Appendix B-1: Freight Rail ______
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APPENDIX B-1: FREIGHT RAIL _____________________________________________________________________________________ California occupies an economically strategic lines were once branches from larger main position in our State, the Nation and the world. lines. All modes of freight transportation – trucking, This freight rail network supports the shipping, air cargo, and freight rail – are critical operations of industries throughout the State to this success. Commodities moved by rail tend and links California with domestic and to have a low transportation cost to international markets. weight/volume ratio, which makes them attractive to transport by freight rail lines instead of trucks. In order for California to CLASS I RAILROADS maintain its preeminent position, it is vital that Typically, the distance at which the economics the State’s current freight rail system be become favorable for using a Class I railroad is preserved and maintained. This network must approximately 500 miles. be reliable, accessible, cost-effective, and provide and enhance the mobility of people and goods, yet remain competitive with other Union Pacific (UP) modes. Overall, California’s railroads are stable, Created by the Pacific Railroad Act of 1862 productive, and competitive and they have signed by Abraham Lincoln, UP has evolved as enough business to operate profitably. the largest railroad in the United States. The UP ships a significant volume of intermodal freight, FREIGHT RAIL INVENTORY and is the largest shipper of chemicals in the Freight railroads in California are owned and country. operated by private companies ranging in size In California (2013), UP operates an expansive from the large transcontinental railroads to network of over 3,267 miles of track, has an short line holding companies such as Genesee & annual payroll of $429 million with 4,860 Wyoming Inc. and Omnitrax and small employees, and makes $228.4 million in in-state independent firms such as the Richmond purchases. Terminal Company and the Northwestern UP serves diverse regions including the San Pacific. These railroads are responsible for Joaquin Central Valley, the Port of Oakland and building and maintaining the system on which San Francisco Bay Area, and the Los Angeles they operate. California’s freight railroad metropolitan area. The UP Los Angeles Service system consists of 29 railroads, which are Unit operating from the Ports of Los Angeles categorized into two different classes: and Long Beach is the primary route to the four major gateways of St. Louis, Chicago, Memphis, • Class I railroads generate more than $433.2 and New Orleans. million in annual operating revenues. • Class III railroads referred to as “short line” Carload services include two system railroads; generate less than $34.6 million classification yards at West Colton (Southern in annual operating revenues. California) and Roseville (northern California). Regional yards are located in Lathrop (San BNSF Railway Company (BNSF) and Union Joaquin County), Commerce (Los Angeles Pacific Railroad (UP) are the only Class I County) and Yermo (San Bernardino County). railroads, and there are 27 short line railroads operating in California. Class I railroads are separated into subdivisions, and many short California Freight Mobility Plan Appendix B-1 1 BNSF INTERMODAL RAIL BNSF Railway is North America’s largest Intermodal rail, the long-haul transporting of intermodal carrier. It is the largest grain- shipping containers or truck trailers on railroad hauling railroad in the country and is the flat cars, continues to grow rapidly. According nation’s freight rail leader in intermodal to the American Association of Railroads, (container) volume. “Intermodal allows railroads, ocean carriers, BNSF is the product of mergers and acquisitions trucking companies, and intermodal customers of nearly 400 different railroad lines, including to take advantage of the best attributes of two major railroads (Burlington Northern various transportation modes to yield an Railroad and the Atchison, Topeka and Santa Fe efficient and cost-effective overall freight Railway), over the course of 160 years. movement…(it) represents a cost-effective, environmentally friendly alternative to In California, BNSF operates over 2,125 miles of excessive reliance on highways to transport track – 1,155 miles of which are owned by BNSF freight.” and 975 miles through trackage rights (rights of one railroad to operate on another’s tracks). The Transcontinental (Transcon) route east ECONOMIC IMPACT from the Ports of Los Angeles and Long Beach is Nationwide, each freight rail job supports 4.5 an integral part of the California freight rail jobs elsewhere in the economy. According to network and is their land bridge link to markets United States (US) Department of Commerce in Kansas City, Memphis, and Chicago. economic models, every dollar spent on investments in our freight railroads — tracks, BNSF rail yards include Bakersfield, Barstow, equipment, locomotives, bridges, etc. — yields City of Commerce (Los Angeles), Fresno, $3 in economic output. In addition, each $1 Needles, Richmond, Riverbank, San Bernardino, billion of rail investment creates more than San Diego, Stockton, and Wilmington. 17,000 jobs. Intermodal hub centers are located at Fresno, Richmond, San Bernardino, Stockton, and The Association of American Railroads in 2012 Vernon (Hobart). stated that “the more than 175,000 freight railroad employees are among America’s most CLASS III SHORT LINE RAILROADS highly compensated workers.” They further California is home to 27 active short line stated that in 2011, the average full-time rail railroads throughout the state (see table industry employee earned annual wages and labeled California Short Line Railroads). Some benefits totaling $110,470. have switching functions at the largest seaports Job Opportunities and others serve as shorter line haul functions Freight railroads plan to hire more than 11,000 for Class I railroads in urban and rural areas. people in 2013. According to the Association of Short line railroads play an important role in American Railroads, 23% of railroad workers moving goods to and from California regions will retire making well paying jobs available and local communities. throughout the country by 2015. Abandoned rail lines are an ongoing concern because once track is removed; it is very ENVIRONMENT difficult to restore the lines. The likelihood of One train can carry the same load as 280 trucks freight service is doubtful at best. For further and can move a ton of freight an average of 400 information, see Rail Preservation Programs: A miles on one gallon of fuel. In 2011, 155.6 Survey of National Guidance and State Practice, million tons of freight originated, terminated, or (Caltrans, June 2011) - passed through California by rail. It would have http://www.dot.ca.gov/hq/tpp/offices/ogm/tra taken approximately 8.6 million trucks to ins/Rail_Preservation_PI_6-21-11.pdf) handle this freight. 2 California Freight Mobility Appendix B-1 trains per day on each line, Colton Crossing was The California Air Resources Board (ARB) has one of the busiest at-grade rail-to-rail crossings developed and implemented a number of in the nation. Putting the UP tracks above the measures to significantly reduce locomotive BNSF line allows both railroads to use the tracks and railyard emissions in California, including safely and eliminate waits as crossing trains regulations, enforceable agreements, and pass. This project, completed in August 2013, funding of clean technology. Programs include exemplified a successful public-private Rail Emission Reduction, Railyard Health Risk partnership between Caltrans, San Bernardino Assessments and Mitigation Plan, Locomotive Associated Governments, the city of Colton, UP, Technology and Locomotive Incentive Funding, and BNSF Railway. etc. Tehachapi Trade Corridor Rail Improvement KEY FREIGHT RAIL ROUTES Project: This project located in Kern County will A key route for both Class I railroads in improve capacity through the corridor by 70%. California is the Tehachapi Trade Corridor, It involves 15 miles of double tracking, adding 3 which is dispatched by the UP. The Tehachapi main bridges, connecting existing siding and Trade Corridor is a major trade route which signal system improvements to a very rugged connects the State with national markets. segment of rail through the Tehachapi Range. In Northern California, the Martinez Richmond Rail Connector Project: This project Subdivision, Feather River Canyon, and Donner will provide an at-grade rail connection to Pass routes serve the Port of Oakland and Port enhance BNSF’s access to the Port of Oakland. of Stockton, and are owned and dispatched by The project will allow slow-moving intermodal the UP but serve BNSF through trackage right trains to bypass the City of Richmond thus agreements. Donner Pass has replaced the reducing delays and congestion and improving Feather River Canyon route as UP’s primary safety in the local community. The project also intermodal service route eastward. Previously, enhances the Port of Oakland’s competitiveness only 5,000 foot trains could run through the and optimizes the Tehachapi Trade Corridor by rugged canyon route but now 9,000 foot trains providing a faster, more direct route through traverse the Pass, thus optimizing UP’s Northern California. intermodal operation. POSITIVE TRAIN CONTROL TRADE CORRIDOR Positive train control (PTC) is advanced IMPROVEMENT FUND (TCIF) technology designed to automatically