Federal Railroad Administration FRA U.S. Department of Transportation USDOT

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U.S. Railroad Industry Federal Railroad
Administration
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• The Roles of FRA, DOT and the U.S. Rail Industry

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Federal Railroad Administration (FRA), U.S.
Department of Transportation Key Players

• 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

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Federal Railroad Administration (FRA), U.S.
Department of Transportation FRA Organization
Structure
Administrator
Public Affairs/ Civil Rights
Safety
Chief Counsel
Administration/ Finance
Policy and Communications
Railroad Development
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Federal Railroad Administration (FRA), U.S.
Department of Transportation FRA Regions
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Federal Railroad Administration (FRA), U.S.
Department of Transportation FRA Mission
Statement

• 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

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

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Federal Railroad Administration (FRA), U.S.
Department of Transportation Selected 2006 Rail
Freight Statistics

• 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

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Federal Railroad Administration (FRA), U.S.
Department of Transportation GIS Rail Density
Map (Volume in Millions of Tons)
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Federal Railroad Administration (FRA), U.S.
Department of Transportation 2002 Freight
Comparisons in 000,000 ton/km
Source UIC
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Federal Railroad Administration (FRA), U.S.
Department of Transportation 2001 Passenger
Comparisons in pax/km
Source UIC
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Federal Railroad Administration (FRA), U.S.
Department of Transportation Freight Market
Share
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Federal Railroad Administration (FRA), U.S.
Department of Transportation Commodities Tons
Carried
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Federal Railroad Administration (FRA), U.S.
Department of Transportation U.S. Railroad Net
Investment cumulative in billions of
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Federal Railroad Administration (FRA), U.S.
Department of Transportation U.S. Railroad
Industry Staffing in thousands
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Federal Railroad Administration (FRA), U.S.
Department of Transportation Staggers Act
Productivity ton-miles/employee-hour
Staggers Act
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Rail Rates

• Rail freight rates adjusted for inflation
  declined an average of 0.6 per year
• from 1990 through 2005

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
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Rail, Maritime, andIntermodalism
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Federal Railroad Administration (FRA), U.S.
Department of Transportation Intermodal Traffic

• 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

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INTERMODAL GROWTHLOADINGS IN MILLIONS OF UNITS
Source Association of American Railroads,
Railroad Facts
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Freight Volumes Growing Faster than Passenger
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• Issues Facing the Industry

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

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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 carloads 1.9 per year
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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.

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In Closing

• Economic strength and trade relationships will
  increasingly define global influence in the 21st
  centuryand influence can help guide change
• 16th-19th century.age of locational advantage
• 20th centuryage of competitive advantage
• 21st centuryage of competitive collaborative
  advantage

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• The End

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