Passenger Rail Solutions Balanced Approach Oregon Passenger Rail - - PowerPoint PPT Presentation

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Passenger Rail Solutions – Balanced Approach

Oregon Passenger Rail Leadership Council December 11, 2012 Brock Nelson – Director of Public Affairs

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Portland Oakland LA Calexico Nogales El Paso Seattle Eagle Pass SLC Eastport Brownsville Houston KC

• St. Louis

Omaha Twin Cities Duluth Denver Laredo Dallas Memphis Chicago New Orleans

Union Pacific System

2011 Fast Facts (Year End)

• Operating

Revenue $19.6 B

• Route Miles

32,000 in 23 States

• Employees

45,000

• Annual Payroll

$4.0 B

• Customers

25,000

• Locomotives

8,200

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Union Pacific in Oregon

2011 Fast Facts

Miles of Track 1,073 Annual Payroll $126.6 M In-State Purchases $159.1 M Capital Spending $132.1 M Employees 1,592 Community Giving $308,609

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Both Passenger & Freight Solutions Required

• Communities want passenger rail transportation to . . .

– Reduce traffic congestion – Avoid/reduce road construction and maintenance – Provide answer to future capacity needs

• Communities depend on freight rail transportation to . . .

– Supply the goods they use everyday (food, vehicles, energy) – Reduce dependency on foreign oil through its fuel efficiency – Lower emissions by two thirds – Reduce highway congestion – Make products affordable by means of cost-effective shipping – Support infrastructure with private funds – not taxpayer dollars

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U.S. DOT projection Billions of Tons of Freight Transported in the U.S.

Long-Term Demand for Freight Transportation Will Skyrocket

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Expected Rail Traffic vs. Rail Capacity

Today 2035 Without Improvements

Below capacity Near capacity At capacity Above capacity

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Class I Railroad Spending* on Infrastructure vs. State Highway Agency Spending* - 2008

Railroads Already Spend More Than Most State Highway Agencies!

*Capital outlays plus maintenance expenses. 2009. Sources: FHWA Highway Statistics; AAR

• 1. California

$7.16

• 2. Texas

$6.50 3. $5.27 Union Pacific $4.27 BNSF $4.27

• 4. Pennsylvania

$4.66

• 5. New York

$3.93

• 6. Illinois

$3.43 CSX $2.52

• 7. Louisiana

$3.20

• 8. North Carolina

$2.60 9. $2.49 Norfolk Southern $2.53 Washington

$ in Billions

Michigan 10. $2.45

Florida

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Principles for Achieving Appropriate Balance

• Safe commuter and freight
• perations
• Reliable service for

passengers and freight customers

• Protect capacity to

accommodate future freight traffic growth

• Market-based compensation

and no additional exposure to liability

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Union Pacific Participates in Passenger Rail

Commuter Trains on UP

• Each weekday: 250 trains and 126,000 passengers

– By comparison, Amtrak operates 300 trains with 83,000 daily passengers

• Examples:

– Chicago Metra (UP operates commuter trains on three routes; USA’s 7th largest commuter operation) – Altamont Commuter Express (Stockton – San Jose, CA) – CALTRAIN (San Jose – Gilroy, CA) – Metrolink (LA - Riverside, CA & Moorpark - Montalvo, CA)

Amtrak on UP

• 76 trains and 17,000 daily passengers
• Example:

– Capital Corridor Service (San Jose – Oakland – Sacramento – Auburn; 32 daily trains)

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Working Together to Meet Customers’ Needs for Passenger and Freight

• UP is willing to discuss passenger rail proposals
• Safety must be priority

– Separate track/right-of-way preferable – Positive Train Control systems must be present – Commuter agencies must meet all UP and FRA safety standards and fund all incremental safety requirements

• Freight service must not be compromised

– Including UP’s ability to expand, operate on demand, service existing customers and locate new customers

• Commuter growth capacity must be funded by commuter agency

and freight growth capacity must be protected

• Commuter agencies must indemnify/protect UP against all liability
• Commuter agencies must pay all costs: developing proposals, return
• n UP assets/property, UP tax liability, etc.

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Thank you !