U.S. Railroad Industry Federal Railroad Administration U.S. Railroad Industry Federal Railroad Administration.

U.S. Railroad Industry

Federal Railroad Administration

U.S. Railroad Industry

Federal Railroad Administration

The Roles of FRA, DOT and the U.S. Rail Industry

Administrator

Public Affairs/Civil Rights

SafetyChief CounselAdministration/

FinancePolicy and

Communications Railroad

Development

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

FRA Organization Structure Federal Railroad Administration (FRA), U.S. Department of Transportation

FRA Organization Structure

REGION 1Cambridge, MA

REGION 7Sacramento, CA

REGION 8Vancouver, WA

REGION 6Kansas City, MO

REGION 5Hurst, TX

REGION 4Chicago, IL

REGION 3ATLANTA, GA

REGION 2Philadelphia, PA

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

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

FRA Regions

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

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

FRA Mission Statement Federal Railroad Administration (FRA), U.S. Department of Transportation

FRA Mission Statement

• 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

• 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

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

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

Selected 2006 Rail Freight Statistics

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

GIS – Rail Density Map (Volume in Millions of Tons)

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

GIS – Rail Density Map (Volume in Millions of Tons)

2,410

1,425

1,249

612

567

77

0 500 1,000 1,500 2,000 2,500 3,000

USA

China

Russia

Europe (lessRussia)

Asia (less China)

Sub SaharaAfrica

Billions of ton/kmBillions of ton/km

Source: UICSource: UIC

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

2002 Freight Comparisons [in 000,000 ton/km] Federal Railroad Administration (FRA), U.S. Department of Transportation

2002 Freight Comparisons [in 000,000 ton/km]

92

4,636

4,570

2,407

449

77

0 1,000 2,000 3,000 4,000 5,000

USA

China

India

Japan

Europe (lessRussia)

Sub SaharaAfrica

Source: UICSource: UIC

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

2001 Passenger Comparisons [in pax/km] Federal Railroad Administration (FRA), U.S. Department of Transportation

2001 Passenger Comparisons [in pax/km]

0%

13%

17%

28%

42%

.4%.4%

= Oil Pipelines

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

Freight Market Share Federal Railroad Administration (FRA), U.S. Department of Transportation

Freight Market Share

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

Commodities Tons Carried Federal Railroad Administration (FRA), U.S. Department of Transportation

Commodities Tons Carried

0

10

20

30

40

50

60

70

80

90

100 Vehicles 1.9%

Other Commodities 9.9%

Waste 2.3%

Metal & Metal Products 3.1%

Lumber, Wood & Paper 4.7%

Chemicals & Petroleum 11.8%

Farm & Food Products 13.6%

Minerals & Ores 9.2%

Coal 43.6%

27.4 28.233.4

48.1

82.191.1 93.7

106.2 108.9

0

20

40

60

80

100

120

1960 1970 1980 1990 2000 2002 2003 2004 2005

Staggers ActStaggers Act

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

U.S. Railroad Net Investment [cumulative in billions of $] Federal Railroad Administration (FRA), U.S. Department of Transportation

U.S. Railroad Net Investment [cumulative in billions of $]

1,200

780

566

458

216168 157 155 158 162

78 72 68 68 71

129200

80

7474

0

250

500

750

1,000

1,250

1,500

1950 1960 1970 1980 1990 2000 2002 2003 2004 2005

Others Class I

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

U.S. Railroad Industry Staffing [in thousands]

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

U.S. Railroad Industry Staffing [in thousands]

584

1,901

3,2933,651 3,805 3,908 4,019

863327

0

1000

2000

3000

4000

5000

1960 1970 1980 1990 2000 2002 2003 2004 2005

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

Staggers Act: Productivity [ton-miles/employee-hour]Federal Railroad Administration (FRA), U.S. Department of Transportation

Staggers Act: Productivity [ton-miles/employee-hour]

Staggers ActStaggers Act

Rail Rates

Railroad Rates After Inflation (1972=100)

80

90

100

110

120

130

140

Year

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

• Rail freight rates adjusted for inflation declined an average of 0.6% per year

from 1990 through 2005

Rail, Maritime, andIntermodalism

• 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

• 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

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

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

Intermodal Traffic

INTERMODAL GROWTH:LOADINGS IN MILLIONS OF UNITS

0

2

4

6

8

10

12

1980 '83 '86 '89 '92 '95 '98 '01 '04

Source: Association of American Railroads, “Railroad Facts”Source: Association of American Railroads, “Railroad Facts”

Freight Volumes Growing Faster than Passenger

Issues Facing the IndustryIssues Facing the Industry

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

A Question of Congestion and CapacityFederal Railroad Administration (FRA), U.S. Department of Transportation

A Question of Congestion and Capacity

Truck Freight Flows, All CommoditiesAll truck types; highway freight density in tons

Rail Freight Flows, All CommoditiesRail freight density in tons

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.

Railroad Freight Growth2003 - 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

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.

Economic strength and trade relationships will increasingly define global influence in the 21st century…and influence can help guide change

– 16th-19th century….age of locational advantage

– 20th century…age of competitive advantage

– 21st century…age of competitive & collaborative advantage

In Closing:

http:\\www.fra.dot.gov

The EndThe End