RailwayAge

HIGHLIGHTS FROM THE AUGUST 2008 ISSUE



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In This Issue
Union Pacific: Creating capacity
They're at it again
Northeast Corridor: Healthy hybrid

Commentary
From the Editor: Holy fuel surcharge, Batman!
Point of View: A National System of Interstate and Defense Railroads


A National System of Interstate and Defense Railroads

By J. William Vigrass

Our economy has put pressure on freight railroads to add service and divert heavy loads from highways. Why hasn’t more been done? The answer is, very simply, the railroads cannot afford to make all the necessary investments.

The trucking industry has been using the “Interstate and Defense Highway System,” designed and built since 1956, incorporating continuous improvements. The enormous federal capital invested in this system has been generated by motor fuel and other related taxes borne by the motoring public. Yet, truckers cover only about 70% of infrastructure costs related to truck operation. This allows the trucking industry to offer rates lower than their true economic costs.

In contrast, nearly all the U.S. railroad network was designed and built in the 19th Century. No matter how fast freight trains may operate, they must travel farther than a truck in most cases. Even so, railroads are the most efficient hauler of overland freight in the world in terms of ton-mile costs. They have benefited from the major downsizing that followed deregulation. The present system is carrying double or triple the number of ton-miles per track-mile that had been carried on a much larger network prior to deregulation. Expanding capacity to be able to handle increased freight traffic as well as increased passenger train traffic appears to be a highly desirable national objective. But the U.S. railroad system was not designed with strategic objectives in mind. The loss of a key bridge or tunnel could cause great havoc to the economy.

A solution is creation of a “National System of Interstate and Defense Railroads” that would be multi-tracked, grade-separated, and suitable for competitive speeds. This would mean 75 mph or more for freight trains and 110-125 mph for passenger trains. A combination of tax credits and direct grants would be needed, since some strategic investments desired for passenger train use might not be needed or wanted by freight railroads. Those improvements would be provided by grants consisting of federal and non-federal shares.

This is not to ignore the need for separate heavy-haul routes designed for 25-40 mph, capable of handling 15,000- to 25,000-ton trains. The railroads can continue to fund improvements for heavy-haul traffic from their own resources. Exceptional needs might be handled on a case-by-case application for government aid.

Several steps would be needed to approach, identify and quantify needs. A major research and planning effort will be needed. This might be done under the auspices of the Transportation Research Board with funding from the U.S. DOT.

Some key planning assumptions: 1) The U.S. population will continue to increase, with distribution continuing to flow to metropolitan areas. 2) The U.S. economy will continue to expand. 3) Shifts within the economy will be recognized. 4) Petroleum will continue to become scarcer with consequent increases in price. 5) Efforts to control degradation of the environment will increase.

This research program will need to identify: 1) rail corridors and projected traffic growth; 2) existing rights-of-way suitable for multiple-tracking; 3) abandoned rights-of-way that could be rebuilt; 4) where railroads are essential for defense; 5) new areas where railroads might be useful in combating domestic terrorism; 6) places where railroads should be protected from terrorism access; 7) corridors suitable for electrification; 8) freight bypasses around urban areas; and 9) a “Greater Amtrak” route structure.

Financing will be a major and continuous undertaking. Whatever is proposed must be acceptable to the freight railroads, a win/win combination that benefits them as well as public-sector needs. Tax credits could be a primary source of private-sector capital funds. A basic percentage should be established for all railroad infrastructure, primarily heavy-haul routes, with a somewhat higher percentage for multi-tracked lines handling passenger trains. For very large projects, a public entity could be the owner, issuing long term tax exempt bonds to fund the project. Users would pay a fee per car, per ton, per ton-mile, or whatever fits. Multipurpose corridors could be established, especially in urban areas. Legislation at the federal and state levels will be needed.

A sense of urgency is needed to create a national system that will reduce the nation’s dependence upon imported petroleum for interstate transportation needs. The world’s petroleum supply is being used up at an ever increasing rate, and many of its sources are located in volatile areas. If we don’t get started promptly, we will regret it in the not-too-distant future.


This article is a condensed version of a paper submitted to the National Surface Transportation Policy and Revenue Study Commission by J. William Vigrass, a member of the Commission’s Blue Ribbon Panel of Experts. Vigrass is a consultant to Hill International and other firms. The complete paper and others can be obtained at Transportation for Tomorrow.



Copyright © 2007. Simmons-Boardman Publishing Corp.