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Passenger Rail Sharing Freight Infrastructure: Creating Win-Win Agreements

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Passenger Rail Sharing Freight Infrastructure: Creating Win-Win Agreements CENTER FOR TRANSPORTATION RESEARCH THE UNIVERSITY OF TEXAS AT AUSTIN Project Summary Report 0-5022-S Project 0-5022: Issues Related to Public Support of Passenger Rail Services on Existing Freight Rail Lines and/or Rights-of-Way Authors: Jolanda Prozzi March 2006 Passenger Rail Sharing Freight Infrastructure: Creating Win-Win Agreements The role of the Texas Department of Transportation (TxDOT) in support- ing the development of passenger rail services in the state relates to the need for improved mobility. Given the fore- casted growth of the Texas population and freight movements, it is clear that substantial demands will be placed on the already heavily-used transportation infrastructure of the state. Railroads are viewed as a key element of a greater intermodal solution to supply increased travel demand and improve mobil- ity. It is widely hypothesized that rail service (particularly commuter rail on existing tracks) can be less costly than Five cases in which passenger rail What We Found… highway expansions when used for agencies share infrastructure with personal travel. However, it is foreseen freight railroads in metropolitan ar- Private Railroad Perspective that TxDOT will face many challenges, eas outside Texas were documented Texas’ proximity to the Gulf Coast and in some cases opposition, when in greater detail. The selected case and Mexico, coupled with the state’s the agency proposes to accommodate studies were: Capitol Corridor (Cal- economic growth of the 1990s–growth both passenger and freight trains on ifornia), Metra (Illinois), Metrolink that resulted in higher agricultural and the same track or the same right-of-way (California), Sounder (Washing- manufacturing production levels–and (ROW). In 2004, TxDOT contracted ton), and Tri-Rail (Florida). All the state’s growing population, have with the Center for Transportation five cases demonstrated successful contributed to significant freight move- Research (CTR) at The University of relationships between the freight ments to, from, and through Texas. The Texas at Austin to outline and explain railroads and the passenger transit state’s rail freight system is a critical the environments in which public agencies. element of the intermodal freight agencies and private railroads operate • Outlined and discussed the environ- transportation system, facilitating these and to highlight the negotiation issues ments in which public agencies and higher volumes of freight movements. and concerns regarding passenger rail private railroads operate, with spe- With rail shipments forecast to grow sharing freight infrastructure from both cific emphasis on their respective over the next 25 years, it is obvious parties’ perspectives. mandates, operating environments, that the system will become increas- and challenges faced, specifically ingly important, especially because the challenges faced by the freight the number of vehicles and trucks are What We Did… sector since deregulation. starting to overwhelm key elements of The research team: • Highlighted different types of the highway infrastructure, resulting in • Conducted an extensive review of shared use agreements as described concerns about congestion, air quality, the literature on issues and con- by the Federal Railroad Adminis- and safety in Texas. Rail is therefore cerns associated with shared rail tration. seen as an option for reducing road infrastructure and ROW use by • Delineated and explained many of congestion by reducing the number of PROJECT SUMMARY REPORT passenger and freight trains. the potential issues and concerns trucks and vehicles on Texas highways. • Conducted interviews with vari- that TxDOT and other public sec- All of these factors place increasing ous transit agencies and freight tor agencies should understand pressure on the performance and capac- railroads regarding specific les- and consider when contemplating ity of Texas’ rail freight system. sons learned and best practices. various rail sharing arrangements. At the same time, deregulation Project Summary Report 0-5022-S – – and the railroads’ restructuring efforts since Subsequently, a number of these issues are negotiations. Given this situation, it is critical deregulation have resulted in reduced excess briefly highlighted. that the public agency attempt to optimize its capacity—capacity now largely unavailable bargaining position and avoid a situation in for passenger rail use. It is thus anticipated There Is No Single Best Shared Use which its bargaining position is diminished. that the overall capacity of the rail system in Agreement The latter is manifested, for example, when Texas will not be able to accommodate future The first and foremost point to be noted the transit agency creates high public expec- growth in freight demand–not to mention about shared use agreements is that there is tations that cannot be achieved. Regarding passenger rail. Under these circumstances, no single best agreement that will serve all the former situation, the public agency can freight railroads are very hesitant to accom- situations. Shared use agreements are gen- use political support to argue its position. A modate passenger rail on their infrastructure. erally complex and involve subagreements. high-level legislator or elected official can On busy corridors, public agencies will have If a commuter rail operator must execute a be invaluable in facilitating agreements and to fund capacity expansions to ensure that shared use agreement with freight railroads, securing public support. the freight railroads’ current and future op- the agreements should clearly specify the cri- Establishing a Trusting Relationship erations are not compromised. On less busy teria for capacity improvements and service corridors, it may be possible to purchase expansion. In addition, operational issues The collaborative process works best the track outright, with the freight carrier must be considered during negotiations. when a level of trust can be established retaining an easement to serve remaining Issues such as signal design and spacing, between the transit agency and the freight shippers. which impose operational limitations on railroad. The first step in building a trusting specific segments of track; speed limits, and relationship is often establishing an open Public Agency Perspective other operational limitations should be rec- dialogue and good communication early Currently, passenger rail systems are ognized. Recognized bottlenecks may need in the planning process and cultivating it generally planned and operated by public to be targeted for capital improvements. throughout negotiations. Good communica- entities. These entities differ significantly tion can be facilitated by: from freight railroads in the way they are A Freight Railroad’s Business Is to Earn Profits by Moving Freight • bringing interested stakeholders together structured and in the objectives they wish in a stakeholder meeting; to achieve. Public agencies tend to support The freight railroads want to provide • establishing consistent contact between passenger rail to encourage a modal shift their customers with a high quality and reli- the freight railroad and the public agency away from the private automobile, thereby able service and want to make the most prof- in the form of regularly scheduled meet- improving mobility, safety, air quality, and itable use of the ROW and track they own. ings; easing congestion. Because commuter rail is Thus, as profit-making private corporations, • preparing progress and follow-up reports relatively efficient (i.e., lower operating costs railroads will only allow the use of their rail to ensure that information is communi- per passenger mile) at moving passengers track for passenger rail services under the cated often; and, over relatively short and medium distances following conditions: • securing high-level participation and and has proved that it attracts choice riders • the freight railroads are assured that it is accountability. (i.e., higher income, suburban, single-oc- safe; cupant vehicle users unlikely to ride the Clearly Defined Goals and Objectives • the freight railroads are not expected to bus), it is often seen as a means to manage cross-subsidize passenger rail services Having clearly defined goals and objec- congestion without constructing additional (In other words, the freight railroads are tives is critical to the successful implemen- highway capacity. With costs of highway fully reimbursed for all costs incurred, tation of mutually beneficial shared use construction rising, developing a rail service plus a profit); agreements and in allowing both parties to can be very cost-effective, especially when • there is no negative impact on the quality leverage their respective strengths toward existing ROW or track can be used. On the of their freight service; and, reaching common goals. Examples of com- other hand, commuter rail operations usually • liability issues can be resolved in good mon goals include: require subsidies because revenues typically faith and legal liability can be held to a fail to meet operating costs. Also, achieving • increasing capacity; manageable level. a modal shift to rail requires, among other • increasing train speed, reducing travel factors, that commuter rail serve those areas The freight railroads must be assured time; where potential riders live and work, offer that they will be able to run as efficiently • improving reliability, ensuring on-time short headways during peak hours, and after allowing passenger
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