CREATE:

One of the leading

Public-Private Partnerships in the

USA

Overview

• The nation’s railroads converge in Chicago.

• As more people ship and travel by rail, the region’s tracks and roads are close to choking.

• CREATE will reduce rail and road congestion by improving rail property, bridges, intersections, and signals.

• CREATE is a partnership of private railroads and various federal, state, and local government agencies.

• CREATE offers substantial benefits to the public in such areas as economic development, agriculture, air quality, and passenger rail.

Chicago Region Environmental & Transportation Efficiency

A collection of construction projects and other improvements to rail property

• 25 rail-to-road separations• 6 rail-to-rail separations• Improvements to tracks• Improvements to signals• Projected final cost of ~$2.6B

The CREATE Coalition

Key points about CREATE:

1. CREATE = “Chicago Region Environmental & Transportation Efficiency” Program.

2. A partnership of commercial railroads, Amtrak, the City of Chicago, the State of Illinois, and the United States Government.

3. Significant public benefits. . . .

In Illinois…

CLEAN AIRCOMPETITIVE

BUSINESS JOBS

RAIL PASSENGERS FARMERS

Successful Execution of the CREATE Program!

All rely on. . .

On any given day…

• 1,200 passenger and freight trains pass through Illinois’ 150 year old rail system…

• 37,500 rail cars traverse the region on 2,800 miles of track.

• 1/3 of U.S. rail freight is shipped through the Chicago region.

The Nation’s Freight Converges In Illinois

• It takes 36 hours to ship from Los Angeles to Chicago, a distance of 2,000 miles.

• Yet it takes more than 36 hours to ship through Chicago, where freight usually travels no faster than 9 m.p.h.

The Nation’s Freight Converges In Illinois

Why does rail congestion matter to Illinois?

• End users (such as big-box retailers):– Must be able to receive and distribute their

goods in a predictably and timely manner.

• Farmers and manufacturers: – Must be able to ship their goods on a timely

basis.

• For 3rd-party logistic companies and distributors like UPS:

– Bottom line depends on rail efficiency and timeliness.

– They can operate facilities only next to timely and reliable rail service.

Why does this matter to Illinois?

Illinois position as the nation’s rail and & distribution hub depends on CREATE…

• Competition for 3rd-party logistics is emerging from Memphis and St. Louis…

What do we stand to lose?• If the bottlenecks in freight and passenger

rail are not eliminated, Illinois is projected to lose:

– 17,000 jobs by 2020.*

– $2 billion in annual economic production by 2020.*

*SOURCE: Geoffrey J.D. Hewings, Regional Economics Applications Laboratory, University of Illinois, 2001.

With public support, CREATE will: • Remove rail bottlenecks.

• Promote agriculture and economic development, especially in those sectors that depend on rail.

• Improve passenger-rail service.

• Clean up our air.

• Eliminate traffic congestion at crossings.

• Reduce traffic accidents associated with rail.

With public support, CREATE will:

• Yield 6,000 to 13,000 new jobs.*

• Preserve 80,000 jobs in the regional economy.*

*SOURCE: Geoffrey J.D. Hewings, Regional Economics Applications Laboratory, University of Illinois, 2001.

CREATE Will Clean the Air:

• In the first year alone, CREATE will eliminate 1400 tons of nitrogen oxide, 400 tons of carbon monoxide, 100 tons of volatile organic compounds, and 51 tons of particulates

0

200

400

600

800

1000

1200

1400

Ton Reduction

1400

400

100 51

NOx

CO

VOCs

Particulates

• 16 CREATE projects will benefit Amtrak.

• 12 CREATE projects will benefit METRA.

CREATE Will

Passenger RailSpeed Up

CREATE Will Bring

To AgricultureEfficiency

• CREATE will help farmers get fertilizer on time.• CREATE will make sure that grain moves

predictably, yielding cost savings to farmers and distributors.

• Illinois agriculture will remain competitive - domestically and abroad.

• That’s why CREATE is endorsed by:– Illinois Corn Growers Association– Grain and Feed Association of Illinois

A little background on Illinois’ railroads:

*SOURCE: Illinois Railroad Association

• In 2007, the five largest railroads operating in Illinois contributed…

• $76 million in IL state taxes

In Illinois, the railroads employ:

*SOURCE: Association of American Railroads (excludes Amtrak and Metra figures)

33%

2%12%

53% African

AmericanAsian

Hispanic

In Illinois…

CLEAN AIRCOMPETITIVE BUSINESS JOBS

RAIL PASSENGERSFARMERSLABOR

We all

rely on. . .

The success of CREATE

CREATE Funding

• CREATE has received financial commitments from:

– The region’s railroads– The federal government– The State of Illinois’ capital plan – The City of Chicago– Additional federal/state capital funds associated

with high-speed and passenger rail.

Want more information?

You can visit:

WWW.CREATEPROGRAM.ORG