KEVIN B. PAGE VIRGINIA DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION VIRGINIAS RAILROADS A...
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Transcript of KEVIN B. PAGE VIRGINIA DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION VIRGINIAS RAILROADS A...
KEVIN B. PAGEVIRGINIA DEPARTMENT OF RAIL AND PUBLIC
TRANSPORTATION
VIRGINIA’S RAILROADS
A STAKEHOLDER IN TRANSPORTATION DEVELOPMENT
Today’s Rail Presentation
• VA Railroad Overview• Intermodal Partnership
– TRUCK/HIGHWAY– CONTAINER/PORTS
• VA’s response to assist rail transportation through state funded rail industrial development programs
Railroad’s Timeline
• 1960’S Began downturn of railroad dominance in ground transportation
• 1970’S Scrapping the old system• 1980’S Deregulation• 1990’S Market recovery
External Circumstances
• National Interstate System• Truck Competition• Air Travel • Automobile• Federal regulations limiting
railroads from competition and rationalization of unprofitable lines
Year 2000
• Two Main Line Railroads• Ten Shortline Railroads• 3,188 Route Miles of Track
Rail Adjusts to Market Need
• Traffic flow change – NAFTA– Import/Export to China, Far East
• Truck/Rail found its niche– CDL and Drug Testing– Higher speed intermodal trains
• Railroads step into the Just In Time (JIT) inventory management
• Industries convert to “inventory on wheels”
Intermodal Partnership
Bridging Relationships Between Truck and Rail
CONCRETE AND STEEL,
A GEOGRAPHIC RELATIONSHIP
INTERMODAL CORRIDORS TO VIRGINIA PORTS
Intermodal Rail Corridors
VA/Railroads’ Stake in Enhancing its Rail
Network
• Fostering industrial growth by promoting and investing in a balanced transportation system for Virginia• Getting Ag goods to Market
– Where rail fits in– Need rail? How do I get it?– Managing Rail Service After
Implementation
Where Rail Fits in
• Rail typically enjoys:– high tonnage moves – the bigger the better– JIT moves – Assembly plant parts and supplies– Moves over 600 miles are truck competitive
• The longer the haul the better the rate
Where Ag Products Fit in
• Rail typically enjoys:– high tonnage moves – the bigger the
better– Rate breaks begin at or about 15 car cuts– Unit trains preferred for dedicated move
and less handling at terminals – Sidings at industry plant site to
accommodate the business generated
Challenges of Ag Rail Service
• Rail service typically needs:– Siding capacities to accommodate the
business generated– “Run around track” at or near terminal– Ability to weigh cars loaded out– Unit train moves – 15 car cuts or better– Need cars? Yours or theirs
• Lower volume business appreciated but at a higher price of doing business– Shortline railroads can offer better
service at the terminal
Rail Preservation
SHORT LINE PRESERVATION
A WINDOW OF OPPORTUNITYFOR INDUSTRIAL DEVELOPMENT
Rail Preservation
Before After
Providing improvements to rail lines and interchanges to handle heavier loads and improve track safety
Need Rail? How Do I Get It?
• Not all sites on rail can be served:– Curved track deters switches to plants– Availability of switching services– Grades and other geographical obstacles
• All railroads have an Industrial Development Representative to assist in making these determinations
Cost of New or Enhanced Rail Service
• What Industry Pays For– Main Line Switch– Improvements on site
•Track and loading/unloading facilities
– Improvements off site•Runaround track or yard capacities
• DRPT’s Rail Industrial Access Program can assist in capital costs of rail service on site
RIA Program Purpose
• Virginia’s pro business environment
• Additional incentive program– Compliments other economic
development initiatives– RIA is a unique program not
available in most other states
Rail Industrial Access
• Up to $450,000 available per jurisdiction per year
• Grantee eligibility– Business, commercial or industrial enterprise– Municipal or county governments– Local departments of economic development– Railroads
Managing Rail Service After Implementation
• Anticipation of delivery and coordination on site are the biggest components of successful rail services– Coordinate placement of cars with ability
to unload or load them– Cars sitting around cost you money – Skimping on rail siding capacity in site
design will cost you in the end• Plan big• Implement in phases as you grow the business