky emphasized. "This report's findings demand a rapid response. We must develop and implement a comprehensive plan to build, maintain, and fund a 21st century transportation system equal to the demands of a rapidly changing world and a robust national economy. We have only one option: Invest now, or pay later."

A copy of the report and a report summary are available at: www.uschamber.com/transportationchallenge

/CONTACT: John Moore, +1-202-683-3110, jmooreqorvis.com, for the Americans for Transportation Mobility Coalition/

Railroads Pull for Public-Private Partnerships
Heerwagen, Peter
1 September 2007
North Valley Business Journal

At the 20th Quad State Legislative Conference, held at the Holiday Inn in Martinsburg, the QuadCo group of economic developers had representatives of the two large railroads in the region make presentations on improvements they are making and looking to make in the 1-81 corridor,

Before those presentations, Mike Ross, president of the Franklin County Area Development Corporation, gave a few remarks on the region's economy.

"The valley has a very vibrant economy, driven mostly by 1-81, but it is balanced, with a manufacturing sector that is stronger than the rest of the United States," said Ross. "The health-care and education sectors continue to grow, and the region has benefited from the BRAC decision [not to downsize or close Letterkenny Army Depot]. The base has emerged, with 3,000 employees and a diversified mission; its output was $150 million in 2001, and it was $500 million in 2006.

"The region's challenge is workforce development, and it will get worse before it gets better, because the baby boomers are transitioning out. Employers are continually searching for workers.

"The railroads bring the potential for more job growth. They affect the region in all positive ways as key players in our economic growth."

Jason French, CSX Corp.'s director of public affairs for Maryland and Delaware, emphasized the growing role of railroads in the nation's economy, as well as the CSX intermodal facility in Chambersburg, scheduled to open shortly.

FrenchsaidCSX'spredecessor railroad, the B&O, had been in the Hagerstown and Chambersburg area since 1830, when freight was moved west from Baltimore. "Railroads will have a very important place in the nation's future regarding economic development.

"There is a growing demand for railroad freight, especially intermodal traffic [containers that move from ships to rail to truck]. The U.S. Department of Transportation projects a 60% increase in the amount of freight by 2020, and 80% in Maryland.

"Rail is at capacity and highways are above capacity, and it will only get worse by 2020. Congestion is most serious in the eastern half of the United States.

"We believe an investment in freight rail is an important part of the solution. One train is the equivalent of 280 trucks. The mid- Atlantic ports are receiving more freight each year because the West Coast is crowded, so goods from China and India are coming east."

One of the solutions is to double-stack containers on rail cars, said French, and CSX is hoping to rework clearance problems through tunnels to accommodate such trains going from Atlantic ports-Baltimore and Portsmouth-into the Midwest and inland ports in Pittsburgh and the new one in Chambersburg.

French said CSX Intermodal, a unit of CSX Corp., chose Chambersburg for its terminal to better serve existing businesses in central Pennsylvania, which is a new growth market for the railroad. "Industry follows railroad development. It's an ideal location, near Chambers-5 Business Park and along 1-81, to better service customers. There are 30 million square feet of warehouse space within 100 miles of the terminal. It's also closer to a competing facility that Norfolk Southern has in Harrisburg.

"There was a need for public-private cooperation, and we worked with Chambersburg and Franklin County officials, who helped bring the intermodal project to fruition. We received $500,000 from the state for infrastructure improvements-water, sewer and roads."

James Hixson, Norfolk Southern's executive vice president, law and public relations and chief legal officer, lobbied for a public-private partnership in his company's $2 billion Crescent Line project, part of which parallels 1-81. "The issue is not the amount of capital out there, but the return on that capital. We are willing to pay for the private benefit, but the public should pay for the public benefit."

Hixson said that type of partnership was evident in Norfolk Southern's Heartland Corridor project, where rail lines were double stacked from Norfolk to Columbus and on to Chicago. The federal government and Virginia, Ohio and Tennessee put money into the project.

The Crescent Corridor project includes upgrading rail from New Orleans to Memphis, Atlanta and Lynchburg, north to Hagerstown and linking major markets in between. "That will make us competitive with truck traffic because we need to move freight faster, and the rail is not developed along the Crescent Corridor," said Hixson.

"It could take 1 million trucks off I-81. We're working closely with trucking companies who have told us, 'You have to take off the road our trucks that are going more than 500 miles.' They realize they need to move their [long haul] trucks off the highways."

Norfolk Southern is looking to add 28 trains in its Crescent Corridor network and build intermodal facilities in eastern Tennessee and central Maryland, as well as make track improvements, add sidings and double track the lines.

"The $2 billion cost is high for the railroad, but not for highway spending," said Hixson. "We are looking for federal and state funding, as we can substantiate the public benefits. Virginia has already given us $40 million."

Norfolk Southern is waiting for the 1-81 Freight Rail Study, commissioned by Virginia, which will be completed this fall, before going into details of how many dollars the company would ask each state to contribute to the Crescent Corridor project. "We have had discussions with Virginia over the years, and some with Tennessee and Pennsylvania, but not much with Maryland. That state is in better shape than the others; all that is needed are additional sidings and an intermodal facility.

"The next federal highway bill comes in 2009," said Hickson, "and it will have regional and national significance. Norfolk Southern can't make the case by itself; we need state support."

Statistics on Intermodal Facility at Chambersburg:

21,000 feet of tracks

1,000 parking places

3 lift machines

90,000 annual lifts, or 300 truck trips a day, 150 in and 150 out.

One inbound and one outbound train per day, to and from Chicago.

Railroads ready for intermodal growth
BILL MONGELLUZZO
4 February 2008
Shipping Digest

Intermodal volumes declined in 2007, but that did not deter railroads from investing large amounts of capital to prepare for future growth, the president of CSX Intermodal said.

"The railroad industry is ready for growth" this year, Jim Hertwig told a meeting of the Los Angeles Transportation Club.

The rail industry as a whole invested $9 billion last year to increase lift capacity, double-track key corridors, expand intermodal rail facilities, and expand overall network capacity. CSX, the largest eastern railroad, invested $1.6 billion of that total. CSX and the industry as a whole will make similar capital investments in 2008, Hertwig said.

Weak cargo volumes gave the railroads an operational breather after six years of steady growth, allowing the carriers to concentrate on improved service. The Class 1 railroads reported a drop in total cargo, and most railroads reported declining intermodal traffic. Union Pacific's intermodal traffic increased less than 1 percent; CSX traffic declined 3.4 percent; Norfolk Southern reported a drop of 4.2 percent; and BNSF reported a decline of 6.6 percent, Hertwig said.

But increasing freight rates resulted in strong yields and improved service offerings, he said.

The U.S. economy is projected to increase 2.3 percent this year - slightly more than the 2 percent growth a year ago. A mild recovery is anticipated in the second half of the year, which should lift rail business, including intermodal.

Railroads are showing signs of cooperation to improve service on east-west corridors. For example, last year CSX and BNSF reduced the transit time from Southern California to Atlanta by one day through a joint venture. Norfolk Southern and Kansas City Southern formed a similar joint venture with their Meridian Speedway project between Meridian, Miss., and Shreveport, La.

CSX's Northwest Ohio Interchange project will improve east-west transit times by avoiding the one- to two-day delays that occur when western and eastern railroads interline services in Chicago.

Also, CSX's National Gateway project will connect ports such as Baltimore and Portsmouth, Va., with population centers in the Midwest, similar to the Norfolk Southern Heartland Corridor linking Virginia with the Midwest.

These projects will help East Coast ports expand their intermodal reach in line with the growth of all-water shipping services from Asia.

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