Rail and AviationThe “Other White Meat” of

Economic Development Infrastructure

Terry L. Clower, Ph.D.Director

Center for Economic Development & Research

University of North Texas

PurposeO Review economic development

perspectives for non-roadway based transportation infrastructure

O Define some terminologyO What does it take to be competitive?O Describe economic development

strategies based on these infrastructures.O May even talk about water transport, if

we have time.

RailO Two types to consider

O PassengerO Long haulO CommuterO Transit

O FreightO IntermodalO Bulk

Passenger Rail – Long Haul

O If you got it, greatO If you ain’t got it, forgedda about it!O Outside of northeast corridor (DC to

New York, with Philly tossed in), not a competitive advantage.

O HSPR: Hype, hype and more hypeO ExpensiveO Tough to routeO What’s the advantage?

Passenger Rail -- Commuter

O Works great in high density corridorsO Where existing trackage rights can be

obtained.O Spreading to non-traditional markets O Share tracks with freight railO Effectively extends the labor shed, in

some cases greatlyO Some businesses may want to be

near stations

Passenger Rail -- Transit

O Light railO Extends effective labor shed – slightlyO Increasingly is seen as a necessary amenity for being a

world class cityO Does not have a meaningful impact on traffic congestionO Pure economic justification (fare box revenue

sufficiency) not really possibleO Institutional employers (hospitals, universities,

government, corporate offices) are a part of TOD, though causal order is mixed.

O Main question: system designed for commuting or social engineering?

O Cannot share with freight, can negatively impact industrial properties

Freight Rail -- Intermodal

O Some national long haul truckers move the majority of their shipments via TOFC (trailer on flat car, piggyback)

O Increasingly, COFC (container on flat car) is displacing TOFC plus movement of ocean shipping containers. Single train can take 280+ trucks off the road.

Freight Rail -- Intermodal

O Number, capacity and proximity to intermodal terminals are key stats.

O Number of rail carriersO Network characteristics O To be highly competitive:

O 2 or more railroadsO Multiple terminalsO Good roads supporting drayage operationsO Efficient processing (minimal drayage

delays)O World class is to have an “inland port”

Freight Rail -- otherO Railroad classifications

O Class I: revenue greater than ≈ $300 millionO BNSF, UP, CSX, NS, KCS, CN, CP

O Class II: $25 mil to $300 milO Florida East Coast, Wisconsin & Southern,

Central Oregon & Pacific, Iowa InterstateO Class III: <$25 mil

O Includes terminal railroadsO Mississippi Southern, Kyle, Arcade & Attica,

TNM

Freight Rail -otherO Key features for business attraction

O Multiple railroads serving regionO Captive shipper problem

O Open to reciprocal switchingO Shipping performance (delays)O Availability of equipmentO Note on line abandonmentO Ability to generate unit train

quantities

AviationO Commercial

O Scheduled passenger service, at least 2,500 boardings/year

O Number of carriersO Daily flightsO Number of destinations with direct

serviceO Type of equipment (jets good, RJs

okay, turboprop not okay)O Air freight

AviationO FAA designations

O Primary: >10,000 boardingsO Large hub: ≥1% of all national boardingsO Medium hub: 0.25% ≤ boardings < 1%O Small hub: 0.05% ≤ boardings < 0.25%O Non hub: 10,000 < boardings < 0.05%

O Non-Primary: 2,500 ≤ boardings ≤ 10,000O Reliever: can relieve congestion (public or

private)O Cargo service: >100 million pounds landed in

cargo only aircraftO General Aviation

General AviationO Key characteristics for economic

developmentO Runway length/widthO Visual or InstrumentO TowerO Services: Multiple FBOs (fixed based

operators) available, repair, fuel pricesO Hanger space and rental ratesO Property tax structureO Customers/immigration clearance on-siteO Medical air evacuation

General AviationO Clower’s taxonomy of economic development for GA

airports:O Business support

O corporate flight opsO remote business supportO Aviation equipment (supplies, testing, refurbishment)

O Government (CBP, other)O Ag supportO Tourism (including vacation homes)O Trade support (FTZ, CBP office)O Land plays

ConclusionsO Know service characteristics of rail and

aviation infrastructure in your communityO Monitor service performanceO In smaller communities pay close attention to

rail abandonment.O In mid-size communities watch for commercial

air service equipment downgradesO Aviation capital improvement programs are

good deals for communitiesO Work with carriers to promote your community