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

The Railroad Industry Local Operations And Future Challenges

Challenges On The Tomorrow Horizon For The Railroad Industry September 14-16, 2008 January 23, 2009 2

Railroad Challenges  RSSM Tomorrow  Demographics Of Assets  Deregulation – Regulation  PTC  Business Levels September 14-16, 2008 January 23, 2009 3

Railroad Challenges Rail Sensitive – Security Material Tomorrow 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 September 14-16, 2008 January 23, 2009 4

Railroad Challenges Resource Demographics Tomorrow  Median Age 47  Retirements – 2012 80K September 14-16, 2008 January 23, 2009 5

Railroad Challenges “Working On The Railroad” Age on Birthday Total In 2006 Number Percent Tomorrow 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

Railroad Challenges Car Fleet Demographics Reefers Box Cars Others Covered Box Cars Tomorrow 1% 10% 0.4 Hoppers 10% Hoppers Hoppers 19,068 165,435 165,435 6,684 30% 11% 11% 525,139 188,054 188,054 Flats 13% Tanks 225,805 Gondolas 19% 16% 324,002 273,163 Total Cars = 1,729,359 North American Freight Car Fleet By Car Type September 14-16, 2008

Railroad Challenges Car Fleet Demographics 20 Tomorrow 19.5 19.5 19.5 19.3 19.3 19.2 18.9 19 18.5 18.1 17.9 18 17.8 17 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 North American Freight Car Fleet Average Age In Years September 14-16, 2008

Railroad Challenges Car Fleet Demographics Tomorrow 25000 20000 15000 10000 5000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Covered Hoppers Hoppers Tanks New Builds: The Winners September 14-16, 2008

Railroad Challenges Car Fleet Demographics Tomorrow 8000 6000 4000 2000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Box Flats Gons Reefers New Builds: The Losers September 14-16, 2008

Railroad Challenges Deregulation/Regulation October 18, 1980 Tomorrow  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. September 14-16, 2008 January 23, 2009 11

Railroad Challenges Performance of Class I Railroads 1964-2007

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Railroad Challenges Positive Train Control (PTC) Tomorrow 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. September 14-16, 2008 January 23, 2009 14

Railroad Challenges Positive Train Control (PTC) Tomorrow What is Positive Train Control? Prevent train collisions and over speed accidents by requiring automatic control systems to override mistakes made by human operators. September 14-16, 2008 January 23, 2009 15

Railroad Challenges Positive Train Control (PTC) Tomorrow 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). September 14-16, 2008 January 23, 2009 16

Railroad Challenges Positive Train Control (PTC) Tomorrow Current Concerns  December 2015 Mandate  No Single Source Technology  No Industry Standard  Amtrak – Commuter - Shortline Routes  Clear Defined Definition – Routes  Workforce Education and Training September 14-16, 2008 January 23, 2009 17

Railroad Challenges HELP WANTED! Positive Train Control (PTC) Tomorrow 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 September 14-16, 2008 January 23, 2009 18

Railroad Challenges Business Levels Ethanol Production Tomorrow  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 September 14-16, 2008 January 23, 2009 19

Railroad Challenges Business Levels Marketing Trends Tomorrow Foreign The Hill Trade Grain/DDG’s Coal Economics Chemicals Global Wait U. S. Steel - Products And $$$ See Forest Products Automotive September 14-16, 2008 January 23, 2009 20

Fuel Cost – Poses a Challenge, but Creates a Bigger Opportunity Comparison of Fuel Efficiency Using Ton-Miles Per Gallon of Fuel Barge Truck Railroad 155 576 413

80% of the US Population Lives?

Major US Ports

International Markets Market Share Barriers