the railroad industry local operations and future challenges
TRANSCRIPT
The Railroad Industry
Local Operations
And
Future Challenges
January 23, 2009 2September 14-16, 2008
Tomorrow
Challenges
On The
Horizon For The
Railroad Industry
January 23, 2009 3September 14-16, 2008
Tomorrow
Railroad Challenges
RSSM
Demographics Of Assets
Deregulation – Regulation
PTC
Business Levels
January 23, 2009 4September 14-16, 2008
Tomorrow
Railroad Challenges
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
January 23, 2009 5September 14-16, 2008
Tomorrow
Railroad Challenges
Resource Demographics
Median Age 47
Retirements – 2012 80K
September 14-16, 2008
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%
September 14-16, 2008
Tomorrow
Railroad Challenges
CoveredHoppers
30%525,139
Others0.4
6,684
Box Cars10%
165,435Hoppers
11%188,054
Flats13%
225,805Tanks19%
324,002
Gondolas16%
273,163
Reefers1%
19,068
Total Cars = 1,729,359
Box Cars10%
165,435Hoppers
11%188,054
North American Freight Car Fleet By Car Type
Car Fleet Demographics
September 14-16, 2008
Tomorrow
Railroad Challenges
17.817.9
18.1
18.5
18.9
19.3
19.5 19.5 19.5
19.319.2
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
September 14-16, 2008
Tomorrow
Railroad Challenges
0
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
September 14-16, 2008
Tomorrow
Railroad Challenges
0
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
January 23, 2009 11September 14-16, 2008
Tomorrow
Railroad Challenges
Deregulation/RegulationOctober 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 Railroads1964-2007
0
50
100
150
200
250
300
Ind
ex 1
981 =
100
Productivity Volume Revenue Price
Railroad Challenges
January 23, 2009 13
January 23, 2009 14September 14-16, 2008
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.
January 23, 2009 15September 14-16, 2008
Tomorrow
Railroad Challenges
Positive Train Control (PTC)
What is Positive Train Control?
Prevent train collisions and over speed accidents by requiring automatic control systems to override mistakes made by human operators.
January 23, 2009 16September 14-16, 2008
Tomorrow
Railroad Challenges
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).
January 23, 2009 17September 14-16, 2008
Tomorrow
Railroad Challenges
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
January 23, 2009 18September 14-16, 2008
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!
January 23, 2009 19September 14-16, 2008
Tomorrow
Railroad Challenges
Business LevelsEthanol 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
January 23, 2009 20September 14-16, 2008
Tomorrow
Railroad Challenges
Business LevelsMarketing Trends
Grain/DDG’s
Coal
Chemicals
Steel - Products
Forest Products
Automotive
Economics
Foreign
Trade
Global U. S. $$
$
Wait And See
The Hill
Barge TruckRailroad
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?
80% of the US Population Lives?
Major US Ports
Market Share Barriers
International Markets
