Local Operations And Future Challenges Challenges On The - - PowerPoint PPT Presentation

The Railroad Industry Local Operations And Future Challenges

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Tomorrow

Challenges On The Horizon For The Railroad Industry

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Tomorrow Railroad Challenges

 RSSM  Demographics Of Assets  Deregulation – Regulation  PTC  Business Levels

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Rail Sensitive – Security Material

Chain of Custody  Over 350 STCC Numbers  Face To Face COC Requirements  Repository For COC Documentation  Designated Secure Interchange Locations  Security Checklists For Alert Levels  AAR Database For Rail Carriers  AAR, FRA, TSA, ASLRRA Interface

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Resource Demographics

 Median Age

47  Retirements – 2012 80K

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Tomorrow Railroad Challenges

“Working On The Railroad”

Age on Birthday Total In 2006 Number Percent Under 20 762 100 20 to 29 32,797 100 30 to 39 57,793 100 40 to 49 63,565 100 50 to 59 96,175 100 60 to 69 16,637 100 70 and older 326 100 Median Age = 47

Total RR Employees 268,055

Less Than 10 Years 118,675 44% More Than 25 Years 91,389 34%

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Tomorrow Railroad Challenges

Covered Hoppers 30% 525,139 Others 0.4 6,684

Box Cars 10% 165,435 Hoppers 11% 188,054

Flats 13% 225,805 Tanks 19% 324,002 Gondolas 16% 273,163 Reefers 1% 19,068

Total Cars = 1,729,359

Box Cars 10% 165,435 Hoppers 11% 188,054

North American Freight Car Fleet By Car Type

Car Fleet Demographics

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Tomorrow Railroad Challenges

17.8 17.9 18.1 18.5 18.9 19.3 19.5 19.5 19.5 19.3 19.2 17 18 19 20 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

North American Freight Car Fleet Average Age In Years

Car Fleet Demographics

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Tomorrow Railroad Challenges

5000 10000 15000 20000 25000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Covered Hoppers Hoppers Tanks

New Builds: The Winners

Car Fleet Demographics

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Tomorrow Railroad Challenges

2000 4000 6000 8000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Box Flats Gons Reefers

New Builds: The Losers

Car Fleet Demographics

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Tomorrow Railroad Challenges

Deregulation/Regulation

October 18, 1980  A rail carrier could establish any rate for rail service unless the ICC (STB) were to determine that there was no effective competition for rail services.  Rail shippers and rail carriers would be allow to establish contacts not subject to ICC review.  Carriers ability to restructure redundant and light density lines.  Carriers could raise capital and increase market share.

Performance of Class I Railroads 1964-2007

Railroad Challenges

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Tomorrow Railroad Challenges

Positive Train Control (PTC)

What is Positive Train Control?

Positive Train Control (PTC) systems are integrated command, control, communications, and information systems for controlling train movements with safety, security, precision, and

• efficiency. PTC systems will improve railroad

safety by significantly reducing the probability of collisions between trains, casualties to roadway workers and damage to their equipment, and over speed accidents.

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Positive Train Control (PTC)

What is Positive Train Control? Prevent train collisions and over speed accidents by requiring automatic control systems to

• verride mistakes made by human
• perators.

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Positive Train Control (PTC)

The President has signed the “Rail Safety Improvement Act of 2008” requiring certain freight and passenger railroads, by 2015, to implement PTC on their main lines (defined as 5 MGT traffic annually).

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Positive Train Control (PTC)

Current Concerns  December 2015 Mandate  No Single Source Technology  No Industry Standard  Amtrak – Commuter - Shortline Routes  Clear Defined Definition – Routes  Workforce Education and Training

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Tomorrow Railroad Challenges

Positive Train Control (PTC)

HELP Coming From:  FRA, ASLRRA, Class 1’s In Concert  TTCI (Transportation Technology Center, Inc – 50 Miles Of Test Track)  AAR Define Track/Car Standards  AAR Facilitates PTC Standards

HELP WANTED!

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Business Levels

Ethanol Production  HR 2950, Renewable Fuels Requires 36B by 2022  2008 Production about 8B Gal  190 Ethanol Production Plants Operating  18 New Ethanol Plants Under Construction  Transportation – Rail 75%; Truck; 20%; Barge 5%  46% of U.S. Gasoline is an Ethanol Blend

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Business Levels

Marketing Trends

Grain/DDG’s Coal Chemicals Steel - Products Forest Products Automotive

Economics Foreign Trade Global

• U. S.

$$$ Wait And See The Hill

Barge Truck Railroad

Comparison of Fuel Efficiency Using Ton-Miles Per Gallon of Fuel

Fuel Cost – Poses a Challenge, but Creates a Bigger Opportunity

576 413 155

80% of the US Population Lives?

Major US Ports

Market Share Barriers

International Markets