August 28, 28, 20 2018 – Traver erse C e City, Michi higan T ech chni nical S Session ssion 10 10 KDOT S Shortline line R Rail P l Progr grams an and Strateg Strategic A Appr pproac aches hes John hn W W. Ma Maddox, CPM PM Frei reight a t and Rail P Program m Ma Manager
Moving F ng Freigh ght – “MOVING ING T THE HE ECONOM ONOMY” Integrated Air Multimodal Motor System Cargo Carriers Approach KDOT/KTA Third Multimodal Inter- Party Ports/ Freight Logistics modal Waterways Program Providers Vision Pipeline Freight Rail Shortline Class 1
Freight ht M Movemen vement is “ ECONO ONOMY IN IN MOT OTIO ION ” Private Sector FHWA/FRA/ Local Units of Freight Advisory Freight MPOs FMCSA/ Government Committee Shortline Stakeholders USDOT Railroads -Transportation -Cities Providers -Counties -Shippers -3PLs -Intermodal -Chambers of Advise Facilities Comme rce -Transload Facilities -Local Economic Development Assist KDOT/KTA Organizations Shortline Railroads Advocate Other
Multi timo modal F Freight C t Componen ents ts Short Sho rtline R Railroads Are a Are a Key ey C Compo mponent i t in the the Frei reight Lo t Logistics Process Existing Emerging Freight Emerging Freight Technologies Freight Infrastructure Existing Issues and Technologies Future Freight Challenges Freight Infrastructure Issues and Technologies Challenges Freight Freight Technology Infrastructure Opportunities Solutions Modal Technologies Smart Cities and Solutions • • Smart Manufacturing Land Use Planning • • Smart Warehousing Urban Goods Movement • • Big Data Urban Freight Initiatives • • Data Analytics “Last Mile” Connection • • Improved Improved Improved Improved Improved Economic Operating Customer Development Freight Flows Safety Efficiencies Service Opportunities
Integ egrated ed Su Supply y Chai Chain M Man anag agemen ement Int Intellige gent F Fre reight a and nd Supply Chain T n T ech chno nologi gies Customer Analytics Purchasing Outbound Inbound Transportation Supply Chain Transportation Supply Chain Effects ts ALL ALL Mo Modes including ing Inventory INTEGRATED shortl rtline r e railroads Storage and Management Supply Chain Warehousing and Control Management Demand & Manufacturing Lead Time and Chan Change an e and d Management Production Materials Ev Evolution Management
Kan ansas as Statew Statewide R e Rai ail N Netw etwork
Clas ass 1 1 Route Mi e Miles es i in Kan ansas as
Shortline line Route Mi e Miles es i in K Kan ansas as Shortlin ine r railr ilroads ds own 3 37% o of the the tr trac ack m miles in Kansas as a and o operate o ate over er 51% 1% of the the tr track mi miles i in the the s stat tate 86% of t the shortline system i tem is o owned ed and operated b d by 4 railr ilroads ds Kansas s shortlin line railr ilroads ds include tho those o owned by by the the larges est p t privatel ately o owned ed shortline ne h holding c ng company y (WATCO) O) a and t the l e larges est t public icly o owned s shortlin ine holdi lding c company (GWRR) RR) in the U e United ted S States tes
Shortline line Annua nual C l Carloadings dings 201 012 168, 8,032 32 201 013 173, 3,056 56 201 014 187, 7,436 436 2017 17 201 015 176, 6,481 481 201 016 189, 9,80 803 18% In Increase 201 017 199, 9,770 770 2016 16 2014 14 Cl Clas ass 1 1 Annu Annual Carl Carload adings gs 2015 15 2013 13 Originating and 2014 14 2012 12 T ermina nating ng Traffi fic 2015 15 20 2012 6,489, 89,074 74 2013 20 6,22 6, 220,48 485 2017 17 2016 16 2014 20 7,077, 77,51 516 2012 12 2015 20 6,912, 2,81 810 Majorit ity P y Pass- Through 1% I 1% Incr crease se 20 2016 6,52 6, 520,68 689 Traffi affic 2013 13 20 2017 6,574, 74,75 750
Freigh ght R Railroad 2 d 286K Compatib ibilit ility Shortline
St Stat ate R e Rai ail Ser Service Imp mprovem emen ent F Fund d (SRS SRSIF) K.S K.S.A .A. 75 75-5047 – Establishme hment nt o of Fund nd ( (Program) m) – 1991 991 • K.S K.S.A .A. 75 75-5048 – Requirem ement ents, Restrictions ns a and Fund nding ng • K.S.A K.S .A. 75 75-5049 – Loan R Requirem ement ents • K.S K.S.A .A. 75 75-5051 – SRSI SRSIF Rul ules es a and R nd Regul egulation ons • K.A K.A.R .R. 36 36-39-1 t 1 throu ough 3 gh 36-36 36-6 6 – SRSI SRSIF p progr gram gui guidel elines • • Compr mprehe hensive Tra ranspo porta tati tion P Program ( m (1999) Sig igned in into l law aw by by Govern rnor B r Bil ill Grav raves ( (May May 1 1999) 999) Stat ate f funds f for r rail rail re rehabi abilitation f firs irst au authorize zed $3 $3 mil illio ion an annual al tran ransfer f r from the S State H Hig ighway F Fund Incre reased to $5 m $5 mil illio ion in in 20 2008 • T -WOR ORKS KS ( (2010) 10) Sig igned in into L Law aw by by Govern rnor Mark Mark P Park arkinson ( (May May 20 2010) Stat ate f funds f for r rail rail re rehabi abilitation c continue Main Maintained $5 m $5 mil illio ion in in s state f funding
St Stat ate R e Rai ail Ser Service Imp mprovem emen ent F Fund d (SRS SRSIF) • Project C t Categ tegories: Ma Major R Reha ehabilitati tion Capa pacity ty I Impr mproveme ment/ t/Expa pansion Economi mic D Devel elopmen ment Equi uipm pment ( t (Lo Locomoti tives, ra railcars, etc etc.) Loan (4 n (40%), ), G Grant (3 (30%) ) and nd A Applicant nt Match (3 (30%) ) – bas based o on Pr Project C Cost • EXAMPLE: E: $1,000, 000,00 000 P 0 Project • Loan A Amount: : $400, 00,00 000 ( 0 (2% interest st, 1 10-year pa payback peri period - $41,665 665 i interest; T TOTAL = $441 41,665 665) • Reimbu bursabl sable G Grant: : $300, 00,00 000 • Recipient M Match: : $300, 00,000 000 • Rec ecipi pient rei t reimbur ursed o off invoices
St Stat ate R e Rai ail Ser Service Imp mprovem emen ent F Fund d (SRS SRSIF) Program S Struct cture • Appl Applicati tions: An Annua ual “ “Call for Appl r Applications” i in Apri April/Ma May Appl Applicati tions a accept pted y yea ear-round nd ( (based o on fund a availabil ilit ity) y) Compe mpeti titi tive Appl Application P Process – bas based o on Cost st-Bene nefit A Ana nalysis (CB (CBA) Co Cost-Benefit R Rat atio (CBR BR) = = 1. 1.0> 0> ( (st stat atutory) Project r rank nking ngs b based o on n CB CBR Projec ect a agreemen eement Notice t e to P Proceed eed Mi Minimu mum m of four s ur site te visits: pre preconstr truction, ma materi terials, c constructi tion, po post- construc ructi tion Fina inal ins inspection b by F y FRA qu qualified ins inspector Notice o e of A Accep epta tance Lo Loan repa repayme ment b t beg egins
St Stat ate R e Rai ail Ser Service Imp mprovem emen ent F Fund d (SRS SRSIF) • Sta State R te Rail Ser Service I Impr mprovement Fun und: 2000 - 2018 18 71 P Projec ects ts 650, 0,00 000 n 0 new c crosst sties i instal alled 435, 5,000 m million t tons o of balla llast i installe lled 8 mi million to tons o of ra rail repl replaced 9 short rtlin ine r rail ilroads, 2 2 port ort a authorities, 3 3 loc ocal u units of of gov overnment a and d 6 6 shippers KDOT loans = s = $27,850, 0,000 000 KDOT grants = s = $62,200, 00,000 000 Rec ecipi pient ma t matc tch = h = $34,500,000 TO TOTAL = = $124,500 00,000 00 • SFY FY 2019 P Proj ojects – 3 (t (to d date) )
St Stat ate R e Rai ail Ser Service Imp mprovem emen ent F Fund d (SRS SRSIF) • Additi tionally, SR SRSI SIF ha have b bee een us used to to hel help p with ma th matc tch f fun unds to to lev everage fede deral T TIGE IGER V R VI I and T d TIGE IGER V R VII II proje jects for i improvements t to the BNSF frei reight ht l line tha that a t also s ser erves as the ho the host t ra railroad for the AMT r the AMTRAK AK SW SW Chi hief TI TIGE GER VI VI (Cit ity o of Gard arden C Cit ity, KS KS) TIGE TI GER VI VI (Ci City o of La La Junta, CO CO) • • KDOT T - $3 m $3 mil illion KDOT T - $1 $1 m mil illio ion BNSF F - $2 m $2 mil illio ion CD CDOT OT - $1 m million AM AMTRA RAK - $4 m $4 mil illio ion NMDOT T - $1 m million Local Un Units of of Gove overnme ment - $300, 00,00 000 BNSF F - $2 m $2 mil illio ion Feder ederal T TIG IGER G R Grant nt - $12,469,963 AM AMTRA RAK - $4 m $4 mil illio ion Local Un Units of of Gove overnme ment - $1 $176. 76.000 PROEJCT TO T TOTAL - $21,769, 69,93 93 Feder ederal T TIG IGER G R Grant nt - $15210143 PROEJCT TO T TOTAL - $24, $24,386 386,143 43
Kan ansas as Cou County Loc Locat ations of SRSI of SRSIF P Proj ojec ects Rail R Rehabi habilitati tation, , expans nsion a and nd capac acity ty improvemen ement t projects i in 4 n 47 of the the 10 100 K Kan ansas as counti ties es with r th rail lin lines
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