Wisconsin Transportation Planning Program
WISCONSIN DEPARTMENT OF TRANSPORTATION DIVISION OF PLANNING & BUDGET January 1981 DEPARTMENT OF TRANSPORTATION FEDERAL RAILROAD ADMINISTRATION
WASHINGTON, D.C. 20590
ASSOCIATE ADMINISTRATOR
Mr. Lowell B. Jackson Secretary Wisconsin Department of Transportation 4802 Sheboygan Avenue P. O. Box 7910 Madison, WI 53707 Dear Mr. Jackson: I am pleased to approve the 1981 Wisconsin Rail Plan Update. The benefit/cost methodology contained in the Update is also approved at this time. Please recognize that 49 CFR 266.15(d) requires that a plan update be prepared on an annual basis. Therefore, approval of this plan will expire exactly one year after the date of this letter. Upon expiration of planning approval, no applications for projects not contained in the previous year 1 s plan can be funded until a plan update is approved. Sincerely,
. // //:t~~;~/ ..l ,,:·,.,,,,t _:i (__ ~----/-:,,~~';,~:;-:,.,:-- ; . ~--,, - Wi 11 i am E. Loftus// Associate Administrator for Federal Assistance
RECEIVED
JUL 2 7 l?J
OFFICE or THE SEC!~~'f.l\RY 'SPEED LIMIT 55 It's a law we can live with. THE WISCONSIN STATE RAIL PLAN
AN ELEMENT OF WISCONSIN'S TRANSPORTATION PLANNING PROGRAM
Submitted to the Federal Railroad Administration U.S. Department of Transportation
This document is also an ENVIRONMEN~AL IHPACT STATEMENT In Fulfillment of the Requirements of tiie Wisconsin Environmental Folicy Act
Wisconsin Department of Transportation Madison, Wisconsin January, I 9 tn CERTIFICATION
I, Lowell B. Jackson, Secretary of Transportation of the State of Wisconsin, pursuant to th~ authority delegated to my office by the Governor of the State of Wisconsin, in accordance with 49 CFR Part 266.lS(e) of the Federal Railroad Administration's regulations for Assistance to States for Local Rail Service, do hereby certify that the document submitted herewith constitutes an official update, superseding all previous official updates, of the State Rail Plan for the State of Wisconsin, as required by Section 805(c) of the Railroad Revitalization and egulatory Reform Act of 1976.
, Secretary ent of Transportation
i FOREWORD
Faced with swiftly vanishing returns on their investments and a pro ductivity situation that threatens to consume their entire equity, members of the nation's railroad industry are today at a crossroads. For the most part there is little or no private incentive remaining to make the sizable investments needed either to keep. abreast of economic growth in the United States or merely to retain a condition of status quo. Many railroads now lack the necessary ftmds to make any type of constructive capital outlays. This planning document is intended to provide an exposition of the general condition and status of the railroads serving Wisconsin and an analysis of the alternatives for the disposition of lines potentially subject to abandonment. The plan provides the framework and guidance for public officials and other interested parties to attempt to solve or at least ease railroad problems as they arise.
Wisconsin has in prior years published several rail plans and plan updates. The first, which qualified Wisconsin for 3R Act funds was dated December 22, 1975~ To make the State eligible for 4R Act funds .an expanded version was dated August 1, 1976. Subsequent updates to the 4R Act plan •;. were dated August 1, 1977, August 1, 1978, December 1, 1978, and December 1, 1979. This seventh in a series of reports contains many revisions and refinements of earlier information and analyses. Probably the most significant changes reflected in this update are refinements in the method ology for calculating benefit/cost ratios. The revised methodology brings the plan into agreement with the federal guidelines for benefit/cost compu tations.
The rail plan is also written in a manner to assure fulfillment of the Wisconsin Environmental Policy Act (Section 1.11 of the Wisconsin Statutes). Thus this report includes a detailed analysis which weighs and considers the environmental implications of actions affecting Wisconsin's rail system. Although exempt from federal requirements for an EIS, system plans such as the State Rail Plan are categorized by Wisconsin law as "Type II Actions" which may or may not be major actions or significantly affect the quality of the human environment. Rather than attempt to determine whether the rail plan's impacts are major, the Department treated the initial rail plan document as a "Preliminary Environmental Report" (PER) and provided the PER to appropriate agencies and persons for review and comments. Based on the comments and hearing testimony, the Rail Plan was revised and the next plan version, dated August 1, 1977, constituted an Environmental Impact Statement in fulfillment of the requirements of the Wisconsin Environ mental Policy Act (WEPA). This update of the rail plan thus also constitutes an update of the Environmental Impact Statement.
ii TABLE OF CONTENTS
CERTIFICATION ...... • • ...... i FOREWORD ...... i:( TABLE OF CONTENTS. • • • • • • • • . . . . ' ...... iii
LIST OF FIGURES...... •. . t t ._ II t . . . ix LIST OF TABLES ...... X
LOCATION INDEX OF ITEMS REQUIRED BY 49 CFR PART 266. • • ...... xii
CHAPTER I - INTRODUCTION . . . . . ~ ...... ' ...... I-1 The Impetus For State Rail Planning • • • • • • • • • • • • • • I-1 Purposes Of The Wisconsin Rail Plan • • • • • • • • • • • • • • I-2 Relationship To The All-Mode Policy Plan. • • • • • • • • • • • I-2 Wisconsin's Transportation Energy Policy. • • • • • • • • • • • I-3
CHAPTER II - RAILROAD PROBLEMS AND ISSUES • • • • • • • • • • . ' . . II-1 In troduc tian • • • • • • • • • • , • • • • • • • • • • • • • • • II-1 The Roots of Rail Problems ••••••••••••••••••• II-1 Current Industry-wide Problems ••••• , •• , •••••••• II-2 Specific Wisconsin Problems ••••• , •••••••••••• II-7 The Outlook with Regulatory Reform ••••••••••••••• II-11
CHAPTER III - GOALS, OBJECTIVES, AND POLICIES FOR WISCONSIN RAIL TRANSfORTATION ••••••••••••• . . . . . III-1 Introduction • • • • • • • • • • • • • • • • , • • • • • • • • • III-1 Goals and Objectives for Rail Transportation in Wisconsin ••• III-2 WisDOT Intermodal Policy Regarding Railroads •••••••••• III-4 WisDOT Policy on Grade Crossing Warning Devices and Surfaces •• III-4 WisDOT Policy on Taxation of Railroads •••• , , •••••• , III-5 WisDOT Policy on Rail Passenger Service •••••••••• • • III-6 WisDOT Policy on Lake Michigan Car Ferry Service ••••••• , III-7 WisDOT Policy on Rail Abandonments ••••••••••••••• III-7 WisDOT Investment Policy for Lines Approved for Abandonment •• III-8 WisDOT Policy on Streamlining the Total Rail System •••••• III-12 WisDOT Policy on Rehabilitation of Rail Properties ••••••• III-12 WisDOT Policy on Subsidization of Rail Service ••••••••• III-13 WisDOT Policy on Su~stitute Service Projects •••••••••• III-14 WisDOT Policy on Acquisition of Abandoned Rail Right of Way •• III-15
CHAPTER IV - THE INSTITUTIONAL STRUCTURE FOR RAILROAD PLANNING AND FINANCIAL ASSISTANCE • • • • • • • • • • • • . .• IV-1 The Regional Rail Reorganization Act of 1973 ••••• , • , •• IV-1 The Railroad Revitalization and Regulatory Reform Act of 1976 IV-2 Wisconsin Rail Assistance Programs ••••••••••••••• IV-3
iii CHAPTER V - THE EXISTING RAILROAD SYSTEM IN WISCONSIN ...... V-1 THE DEVELOPMENT OF WISCONSIN'S RAILROADS...... V-1 CHARACTERISTICS OF RAILROADS IN WISCONSIN ...... V-4 Wisconsin's Railroad Companies, •••••••••••• . . V-4 Classification Of Lines • • • • • • •. • , • • • • • • • . . V-8 Yard Facilities •••••••••••••••••••• . . V-10 Weight of Rail • • • • • • • • • • • • • • • • • • • • • . . V-10 TOFC And COFC Facilities •••••••••••••••• . . V-12 Interchange Facilities ••••••••• ...... V-12 Rail Service To Military Installations...... V-12 High And Wide Load Restrictions •••• ...... V-17 RAIL FREIGHT FLOW ...... V-18 Traffic Density • • • • • • • • • • • • • • • • • • • • . . V-18 Wisconsin's Rail Centers •••••••••••••••• . . V-21 Commodities Shipped By Rail •••••••••••••• V-23 Origin-Destination Of Rail Freight Shipments • ••••• V-23 Unit Train Operations ••••••••••••••••• • • V-28 LAKE MICHIGAN RAIL FERRY SERVICE...... V-32 Historical Development Of Rail Ferries ••••••••••• V-32 Present Status Of The Ferries ••••••• , ••••••• V-34 Relationship Of Ferries To The Green Bay and Western Railroad ••••••••••••••••••••• V-36 The Quality Of Ferry Passenger Service •••••• , •••• V-37
RAIL PASSENGER SERVICE...... • • V-38 Historical Trend •• ...... • • . . . . . V-38 Creation of Amtrak...... • • . . . . . V-38 Pre-Amtrak Service In Wisconsin ...... • • V-38 Current Rail Passenger Service In Wisconsin •••••• . . V-40 Analysis of Additional Routes ••••••••••••• V-42
CHAPTER VI - RAIL LINES POTENTIALLY SUBJECT TO ABANDONMENT . . . . . VI-1 Introduction •••••••••••••••••••••••• VI-1 The System Diagram Maps • • • • • • • • • • • • • • • • • • . . VI-1 Nationwide Pending and Prospective Abandonment Status ••• VI-2 Wisconsin Pendi~g and Prospective Abandonment Status •••• . . VI-5 Rail Lines Carrying Less Than 3 Million Gross Tons Per Mile . . VI-9 CHAPTER VII - ANALYSIS OF LINES SUBJECT TO ABANDONMENT ...... VII-1 Introduction •••••••••• ...... VII-1 Line-by-Line Analysis ••••• ...... VII-1 Disposition Of Lines Included In Earlier Rail Plan Analysis But Dropped From This Update...... VII-2
iv CHAPTER VII (Continued)
Location Index For Individual Line Analyses
Line Number Railroad Termini
2 C&NW Merrillan-Marshfield . • ...... VII-6 3 C&NW Marshfield-Wausau • . • . • ...... VII-8 6 C&NW Lake Geneva-Ringwood, Illinois . . • ...... VII-ll 7 C&NW Medary Jct.-Galesville • ...... • . . . . . VII-14 9 C&NW Pulaski-Gillett • ...... • . . . . . VII-16 13 B&FJ Brillion-Forest Jct. • • ...... • . . . VII-19 17 MILW Appleton-South Appleton • • . • . . . • . • • • VII-21 19 W&S North Milwaukee, Cambria, Oshkosh, Markesan, Mayville, Menomonee Falls • • • . • . . • . . VII-22 20 CM&N Sparta-Viroqua . • . • . . . . . • . • • . . • . VII-25 21 CM&N Monroe-Mineral Point . • • • . . • • . • . • . . VII-28 22 CWRC Milton Jct.-Waukesha . • . • . • . • • • • . • . VII-31 24 CRR Durand-Eau Claire . . . • • . • . . . . . • . . VII-34 25 MILW Lone Rock-Prairie du Chien • . • . • • . • . . . VII-37 26 CM&N Janesville-Monroe . • . . . . . • . • . . . • . VII-40 33 soo Marshfield-Greenwood . . • • • . • • ...... VII-43 34 CM&N Freeport-Madison . • • . . . • . • • . • . • . . VII-46 36 AA Kewaunee-Frankfort, MI Carferry . . • • • . . . VII-49 37 AA Manitowoc-Frankfort, MI Carferry • . • . • . . . VII-49 38 C&O Kewaunee-Ludington, MI Carferry . . • • . . VII-51 39 C&O Manitowoc-Ludington, MI Carferry • • . • . . • . VII-53 40 C&O Manitowoc-Ludington, MI Carferry • • . • . . • . VII-55 44 MILW Crivitz-Marinette . • . . . • . • . . • • . • . VII-57 47 E&LS Green Bay-Iron Mt...... • • . . . • • . VII-58 49 soo Glenwood City-Downing Jct. • • • • • • • • • • • VII-61 50 C&NW Marshfield-Wisconsin Rapids . . • • • . . • . . VII-64 51 MILW Madison-Richland Center . • • • • • • . . • . . VII-65 52 MILW Janesville-Avalon • . . • . • • . • • • . • • . VII-68 53 C&NW Reedsburg-Camp D~uglas • • • . . • • • • • • • . VII-71 54 C&NW Rhinelander-Washburn • • . • • • . • • . . • • • VII-74 55 C&NW Monico-Watersmeet . . . • . • . • • • . • • . . VII-78 56 C&NW West Bend-Fond du Lac • • • • • • • • • • • • . VII-81 57 C&NW Manitowoc-Green Bay . . • . • • • • • • • • . . VII-82 58 C&NW Spooner-Northline . • • . • • . • • . • • . • . VII-85 59 C&NW Clintonville-Eland • • • . • . • . . • • • . . . VII-88 60 soo Cameron-Rice Lake • • . • • • . • • . • . • • • VII-91 61 soo Webster-Boylston Junction . • • • • . • • • • • VII-92 ACl MILW Wausau-Tomahawk • • . • • • . . • • • . • • . VII-95 • ' AC2 MILW Racine-Waxdale . • • . • . . • • • • • • . • . • VII'.""98 AC3 MILW Waxdale-Beloit • • . . • . . . • • . • . . • . . VII-101 CHAPTER VIII - WISCONSIN'S RAIL PROGRAM ...... • VIII-1 Introduction ••••••••••••••••••••••••••• VIII-1 Operating Subsidy For The Ann Arbor Ferry ••••••••••••• VIII-1 Arthur K. Atkinson Ferry Rehabilitation and Operating Subsidy • VIII-2 Carferry Dock Rehabilitation ••••••••••• , ••••••• VIII-4 Establishment of Brillion-Forest Jct. Railroad • • • • • • • • VIII-4
V CHAPTER VIII - Continued
Establishment of the Nicolet Badger Northern Railroad ••• VIII-5 Rehabilitation of the Municipality of East Troy Railroad VIII-5 Establishment of the Chicago, Madison & Northern (Sparta-Viroqua Line) • • • • • • • • • ··• • • , • •. • .• • VIII-7 Establishment of the Chicago, Madison & Horthern (Janesville-Mineral Point Line) •••••••••• , •• VIII-7 Establishment of the Central Wisconsin Railroad. VIII-8 Establishment of the Wisconsin and Southern Railroad VIII-8 Continuation of Service to Midland Co-op in Fond du Lac VIII-9 Establishment of the Chippewa River Railroad •.••• VIII-9 Acquisition of the Janesville-Avalon Line. • • • , • , VIII-9 Acquisition of the Walworth-Avalon Line •••• , , , •• , VIII-9 Acquisition of the Tomahawk-Heafford. ,Jct. Line • , • VIII-10 ·Racine-Kenosha. Rail Passenger Demonstration Project. VIII-10 Other Potential Projects • , •••••• , •• ~ ••• , •• VIII-10
CHAPTER IX - DETERMINING THE ESSENTIAL RAIL SYSTEM '• IX-1
Introduction •••••• , • , • , ••••••• , ••• IX-1 Methodology for Evaluating the Total Railroad System •••• , IX-2 The Essential Rail System • • • • • , • • , ,. , , • • , IX-16 Relationship of the Systemwide Classification of Lines to Existing or Potential Governmental Rail Programs , ••• IX-16
CHAPTER X - THE MILWAUKEE ROAD BAt,:fKRUPTCY AND CONTINGENCY ANALYSIS • X-1
Introduction ... · .•.•.•.•.•...... X-1 Background Information on the Bankruptcy •••••• . . . . . X-2 Background Information on the Milwaukee Road System. X-11 WisDOT Objectives and Criteria for its Milwaukee Road Policy X-16 WisDOT Contingency Planning for the Milwaukee Road X-17
CHAPTER XI - PUBLIC PARTICIPATION IN THE WISCONSIN RAIL PLAN • XI-1
Introduction ...... • ...... XI-1 The Rail Plan Advisory Committee • • • , •• XI-2 The Rail Service Advisory Committee • • , ••• XI-2 The Car Ferry Task Force • • • • • • • • • • • , XI-3 Regional Planning Commission Involvement ••••••••• XI-4 State/Local Coordination for Lines Filed For Abandonment XI-4 Other Coordination Activities • • • • • , ••••• . . XI-5 The Rail Plan As An Environmental Impact Statement XI-5 ·Public Hearings . . . . . • ...... • . . . • XI-6
vi APPENDIX A-1 - METHODOLOGY:FOR CALCULATING REVENUES AND COSTS ASSUMING A CLASS ONE RAILROAD OPERATION• ••• . . . A-1 Introduction ...... A-1 Revenues •••••• ...... A-2 On-Branch Costs ••• ...... ' ...... A-2 Return On Investment ...... A-6 Off-Branch Costs •• ...... A-6 Summary of Class One Revenue and Cost Formulas ...... A-8 APPENDIX A-2 METHODOLOGY FOR CALCULATING REVENUES AND COSTS ASSUMING A SHORT-LINE OPERATION • • • • • • • • . . . A-9 Introduction ...... A-9 Revenues •••••• ...... ~ .... •...... A-9 Administrative Costs ...... A-9 Operating Costs ••• ...... A-12 Return On Investment ...... A-13 Sunnnary of Short-Line Revenue and Cost Formulas •• ...... A-13 APPENDIX B - BENEFIT/COST METHODOLOGY FOR LIGHT DENSITY BRANCH LINES
SECTION I - THE OVERALL FRAMEWORK FOR WISCONSIN'S BENEFIT/COST METHODOLOGY Introduction ...... B-1 Basic Assumptions ••••••••••••••••••••• B-1 Costs and Benefits Attributable to the Various Types of Projects ••••••••••••••••••••••• B-2 Formula for Computing the Benefit/Cost Ratio ••••••• B-3 Incremental Basis of Comparison •••••••••••••• B-4
SECTION II - METHODOLOGIES FOR COMPUTING THE ELEMENTS FOR THE BENEFIT/COST ANALYSIS
Methodology for Calculating the Costs to Continue Rail Service . . • . • • • • • • • . • • • . . • . • . . • . . B-7 Methodology for Calculating Trucking Costs •••••••• B-9 Methodology for Calculating Wage Losses •••••••••• B-12 Methodology for Calculating Salvage Value Benefits .•••• B-15 Methodology for Calculating Operating Efficiency Benefits As a Result of Increases in Speed •••••••••••• B-16 APPENDIX C - METHODOLOGY FOR CALCULATING ENVIRONMENTAL IMPACTS . . . c-1 Introduction ...... c-1 Energy Consumption - ...... C-1 Air Quality •••• ...... C-2 Noise Pollution •• ...... C-4 Water Pollution •• ...... c-5 Ecological Impacts •••••••••••• , ••••••• . . C-5 Historical And Archaeological Impacts ••••••••••• . . C-8
vii APPENDIX D - DETAILS OF CAR FERRY ABANDONMENT ANALYSIS , • . . D-1 Introduction . . . • . . • ...... • . . . • . . D-1 Air Quality Impacts • • • • • • • • • • • • • • • • , • • D-1 Noise Impacts • • • • • • • • • • , , , • • • , ••• , , • , D-3 Water Quality Impacts ••••••••• , , , ••••• , •• D-5 Impacts On Wildlife, Aquatic Life, Vegetation, , •• , , • , D-8 Solid Waste Disposal • • • • • , • • ••• , • D-9 Socio-Economic Impacts a • , , • , , , •• , • , ~ , •• D-9 Impact On Tax Collections ••••• , • , •••• , , • , • , D-9 Safety . . . • . • . • • . . . • . . • . . . c • • • • • • • D'-11 Spilling Of Hazardous Cargo ••• , , •• , • • • ••• , D-11 Land Use Changes • • • • • • • • , • • . • • , , D-11 Energy Consumption •••••• , , •••• , • , , • D-12 Growth Potential Of Car Ferry Traffic, • , • • . •• D-13
APPENDIX E '- AN ASSESSMENT OF THE WILDLIFE AND VEGETATION IN RAIL CORRIDORS POTENTIALLY SUBJECT TO ABANDONMENT E-1
Introduction • . • • • ,. • o • • • , • • • • • , • • • • . . E-1 Wildlife And Its Relationship To Railroad Corridors ••• E-1 Vegetation And Its Relationship To Railroad Corridors. E-2 Wildlife And Vegetation Impacts Of Individual Corridors, F.-3 APPENDIX F - RAIL PROJECT PRIORITY RANKING SYSTEM ...... F-1
Objectives of the Ranking Process. , • a •• , , • , , , • • F-1 General Approach to the Ranking Process, •• , •••• , • • F-1 Overview . , . • • • • . • . • . . . . . • . , , . . . . F-1 Project Eligibility. , •••••••• , , •• , •••• , , F-2 Service Continuation ••• , •• , •••••• , • • • • • • F-2 Self-Sufficiency ••••••••••••••• a ••• , • • F-2 Essentiality •••••••• , , • , • , , •• , , , , , F-4 Benefit-Co.st , ••• , , • , ••• , •• , • • • • • • • • • F-5 APPENDIX G WISCONSIN RAIL PLAN SHIPPER SURVEY FORMS ...... G-1 APPmnnx H FRA COMMENTS ON THE 1979 WISCONSIN RAIL PLAN R-1 Introduction ••••••• , • ...... H-1 FRA Comments and WisDOT Replies . . • • • • • • • • fl H-1 APPENDIX I - RAIL ABANDONMENT PROCEDURES UNDER THE INTERSTATE COMMERCE ACT AND ICC REGULATIONS •••••• , • I-1 System Diagram Map ...... I-1 Notice of Intent I-2 Application and Participation in Abandonment Process • , I-2 ICC Investigation •• , ••• , • • , • • • ••• I-3 Financial Assistance ••• , ••••••• , , ••••• I-4 APPENDIX J - PROGRAM OF PROJECTS , • ...... J-1 Introduction ••••••••• . . . . J-1 Rail Planning • • • • • • • • • • • I. • • • • • • • • • • • • J-1 Potential Projects ••••• , . . . . .- ...... J-1 Conclusion • , •• , ••• , • ...... - ...... J-5
viii LIST OF FIGURES
FIGURE V-1 HISTORICAL DEVELOPMENT OF RAILROADS IN WISCONSIN •••• V-3 FIGURE V-2 WIS CONS IN RAILROAD MAP • • • • • • • • • • ' • • • • • • • V- 6 FIGURE V-3 LOCATION OF WISCONSIN'S RAILROADS • ••••••• • •• V-7 FIGURE V-4 FRA CLASSIFICATION OF WISCONSIN RAILROADS ••••••• V-9 FIGURE V-5 WEIGHT OF RAIL ON WISCONSIN RAILROADS ••••••••• V-11 FIGURE V-6 LOCATION OF TOFC AND COFC FACILITIES IN WISCONSIN ••• V-14 FIGURE V-7 LOCATION OF INTER-RAILROAD CONNECTIONS ••••••••• V-15 FIGURE V-8 WISCONSIN RAIL FREIGHT DENSITY - 1976 ••••••••• V-19 FIGURE V-9 DISTRIBUTION OF RAIL TRAFFIC DENSITY IN WISCONSIN ••• V-20 FIGURE V-10 INTRASTATE SHIPMENT OF PULPWOOD AND WOOD CHIPS BY RAIL. V-25 FIGURE V-11 SHIPMENT OF COAL TO WISCONSIN COUNTIES BY RAIL • • • • • V-26 FIGURE V-12 SHIPMENT OF AGRICULTURAL CHEMICALS TO WISCONSIN COUNTIES BY RAIL • • • • • • • • • • • • • • • • • • V-27 FIGURE V-13 ORIGIN-DESTINATION OF WISCONSIN RAIL SHIPMENTS• •• V-30 FIGURE V-14 MAP OF LAKE MICHIGAN CARFERRY ROUTES •••••••• • . V-33 FIGURE V-15 WISCONSIN RAILROAD PASSENGERS SINCE 1920 • ••••• • . V-39 FIGURE V-16 RAIL PASSENGER ROUTES SERVING WISCONSIN •••••• . . V-41
FIGURE VI-1 RAIL LINES POTENTIALLY SUBJECT TO ABANDONMENT • • • • • VI-6 FIGURE VI-2 LIGHT DENSITY RAIL LINES ••••• • •••••• • • . • VI-10 FIGURE IX-1 A CLASSIFICATION OF WISCONSIN PLACES ON THE BASIS OF RAIL TRANSPORT ORIENTED ECONOMIC ACTIVITY. .. . IX-9 FIGURE IX-2 LOCATIONS OF MAJOR PORTS, UTILITY PLANTS, AND MILITARY BASES • • • • • • • • • • • • • • • • • • • • IX-11 FIGURE IX-3 LOCATIONS OF MAJOR MINES AND QUARRIES • • • • • • • • • IX-12 FIGURE IX-4 LOCATIONS OF MAJOR FERTILIZER BLENDING FACILITIES ••• IX-13 FIGURE IX-5 LOCATIONS OF MAJOR GRAIN ELEVATORS AND GRAIN PROCESSING PLANTS • • • • • • • • • • • • • • • • • • IX-14 FIGURE IX-6 LOCATIONS OF NATIONAL, STATE, AND COUNTY FORESTS IN WIS CONS IN • • • • • • • • • • • • • • • • • • • • • IX-15 FIGURE IX-7 THE ESSENTIAL RAILROAD SYSTEM OF WISCONSIN ASSUMING CONTINUED MULTIPLE PRIVATE OWNERSHIP ••••••••• IX-17 FIGURE IX-8 A RAILROAD SYSTEM FOR WISCONSIN ASSUMING SINGLE OWNERSHIP OF THE SYSTEM ••••••••••••••• IX-18 FIGURE X-1 THE PROPOSED MILWAUKEE II CORE ••••••• ...... X-7 FIGURE X-2 CURRENT STATUS OF THE MILWAUKEE ROAD •••• ...... X-10. FIGURE X-3 MILWAUKEE ROAD FREIGHT TRAFFIC DENSITY - 1978 . . . . . X-13 .. FIGURE B-1 RESIDUAL UNEMPLOYMENT ...... B-12 FIGURE G-1 WISCONSIN RAIL PLAN - FREIGHT TRANSPORTATION SURVEY • • G-1 FIGURE G-2 WISCONSIN RAIL PLAN - TELEPHONE SURVEY FORM •• • • , • G-5
FIGURE I-1 RAIL ABANDONMENT PROCEDURES UNDER THE INTERSTATE COMMERCE ACT AND ICC REGULATIONS •••••• • . . I-4
ix LIST OF TABLES
TABLE III-1 CLASSIFICATIONS AND CRITERIA FOR BRANCH LINES SUBJECT TO ABANDONMENT •••• , •••••• . -· . . III-11 TABLE V-1 HISTORICAL RECORD OF WISCONSIN RAIL MILEAGE • • • . V-2 TABLE V-2 CLASSIFICATION, MILEAGE, FREIGHT, AND REVENUE OF WISCONSIN RAILROADS •••••••••••••• V-5 TABLE V-3 TOFC AND COFC FACILITIES IN WISCONSIN • • • · • • • • V-13 TABLE V-4 RAIL SERVICE TO MILITARY INSTALLATIONS IN HISCONSIN V-16 TABLE V-5 RAILROAD COMPANY MILEAGE BY DENSITY GROUP • • • V-21 TABLE V-6 STATIONS ORIGINATING AND TERMINATING MORE THAN ONE PERCENT OF TOTAL WISCONSIN RAIL TRAFFIC V-22 TABLE V-7 WISCONSIN RAIL SHIPMENTS BY COMMODITY TYPE, •• V-24 TABLE V-8 THE TOP TWENTY STATES WHICH INTERCHANGE FREIGHT WITH WISCONSIN • • • • • • • • • • . • • V-29 TABLE V-9 UNIT TRAIN OPERATIONS IN WISCONSIN ••••••. V-31 TABLE V-10 ANNUAL FERRY TRAFFIC CARRIED, 1970-1979 • , ••• , V-35
TABLE VI-1 PENDING AND PROSPECTIVE RAIL ABANDONMENTS (by Railroad). vI;..J TABLE VI-2 PENDING AND PROSPECTIVE RAIL ABANDONMENTS (by State) •• VI-4 TABLE VI-3 RAIL LINES SUBJECT TO ABANDONMENT ••••••••• VI-7 TABLE VI-4 SUMMARY OF POTENTIAL ABANDONMENTS BY WISCONSIN'S RAILROADS • • • • • • • • • • • • • • • • • • • • • • VI-8 TABLE VII-1 A SUMMARY OF THE BRANCH LINE ANALYSES ...... VII-25 TABLE VIII-l FINANCIAL PERFORMANCE-ANN ARBOR MARINE OPERATIONS VIII-2 TABLE VIII-2 RECORD OF TRAFFIC-ANN ARBOR CAR FERRY· ••••••• . . VIII-3 TABLE VIII-3 RECORD OF TRAFFIC-BRILLION AND FOREST JCT. RAILROAD VIII-6 TABLE VIII-4 FINANCIAL PERFORMANCE-BRILLION AND FOREST JCT. RAILROAD • • • • • • • • , • , • • • • • • • • ·• • • • VIII-6 TABLE VIII-5 PRELIMINARY LIST OF POSSIBLE RAIL SERVICE CONTINUATION PROJECTS. • • • , • • • •. • . . VIII-12 TABLE IX-1 CRITERIA FOR ESTABLISHING LEVELS OF ESSENTIALITY FOR BRANCH LINES • • • • • • , • • • • • • • • • • • • . . VIII-8 TABLE IX-2 A GUIDE FOR RELATING THE CLASSIFICATION OF LINES TO EXISTING OR POTENTIAL GOVERNMENTAL RAil PROGRAMS. VIII-19
TABLE X-1 MILWAUKEE ROAD ORIGINATING AND TERMINATING TRAFFIC IN WISCONSIN • • • • • • • • • • • , • • • • • • X-14 TABLE X-2 ALTERNATIVE SERVICE AT MILWAUF..EE ROAD STATIONS •• X-15
TABLE A-1 1980 CREW COSTS FOR SELECTED WISCONSIN RA.ILROADS • • • • A-3 TABLE A-2 1980 LOCOMOTIVE COSTS FOR SELECTED WISCONSIN RAILROADS • A-3 TABLE A-3 O~BRANCH UNIT COST FACTORS FOR SELECTED WISCONSIN RAILROADS • • • • • • • • • • • • • • • • • A-4 TABLE A-4 AVERAGE CAR-DAYS ON A BRANCH LINE • • • • • • • • • • • A-5 TABLE A-5 AVERAGE "MAINTENANCE COSTS • • • • • • • • • • • A-6 TABLE A-6 LINE 1-l!\UL AND TERMINAL COSTS FOR OFF-BRANCH COST CALClTLATIONS • • • • • • , • • . • • • • . • • . A-7
X TABLE B-1 EXAMPLE BENEFIT/COST COMPUTATION FOR ACQUISITION AND REHABILITATION TO CLASS ONE •••••••••••• B-5 TABLE B-2 EXAMPLE BENEFIT/COST COMPUTATION FOR REHABILITATION TO CLASS TWO • • • • • • • • • • • • • • • • • • • • • B-6 TABLE B-3 FORMULAS FOR COMPUTING TRUCKING COSTS •••••••••• B-8 TABLE B-4 FORMULAS FOR COMPUTING TRUCKING COSTS •••••••••• B-10 TABLE B-5 RAIL TO TRUCK CARLOAD RATIOS BY COMMODITY CLASS ••••• B-11 TABLE B-6 MAXIMUM PUBLIC ASSISTANCE PAYMENTS BY REGION •••••• B-13 TABLE B-7 FORMULAS FOR COMPUTING PRIMARY WAGE LOSS •••••••• B-14 TABLE B-8 FORMULAS FOR COMPUTING SECONDARY WAGE AND JOB LOSS • • • B-15 TABLE B-9 FORMULAS FOR CALCULATING SALVAGE VALUE BENEFITS , •••• B-15 TABLE C-1 AVERAGE FUEL EFFICIENCIES FOR RAIL AND TRUCK • • • • • • C-1 TABLE C-2 FORMULAS FOR COMPUTING ENERGY CONSUMPTION CHANGE • • • • C-2 TABLE C-3 AVERAGE AIR POLLUTION EMISSION RATES FOR RAIL AND TRUCK. C-3 TABLE C-4 NOISE LEVELS FOR RAIL AND MOTOR CARRIER • • • • • • • • • C-4 TABLE C-5 FORMULAS FOR COMPUTING NOISE POLLUTION INDEX • • • • • • C-6
TABLE D-1 ESTIMATED MAXIMUM AMBIENT CONCENTRATION RESULTING FROM VEHICLE OPERATION • • • • • • • • • • • • • • • • D-4 TABLE D-2 ESTIMATED DAILY VOLUMES OF DIVERTED TRAFFIC •••••• D-4 TABLE D-3 SUMMARY OF WATER QUALITY IMPACT BY CASE ALTERNATIVE •• D-8 TABLE D-4 SUMMARY OF CARFERRY ECONOMIC IMPACT SURVEY •••••• D-10 TABLE D-5 SUBSTITUTION DATA • • • • • • • • • • • • • • • • • D-14 TABLE D-6 ANNUAL ENERGY CONSUMPTION BY CASE ••••••••• . . D-15 TABLE I-1 INTERSTATE COMMERCE COMMISSION RAILROAD ABANDONMENT TIMETABLE • • • • • - • • • • • • • • • • • • • • . . I-3
xi LOCATION INDEX OF ITEMS REQUIRED BY 49 CFR PART 266
The interim procedures, dated August 30, 1979, of Section 266.15 of 49 CFR Part 266 require that "each item submitted in response to a requirement of this section shall reference such requirement by subsection, paragraph, and subparagraph." However, because this plan will be used for purposes in addition to meeting the federal requirements, considerable additional infor mation has been included in the report. This makes it difficult to conform precisely to the specified federal format and even more difficult to find many of the required items. Therefore the index listed below has been developed which provides the location of each of the federally required items.
Location in Federally Required Item Wisconsin Rail Plan
(c) Contents of the State Rail Plan. Each A discussion of the background State Rail Plan shall: (1) Specify the for rail planning and the plan's objectives of the State's Rail Service purpose is contained in Chapter Assistance Program and explain how the I. Policy and objectives are implementation of the State Rail Plan will contained in Chapter III. A dis accomplish these objectives and explain cussion of data sources, assumptions, relevant data sources, assumptions, and methodologies is contained in analytical methodology, other legal con Appendices A, B, and c. straints and special problems or conditions which will aid the public in understanding the State Rail Plan.
(2) Contain an illustration of the State's A map of the entire state rail entire rail system on suitable scale maps system is contained in Figure of the state highway system (such as a V-2. A map showing lines in the reduction of the County Highway Planning various categories listed in Series maps), designating with respect paragraph (3) below is contained to each line listed ~nder paragraph (3) in Figure VI-1. of this subsection, including all lines connecting to them:
(i) The operating carrier or carriers; Chapter V presents systemwide data on the carriers and Chapter VII shows carriers operating lines subject to abandonment.
(ii) Freight traffic density, and Densities for all lines are shown in Figure V-8. Traffic for specific lines is shown in Chapter VII.
(iii) Location of passenger service. Passenger service is shown in Figure V-16. These maps shall be accompanied by a written description of the service Chapter VII presents a description provided on each line. of the service provided on individual lines.
xii Location in Federally Required Item Wisconsin Rail Plan
(3) Identify the following classes of rail Chapter VI contains a discussion, service within the State: maps, and listings of the lines included in (i), (ii), (iii), (i) Lines in the State which are eligible (iv), and (v). for assistance under S 266.7 of this part other than those included in subparagraph (ii) of this paragraph;
(ii) Lines in the State which a common carrier has identified on its system diagram map submitted under 49 CFR S 1121.20(b)(l) and (2) as potentially subject to abandonment and lines which are anticipated to be the subject of an abandonment or discontinuance application within three years following the date of submission;
(iv) Lines in the State for which abandonment or discontinuance applications are pending.
(v) Lines in the State which are involved in the following kinds of proposals that have been submitted to the Commission for approval or are in the process of negotia tion, to the extent that this information is publicly available: (A) mergers; (B) consolidations; (C) reorganizations; (D) purchases by other common carriers; or (E) other unification and coordination projects.
(vi) Rail projects for which the State Table VIII-5 in Chapter VIII lists plans to request Federal assistance or potential projects for the forth approval as in-kind benefits; and coming year. Appendix J is the program of projects required by paragraph (c) (12).
(vii) Rail projects for which a State Some projects listed in Table provides or intends to provide assistance VIII-5 may be funded entirely from from sources other than the Rail Service State and local sources. However, Assistance Program, including the at this time no decision has been estimated cost of each such project; made as to which funds will be used.
(4) Establish and describe screening WisDOT investment policy is des criteria to be used in selecting the cribed in Chapter III and summar eligible lines which the State analyzes ized in Table III-1. Appendix F in detail, identify these lines, and describes the project selection explain how the application of the process in detail. screening criteria resulted in their selection;
xiii Location in Federally Required Item Wisconsin Rail Plan
(5) Describe the State's methodology for The B/C methodology is contained determining the ratio of the benefits to in Appendix B. the costs of proposed projects eligible under S 266.7 of this part (except pro jects to be funded with rail service continuation assistance);
(6) Include, to the extent that the The data required by (i), (ii), information is available to the State, the (iii), and (iv) are included, following data for each line the State has when available, in the line by selected to analyze in detail: line analysis section of Chapter VII.
(i) Annual freight tonnage and carloads segregated by connnodity type and indicat ing any seasonal traffic fluctuations and the number of shippers and receivers on the line aggregated by type (e.g., grain elevator, power plant, heavy manufactur ing), including identification of informa tion which a shipper wishes the Administrator to consider confidential to the extent permitted by law;
(ii) Revenues and costs of providing rail freight service on the line;
(iii) Condition of the related rail facilities and equipment, and for a line eligible under S 266.7(b) of this part, a description of the particular rail facilities involved in any project a State may be considering on the line;
(iv) When the State is considering a line for rail service continuation assistance, projections of freight traffic needs on the line for at least the three succeeding calendar years and estimates of the amount and type of equipment, the condition of th.e rail facilities, and the level of service necessary to satisfy the projected traffic needs as well as estimates of the revenue and costs of providing this service; and
(v) When the State is considering a At the time of publication, no project eligible under S 266.7(b) of this firm decisions on 266.7(b) projects part, the amount of funds expended for have been made. When a line has the maintenance of the line and the kinds been selected for such a project of work performed during the five year this information will be provided. period preceding its eligibility.
xiv Location in Federally Required Item Wisconsin Rail Plan
(vi) When the State is considering a A potential rail bank project is line for rail banking, a description of the included in Appendix J, but no line's future economic potential, such as federal funds will be used. the existence of fossil fuel reserves or agricultural production likely to be served;
(7) Describe the alternatives which the The alternatives for each line are State will analyze in applying the listed in the line by line analyses. methodology described in paragraph 5 of this subsection, such as: rail service continuation payments, rehabilitation or improvement, acquisition, rail facility construction, potential for moving freight by alternate modes, or abandonment or discontinuance of rail freight service.
(8) Apply the methodology described in The line by line analyses contained paragraph 5 of this subsection to each in Chapter VII are the end result line the State has selected to analyze of the application of the benefit/ in detail; cost analysis.
(9) Specify the State's decision regard WisDOT's recommended alternative ing the alternative selected for each for each line is shown in Table line that the S~ate has analyzed in VIII-5 and again in Appendix J. detail, and include the following: Appendix J makes a preliminary estimate of whether or not federal (i) An indication of whether Federal assistance will be required and assistance will be requested or other if other lines will be affected funds will be used to implement the by the project. The project alternative selected; selection criteria contained in Appendix F was designed to measure (ii) An identification of lines which the ability of individual projects may be affected by the alternative to meet the objectives on page selected; III-3. The criteria in Appendix F were used to select projects. (iii) An explanation of how the alternative selected contributes to the accomplishment of the State's objectives as stated in paragraph (1) of this sub section; and
(iv) A statement of the projected Most proposed projects are expected future of the line after the alternative to eventually be self-sustaining. selected is implemented and the line is Should that not occur prior to no longer eligible for rail service expiration of eligibility for continuation assistance under S 266.7(a) federal funds, either state and/or of this part or after the payback period local funds would be utilized to used in the State's benefit-cost analysis, cover the remaining costs or rail whichever is appropriate; service would be terminated with appropriate repayments of funds as may be required by grant agreements. Appendix J contains statements of the projected futures for individual lines.
xv Location in Federally Required Item Wisconsin Rail Plan
(10) Describe the planning process The entirety of Chapter XI covers participation of local and regional WisDOT's past and present efforts governmental bodies, the railroads, at public participation in rail railroad labor, rail service users, planning. and the public in general;
_(11) Describe the overall planning The relationship to the overall stat, process for all transportation services transportation planning process is in the State; and contained in Chapter I.
(11A) Indicate how the overall planning Wisconsin's transportation energy process in the State addresses the need policy is summarized in Chapter I. to improve national energy efficiency, reduce the national use of petroleum and natural gas, and increase the national use of coal.
(12) Include a program of projects which A tentative program of projects is identifies the projects for which the included in Appendix J. However, State expects to submit applications and it should be noted that all possible the anticipated submission date. The justified projects are included and program shall group the proposed projects from that list some projects will in the order they comply with the State's be submitted for federal aid, some criteria and goals for assistance, and may be state aided, and some may shali: not be implemented at all. The vagaries of railroad actions, (i) Identify the type of project (i.e., appeals and postponements, and the rail service continuation payments, structuring of local institutional acquisition, rehabilitation or improve capabilities, are too great to per ment, rail facility construction, or mit accurate prediction of the substitute service), its location, and specific timing and amount of duration; and applications.
(ii) Include the a~ticipated amounts of funds to be requested for each project.
(d) Updates, revisions, and amendments of the State Rail Plan.
(1) General. AB provided for in paragraph (e) of this section, State Rail Plans shall be updated at least on an annual basis but may be revised more frequently at the discretion of the State in accordance with its program needs. Such updates shall be subject to the same review, public parti cipation and approval procedures by the State and FRA as the original State Rail Plan.
(2) Contents. Annual updates shall include the following:
xvi Location in Federally Required Item Wisconsin Rail Plan
(i) A response to unanswered FRA Appendix H contains FRA comments and comments on previously submitted updates, WisDOT responses for the 1979 rail revisions, amendments, or the original plan. State Rail Plan;
(ii) An update of information in previous Updated data are included throughout submittals which is no longer accurate as this report and are too numerous to a result of plan implementation, action by list individually. a governmental entity or railroad, or changed conditions.
(iii) For lines receiving rail service Chapter VIII presents available data continuation assistance, inclusion of for the Ann Arbor carferry and the revenue and cost information from the Brillion and Forest Jct. Railroad past year's operating experience and a (the only projects having received re-evaluation of service based on these assistance long enough to generate new data; data).
(iv) Updating of the maps and descrip Updated maps are included through tions required under paragraph (c)(2) of out the report. this section.
(v) Analysis of any new projects New potential projects are included developed by the State in accordance with in Chapters VII and VIII. paragraphs (c)(4), (5) and (6) of this section;
(vi) Changes in agency responsibilities No changes have been made in the and authority including ability to state program authority during the provide the non-federal share; and past year. The state program as it now stands is described in Chapter IV (vii) Revisions in the State's policies, objectives or long-range expectations. · Policies and objectives are dis cussed in Chapter III. They have not changed significantly since the last rail plan report.
xvii
CHAPTER I
INTRODUCTION [49 CFR, Section 266.lS(c) (1), (11), & (llA)]
The Impetus for State Rail Planning, 5 As a result of the bankruptcy of seven railroads in the Northeast and Midwest, and the inability of those railroads to ·reorganize without substantial Federal assistance, Congress, in 1973, passed the Regional Rail Reorganization Act (the 3R Act or RRRA). This action by the Congress provided, among other things, for state planning for local rail service - . a type of planning that, prior to 1974, had not been a significant part of federal-state-local planning programs. The 3R Act directed that as a prerequisite for eligibility to receive rail service continuation subsidies, a state would have to establish "a State plan for rail transportation and local rail services which is administered or coordinated by a designated State agency ••• " This program was 1 imited to a region that included most of the Midwest and the entire Northeast. Wisconsin became involved in the program because it was considered a contiguous State; i.e. the Ann Arbor Railroad was one of the seven bankrupt railroads operating Lake Michigan ferries which touched into Wisconsin at Kewaunee and Manitowoc.
The Railroad Revitalization and Regulatory Reform Act of 1976 (the 4R Act or RRRRA) extended both the local rail service continuation program and the rail transportation planning process to all states in the nation and directed that as a prerequisite for eligibility to receive rail service assistance, a state would have to establish "an adequate plan for rail services in such State as part of an overall plann:lng process for all transportation services in such State, including a suitable process for updating, revising and amending such plan;" and that "such State plan is administered or coordinated by a designated State agency and provides for the equitable distribution of resources." The 4R Act not only authorized rail service continuation assistance to be allocated to the states to meet the costs of implementing state rail plans but also provides funds to the States to prepare such plans. ·
In general, the role of states and local governments in rail plann:lng, as indicated in the 4R Act, is primarily in the field of local rail service. Legislation assigns the primary responsibility for mainline planning (including network designations, performance standards, etc.) to the federal govermnent and the railroads, individually and collectively. This division of responsibility is based on the view that railroad mainlines, in almost every instance, span several states; hence a national or multi-state regional planning area is necessary. However, main lines and other aspects of railroad transportation provide facilities and services which are important components of the total transportation systems serving state economies and populations. Accordingly, Wisconsin is attempting to take an active role in the planning of the entire rail system.
I-1 Purposes of the Wisconsin R~il Plan
There are three primary reasons why WisDOT has prepared a state rail plan:
To Qualify the State of Wisconsin for Federal Funding to Support Light Density Lines - As a result of the 4R Act, federal funds are available to provide assistance for lines approved for abandonment. For Wisconsin lines to qualify, a rail plan must be produced and annually updated.
To Establish State Rail Policies - The annual updating procedure is intended to provide an opportunity for presenting changes or additions to state rail policy. The objective is to establish an understandable basis from which actions may flow and to provide for involvement by interested and/or affected parties.
To Establish Priorities for Expenditure of Funds - To the extent that data is available, the entire rail system of the state was analyzed to determine the essential lines in the context of the overall rail network. Those lines which have been designated as potentially subject to abandonment have been analyzed in considerable detail. The results will be used to guide the allocation of funds for the maintenance and improvement of rail service.
Relationship to the All-Mode Policy Plan
WisDOT has simultaneously developed an all-mode state transportation policy plan. Rail transport issues were a major consideration in developing that plan and in turn have influenced the goals and policies contained in Chapter III of this Rail Plan. In a similar manner early drafts of the Rail Plan served as input into the all-mode policy plan.
The State's basic philosophy regarding its overall transportation system is to maximize the inherent efficiencies of the respective alternative modes, and to actively pursue a transportation equilibrium free of artificial advantages for particular modes. An essential aspect of system rationalization is recognition of the attributes of respective modes and institutional struc tures which have contributed to existing circumstances. In particular, there exist today, rail services which originated to accommodate market conditions prevailing more than 50 years ago which markets are now better served by other modes. On the other hand there are commodities for which movement by rail is much more efficient and economical than by other modes. The all mode policy plan provides a framework for each of the modal plans, including the rail plan. Thus, the emphasis is on integrated transportation, concen trating on how to make the various modes work together as a single system.
It is recognized that much work still needs to be done to define what the role of railroads should be, given the technology and operating characteris tics of all the various modes and the extent to which rail is inhibited from achieving its proper role through market place distortion imposed by government, historical development, etc. (A summary of the problem of market place distortions is contained in Chapter II). However, at this point in time, the data and techniques to do such an analysis are not well developed. Nevertheless, the all mode policy plan does indicate that the Department will comprehensively analyze important policy issues across all the freight modes, develop forecasts of freight and passenger movements that are compatible across all modes, and analyze the potential for significant modal shift of freight movement and passenger travel in selected corridors.
Wisconsin's Transportation Energy Policy
The Wisconsin Department of Transportation has adopted an overall energy policy in its State Transportation Policy Plan (STPP), which states, "the Department shall support and encourage transportation energy conservation." Specifically, that policy recognizes the need to: improve motor vehicle fuel efficiency; promote the use of energy efficient forms of transportation such as transit, ridesharing, bicycles, rail, water, etc •. ; continue energy educational activities; and consider energy needs in all the Department's policies, plans, programs, and project designs including those for highways, railroads, aviation, and public transportation. The STPP further elaborates upon the policy by outlining the following ten implementation measures which WisDOT will pursue in order to implement the above policy:
1. The Department shall promote increased fuel efficiency in motor vehicle us.e by:
a. Supporting strict federal fuel efficiency standards for autos and trucks;
b. Enforcing the 55 mph speed limit aggressively;
c. Providing education on better driving and travel habits; and
d. Encouraging energy conserving transportation systems management measures such as signalization, channelization, preferential treatment of high-occupancy vehicles (van pools, car pools, and public transportation) and park-and-ride facilities.
2. The Department shall promote the movement of people and goods by more energy efficient forms of transportation including urban transit, intercity bus, motor driven cycles, bicycles, walking, car pools, van pools, rail and water. In addition, the Department shall analyze whether state imposed financial and safety regulations impose an unfair cost burden on energy efficient forms of transportation and, where appropriate, shall propose remedial actions to the Governor, the Legislature, and the Transportation Commission of Wisconsin.
3. The Department, in cooperation with appropriate groups, shall continue to promote the development of a driver education curriculum which emphasizes fuel efficient driving habits and modes of travel. The Department shall work with the Division of State Energy in developing public education materials which provide information on fuel efficient transportation.
I-3 4. The Department shall evaluate the energy efficiency of various forms of transportation from a number of perspectives, including energy consumed as a result of processing materials, facility construction, vehicle operation, and induced travel. Results of this evaluation shall be incorporated in the Department's planning, programming, and design activities. As part of this effort, highway facilities shall be designed and maintained to conserve energy. This includes continuing use of certain design standards which reflect lower speed limits, maintaining smooth pavement surfaces, and eliminating steep grades and sharp curves.
5. The Department shall continue to support the development of policy-consistent state, local and regional land use/trans portation plans which promote the energy efficient movement of people and goods.
6. The Department shall cooperate with the Division of State Energy and the metropolitan planning organizations in developing transportation energy contingency plans and shall participate in federal energy matters such as development of a national energy plan.
7. The Department shall cooperate in energy research and demon stration projects dealing with gasohol, electric cars or other alternative transportation energy sources, where appropriate. Further research and demonstration might include experiments with new rid~ sharing concepts.
8. The Department shall work with other state agencies to reduce energy consumed in travel to and from state owned facilities by experimenting with complementary work scheduling, parking management and ride sharing.
9. The Department shall, in cooperation with the Transportation Commission and other appropriate agencies, investigate the effect of economic regulation on energy consumption by different freight and passenger modes and shall, where appropriate, advocate changes before regulatory or legislative bodies at the state and federal levels.
10. The Department shall continue to monitor and analyze the impact of federal energy policy and legislation on Wisconsin. The Department shall also analyze the impact of energy avail ability on future revenue and transportation investment decisions.
Beyond the all-mode policy planning activities, WisDOT usually conducts an energy analysis of the alternatives when developing single mode plans. For example, this rail plan, in Chapter VII, calculates the net change in energy usage caused by implementation of each-JJf the alternatives for the lines which are subject to abandonment.
I-4 Chapter II
RAILROAD PROBLEMS AND ISSUES
Introduction
Both state and federal involvement with railroad transportation has gone in cycles. In the middle of the 19th century, states actively promoted the expansion of the railroads in order to further their own economic growth and prosperity. Promotion was followed by a period of state and federal regulation, marked by the passage of the Interstate Commerce Act of 1887 and the Transportation Act of 1920. This, in turn, was followed by a period of public apathy toward railroads, as national attention was focused on the con struction of highways, the growth of aviation and pipelines, and the resurg ence of inland water transportation. The growth of these other modes had reduced the percentage of intercity freight carried by rail from about 57 percent in 1950 to about 35 percent in 1979.
The bankruptcies of railroads in the Northeast and Midwest regions, beginning with the collapse of the Penn-Central in 1970, shocked the states and the federal government into a new period of activity. But this new activity cannot proceed without a widespread recognition of the complex nature of railroad problems and an understanding that there are no simple, singular actions that states or the federal government can take to provide solutions. Physical systems, operating practices, capital needs, technology, the distributions of economic activities in space, railroad employment, and economic impacts on communities are among the factors involved. The remainder of this chapter summarizes the problems which have affected the rail industry, and Wisconsin in particular.
The Roots of Rail Problems
The causes of most railroad problems are found in the historical development of the railroad industry itself. The last half of the nineteenth century witnessed a phenomenal expansion of railroads. Many factors encouraged this expansion. Technological improvement reduced railroad costs and increased efficiency and safety. Growing public confidence resulted in the increasing investment of domestic and foreign capital. After the Civil War, the nation's population expanded into the west, and increased ~echanization of agriculture led to higher production and greater need for economical transportation. Finally, aid was received from all levels of goverrnnent in the form of bonds and land. Unfortunately, in some areas of the country such as the Midwest, rail expansion was too extensive. Overbuilding resulted in excess capacity and extensive duplication of competitive lines, both rural and urban, which persists as a problem to the rail industry even today.
Even in the period of fastest growth, inter-company competition within the railroad industry resulted in unsatisfactory earnings and financial failures. To counteract this, agreements were made among railroad companies and a tendency toward monopolistic practices resulted. Financial abuses and excesses became common and governmental regulation was required to protect both consumers and other weaker rail lines.
II-1 The first attempts at positive regulation of the railroad industry were made by individual states but federal action soon became necessary since most railroads traversed several states. The first effective federal regulation of railroads was initiated under the Interstate Commerce Act of 1887. However, the capstone of the regulatory movement was the Transportation Act of 1920, which was designed to be a "fine tuning" of all federal regulation. But, by that time, the advance of competing inland transporta tion modes began to alter the status of railroads dramatically. Even in the face of an altered situation, the same regulatory policies have prevailed and have, in many instances, contributed to the problems of railroads. Passage of the Staggers Rail Act in October, 1980 is intended to reduce many of the past negative effects of regulation.
Current Industry-wide Problems
Any future perspective on railroads must take into account the many institutional and financial problems that inhibit improvement. The problems most often cited usually include recession and inflation, competition from other modes, changing markets, excessive regulation, fragmented structure of the industry, poor utilization of plant and equipment, labor inefficiencies and a low return on investment. A discussion of each of these problem areas follows:
Recession and Inflation - The combination of recession and inflation over the years has had a particularly severe impact on the railroad industry. The fact that the rail industry is both capital and labor intensive has made it especially vulnerable to recession and inflation. Intermodal competition prevents the industry from significantly raising rates, a problem that does not exist for industries, such as public utilities, which are regulated but not competitive. The capital-intensive nature of the rail industry continues even in times of reduced revenues. The continued operation of substantial amounts of rail plant in times of lower traffic volumes also makes it diffi cult for the rail industry to reduce labor costs when revenues drop. This is in contrast with the trucking industry which simultaneously reduces both right-of-way cost (fuel taxes) and labor costs as production units (trucks) are withdrawn from eervice. In contrast to the more flexible position of its competition, the earning ability of the railroad is sharply reduced by reces sion, while a high rate of inflation places interest rates beyond the earning ability of many rail carriers. Finally, if the railroads attempt to reduce costs by curtailing service, there is an additional negative impact on rev enues as service-sensitive traffic is diverted to other modes.
Competition from Other Modes - The railroad industry suffered a substantial adverse impact from the massive post-World War II commitment of public funds to other transport modes. The construction of new highways, especially the interstate system, together with improvement of inland waterways, has also had a negative effect on the railroad system. These investments have improved the efficiency of other modes and caused a diversion of traffic away from the railroads, thereby reducing the share of transportation revenue earned by the railroad industry. In addition, a reduction in the profit margin on the retained rail traffic occurred as the new highways and modernized waterways reduced the operating costs of competitive modes, allowing these modes to
II-2 reduce their rates. Railroad profit margins were thus reduced as the rail industry suppressed its rates to meet those of its competitors.
Lower transportation costs and the improved service afforded by the new highways and new waterways has had many socially desirable results. But, because railroad competitors allegedly do not fully pay for the economic costs incurred by these new and improved facilities, a distortion may have been introduced in the allocation of transportation resources and, accordingly, a negative impact on railroad earnings has been accelerated.
Changipg Markets - Profound changes in the market for rail freight service have occurred in recent decades. For one thing, the intercity freight market has grown more slowly than the economy as a whole. From 1950 to 1975 inter city freight transport grew at an annual rate of 2.6 percent compared to 3.3 percent a year for real gross national product {GNP) based on constant dollars. This slower growth in freight traffic reflects, in part, a major shift in the economy: buyers now spend a larger percentage of their income on services or high-valued manufacturers and a smaller percentage on food, heavy manufacturers and raw materials, the products most likely to be carried by rail. Thus, for example, while real income per capita in. the U.S. rose 167 percent between 1950 and 1975, the total tonnage of all raw materials used in producing all the goods and services consumed per capita rose only seven percent.
Dramatic changes have occurred, as well, in the geographic location of industries and markets-shifts that have eroded the volume of freight traffic suited to rail transport. The increasing urbanization-and suburbanization of the population have reduced the demand for rail service. In 1850 approxi mately 85 percent of the population lived in rural areas. Much of the present 200,000-mile rail network was built in the last century to serve this rural population when no other widely available means of freight and passenger transport existed.
Today, fewer than 25 percent of the peopie live outside metropolitan areas. The concentration of industy and markets in urban areas and the expansion of the highway system has resulted in much of this extensive rural rail network becoming obsolete. Simultaneously, the exodus of city dwellers into the suburbs has drawn many urban factories and commercial center.a away from direct access to and dependence upon existing rail lines.
Excessive Regulation - Until passage of the Staggers Rail Act in October, 1980, virtually every aspect of managerial decision-making in the railroad industry was controlled or in some way restricted by stringent government regulation. Railroads could·not change their rates without formal approval by the Interstate Commerce Commission (ICC). Regulations strictly limited the railroads' use of trucks to provide supplemental services. Other regulations forbid railroads to merge or acquire smaller railroads, to abandon unused or lightly used trackage, to discontinue unprofitable passenger lines, or even to arrange new financing without permission from the Commission. Obtaining approval for these changes often entailed years of delay and costly legal proceedings. ·
II-3 The long-term effect of this detailed regulatory control of railroading discouraged innovation and blunted management incentives and initiative within the industry. Government regulation, many say, produced a feeling of helplessness and despair on the part of railroad managers about their ability to control the fate of their industry.
Rate regulation, as it was applied by the Interstate Commerce Commission and various state agencies, had allegedly limited innovative services and pricing flexibility. This prevented the railroads from responding to the changing transportation market. It also hindered the establishment of cost-related rates.
The time lag in the regulatory process often forced continued operations at below break-even levels for extended periods. This was particularly troublesome during times of inflation because the allowed increase often was overtaken by further inflation between the time of filing and implementation of the price increase.
Another inequity was that rail rates for certain commodities were regu lated while the rates for that commodity carried by another mode were not. Schemes to increase efficiency so that rail rates met those charged by competitive carriers of farm products had a history of long delays before being approved. Often, the ICC tried to protect the competitive carrier by disallowing or delaying the approval of a new rail service. The result was protection of an exempt carrier, whose rates were not controlled by the ICC.
The Staggers Rail Act of 1980 was signed into law by President Carter on October 14. The new law, while short of wholesale deregulation, nevertheless substantially eases the regulatory burden on the railroad industry, providing significant changes in rules governing ratemaking, car control and other areas of railroading and speeding up the abandonment process.
Perhaps the most extensive changes in regulation provided by the Rail Act are in the provisions on railroad ratemaking. While protection for rail-dependent shippers was retained, the Congress clearly intended that the disciplines of the competitive marketplace would control most ratemaking. The new rate provisions curtail activities of rate bureaus and move to phase out general rate increases, but also offer a new measure of flexibility in the setting of rates and in the marketing of rail services.
Fragmented Structure of the Industry (Balkanization) - The railroad industry consists of more than 600 operating companies, including about 41 Class I railroads. (Those receiving more than $50 million a year in revenues). This fragmented structure has been a major obstacle to the railroads in developing industry-wide strategies for responding to the problems that face the industry.
Individual railroads are highly interdependent with one another. A single 600-mile rail shipment may require as many as seven separate railroads to complete delivery from the point of origin to destination. Rail shipments involving two or more railroads currently account for about 70 percent of the
II-4 industry's total ton-miles. Thus, railroads must operate as a highly coordinated, integrated system to perform this interchange of freight swiftly and efficiently. In practice, however, the industry seldom performs as such. a coordinated sy~tem, and the resulting fragmentation is partially responsible for the low quality of rail service that has driven many shippers to trucks.
'!be inability of the railroads to perform as an integrated system stems from two major causes. First, most railroad companies are independently managed, each pursuing its own goals in its own way. These companies differ widely in size, financial health, operating traditions, and management philosophies.
Second, .while railroads must cooperate with one another in the inter change of freight, they also compete intensely among themselves for available traffic. This natural business rivalry among railroads complicates the problems of achieving the cooperation and unity of purpose they need to function as a system. In short, the industry is badly "Balkanized". This term refers to the uneasy state of the Balkan area in eastern Europe earlier in this century when a number of small fiercely independent states existed side by side. Each was highly mistrustful of one another, yet dependent on each other for their collective security and welfare.
The "Balkanized" structure of the industry saddles the railroads with additional costs and reduces the quality of service. Interchanging freight from one line to another. adds to the total cost of handling traffic, reduces the speed and r~liability of deliveries, and multiplies switching operations and recordkeeping. To illustrate, it commonly requires two to three days or more between the arrival at Chicago of a loaded freight car from the west and its departure from Chicago to the east.
"Balkanization" handicaps the railroads most in moving long-haul ship ments that must be interchanged several times before delivery. Yet the comparative advantages and greatest potentials for future growth in rail freight traffic are in just this kind of long-haul shipping.
"Balkanization" not only interferes with the efficiency of the day-to day operations of railroads but also retards the growth and long-range planning of the industry. For example, the most bitter opposition that a railroad encounters when taking the initiative to improve service or to innovate often comes from other railroads.
Like government regulation, "Balkanization" creates a partial paralysis within the railroad industry, discourages unilateral attempts to improve service, and complicates efforts at system-wide innovation and planning. Rivalries among the hundreds of competing companies undermine many joint efforts they might make to strengthen and improve the entire national rail system.
Poor Utilization of Plant and Equipment - Nationwide mainline capacity use typically falls in the 40-percent range. This low utilization results in large part from duplicate mainlines. Reducing such duplication would save direct roadway capital and maintenance costs and would probably reduce line haul circuity. Utilization of branch lines is even lower than that of mainlines as some branch lines may be used as little as once a week.
II-5 While track use is poor, utilization of rolling stock is even worse. A typical freight car requires about 24 days between loads and spends only 14 percent of that time in a line-haul move (8 percent loaded and 6 percent empty). The rest of the time is spent in yards and terminals. Any reduction in the car cycle would increase the productivity of the industry's freight car investment which today is at least $15 billion. During mid 1978 railroad industry sources estimated shortages of up to 50,000 cars per day.
Unreliability in the availability of equipment has encouraged some high volume shippers to purchase their own cars or shift to truck. Another development in this area that has been increasing steadily in recent years is car leasing, notably Trailer Trains for container/piggyback traffic, and Railbox for general boxcar traffic.
Labor Inefficiencies - Over the years, many work-rules and related labor practices originating in an earlier era have become obsolete and unneces sarily impede efficient operation under today's circumstances. While previously written into collective bargaining contracts, agreed to and signed by both rail management and labor, current economics require re-examination and modification through negotiations to reflect modern operating practices. If antiquated work rules can be changed to reflect modern technological progress and the benefits shared equitably between the carriers and their employees, economic benefits would accrue not only to both railroad workers and the railroads, but to rail users as well. For example, one such work rule requires an engineer, a conductor and two brakemen on most freight trains. More flexible crew assignment would enable the railroads to operate trains safely and efficiently with one brakeman rather than two, thus reducing costs. Another.work rule provides for one day's pay for every one hund~ed miles traveled, which at one time provided an incentive to complete a ,)ne hundred mile trip as fast as possible, but today can make the cost of operating high speed trains very high.
Return on Investment - 'The railroads' rate of return on investment in 1978 was 1.62 percent, one of the lowest since this ratio has been recorded and the fourth consecutive year for a return of less than two percent. The rate of return in 1979, a relatively good year for traffic and revenues, was only 2.68 percent. Howeyer, that was the first time since 1974 that the railroad rate of return exceeded two percent. The rate of return for all private industry generally averages about 10 percent. The average rate of return for the rail industry over the past 10 years has been about 1.9 percent. Not since 1955 has the industry's rate of return exceeded 4 percent.
The higher interest rates now prevailing mean that the railroads must pay up to 20 percent to borrow money for investment in plant and equipment that will generate an overall net return of only two percent or less. If these low rates of return continue, railroads will find it increasingly difficult to obtain the capital they need to replace locomotives, freight cars, rails, and crossties as they wear out especially at today's inflated prices.
Eventually, events must catch up with the industry's steadily deterior ating financial position unless corrective actions are taken. The effects of low profits and limited capital availability already are evident. Tiw freight car shortages that trouble shippers are only one symptom.
11-6 Specific Wisconsin Problems
The railroad system in Wisconsin clearly reflects the cumulative impacts of these national and industry-wide problems in service levels, physical condition, and traffic trends. Recently, however, several of these broad problems have had unique implications or aspects which made them specific rail system problems for Wisconsin. These specific problems include: the Milwaukee Road bankruptcy; numerous branch line abandonments; inadequate service; and deteriorating facilities. A discussion of each of these problem areas follows:
The Milwaukee Road Bankruptcy - As successor to Wisconsin's first railroad and namesake of the state's largest city, the Milwaukee Road has been a long-standing subject of interest in Wisconsin. From 1978 thru 1980, however, the struggle of the Milwaukee Road to survive bankruptcy and the impacts of its efforts to reorganize sparked such widespread public concern that it clearly was the dominant railroad issue. Analyzing the effects of this struggle and planning state·responses to the bankruptcy and its proposed solutions dominated rail related efforts of WisDOT.
The 1977 bankruptcy petition of the Milwaukee Road capped a steady decline in traffic and market share. For example, the Milwaukee Road operated at a loss during six of the last seven years prior to bankruptcy in.December 1977, accumulating an operating loss of some $100 million during the three years prior to bankruptcy. As a consequence, the Milwaukee Road's net investment in ratl property used in transportation actually declined some $49 million, or almost 8.5% between 1972 and 1976. Because many of its major competitors increased investment in plant and equipment during that period, the Milwaukee Road's competitive ability was further eroded. Since the bankruptcy was declared, losses have been even greater as the deficit was $65 million in 1978 and $105 million in 1979.
Chapter X contains a detailed description of the events which have occurred as a result of the bankruptcy, the various proposals for reorganization/liquidation, and WisDOT's analysis of possible solutions.
Branch-line Abandonments - To a railroad, duplication of main-line facilities and numerous branch lines which fail to meet its cost of operation are serious drains of resources. From many a shipper's viewpoint, branch line operations offer the only possibility for low-cost freight transport. Indeed, for some Wisconsin shippers the elimination of rail service may put them at a serious competitive disadvantage because of the high costs of alternative transport. The consumer who may face higher prices because of increased transportation costs can also be expected to view those abandonments negatively. Moreover, the elimination of branch lines may remove the opportunity for certain forms of development in a community or region of the State.
As of October 1,. 1979, the latest date for which data is available for all states, Wisconsin ranked third in the Nation in rail mileage abandoned since passage of the 4R act or then under consideration for formal abandonment.
II-7 In all, 37.7% of Wisconsin's 1975 rail mileage (over double the national average of 18.0%) had been abandoned or had some sort of cloud hanging over it. This percentage does not include the car ferries because that mileage has never been included in the official rail mileage of the state.
As of October 1, 1980, there were 183.7 miles within Wisconsin for which an abandonment application had been filed with the ICC. Another 337.6 miles are anticipated to be the subject of an abandonment application within three years. In addition, 30.7 miles have been designated as potentially subject to abandonment but not necessarily within three years. Another 276.3 miles had received preliminary approval for abandonment but was still operating. In total, 828.3 miles of line may be discontinued in the next several years.
Clearly, Wisconsin has a branch line problem. But the branch line problem doesn't leave a lot of room for state-level decision making. The decision to make application for abandonment lies in Chicago or the Twin Cities, at railroad headquarters. The decision on whether or not to allow abandonment lies in Washington, D.C., with the Interstate Commerce Commission. Even the decision to provide public assistance to continue rail operation after abandonment is usually predicated by a local decision.
Complicating state response to the abandonment problem is the fact that local adverse impacts get most of the local publicity and local pressure to prevent the~e impacts is most often felt on state and local government. The vast gap in perspective between the people who may be hurt by an abandonment and those who present the cases and make the decision has been difficult to bridge.
Local communities and their citizens have an interest in the continued availability of rail service. Railroads on the other hand have an interest in eliminating money-losing lines or shifting their investments away from marginally profitable lines to increase service on more profitable lines. The state, however, has an interest in both avoiding and minimizing the local impacts of abandonment and also promoting a health rail service network which will serve the entire state economy effectively. It is from this perspective, i.e., promoting mutually exclusive or conflicting goals, that the state must view the abandonment problem•
.Inadequate Service - The problem of poor service is really a function of many of the previously discussed problems. Poor physical condition of roadbed and equipment retard efficient or optimal turn around times, while inflation and a poor return on investment hinder the ability to finance needed capital improvements and maintenance to correct physical conditions. The resultant slow service drives business away which further reduces railroad revenues which in turn further reduces the railroad's ability to finance improvements to improve service.
Wisconsin shippers have had service problems of many types with the railroads in recent years. A few specific examples from the winter of 1978-1979 which had particularly heavy snowfalls are:
II-8 The AC spark plug plant in Oak Creek closed for three days, idling 1,200 workers, because of a lack of appropriate con tainers and boxcars for shipping catalytic converters.
Scott Paper Company, in Marinette laid off 490 production workers because of a lack of boxcars, receiving only four of the 40 cars needed per day.
Miller Brewing Company, in Milwaukee, warned that 1,000 workers would have to be laid off if its supply _of insulated boxcars was insufficient, even for a day. Because of heavy production schedules and limited storage space, a production halt would be necessary on short notice if immediate shipment could not be arranged. Other Milwaukee brewers faced similar production problems, although none, including Miller, ultimately were forced to halt production.
Several branch lines became unusable because of soft ground in the spring and service on the lines was embargoed until conditions improved, stopping service to certain shippers completely.
The boxcar supply throughout the railroad industry was critical because many cars were snowbound and many shippers throughout the state had been forced to reroute traffic by truck or to increase stored inventories both of which entailed higher costs.
Rail shipments were increasingly slow and erratic, even for mainline points when equipment was available. This prompted some shippers to decrease or discontinue rail usage, and caused nagging operational problems for others who had to adjust pro duction and delivery schedules.
Even when cars were available, service was restricted on some lines because of the track and roadbed. Many lines were built to handle turn-of-the-century cars, and could not handle large, modern box and hopper cars. Businesses, therefore, could not realize the economies of scale which these larger cars can provide.
Compounding problems for Wisconsin industries which compete in national markets is the fact that some of their competitors in other states had better rail service. Some Wisconsin businesses which felt that their rail service was inadequate also felt that these service problems impaired their ability to compete nationally.
Some of these service problems are short-term effects of winter weather and the Milwaukee Road's difficult financial situation. But many of them are persistent problems which have existed for several years and continue, but which were highlighted by the severe winter of 1978-1979. Only a long-term improvement in the health of Wisconsin's railroads, or massive outside financial assistance, will solve these chronic service problems. It should be noted, however, that Milwaukee Road service in
II-9 Wisconsin greatly improved after the embargo of nearly two-thirds of its system. M.ost of the locomotives and cars which previously serviced a 10,000 mile system are now available to service a 3,500 mile system.
Deteriorated Facilities - The physical condition of a line, of course, has a direct effect on the quality of service provided on that line. A line which is deteriorating will increase loss and damage expenses, cause increased damage to rolling stock, and will also cause a reduction in speed. 'Ihe decreased speed will result in an increase in some time-related expenses, such as fuel. Labor costs may or may not be affected, depending on the length of the line and work rules which are in force. A deteriorated line may also make it impossible to move larger and more productive equipment over the line.
Exact figures on the degree to which the roadway and equipment of Wisconsin railroads Have deteriorated are not available. However, system-wide figures fqr the major railroads which operate in Wisconsin are available from the ICc.Y Assuming that roadway conditions in Wisconsin are not any better than those found to exist for the total systems of the rail companies which operate in Wisconsin the ICC data can be prorated based on the assumption that Wisconsin is in fact representative of each railroad operation, and that costs attributable to Wisconsin are expressed in the same proportion as the ratio of the number of miles of track in the state to the number of miles of track in each railroad system as a whole. The resulting needs estimate for the major Class 1 railroads in Wisconsin which includes the C&NW, the Milwaukee Road, the Sao, and the BN show $150,000,000 of deferred maintenance and $110,000,000 of delayed capital improvements as of December 31, 1977. These costs include 2,400,000 crossties needing replacement, 7,000,000 board feet of switching ties and bridge ties needing replacement, 240,000 tons of rail needing replace ment, and 2,300 miles operated under slow orders.
However great these needs are, it should be pointed out that neither traffic patterns nor available financial resources justify, as of now, a complete rejuvenation of the entire rail network.
!/ Standards were set in ICC Ex Parte 305-Nationwide Increases of 10% in Freight Rates and Charges, 1974. For purposes of this order, deferred maintenance is defined as the accrued deterioration or deficiency in the physical operating condition of railroad track structures, cars and locomotives, and other property used in the provision of transportation services resulting from the failure and/or inability to properly maintain plant and equipment, which produces an adverse effect on railroad operations to an extent that services to shippers have been rendered partially or wholly inadequate and/or has resulted in diminishing the railroads' competitive ability.
II-10 The Outlook with Regulatory Reform
The problems of railroads discussed above have received increasing attention by legislative bodies, regulatory agencies, and transportation agencies during the last decade. The 1970's saw the institution of the Rail Passenger Service Act of 1970 leading to the formation of Amtrak, the Regional Rail Reorganization Act of 1973 forming Conrail, the Railroad Revitalization and Regulatory Reform Act of 1976, and the Local Rail Service Assistance Act of 1978. In 1980 two major federal laws, the Motor Carrier Act of 1980 and the Staggers Rail Act of 1980 were enacted.. Both hold substantial potential for reducing rail problems. Speculation as to the effect of the 1980 laws is briefly discussed below.
The Motor Carrier Act of 1980, although dealing with trucking regulatory reform, is important to the future of the rail industry because of the wide substitutability of trucking for rail service. Provisions of the act of greatest potential interest to railroads include those which ease entry into the trucking business, reduce circuitous routing, increase rate flexibility, and increase the amounts of regulated goods that exempt agricultural cooperatives may carry. Although results of this legislation will certainly vary from place to place, declines in trucking rates, increased diversity in service levels and a larger number of trucking companies have been forecast. To the degree these things occur, the competitiveness, and market share, of railroads will decline. To the degree predatory pricing in a freer regulatory environment acts to ultimately reduce trucking competition and raise rates, railroads might for a time also be able to raise rates.
In the absence of the Staggers Rail Act, the forecast effects of the Motor Carrier Act would likely have increased the problems of the railroads. As the trucking industry offered more flexible service and lower rates, the railroads would find themselves needing to continue regular service on lines with diminishing traffic. Costs would remain relatively stable while revenues declined.
The Staggers Rail Act of 1980 provides for broad deregulation of rates, increased flexibility in rates that remain regulated, expansion of contract rates, decrease of the ICC authority to direct the movement of empty cars, expedited abandonment proceedings, generally eased and expedited mergers of railroad companies, and eased entry and extension of service. In contrast to the Motor Carrier Act and the 1978 Airline Regulatory Reform Act, which were intended to increase competition and ease entry into the industry, the Rail Act is expected to result in higher rates for many connnodities as railroads seek to increase revenues and rate of return on investment. Rates in some commodities may decline as cross-subsidization (i.e., wh.ere profits earned on one commodity make up the deficit on another) is decreased. This rate flexibility is forecast to directly improve the rate of return of the railroads, which in turn, will permit repair of deteriorated facilities and service. It·wi11· also permit adjustment of rates and surcharges to more accurately reflect actual costs of transportation of commodities and/or to increase income on lines that have become unprofitable. This may.save some lines from the abandonment that would have been necessary were rates to remain artificially below a profitable level due to regulation.
II-11 Specific legalization of contract rates will also provide guarantees of traffic stability, promote investment in facilities, and protect against the effects of any predatory pricing that might occur. If contracts become widespread, however, availability of cars to non-contract shippers may suffer.
The decrease of ICC authority to direct where empty cars would be sent (except in emergencies), combined with increased flexibility in the rates charged for car-use is forecast to make car availability more reflective of market demand, thus avoiding the recurrent circumstances of a shortage of cars, e.g. for shipping of grain after the harvest. Flexibility in car-use rates will potentially cause empty cars to be provided where the market bid leads them. This increased car availability should increase the railroads' market share of such freight movements, thereby increasing revenues, and should generally contribute to railroad survivability.
Generally eased and expedited merger regulations and procedures hold the potential to reduce duplicate track and facilities and consequently increase rail transportation efficiency. Any decrease in the time necessary to complete a merger, often requiring several years, will also increase the likelihood of such mergers being proposed, and should reduce legal costs.
Finally, expedited abandonment proceedings will permit railroads to more quickly end service on unprofitable lines.
The Staggers Rail Act of 1980 holds significant potential for reviving the rail industry. Insofar as the Motor Carrier Act reduces rates of trucking, the Rail Act's provisions for rate flexibility, contract rates, and eased abandonment of unprofitable lines provides a balance.
Final ICC rules spelling out specifics of implementation of these regulatory reform acts have not been issued. Until they are (they are expected early in 1981), and until the trucking industry, the rail industry, other transportation modes, and shippers become familiar and experienced with operating under these substantially deregulated circumstances, conclu sions about the final impact of the legislation must remain speculative.
The many modes, commodities, regulatory circumstances, and individual habits and skills of those doing business will interact in ways not fully predictable. A reasonable period of adjustment of perhaps two to five years, judging from experience in the airline industry since its 1978 regulatory reform, will be required for a new equilibrium to be established. In the interim, a continuing review of results should be made so that serious defects might be corrected (if, for example, severe car shortages recur). At the same time over-reaction should be avoided so that the · anticipated adjustments can actually occur.
II-12 CHAPTER III
GOALS, OBJECTIVES, AND POLICIES FOR WISCONSIN RAIL TRANSPORTATION
(49 CFR, Section 266.lS(c)(l) and (4);(d)(vii)]
Introduction
Wisconsin, as most other States in the midwest, has come to realize the vital role that rail transportation plays in the total transportation system, and is greatly concerned about the serious problems which have developed in Wisconsin's rail system. Significant amounts of rail abandonments, serious service problems, public safety problems, and other rail service deficiencies have made news headlines in the past several years.
There is now a general awareness of the financial difficulties facing major railroad companies serving Wisconsin. The problem is illustrated at its worst by the bankruptcy proceedings of the Milwaukee Road. The railroad industry generally has had a low rate of return on investment, resulting in an inability to attract sufficient capital to rebuild and maintain an aging physical plant. Contributing to the problem have been regulatory diffi culties and competition from other modes of transportation that have for years been subsidized with public funds.
The financial difficulties of the railroad industry have lead to an increasing deterioration of service quality. Initially, this was manifested most noticeably in the physical deterioration of some branch lines. More recently, car supply, locomotive availability, irregular transit times, as well as inadequate funds for track work have brought service quality problems onto more heavily used portions of Wisconsin's rail system. But, as with branch line deterioration, service quality is fundamentally related to the economic health of the rail industry.
Wisconsin's rail service problems are but one part of a much larger national rail problem. But the quality and availability of rail service in Wisconsin could have significant effects on future economic growth in the state. For that reason, responsibility for the future of Wisconsin rail service cannot be abdicated to those in the federal government and those in the railroad industry who seek to solve the larger problem.
Wisconsin's planning and programming efforts should identify and implement state responses that aim toward future rail service of sufficient quality and sufficient extent to serve the economic needs of the state. Recognizing that the quality of service on continued lines is as important to Wisconsin's economy as abandonment d~cisions, WisDOT should become increasingly involved. in issues which, directly or indirectly, impact on the quality of the remaining service. Further, under current federal policy, the future of branch line service has been left largely to individual states. WisDOT must increasingly focus efforts on preventing that deterioration of branch lines which usually culminates in abandonment petitions. When abandonment of a
III-1 line is sought by a railroad, WisDOT must recognize that there is a relationship between the quality of systemwide service and the continued provision of uneconomic local service. When local service is important to a region or connnunity, WisDOT must weigh the value (costs) of continued unprofitable operation against the possible contribution the abandonment can make to systemwide economics and services. In some cases continuation of local service will be of sufficient value compared to the value of abandonment that concerted effort will be warranted by WisDOT to assure service continuation. That effort can take the form of vigorous opposi tion to abandonment in instances where continuation value is high and abandonment value is low or the form of financial assistance for service continuation projects should abandonment be authorized.
On both a statewide and regional level an adequate, efficient, environ mentally sound transportation system supports economic well being and pro motes desirable development. To strengthen and preserve necessary rail service as a part of this transportation system, WisDOT must recognize the importance of systemwide and statewide- issues while developing and carrying out its delegated role in the stabilization and continuation of rail service.
To that end WisDOT has continued to examine its rail transportation goals and policies and, with the aid of the Wisconsin Rail Services Advisory Connnittee (RSAC)1/, completed a major re-evaluation of the goals, objectives, and policies in 1978. Thus the Department's current views, which were supported by the views of RSAC and are consistent with the 1978 changes in the 4R Act, are that consideration should be given to the use of public funds for rehabilitation of non-abandoned lines, the promotion of equity among modes, the elimination of unfair financial burdens, and the improvement of service quality, etc. This would supplement the state's continuing role in assisting continuation of selected branch lines of importance to the state and its regions.
Goals and Objectives for Rail Transportation in Wisconsin
Goals are broad statements of ideals which express desired results or targets of the planning process. Thus~ the basic goal of the Wisconsin Department of Transportation for the railroad system of the State is:
An efficient and adequate rail system that provides good service to the majority of freight traffic generators within the State.
However, on seeking this goal, it must be recognized that the major cause of service and abandonment problems is a depressed rate of return in the railroad industry. And a basic cause of this depressed financial condi tion is that the quality, type, and extent of present rail service is not now sufficiently profitable to sustain and renew itself. Therefore, in
1/ The composition and purpose of RSAC is explained in Chapter XI.
III-2 order to achieve the goal for Wisconsin rail service, the objectives, while promoting needed service, must be consistent with improving the financial health of the rail industry. This will likely mean that the state cannot be expected to eliminate all the inequitable effects of rail abandonments .•
Objectives are derived from the goal statement and present a set of conditions necessary for progress in the achievement of goals. The follow ing set of objectives for Wisconsin rail service has been defined by WisDOT:
1. The continuation of rail transportation in the private sector to the greatest degree possible.
2. The implementation of actions which would result in a reduction of the financial burden on the railroads.
3. The continuation of economically justified rail freight, passenger, and car ferry services.
4. The improvement of the quality of rail service.
5. A streamlining of the rail system by eliminating duplicate or unnecessary facilities while retaining satisfactory service.
6. The upgrading and rehabilitation of all essential rail lines to increase operating efficiency.
7. The continuation of essential but non-profitable rail service, with public funds, in the most cost-effective manner where present or future economic viability is high, or where the cost of providing such service is less than the benefits derived from continuing rail service.
8. A smooth transition to alternate means of transport or relocation in cases where rail service continuation is not fe~sible.
9. The preservation of abandoned rail corridors whenever there is a foreseeable future transportation or other public use.
Policies are the means or course of action to be taken to achieve objectives. Accordingly, one or more policies, which are elaborated upon in the remainder of this chapter, have been developed to achieve each of the above objectives. However, there are two objectives for which no specific policies have been defined. The first objective "the continuation of rail transportation in the private se~tor to the greatest degree possible" is such a broad objective that the accomplishment of many of the other objectives will lead to its accomplishment. Another objective for which WisDOT currently has no defined policy is objective four, "the improvement of the quality of rail service". Currently states have little or no role in solving the problems of car supply, frequency of service, excessive transit times, etc. except by the indirect process of helping to improve the financial capabilities of the railroads. Nevertheless, WisDOT will seek to provide assistance to Wisconsin shippers in improving rail service quality and availability. Based upon the experiences gained, WisDOT 1 s role in improving service quality may be more clearly defined in the future.
III-3 WisDOT Intermodal Policy Regarding Railroads
The ability of the railroads to compete with other modes will be further weakened if government actions distort prices and enhance the ability of competing modes to divert traffic. With few exceptions, the railroads bear the full costs of constructing and maintaining their rights-of-way. Competing modes which operate on publicly provided rights-of-way may have a substantial advantage over railroads, depending on the level of user charge payments collected from those competing carriers.
The issue of equitable investment policies among the various modes of transportation has been debated for decades, particularly with regard to the effect that investment policies toward highways and waterways have had upon railroads. It is therefore important in any examination of State policy affecting railroads to examine current investment policies among the modes, to attempt to determine cost responsibility for use of publicly provided facilities, and to propose needed changes in policy.
Perhaps the most difficult question to answer is whether large, rail competitive trucks, which pay a variety of charges for use of the public highway system, are paying their fair share of the highway cost burden or are being subsidized by other highway users. An up-to-date and thorough analysis of this subject has been initiated by the U.S. Department of Transportation and when completed should provide a better perspective on the issue.
Because of the interstate nature of freight movement, equity among the modes can be addressed more effectively on a national scale through congressional and federal government action. However, creation of a market situation which allows all modes to compete based solely on their respective economic technological advantages should be the goal of both state and federal transportation policy.
WisDOT's State Transportation Policy Plan indicates that the Department will in its own policy and while participating in the development of national transportation policy, seek the goal of fair competition and equitable treatment for all freight transportation modes. This would require that appropriate cost based user charges for each competitive mode be instituted by the federal and state governments. In addition, WisDOT will continue to examine the effect of existing Wisconsin truck fees and regulations on truck-rail competition; and, if justified, recommend changes to promote equity among modes.
WisDOT Policy on Grade Crossing Warning Devices and Surfaces
The crossings of railroads 'and highways have always been a point of cortflict for both the railroads and the highway users. The basic issue is who benefits by the crossing and thus whether the railroad or the highway user should pay the cost associated.
For any crossing, the benefits received by the highway user are safety and a degree of comfort. Railroad's benefits, on the other hand, are far less tangible--reduced liability from not causing harm to the highway user.
III-4 Traditionally, however, railroads have had the responsibility for providing safe and comfortable crossings. This responsibility has begun to diminish as the state and federal governments have begun assuming a greater share of the costs for the construction and maintenance of grade crossings and crossing protection devices. In spite of this diminished responsibility, maintenance of the rail crossing facilities still costs the railroads millions of dollars each year.
The poor financial condition of the rail industry has produced a reluctance on the part of the railroads to perform crossing surface maintenance. In some cases, crossing surface work is only done after localities have applied pressure on railroad officials. In other cases, localities have devoted their own funds to finance grade crossing surface improvements. The continued financial responsibility of railroads for grade crossing surfaces has not only caused an increasing number of deteriorating cross ings, but also represents an inequitable burden on the rail industry. Such inequitable burdens have contribnted to the financial problem of the rail industry.
Recognizing the need to shift more of the burden for the cost of grade crossing signals and surfaces to highway users to approximate the relative benefits of such expenditures felt by highway users and railroads, the Legislature recently increased the state responsibility for installing grade crossing protection devices to 100 percent of cost and the state responsibility for maintenance to 50 percent of cost. The state can also reimburse the railroads for 85% of the cost of installing and maintaining crossing surfaces on state trunk highways. Having the state assume mos.t all of the responsibility for the installation and maintenance of crossing protection devices and crossing surfaces makes the state's poiicy more consistent with the concept of having the highway users pay for the benefits they receive from crossing protection.
WisDOT Policy on Taxation of Railroads
State and local taxes levied on railroads in Wisconsin are not large in comparison with total railroad expenses. However, reduction or elimination of these taxes could have a recognizable impact on railroad earnings. Wisconsin currently imposes several types of taxes on railroads which include: (1) an ad valorem tax, combining the features of an income tax and a property tax, (2) a sales tax on all railroad materials used in Wisconsin, (3) a car line tax of six percent of the rentals paid by rail roads to private car lines (In effect, this is a tax on railroad equipment provided by non-railroad companies), (4) regulatory assessments to support the railroad regulatory activities of the Wisconsin Transportation Commission, and (5) local property taxes on certain railroad owned terminal properties and non-operating property.
Compared to other states; Wisconsin's railroad taxes are low. On a tax-per-mile basis, Wisconsin ranks 42nd among all states and is significantly lower on a per mile and total basis than Illinois, Minnesota and Michigan and lower in total but slightly more per mile than Iowa.
III-5 It is believed that the present tax structure has no significant impact on the allocation of resources by railroad management. It does not appear to encourage particular investments or policies while discouraging others. It does not encourage management to defer maintenance or abandon branch lines; in fact, abandoning a line could actually increase the railroads' taxes since it is relieved of a deficit operation. The ad valorem tax is sensitive to the financial conditions of the individual railroads. On a per-mil~ or per-ton-mile basis, the taxes of the "weak" lines are lower than those of the "strong" lines and consequently reflect the carriers' ability to pay. The taxes are credited to the transportation fund and can be assumed to cover a significant portion of current rail program costs.
The current railroad tax structure in Wisconsin does not, in total, seem unduly burdensome on the railroads, though it may be more burdensome on some than·on others. It does not appear to discourage investment in Wisconsin facilities, and does not tax weaker railroads at the same level as stronger ones. Therefore, immediate tax relief is not viewed as being imperative.
However, Wisconsin's railroad taxation policy appears out of date and illogical. It is not deliberately structured to support current transpor tation nor revenue policies. Therefore the implications of changes in railroad tax policy should be examined more fully, not only from the trans portation policy perspective but also from the perspectives of state corporate tax policy and state revenue needs as well. To develop recommended changes in tax policies, WisDOT intends to initiate an examination of all railroad taxation issues, in cooperation with the Depart ment of Revenue and the railroads. This study will examine Wisconsin's present system of railroad taxation and propose changes aimed at strengthening the state rail system through state tax policy.
WisDOT Policy on Rail Passenger Service
Even under the most favorable assumptions, it appears difficult to defend an extension of rail passenger service in Wisconsin as a good public invest- ment. Several federal and private studies have shown that, in spite of often repeated cl~ims to the contrary, rail passenger transportation is the most expensive mode of intercity passenger transportation in terms of cost per passenger mile. The AMTRAK experience has taught government what the railroads have known for many years: An extensive network of intercity rail passenger services cannot be operated in the U.S. without large operating losses. Data show that in spite of improvements in equipment and service quality, AMTRAK's operating expenses per revenue passenger mile increased from 10.2 cents in 1972 to 20.3 cents in 1979 while its ratio of operating expenses to revenues increased from 1.91 to 2.62. In addition, the oft-claimed energy advantages of new rail service.are weak at this time because a passenger train becomes more energy efficient than other modes only when it is carrying several hundred riders, and such patronage is very unlikely on even the best potential new routes in Wisconsin.
Thus, considering the rapidly increasing financial demand that rail passenger service has placed on the federal treasury and the questionable value of that level of expenditure, the state should be very cautious in advocating subsidization of additional routes by either the state or federal government.
III-6 For the time being, funds would be better spent if used to slow the continuing deterioration of railroad facilities so that, if the situation changes, attempts to extend rail passenger service in the future will not prove futile. However, WisOOT will make every effort to retain and improve its existing AMTRAK service and to encourage AMTRAK to make changes in scheduling and frequency of service which.will attract ridership.
WisDOT Policy on Lake Michigan Car Ferry Service
The vast natural barrier, Lake Michigan, on Wisconsin's eastern boundary has a profound effect on transportation movements in the Great Lakes region. Without some way to transport motor vehicles and rail cars across the lake, traffic must often be routed several hundred miles out of its way, resulting in higher rates, costs, and additional time required for shipment. The Chicago gateway, through which most cross-lake traffic would be diverted if all car ferry services were lost, is sometimes a barrier to efficient traffic management, especially rail freight, further aggravating Wisconsin's transportation problems. In addition, continued survival of the Green Bay and Western Railroad in Wisconsin and the Ann Arbor Railroad in Michigan is dependent on traffic carried to and from the ports of Kewaunee, Wisconsin and Frankfort, Michigan.
Accordingly, WisDOT will work to retain at least one car ferry route in order to assure survival of the GB&W and to preserve the existing short route cross-lake rate structure. Evaluations of new techno!ogies for cross-lake transportation s~rvice will continue to be made to determine their value and feasibility for Wisconsin.
WisDOT Policy on Rail Abandonments
WisDOT may become involved in railroad abandonment proceedings at two stages--as an intervenor in the abandonment process or as a party to an offer of financial assistance once a certificate of abandonment has been granted. Since jurisdiction over the granting of certificates of abandon ment is held by the ICC, the Department's position on the application must be articulated in the role of an intervenor. However, the Department's role as the "designated state agency" f~r administering 4R Act Title VIII funds requires an evaluation of services subject to abandonment in accord ance with planning criteria to determine the extent of benefits to be gained from public support of continued operation, and to provide for implementation should such action be warranted. The analyses embodied in the State Rail Plan should be one of the principal bases upon which an initial decision is made on whether to oppose, support, or exercise neutrality with regard to an abandonment. The State's final position will take into account the refined data and arguments developed in the regulatory proceedings.
Equitable consideration of the carrier's position as well as that of local interests requires that the Department include in its efforts as an inter venor, discussion on.issues pertinent to an accurate determination of profitability to the carrier. Should findings indicate bona fide unprofit~ ability, and result in the granting of a certificate permitting abandonment, scrutiny of net operating income, liquidation value, and rehabilitation cost components during the proceeding will aid in establishing the bona fide cost of service relevant to the potential offer of subsidy or acquisition. III-7 The extent of community loss by shippers and others, and the effect on economic development are most appropriately attested to by shippers and local interests. The single area in which shippers and/or local interests would most likely lack the expertise or resources necessary to effectively react to the application involves the determination of net railway operating income, including the dependence of operating revenue upon the condition of rail facilities. The Department's comparative advantage in ability to investigate the financial aspects (including estimated rehabilitation costs and property values) in any case requires that financial analysis be an integral component in any department participation in a proceeding.
In the event the Department enters a proceeding as a protestant, it will normally act independently of local interests but may act jointly with the Wisconsin Transportation Connnission. However, the Department will cooperate with local interests and shippers by providing guidance on the procedures and issues. It will also obtain much of the data relevant to benefit/cost analysis through shipper and local contacts.
A hearing will not necessarily be requested for every application for aban donment. The hearing process will serve no useful purpose if analyses reveal little prospect for future viability and only minor impacts associated with abandonment. However, wherever impacts are estimated to be significant, the lines should be the subject of state and ICC investigation.
Applications on lines which are believed to hold reasonable prospects for profitability will be opposed. It is quite possible that only a portion of a line which is the subject of an application will be, or have reasonable prospects to be, profitable either as a result of the way traffic is con centrated on the line, the condition of the line, or an alternative service arrangement. In such cases, the application would be opposed on that portion of the line only.
WisDOT Investment Policy for Lines Approved for Abandonment
The Wisconsin Department of Transportation's role as the "designated state agency" for administering the 4R Act Title VIII funds as well as its role in administering the state land acquisition program and its track acquisi tion loans to local government program requires an evaluation of services subject to abandonment in accordance with planning criteria to determine the extent of benefits to be gained from public support of continued operation, and to provide for implementation should such action be warranted.
There are essentially four possible outcomes of an analysis of a rail line which is potentially subject to abandonment:
1. The line (or part of the line) is or can be made profitable to the carrier.
2. The line (or part of the line) is not or cannot be made profitable to the carrier, but the value of consequences or economic impacts resulting from abandonment exceeds the amount of the railroad's financial losses (or the public's cost of continued operation).
III-8 3. The line (or part of the line) is not or cannot be made profitable to the carrier, and the value of consequences or economic impacts resulting from abandonment is less than the amount of the railroad's financial losses.
4. The line (or part of the line) is unprofitable to the carrier, and there would be virtually no adverse impact if the line were abandoned either because the shippers can very easily make other arrangements or because there are no shippers at all.
In principle, the first instance should be the basis for denial of acer tificate of abandonment and, in the fourth instance, abandonment should be approved without question.
Service which is unprofitable to the carrier but would result in severe impacts on the affected communities, if abandoned, falls into that gray area where the public convenience and necessity must be carefully weighed against the burden on the railroad. These circumstances arise whenever the level of output and employment in the community is highly sensitive to the exist ence of rail service, or when the prospects for the future viability of rail service are reasonable. In some cases, abandonment should be denied. And in others, consideration should be given to continuing rail service with public assistance, if abandonment is allowed.
In the third instance, continued operation of service at great expense to the carrier is~ transfer of resources from the carrier to shippers and the community at large, inhibiting the effectiveness of the total rail system and endangering the financial integrity of the carrier. In addition, these lines should normally not be the subject of public financial assistance, because the value of the impacts does not exceed the cost to the taxpayers.
In such instances, however, substitute service projects might be considered if the public costs of providing the substitute service are less than the cost of the impacts that would be avoided by provision of that service. In instances where private funding is available to cover a high proportion of costs, small amounts of public funding may be justified.
In general, the lower the ratio of benefits to costs the less justification there is for public assistance. Conversely, the greater the local and shipper commitment, the greater the chance of state assistance.
Based upon the above four possible outcomes of an analysis and the previously discussed abandonment policy, the following set of four classifica- tions into which each line or part of a line can be placed has been developed:
1. Abandonment Unjustified - Lines in this classification would be currently profitable or could be made profitable with new management practices, added shipper use, or with the provision of financial assistance ave~ a limited term. In some instances, only a portion of a given line would fit this definition.
III-9 In many cases, lines in this classification require a capital investment in some type of rehabilitation to become profit able, yet the railroad is unable to economically justify making the investment totally by itself. In other cases, opera ting assistance may be needed for a limited time until 1ocal shippers are able to increase their rail shipments. Normally, the WisDOT would oppose the abandonment of lines or parts of lines included in this classification. Should abandonment be granted, WisDOT would work with local interests to develop a proposal for an assistance project, appropriate to the circum stances surrounding the line, for the continuation of rail service.
2. Continued Operation Essential - These are lines for which railroad costs exceed revenues but on which the economic cost to the affected area if the service were abandoned would exceed the cost of continuing railroad operations. In such cases, WisDOT might oppose or initially take an uncommitted position in abandonment case activities, depending on the presumed amount of the railroad's actual loss, the ratio of benefits to costs, and the sincerity of the railroad in attempting to provide adequate service. Should an abandonment application be approved, and if funds are available, WisDOT would work with local interests to develop a proposal for an assistance project appropriate to the circumstances surrounding the line for the continuation of rail service.
3. Continued Operation Does Not Warrant Public Assistance - There are lines for which railroad costs clearly exceed revenues and on which there would be some economic cost to the affected area if the service were abandoned, but that cost would not exceed the cost of continuing railroad opera tions. In such cases, WisDOT would normally take an uncommitted position in any Interstate Commerce Commission proceeding. Should an abandonment application be approved, and if funds are available, WisDOT could consider a request for assistance projects to enable the shippers along the line to accommodate an alternative transportation project. Also, as appropriate, the WisDOT could purchase the right of way to enable the corridor to be preserved for future transportation use.
4. Abandonment Supported - These lines would be those on which abandonment would have negligible impact on the area's economy and a positive impact on the railroad system as a whole. The State would support the abandonment on the basis that it would strengthen the remainder of the rail system. These corridors could also be candidates for pres ervation of right of way, but most likely the right of way would be used for purposes other than rail.
Table III-1 summarizes the above classifications and criteria.
III-10 TABLE III-1
CLASSIFICATIONS AND CRITERIA FOR BRANCH LINES SUBJECT TO ABANDONMENT
Ratio of Impact Cost to Cost of State Assessment Abandonment Recommended Type of Classification Continued Operation of Profitabilitz Position Public Assistance
Abandonment Unjustified Greater Than 1 Profitable or Oppose Rehabilitation Potentially Profitable
Continued Operation Greater Than 1 Unprofitable Oppose or Acquisition/Rehabilitation/ Essential Uncommitted Minor Construction
H Continued Operation Less Than 1 But Unprofitable Uncommitted Substitute Service/ H H Does Not Warrant Public Greater Than 0 Preserve Right of Way I I-' Assistance I-' Abandonment Supported 0 or Negligible Unprofitable Support Purchase Right of Way for Non-Rail Use. WisDOT Policy on Streamlining the Total Rail System
Because the railroads often duplicate service, the railroad system as a whole is not as efficient as it could be from a system point of view. Duplication of rail services is especially wasteful because of the high fixed costs associated with the rail mode. However, efforts to eliminate duplicate rail service imply the sacrifice of intramodal competition unless the remaining facilities are jointly used.
Although competition is the foundation of American business, the railroads' financial picture is so poor and maintenance of way so expensive that elimination of some duplicate services could significantly improve overall railroad viability. The competitive presence of the trucking industry alone is usually sufficient to provide rate protection for shippers.
Mr. William J. Quinn, Chairman of the Board and Chief Executive Officer of the Milwaukee Road, told the Transportation and Commerce Subcommittee of the House of Representatives during a hearing in January 1978 on the reasons for the bankruptcy of his railroad:
" ••• for what reason do we seek competition among railroads at every hamlet, and is it logical that we do so? After all, the railroad industry nationwide is competing within itself for only a little more than a third of only that portion of the intercity freight business upon which the regulatory process has a handle and thus can provide a statistical measure. As an industry, the railroads are not able to return their cost of capital. I suggest that there are larger considerations for our own national transportation policy than that there be two railroads in any given location."
If it can be assumed that in most places where two railroads compete with each other at least marginal profitability exists for each railroad, then it can be concluded that neither railroad would wish to unilaterally abandon its location to another railroad without receiving something in return. However, agreements can be made whereby one railroad would trade its facilities and shippers at one location for a similar value of facilities and shippers at another location. Each company could then abandon several miles of line, resulting in a savings in maintenance and operating costs, .while each would still have approximately the same volume of business. More importantly, no shippers should lose service.
There are several locations in Wisconsin which have potential for such trades. WisDOT encourages the railroads to enter into market exchange agreements, form joint trackage agreements, and pursue similar measures which will reduce the total rail mileage of the State without significantly reducing the number of shippers being provided rail service.
WisDOT Policy on Rehabilitation of Rail Properties
As previously discussed, the condition of rail facilities is an important factor limiting the safety and effectiveness of rail service. Track which cannot be operated safely at reasonable speeds inhibits effective service,
III-12 thereby discouraging traffic and leading to further deterioration. Subject to the availability of necessary funding, rehabilitation expenditures of reasonable magnitude·may provide the basis for long-term efforts to insure the future viability of essential rail services. However, WisDOT recognizes that rehabilitation often represents a considerable capital investment. Recovery of this investment through gains in operating efficiency, reduc tion in operating subsidies, or enhanced prospects for profitability requires long-term continuation of the affected service.
The notion that some form of capital assistance for rehabilitation of facilities may save an otherwise profitable line from the deterioration of service, has considerable merit. The decline of service quality and intention to abandon is often rooted in the inability of carriers to recover a reasonable return on the investment required for modernization of light density facilities. In general, poor returns on railroad capital dictate that prudent business policy limit capital investment to high-revenue lines in the carrier's system. Accordingly, the capital supply encourages the typical decline in quality of service in anticipation of eventual liquidation through abandonment. The decline in service discourages traffic, reduces revenues, discourages potential industry dependent on rail service, and ultimately necessitates abandonment.
The 1978 amendments to Federal Rail Act made it possible to use 4R funds for rehabilitation on certain lines which had not gone through the abandon ment process •.!/ In July, 1979 state legislation also provided funds for that purpose. Such programs could address what is frequently the primary cause of poor service and unprofitability of branch lines.
These new programs are intended to involve the state, local shippers, local units of government, and the railroad companies. Two or more of these entities share in the costs of rehabilitating branch line trackage to an agreed level. Where the parties can agree that a branch line can be turned around financially and is potentially viable, a contract relationship is developed among them for the purpose of achieving line rehabilitation. The railroad, in effect, receives a no interest or low interest loan provided by the state and shippers. The loan is repaid on the basis of rail traffic on the line, with extensive use resulting in rapid repayment. The shippers and state retain service on the line for the price of the interest on the 100ney loaned to the railroad. The railroad usually gains increased revenue from the shippers' use of the line, since repayment of the loan is required only to the degree that the line is used by the shippers.
Federal and state funds continue to also be available for justifiable rehabilitation projects on lines which have been approved for abandonment.
WisDOT Policy on Subsidization of Rail Service
Following a finding by the ICC that the public convenience and necessity permit abandonment, the.state rail planning process may suggest that the line should be continued in operation for a short period of time with public
1./ This refers to the 4R Act's Title 8, Local Rail Service Assistance funds which are channeled through the States for use on light density lines. In addition, the 4R Act, under Title 5, provides funds directly to railroads for rehabilitation of mainlines.
III-13 subsidy. Generally, it will be the goal of a subsidy project to restore a line to profitability within two to three years, after which a subsidy will no longer be needed. Given that the other state and federal programs, such as property acquisition and rehabilitation, relieve railroad operators of some financial burdens and, in effect, are an indirect subsidy, WisDOT plans not.to use direct subsidies.
WisDOT Policy on Substitute Service Projects
For lines classified as "Continued Operation Does Not Warrant Public Assistance," it may be cost-effective to fund a substitute service project. Four basic possibilities are: (1) providing terminal or transfer facilities for transferring to other modes, (2) instituting some form of COFC/TOFC service, (3) relocating the affected shippers, and (4) providing operating subsidies for use of non-rail freight transportation.
Much of the concern over light-density line abandonment centers around the perceived increase in shipping and handling costs, particularly for bulk commodities such as fertilizer, grain, and mineral products. To ease this situation, the WisDOT will consider pmploying available federal assistance funds in making capital investments in terminal and transfer facilities, possibly at a local industrial plant but more likely at a nearby location retaining rail service. The former might include financial assistance to help local industries adapt existing rail loading or·unloading facilities to motor carrier or water transport. The latter might simply mean con structing a public team track at a convenient location, or it might extend to building a materials handling facility containing conveyors, controlled flow hoppers, storage silos, platforms, and forklift equipment. The feasi bility of such arrangements depends upon the degree to which such a facility meets the needs of current light-density line shippers and the savings accruing from a capital investment versus government support for continued light-density line operations.
The second possibility involves substituting trailer on flatcar service (TOFC) for light-d~nsity line service.· This may be practical if the light density line is located in reasonable proximity to an existing TOFC terminal and if the commodities carried lend themselves to TOFC both in terms of origin and destination and existing tariffs. However, this situation does not occur very often. Construction of a new TOFC terminal to handle light density line traffic usually is not practical given the relatively large amount of traffic needed to economically justify operation of a TOFC terminal.
A third possibility is the relocation of shippers to a new location which will continue to have rail service. A major problem of such an action is the determination of what such assistance should consist of and when it would be in the public interest to pay for the assistance from public funds. Obviously, it would be impossible to relocate all shippers who lose rail service. The WisDOT will pursue a cautious approach to imple menting this type of project.
111-14 A fourth possibility would be the subsidization of the increased trans portation costs. However, the WisDOT does not look favorably on this type of project, as there will usually be shippers elsewhere in the State who either previously lost rail service or never had rail service who are already paying the same trucking rates as those who now stand to lose rail service would pay. Only under the most unusual circumstances will the WisDOT consider subsidization of trucking costs.
Normally, any of the substitute service projects will be considered only when the cost of the project is less than the benefits enjoyed by implementation of the project.
Wis/DOT Policy on Acquisition of Abandoned Rail Right of Way
There will be situations, generally involving those lines classified as "Continued Operation Does Not Warrant Public Assistance" and "Abandonment Supported," where a rail line is no longer needed for rail transportation purposes, at least for the present. In such a case, the decision must be made whether to preserve the corridor for future transportation needs with possible non-rail uses in the interim, to preserve the line for non-transportation purposes, or to permit the corridor to be disaggregated.
The 1977 Wisconsin Legislature passed a bill which became effective July 1, 1977, creating the Rail Corridor Preservation Program~ The enactment of this law reflects a widespread presumption that there can be a public interest and/or benefit in the acquisition of abandoned railroad property for continued or future railroad use or alternative public use. The law grants the first right to acquire all abandoned right of way to the Wisconsin Department of Transportation. Under this law, the WisDOT will purchase abandoned rail corridor lands as funds permit. The Department will retain title on any property with foreseeable potential for future transportation use and will encourage interim use through lease arrange ments. Such interim uses should at least partially compensate WisDOT for acquisition costs and replenish the fund for this program. If requested to do so, WisDOT would exercise the State's first right on behalf of another public body for lands without future transportation potential and then recover the costs and reconvey title to that agency.
III-15
CHAPTER IV
THE INSTITUTIONAL STRUCTURE FOR RAILROAD PLANNING AND FINANCIAL ASSISTANCE [49 CFR, Section 266.15 (d) (2) (vi)]
The Regional Rail Reorganization Act of 1973
The Wisconsin State Rail Plan was originally developed and prepared to fulfill federal rail planning requirements related to making the state eligible to receive federal funds appropriated for federal rail service continuation programs. Those programs were developed as part of the legislative response to the bankruptcy of the Penn Central Railroad and several other major railroads in the northeastern region of the U.S. The first major piece of federal legislation enacted to try to halt the deterioration of the railroad industry was the Regional Rail Reorganization Act of 1973 (P.L. 93-236). The main purposes of the 3R Act were the reorganization of the bankrupt railroads in the northeastern region of the United States into ·a unified and financially self-sustaining rail system, and the provision of financial assistance to preserve or gradually phase out financially threatened local rail services.
The 3R Act provided that rail lines operated by bankrupt carriers in the seventeen states of the northeast and midwest regions be reorganized and con solidated into what has become the Consolidated Rail Corporation (ConRail). However, some of the lines operated by bankrupt carriers extended outside the 17-state region. The states in which this outside area was located were designated as "contiguous states," and the portions of the bankrupt .lines therein were also eligible for federal rail assistance. Wisconsin was designated as a contiguous state because the Ann Arbor car ferry touched its eastern shore. It thus became eligible for federal rail assistance funds under the 3R Act.
Rail lines not considered essential to the reorganized system were excluded from ConRail. However, they were eligible to receive service con tinuation subsidies. The 3R Act provided $90 million per year for two years to subsidize lines excluded from ConRail. Sixty percent of the funds were allocated directly to the states and the remainder of the money was to be administered at the discretion of the FRA Administrator. The funds could be used to finance the continuation of crucial rail services for that period or for the systematic phase-out of services on lines not selected for the reorganized system. During the first year of subsidy, the federal government paid 100 percent of the subsidy and during the second year, the federal government paid 90 percent and required states or local entities to provide the remaining 10 percent.
The seventeen states in the Northeast and Midwest Region, plus the "contiguous states" were each required to prepare a State Rail Plan to evalu ate, among other things, the feasibility of retaining lines excluded by ConRail. Social, economic, and environmental considerations were to be included. After the plan was approved by the Federal Rail Administration (FRA), the states could then submit individual project applications for funding of specific lines.
IV-1 The State of Wisconsin submitted its first State Rail Plan on December 22, 1975. The plan was subsequently approved by the FRA, and immediately there after, Wisconsin applied for a portion of the federal rail assistance funds to continue, in conjunction with the State of Michigan, the operation of the Ann Arbor car ferry across Lake Michigan from Kewaunee, Wisconsin, to Frankfort, Michigan. The United States Railroad Association had determined that the cross-lake car ferry would not be transferred to ConRail; thus, the line was eligible for subsidy, pursuant to Section 304 of the 3R Act.
Wisconsin and Michigan have since continued to receive federal rail assistance funds to subsidize the operation of the Ann Arbor car ferry service. The State of Michigan leased the facilities and equipment from the Ann Arbor trustees and contracted with ConRail and more recently with the Michigan Interstate Rail Company (MIRC) fo.r its operation.
The Railroad Revitalization and Regulatory Reform Act of 1976
Subsequent to implementation of the 3R Act, Congress recognized that railroad problems were not limited to the northeast and midwest. On February 5, 1976, additional federal funds became available under the Railroad Revitalization and Regulatory Reform Act of 1976 (4R, P.L. 94-210).
Title VIII of the 4R Act established a five-year national program similar to the rail service continuation assistance program of Title IV of the 3R Act. The 4R Act expanded upon its predecessor's features by making all parts of the nation eligible for federal funds.
Section 803 of the 4R Act provides financial assistance to states for rail freight assistance programs that are designed to cover:
(1) The cost of rail service continuation payments;
(2) The cost of purchasing a line to maintain existing rail service;
(3) The cost of rehabilitating and improving rail properties on a line of railroad to the extent necessary to permit rail freight service;
(4) The cost of reducing the costs of lost rail service in a manner less expensive than continuing rail service.
Amendments to the 4R Act, adopted in October 1978, make financial a.ssistance available for rehabilitation and maintenance of non-abandoned lines carrying less than three million ~ross tons during a prior year.
In addition to Section 803 funds, the 4R Act also provides funds for financial assistance directly to the railroads in the form of loan guarantees and government purchases of a special class of redeemable preferred stock at subsidized rates.
IV-2 Wisconsin Rail Assistance Programs
Wisconsin legislation currently provides for state funding for rail related purposes in eight specific areas, as follows: grade crossing surface assistance, installation and maintenance of railway/highway crossing warning devices, rail property acquisition; rail right-of-way acquisition grants, track acquisition and rehabilitation granti;;; rail branch line operating assistance; rail ferry aid; and advance capital for rail line stabilization. Each of these is discussed more thoroughly below:
Grade Crossing Assistance - The railroad companies are required by Section 86.12 and Section 86.13 of the Wisconsin statutes to keep the surface of crossings between the rails and multiple tracks and four feet beyond the outside rails in good and safe condition for public travel. The Department of Transportation is authorized qy the provisions of Section 84.05, to make arrange~ ments with railroad companies for new crossings and for alterations of existing crossings for those projects tinder its jurisdiction. The Transportation Connnission has au-thority under Section 195.29 to determine the type, location, and cost sharing arrangements of new highway-railroad crossings, alterations of existing crossings and whether or not petitions for new crossings or to close existing crossings should be allowed. ·
The railroad companies are responsible for the cost of installing or maintaining the crossing surfaces. On state trunk highways only, the railroads may place a claim for 85% of their.costs for such installation or maintenance expense with WisDOT. Section 20.395(2)(bn) appropriated $500,000 for 1979-1981 for this purpose. Should that amount not be adequate to fund reimbursement for all claims, the available funds are prorated among all claims. On any road, if the railroads fail to maintain the crossing surface properly, the responsible public official for the highway may give the railroad written notice of the hazardous conditions. If the situation is nqt corrected within 30 days, the highway authority may make such surface repairs as needed and bill the railroad. This provision is seldom used due to liability of working on railroad facilities and difficulty in recovering costs.
Installation and Maintenance of Highway Crossing Warning Devices - Section 20.395 of the Wisconsin Statutes provided $5.9 million for the 1979-81 biennium for the installation and maintenance of warning devices at railroad-highway grade crossings. These funds are to be used to reimburse th·e railroads for the cost of installation and up to fifty percent of the cost of maintenance of signals or other warning devices which are ordered to be installed by the Tran~portation Commission under the provisions of Section.195.28. Maintenance costs are reimbursed from the funds remaining from the $5.9 million appropriation after installation costs are paid. If claims exceed the available funds, the funds are prorated among all claimants.
IV-3 The Federal Highway Administration has also provided funds, begin.:.. ning in 1973, and again in the 1976 Highway Safety Act, specifically for the elimination of hazards at railroad-highway crossings (90% federal - 10% other). At least half of these funds are to be used for installation of warning devices but this program does not provide funding for warning device maintenance. The funds are administered by the Wisconsin Department of Transportation. Regular federal aid funds can also be used for improvement of highway-railroad crossings on the federal aid system of highways.
Petitions for additional crossing protection at any public crossing may be submitted to the Transportation Commission by a city council, village board, member of town board, or by five or more freeholders in any town, village or city, or by the railroad. The Transporta tion Commission also acts on requests from the WisDOT and other state agencies, or on its own motion.
Rail Property Acquisition - Section 85.09 of the Wisconsin Statutes grants WisDOT the first right to acquire for present or future transportation, recreational or scenic purposes, any property used in operating a railroad including rights of way, rails, ties, switches, trestles, bridges, etc. which has been abandoned, Acquisition may be by gift, purchase, or condemnation and no person owning such abandoned property, including any person to whom ownership reverts upon abandonment, may convey or dispose of any abandoned property without first'obtaining a written statement from WisDOT indicating it does not intend to exercise its right to acquire the property.
It is up to WisDOT to determine when it is in the best interest of the state to acquire abandoned rail property. In making its determination, WisDOT solicits comments from other state agencies, affected counties and municipalities, and other interested persons. All or part of any acquired property may be subsequently conveyed to another state agency or local unit of government. The property may also be leased to another party for interim use, The following two paragraphs describe the specific rail property acquisition programs currently authorized,
Rail Right-of-Way Acquisition Grants - Section 85.08(4m)(f) of the Wisconsin Statutes authorizes WisDOT to make grants to local governments or transit commissions to purchase any rail right-of-way either hefore or after the issuance of a certificate of abandonment from the Interstate Commerce Commission. Funding is provided from a $5.9 million appropriation acquisition program and this grant program, If rail service is not continued on the line or if the applicant disposes of any of the right-of-way without approval of WisDOT, the right-of-way reverts to the state. The statutes specifically limit the purchase price to no more than WisDOT 1 s assessment of the value of the land,
I\1-L. Track Acquisition and Rehabilitation Grants - Section 85.08(4m)(c) of the Wisconsin Statutes authorizes the WisDOT to make grants to local governments and transit commission for 80 percent of the cost of the rehabilitation or purchase of rail property improve ments. Grants may be made either prior to or after the issuance of a certificate of abandonment. To be eligible, the applicant must assure that rail service on the line will be continued and that required maintenance and improvement activities are performed. If rail service is not continued or the required maintenance and improvement activities are not performed or if the applicant disposes of any improvements, for which it received a grant, without the approval of WisDOT, ownership of the property reverts to the state. A total of $5.4 million has been appropriated for the current biennium for this purpose.
Rail Branch Line Operating Assistance - Section 85.08(4m)(d) of the Wisconsin Statutes permits WisDOT to reimburse local governments and transit commissions for costs to continue rail service that has a likelihood of economic self-sufficiency or that is the least expensive transportation to provide. The grant may not exceed 50% of the operating deficit of the continued rail service. Grants normally may be made for a period of no more than 3 years but if there has been substantial progress toward self-sufficiency, WisDOT may provide grants for an additional period of no more than three years. The legislature appropriated $1.6 million for the 1979-81 biennium which must also be used for the rail ferry aid progra}ll described below and to match any federal 4R funds used for operating assistance.
Rail Ferry Aid - Section 85.08(4) provides that WisDOT shall administer a program of financial assistance for the purpose of matching federal money made available to the state for assisting continuance, restoration, or operation of Lake Michigan rail ferry services. This program is currently used to continue operation of the Ann Arbor car ferries.
Advance Capital for Rail Line Stabilization - The purpose of this program is to revitalize rail lines before they decline to the abandonment stage. Section 85.08(4m)(e) permits WisDOT to negotiate and enter into agreements with local governments or transit commissions, railroads, and/or shippers to advance capital for purposes of rehabilitating rail branch lines. A line is not eligible for this program if it is in the abandonment process or is designated on the system diagram map as subject to abandonment within three years. A total of $1.55 million has been appropriated for the current biennium for this purpose.
IV-5
CHAPTER V
THE EXISTING RAILROAD SYSTEM IN WISCONSIN [49 CFR, Section 266.15(c)(2)]
THE DEVELOPMENT OF WISCONSIN'S RAILROADS
Since Wi-sconsin's early development, the railroads have been important to the State, in terms of movement of both people and freight. Even before Wisconsin was officially organized as a territory, its legislative councilors began to make plans for the construction of rail lines. One must understand that the railroad was then a whole new concept of transportation, and at this early date the railroad era in the United States was only a decade old. Yet, early settlers saw the need for railroad transportation, since it provided a reliable means of transporting both goods and people when high ways were little more than clearings in the.woods. Soon after Wisconsin became a territory, railroads were being built to the east and to the Mississippi River. The railroads opened up the interior of the state. No longer was it necessary to live along the Great Lakes or near large rivers. Settlements began to spring up along the tracks, and the railroads expanded to the natural resources of the State (both lumbering centers and mining centers). With further development agriculture's needs became as important as lumbering and iron. The railroad era meant economic and cultural growth to the State.
Although passenger trains received more attention, freight hauling was of major importance in the early days. Villages were anxious to see their first railroad and in some cases, already had depots constructed before there was any track. When the railroad entered a new region, new markets were opened up.
One can understand the swift development of commerce established by the railroad with a look at the annual report of the Milwaukee and Mississippi Railroad (Milwaukee to Milton) for 1853, two years after the line commenced operations. In that year it carried a total of 32,000 tons of goods westward including 13,254,764 pounds of merchandise, 7,927,000 board feet of lumber, and 5,198,872 pounds of iron. During the same year it carried a total of 32,000 tons of freight eastward consisting mainly of grain, pork, and other farm products.
The growth of Wisconsin's railways can be measured by looking at the total track mileage. In 1860 Wisconsin had 838 miles of track, and by 1870 there were 1,151 miles of railroad. This figure jumped to 2,927 miles by 1880, 5,385 miles by 1890 and finally stopped its rapid growth just prior to 1920, when Wisconsin had 7,561 miles of railroad lines and ranked eleventh among the states in railway mileage. Unfortunately, rail expansion was probably too extensive. Overbuilding resulted in excess capacity and extensive duplication· of competitive lines. This situation persists as a problem of the railroad industry even today. Table V-1 provides a historical record of Wisconsin railroad mileage. Figure V-1 shows the historical develop ment and decline of Wisconsin's railroad system at the end of each decade since 1860.
V-1 Since 1900, railway development has not been so much in the line of new track, but rather has primarily involved improvements in increased efficiency of existing lines. In the 1930's the modern diesel-electric engines were introduced providing more power and higher speeds. Air conditioning, better refrigeration, larger freight cars, safety glass, improved automatic signal and train control systems, and faster passenger-freight train schedules were just a few of the improvements made during the first half of this century.
TABLE V-1
HISTORICAL RECORD OF WISCONSIN RAIL MILEAGE
Cumulative Decade Miles Built Miles Abandoned Net Road Miles
1850-1859 838 838 1860-1869 313 1,151 1870-1879 1,789 13 2,927 1880-1889 2,466 8 5,385 1890-1899 1,128 29 6,484 1900-1909 1,006 45 7,445 1910-1919 301 185 7,561 1920-1929 102 336 7,327 1930-1939 652 6,675 1940-1949 308 6,367 1950-1959 172 6,195 1960-1969 215 5,980 1970-1979 510 5,470
Source: 1850-1888 James P. Kaysen, History of the Construction of Wisconsin Railroads 1827-1937. 1889-1928 Interstate Commerce Conunission, Statistics of Railways in the u.s., various years 1929-Present Wisconsin Transportation Conunission files.
V-2 FIGURE V-1 HISTORICAL DEVELOPMENT OF RAILROADS IN WISCONSIN
1860 1870 1880
1890 1900 1910
1920 1930 1940
1950 1960 1970
SOURCE: Compiled by Wis DOT from numerous maps and reports V-3 CHARACTERISTICS OF RAILROADS IN WISCONSIN Wisconsin's Railroad Companies
As of July 1, 1980 there were 22 railroads with 5,427 road miles and 8,328 track miles in Wisconsin. The railroads which serve Wisconsin, their classification, and their road mileage and other data for the state are shown in Table V-2. In addition to these railroads, Wisconsin is also served by the Lake Michigan car ferry operations of the Ann Arbor Railroad, and the Chesapeake and Ohio Railroad. The ports of Kewaunee, and Manitowoc, are terminals for these car ferry operations, but these railroads have no road mileage as such in the state. A Lake Superior ferry service between Superior and Thunder Bay is operated jointly by the Burlington Northern and the Canadian Pacific. The major portion of the rail freight service in Wisconsin as is the case elsewhere in the nation is performed by Class I railroads. These carriers are currently defined as those railroads with gross revenues in excess of $50 million annually. Prior to 1975 Class I railroads.were those with annual gross revenues of more than $5 million each and between 1975 and 1977 they were defined as those with more than $10 million gross revenue. Class II railroads are currently defined as those railroads having annual gross revenues of less than $50 million but more than $10 million. Only three railroads in Wisconsin fall in this category, the Green Bay and Western, Duluth, Winnipeg, and Pacific, and the Escanaba and Lake Superior. Class III railroads, a new class established by the ICC in June, 1978, are currently d~fined as those railroads having annual gross revenues of less than $10 million. These are frequently referred to as short line railroads. At present there are ten short line railroads in Wisconsin representing a total length of 416 miles. A fourth class of rail operations is broadly referred to as "switching and terminal companies". As the name implies these railroads engage in switching services, terminal operations, or bridge services between other railroads. Wisconsin has four of these operations!/ which, though they have only about eight miles of road actually total 27 track miles. Three railroads comprise 79 percent of the road mileage in Wisconsin. 'lltese railroads are the Chicago and North Western (C&NW) with 38 percent; the Chicago, Milwaukee, St. Paul and Pacific (CMSTP&P) with 16 percent, and; the Soo Line (SOO) with 24 percent. The future configuration of the Wisconsin rail system is, therefore, highly dependent upon the financial circumstances of these three railroads, and upon changes in the shipping levels at points they serve. The geographic distribution of all railroads in the state is shown in Figure V-2. From tha.t map it can be seen that the more densely populated and industrialized eastern and central portions of the state have a higher concentration of railroad miles than do the less densely populated south western and northern areas of Wisconsin. The geographic distribution of the individual railroads is shown in Figure V-3. Generally, the Milwaukee Road serves the southern part of the state, the Soo serves the northern part and the C&NW is relatively evenly distributed throughout the state. The other railroads in Wisconsin have only one or two lines in the state.
1./ Includes the Duluth, Winnipeg, and Pacific which is also a Class II railroad.
V-4 TABLEV-2
CLASSIFICATION, MILEAGE, FREIGHT AND REVENUE OF WISCONSIN RAILROADS
Est. 1979 Tons 1979 Tons 1979 Total Stations ·Road Track of Revenue of Revenue Wisconsin in Miles Miles Freight Freight Revenue Company Wisconsin 7 /1/80 7/1/80 Originated Terminated {000 1 s} Class rl/ Chicago & North Western 319 2,078,0 3,017.0 6,661,915 14,345,602 133,472 Milwaukee Road 214 886,6 1,803.8 3,646,332 9,660,913 85,937 Soo Line 273 1,305,0 1,731.0 3,359,481 5,023,662 118,963 Burlington Northern 53 336,0 841.0 807,505 2,056,088 103,849 Illinois Central.Gulf 8 45.0 50.0 3,966 38,782 82 Duluth, Missabe & Iron Range 4 10,2 14,0 61395 61395 11243 Total Class I 871 4,660,8 7,456,8 14,485,594 31,131,442 443,546
Class II!:_/ Green Bay & Western 29 252.7 309.0 933,626.Y 2. /173,047!±./ 18,707 Escanaba & Lake Superior 18 88.6 93,0 Duluth, Winnipeg & Pacific~/ 1 0 0 0 Total Class II 48 341,3 402,0 933,626 2,473,047 18,707
Class III.~/ Ahnapee & Wes tern 11 13,8 16.4 2,275 18,202 129 ~rinette, Tomahawk & Western 7 13,2 16.0 309,366 186,902 1,919 Laona &·Northern 6 8,0 8,0 4,513 71 52 Hillsboro & Northeastern 2 4.9 4,9 440 7,922 97 Brillion & Forest Junction 2 6,7 8,0 1,620 9,670 22 Wisconsin & Southern 33 147,2 154.6 Chicago, Madison & Northern 18 112.9 118,6 Central Wisconsin 8 41.0 43.1 Nicolet Badger Northern 3 36,3 38.1 Chippewa River 5 32,4 34,0 Total Class III 88 416.4 441.70 318,214 222,767 2,219
Switching Municipality of East Troy 1 7.2 7.2 3,3002! 10,320.1/ 41 Lake Superior Terminal & Transfer 1 1.0 20,0 0 0 0 Winona Bridge 1 0 0 0 Duluth, Winnipeg & Pacific§/ (See Class II for data) Total Switching 3 8,2 27,2 3,300 10,320 41
Grand Total 5,426.7 8,327.7 15,740,734 33,837,576 464,513
1./ Class I railroads are defined as railroads with over $50 million of operating revenues per year. ]:_/ Class II railroads are defined as railroads with less than $50 million but J11ore than $10 million of gross operating revenues per vear, )_/ Class III railroads are defined as railroads with less than $10 million of operating revenues per year, · !!../ For the GB&W, terminated tonnage figures include both overhead and terminated traffic, Also, some local traffic both originated and terminated in Wisconsin and is included in both figu~es, J_/ Tonnage estimated from ·carload data at 60 tons per car, 6/ The Duluth, Winnipeg, and Pacific is both a Class II railroad and a switching and terminal company, Data for that company is listed in the Class II portion of the table,
V-5 d D FIGURE V-2
WISCONSIN RAILROAD MAP
...... 6 ..,t~ 11,woH G•OA\"'t r, ... .,.. ...,,u, r, ... ,,...... ,h
LEGEND
---LINH.._ _,,00 l!llLACO 1 t SUPCRIOROfTAll MllWAUKH OfTAll V-6 FIGURE V-3 LOCATION OF WISCONSIN'S RAILROADS CHICAGO AND NORTHWESTERN MILWAUKEE ROAD BN f MT&W 1METR SOO LINE ALL OTHER RAILROADS NOTE: Dashed lines indicate trackage rights. V-7 Classification of Lines The 4R Act required the Federal Railroad Administration to conduct several special studies. One study - required by Section 503 of the Act - was intended to provide a framework for classifying rail lines into general categories of "main line" and "branch lines" .Y The classification study was intended to assist in the determination of railroad capital needs. The Act required that the study provide a classification, "in at least 3 categories, of main and branch rail lines according to the degree to which they are essential to the rail transportation system". The final classification system adopted by the Secretary of Transportation is based almost entirely on the standard of traffic density (annual gross-ton miles per mile of road). It was concluded by the U.S. DOT that density provided the simplest and least ambiguous measure of the contribution of individual lines to overall system viability though this was questioned by many outside that agency. There are no generally accepted methods of measuring the importa.nce of individual lines, and revenue and cost data are not availabl.e on a line-by-line basis. The process produced the following categories: Category· Title Category Description A Mainline Twenty million or more gross ton miles per mile per year, major transportation connectivity, national defense essential mainline requirement. B Mainline Less than 20 million gross tons but at least 5 million gross tons. A Branchline Less than 5 million gross tons but at least 1 million gross tons. B Branchline Less than 1 million gross tons. Figure V-4 shows the result of this classification for Wisconsin's rail roads. It should be noted that strict application of the above criteria does not consider the ratio of gross tons to net tons. A subsequent FRA report indicates that because the Soo Line's ratio of gross tons to net tons is 22% less than the average, its Neenah to Owen segment actually hauls the equivalent of A mainline traffic volume. Another important feature of the U.S. DOT report is the designation of Corridors of Consolidation Potential. These corridors have end points at "major markets", which are connected by three or more parallel through routes operated by three or more carriers, in which the practical traffic handling capacity of the combined routes exceeds the actual traffic density (in gross tons of the combined_lines) by 50 percent or more. Major markets are defined as important gateways or points which generate in excess of 75,000 carloads annually. The purpose of the corridor classification is to identify redun dant lines which could be downgraded to branchline service or elimi~ated 1./ U.S. Department of Transportation, Final Standards, Classification and Designation of Lines of Class I Railroads in the United States, (Washington, D.C., Jan. 19, 1977) V-8 D FIGURE V-4 FRA CLASSIFICATION OF WISCONSIN RAILROADS r::t LEGEND XXXXX A - Mainline 0000 B - Mainline 11111111111111111 A - Branchline No overlay B - Branch line Note: 1. Recent changes in traffic patterns, which have occurred since completion of the FRA study, are not reflected. 2. Lines in urban areas and class 111 railroads were not considered by FRA. SOURCE: U.S. D.O.T., Federal Railroad Administration V-9 entirely without hampering the flow of traffic or reducing the number of competing carriers. Lines are to be downgraded by providing the operating carriers with trackage rights over the lines of other carriers. It is possible that federal assistance might be withheld from lines in these corridors until the redundancy problems have been resolved. The report does not attempt to identify the specific lines to be downgraded, but instead leaves this matter up to the carriers or possibly the states. Ten corridors of excess capacity have been identified in the nation. One of these, the Chicago-Minneapolis corridor, includes 4 major routes in Wisconsin: the Chicago-Milwaukee-La Crosse-Minneapolis line of the Milwaukee Road, the Chicago-Milwaukee-Eau Claire-Minneapolis line of the Chicago and North Western, the Chicago-Fond du Lac-Neenah-Marshfield-Minneapolis line of the Sao Line, and the Burlington-Northern line along the Mississippi River. A Rock Island line through Illiriois, Iowa, and Minnesota is the fifth rail route between Chicago and Minneapolis. Yard Facilities A railroad freight yard is a system of tracks with defined limits used for switching operations, making up trains, storing of cars or the servicing of equipment. Railroad operation requires that freight cars originating at many points be assembled into trains for movement between major terminals. This "classification" process takes place on a small scale at many points along Wisconsin's rail lines. However, the most economical railroad opera tion requires that traffic be concentrated, to the greatest possible extent, along major arteries. Concentration involves large classification yards at various points. Milwaukee is by far the most important classification center in Wisconsin, although the Soo Line has large yards at Fond du Lac and Superior, as do the Milwaukee at Green Bay and La Crosse, the C&NW at Green Bay, Altoona, and Superior, and the Green Bay and Western at Green Bay. There are also numerous smaller yards. Weight of Rail Rail is commonly classified by its weight in pounds per yard. Heavier rail is designed for track that commonly handles large loads at relatively high speeds. Light rail is designed for less frequent, lighter, slower movements such as branchlines and sidings. The weight of rail comprising the track in Wisconsin, in general, reflects the density and type of traffic on each segment. Figure V-5 graphically illustrates the weight of rail in pounds per yard. Rail of 100 pounds per yard or more usually corresponds with segments annually carrying 10 million or more gross ton-miles per mile. These lines also generally correspond with the Class A and B Mainlines illustrated in Figure V-4. Rail weighing less than 100 pounds per yard generally corresponds to light density branchline segments. The weight of rail can also provide some insight into the previous usage of the line. For example, the 100 to 130 pounds per yard rail between Janesville and Walworth indicates the previous importance of this section as a mainline before through traffic was diverted to other routes. V-10 FIGURE V-5 WEIGHT OF RAIL ON WISCONSIN RAILROADS 0 D LEGEND 60 70 10 90 llXI 110 \20 ,.. - - - - - No Data Available Source: Railroad Company Track Charts (As of December, 1980) V-11 It should not be assumed that the weight of rail is the major governing factor in a line's weight capacity or allowable speed. Lighter rail can safely handle heavy loads if the ties, tie plates, ballast and sub-grade are in good condition but never at high speeds. On the other hand if the majority of the ties are rotted and will not hold spikes, if there are few and small tie plates, and if the ballast provides poor drainage; even heavy rail will not allow safe operation with heavy loads. TOFC and COFC Facilities During the past few years the transhipment of motor truck trailers on railroad flatcars has developed very rapidly. Trailer-on-flatcar (TOFC) and container-on-flatcar (COFC) operations make possible the multi-modal movement of freight with a minimum of handling enroute and combine the economy of long-haul movement by rail and the delivery flexibility of the highway trailer. TOFC and COFC rates and charges are generally competitive with the motor carrier industry. TOFC and COFC service could provide a reasonable alternative to shipping entirely by truck in the case of rail abandonment. The degree of usage would depend upon the willingness of local shippers, the railroads, and the motor carriers to provide a coordinated and func tional transportation service. Presently, there are 4 railroads providing TOFC .and/or COFC service at 35 locations in.Wisconsin. A map showing the locations of TOFC and COFC facilities appears in Figure V-6 and Table V-3 lists these locations and provides additional detail. Interchange Facilities An interchange facility establishes a physical connection with another line for the trartsfer of railroad cars from one road to another. The ability to interchange traffic between lines at specified locations makes possible more effective transport coordination and increases a line's service capability. To accomplish·this, facilities have been constructed between connecting carriers for the transfer of freight from one line to another. This arrange ment establishes a "through route" for the continuous carriage of freight by two or more connecting carriers on a single billing. As such, the overall cost of transportation is reduced and shippers are offered the best possible service by the railroad industry. The opportunity for the interchange of traffic between railroads without the imposition of unnecessary obstacles was vested in the Interstate Commerce Connnission (ICC) by the Transportation Act of 1920. The ICC has the power to require the construction of interchange facilities to ensure the reasonable interchange of traffic between railroad lines. A map indicating the inter change points for Wi_sconsin' s railroads appears in Figure V- 7. Rail Service to Military Installations Wisconsin has three military installations which have been listed by the Department of Defense as requiring rail service.1:/ These installations 1./ Department of Defense, Military Traffic Management Command, Department of Defense Installations and Activities Requiring Rail Service, March 31, 1977. V-12 TABLE V-3 TOFC AND COFC FACILITIES IN WIS CONS IN TyEe of Facility Location Railroad --"TOFC COFC Appleton CNW X MILW X soo X Butler CNW X Chilton MILW X Chippewa Falls soo X Eau Claire CNW X MILW X Fond du Lac CNW X soo X X Green Bay CNW X MILW X Hartford MILW X Horicon ws X Janesville CNW X Kenosha CNW X La Crosse BN X CNW X MILW X Madison CNW X MILW X Manitowoc CNW X Marinette CNW X MILW X Marshfield soo X Mayville ws X Menasha MILW X Milwaukee CNlv X MILW X Neenah MILW X soo X New Holstein MILW X Oshkosh CNW X MILW X Plymouth MILW X Portage MILW X Prairie du Chien BN X Racine CNW X MILW X Rhinelander soo X Ripon ws X Sheboygan CNW X Slinger soo X Stevens Point soo X X Superior BN X CNW X soo X Waukesha soo X X Wausau CNW X MILW X Wisconsin Rapids MILW X Source: Official Railway Guide - May/June, 1979. ?' V-13 FIGURE V-6 LOCATION OF TOFC AND COFC D FACILITIES IN WISCONSIN y~'"\1~ .\;~;;,~:r·~~:·'f ...... ;;,ci,l!.J ...::-::·· ~·:·. ".1'0_,. /-· \_ --~--;~ ,-.. r:l LEGEND LOCATION OF TOFC • AND/OR COFC FACILITIES SOURCE: Railway Guide V-14 FIGURE V-7 LOCATION OF INTER-RAILROAD CONNECTIONS / / / / / / / / / / LEGEND LOCATION OF INTER RAILROAD INTERCHANGE • FACILITIES SOURCE: Track Charts V-15 include Fort McCoy, an army reserve field training facility in Monroe County; Camp Williams/Volk Field, a national guard field training facility in Juneau County; and Badger Army Ammunition Plant in Sauk County. Spur tracks also serve the petroleum tank farm at Truax Air National Guard Base in Madison. Table V-4 summarizes the rail traffic to and from these military installations for a twelve month period in 1974 and 1975, the latest date for which data has been provided by the Department of Defense. TABLE V-4 RAIL SERVICE TO MILITARY INSTALLATIONS IN WISCONSIN Inbound Outbound Total Installation Carloads Carloads Carloads Fort McCoy 122 64 186 Camp Williams/Volk Field 1 0 1 Badger Ammunition 2 6 8 Truax ANG Base 151 0 151 Other 330 2,6621/ 2.992 Total 606 2,732 3,338 Source: Department of Defense, April 1974-March 1975. Fort McCoy is served by both the Milwaukee Road and the Chicago and North Western. The installation is used by reserve units for their annual two-week field training. A total of 186 carloads of connnodities were shipped into and out of the fort from April, 1974 to March, 1975; consisting primarily of military machinery and vehicles, ammunition and explosives, coal, and food products. Camp Williams and Volk Field comprise a combined Army and Air National Guard installation. Like Fort McCoy, it is used for annual two-week field training. A siding connecting to the Chicago and North Western is located on the base. The Milwaukee Road runs through the nearby viilage of Camp Douglas. Only 1 carload was shipped.into the base by rail in the above 1974-1975 time period. The Badger Army Ammunition Plant is currently inactive due to a reduced need for explosives since the conclusion of the Vietnam War. However, it has been activated on several occasions in the past and most likely will continue to be a vital part of the nation's reserve capacity for manufacturing ammuni tion and explosives. During its active periods, considerable quantities of chemicals and coal are shipped into the plant and finished ammunition and explosives are shipped out. From April, 1974 to March 1975, Badger received two carloads and shipped 6 carloads. National Presto Industries, Incorporated of Eau Claire, functions as an intermittent munitions contractor for the Department of Defense. The com pany owns the physical plant and the u.s. Government owns the production equipment. The plant is classified as a Plant Equipment Package Producer 1/ These are mostly shipments from Wisconsin manufacturers to military installations in other states. V-16 of 150 mm, M 1 and 8 inch M 106 projectile metal parts for the U.S. Army. According to a report prepared by the Office of the Assistant Secretary of Defense (1976), the "plant is designated by the Army as a base production plant and is required to be maintained in a ready condition to permit activation on short notice." Shipment to the Truax National Guard Base consisted of aviation gasoline and jet fuel. There were no outbound shipments from Truax during the reporting period. In addition to ship~ents to and from the military installations in Wisconsin, the sta.te generated ove_r 2600 carloads (mostly food stuffs) destined for military installations in other states and received 330 carloads (mostly machinery and vehicles) at the various armories and reserve training centers. High and Wide Load Restrictions In certain parts of the country there are clearance problems under and over bridges and through tunnels for high and/or wide loads. For unrestricted interchange, railway equipmint must not exceed 15 feet one inch in height and 10. feet 8 inches in width •.!. All routes in Wisconsin can accommodate this size load except the Illinois Central Gulf tunnel near Monticello. In the tunnel, the maximum horizontal clearance of 10'8" cannot be accommodated above a height of 14 feet 3 inches. At 17 feet, the horizontal clearance is only 8 feet 5 inches. ··However, some of the newer specialized cars in use exceed the normal 15 foot one inch limit. To simplify discussion of car sizes, the Association of American Railroads has categorized the various shapes into "plates. 11 All "plates" have the 10 foot 8 inch width limit but vary in their height limitations up to 17' for Plate 'F'. With the exception of the Monticello Tunnel, all routes in Wisconsin can acconnnodate all cars included in Plates 'B' thru 'E'. There are five loca tions in the state which cannot accommodate Plate 'F' cars. These locations are: Chicago and Northwestern Lake Geneva to Ringwood, Ill. - Max. height = 10' 611 Chippewa River Railroad Durand to Eau Claire - 8' 811 width 17' O" 9' 811 width 10' 6 11 Milwaukee Road Racine to Sturtevandt - Max. h~ight = 16' 611 Soo Line Neenah to Manitowoc - Max. height = 16' 9" Marengo .Jct. to Ashland - Max. height = 16' 9 11 _!_/ Railway Line Clearances, Vol. 188, Plate 'B'. V-17 RAIL FREIGHT FLOW Rail freight transportation has played a vital role in the economic development of Wisconsin, and will be of continuing importance to the state's economy. Manufacturing leads Wisconsin's other economic sectors by a wide margin in both sales and employment. Because 53 percent of the ton-miles and 37 percent of the tonnage shipped by Wisconsin's industries goes by rail.!/, it is evident that the state is very much dependent upon rail freight service. This dependence is increased by Wisconsin's reliance upon rail for the importa tion of many of the inputs necessary to supply its industrial base. In order to fully evaluate the impact of the loss of rail lines in the state, a thorough knowledge of the quantities of freight and types of commodities is essential. This section takes a look at railroad traffic density, the loca tion of Wisconsin's major rail centers, the types of commodities shipped, the origin-destination of rail shipments, and the unit trains serving the state. Traffic Density The volume of freight traffic in 1979 on various lines in Wisconsin is shown in Figure V-8. (The map shows gross tonnage, which includes the weight of locomotives, both loaded and empty cars, and cabooses passing over each mile of road. On the average, the actual weight of the cargo will be slightly less than half of the gross tonnage.) The tonnages in Figure V-8 include freight passing through the state as well as freight originating or terminating in the state. Much rail freight moves long distances oetween states. In Wisconsin, such overhead or through traffic predominates on the Burlington-Northern line along the Mississippi River. Through traffic is also very important on the lines from Chicago to Minneapolis through Milwaukee, and, to a lesser extent, on the lines running south from Superior. Traffic on the lines from Chicago to Milwaukee and Milwaukee to Minneapolis is, to a much greater extent, local traffic. This is also true of lines in the Janesville-Beloit area; lines through the Fox River Valley and west through Wisconsin Rapids and Marshfield, and; lines in the Superior area. Cities along these routes have most of the state's population and manufacturing activity, as well as the major lake ports. Rail lines in the agricultural regions of the southwest and east central parts of the state, and in the northern forest product regions generally show much lower traffic densities. Traffic volumes are an important determinant of the speed and reliability of rail freight service on most lines. If traffic falls to a low level, railroad companies are likely to find that the costs of continued operation on a line exceed the revenue, and they will thus seek permission from the Interstate Commerce Commission (ICC) to abandon service entirely. Figure V-9 and Table V-5 dramatically illustrate the major problems of the railroads in Wisconsin as well as most of the nation -- i.e., a large percent of mileage carrying a small percentage of the total freight. The graph in Figure V-9 shows the distribution of traffic density versus mileage for all Wisconsin railroads in 1976. It shows that in 1976, only twenty percent of the mileage carried 72 percent of the total traffic and 30 percent of the rail mileage carried only 2.7 percent of the traffic. Table V-5 groups the 1976 mileage of the individual railroads into five density categories. Since 1976, the railroads have abandoned a significant amount of the mileage in the least dense category. 1./ 1972 Census of Transportation. V-18 FIGURE V-8 WISCONSIN RAIL FREIGHT DENSITY - 1979 0.0- 0.99 1.0- 4.99 5.0- 9.99 10,0-14.99 15.0-19.99 20.0-24.99 25.0-J.4.99 OVER JS. Ii MILWAUKEE DETAIL SOURCE: Railroad Company Density Maps Carferries Estimated from Carload Data V-19 FIGURE V-9 DISTRIBUTION OF RAIL TRAFFIC DENSITY IN WISCONSIN 50 40 Cl) ~ ,_ Cl) ll. V, C: 0 I- 30 V, V, 1 ,_0 N (!) 0 .... 0 V, C: 0 ~ I 20 ....,>, ·.;; C: Cl) 0 10 0 (j 1000 2000 3000 4000 5000 6000 7000 Miles of Railroad SOURCE: Rail road Company Density Charts TABLE V-5 RAILROAD COMPANY MILEAGE BY DENSITY GROUP Millions of Gross Tons per Mile Total Railroad 0 - 0.9 1.0 - 4.9 5.0 - 9.9 10.0 - 19.9 20 & Over ---Miles C&NW 807 818 420 240 48 2333 Milw. Rd. 638 395 124 89 139 1385 Soo Line 122 816 75 293 0 1306 BN 68 0 11 10 236 325 GB&W 0 235 18 0 0 253 ICG 45 0 0 0 0 45 A&W 14 0 0 0 0 14 MT&W 14 0 0 0 0 14 DM&IR 0 10 0 0 0 10 L&N 8 0 0 0 0 8 METR 7 0 0 0 0 7 H&NE 5 0 0 0 0 5 Others 1 1 0 0 0 2 Total 1729 2275 648 632 423 5707 Percentage 30.3% 39.9% 11.3% 11.1% 7.4% 100.0% Source: 1976 Railroad Company Density Maps Wisconsin's Rail Centers An important step in the evaluation of the rail system within Wisconsin was to determine which are the major rail centers. Rail Centers, as defined here, are those stations which individually originate and terminate more than one · percent of all rail traffic attributable to Wisconsin. The data used for this analysis was the 1978 Waybill sample which theoretically includes one of every hundred waybills. In reality, however, .the sample for 1978 consists of only .89 percent of the total rail traffic. Although the data is factored to represent 100 percent there will be some error which is inherent in any sampling process. As indicated above any station accounting for more than 1% or 10,451 carloads was considered a major rail center. Listed in Table V-6 are those stations meeting this criterion. While the majority of these rail centers are in large urban areas it is interesting to note those which are not. The Allouez Ore Dock near Superior accounted for 17.42 percent of the total rail shipments of the state. All of these were terminating shipments. Jefferson Jct., the location of a grain processing plant is another place without significant population which accounts for significant rail activity. It is also interesting to note that Madison, the state's second largest city, ranks only seventeenth in rail traffic. The effect of Wisconsin's paper industry can be seen.by the appearance of Wisconsin Rapids and Neenah-Menasha in the listing. Oak Creek just south of Milwaukee is the location of a major power plant fueled by coal. The coal arrives by unit trains from Illinois, Indiana, and Wyoming. · V-21 The Superior urban area accounts for the largest percentage of rail traffic in Wisconsin. The Allouez Ore Dock and Superior are among the top three single stations in the State with 17.42 percent and 7.83 percent respectively. All Superior area stations account for nearly 27.6 percent of the total rail traffic in Wisconsin. It must be noted, however, that much of the rail traffic does not actually originate or terminate at Superior since it merely changes transportation mode at that point. Milwaukee, the State's largest urban area accounts for the second largest percentage of rail traffic, 12.72 percent. Wheµ all the stations in Milwaukee County, some of which do not appear in Table V-6, are added together they account for over ~6 percent of the state total. When all the stations within the Milwaukee Urbanized area are added together, which includes parts of Waukesha, Washington, and Ozaukee Counties, they account for 18.5 percent of the State total. TABLE V-6 STATIONS ORIGINATING AND TERMINATING MORE THAN ONE PERCENT OF TOTAL WISCONSIN RAIL TRAFFIC Station Percent Inbound Outbound Carload of All Station Carloads Carloads Total Carloads Allouez Ore Dock 182,090 182,090 17.42 Milwaukee 61,494 71,458 132,952 12.72 Superior 71,456 10,416 81,872 7.83 Green Bay 29,009 52,192 81,201 7. 77 Janesville 31,025 16,800 47,825 4.58 Neenah-Menasha 11,536 13,776 25,312 2.42 Oak Crk. Power Plant 18,368 18,368 1.76 Superior(l2-21 Sts.) 15,569 2,352 17,921 1.71 Sheboygan 15,008 2,464 17,472 1.67 Appleton 9,634 7,168 16,802 1.61 Wisconsin Rapids 12,773 2,800 15,573 1.49 Kenosha 4,816 9,744 14,560 1.39 Butler 9,968 4,256 14,224 1.36 Manitowoc 6,160 7,728 13,888 1.33 Marinette 4,144 8,848 12,992 1.24 Wausau 4,256 8,624 12,880 1.23 Madison 10,528 2,016 12,544 1.20 Nekoosa 9,409 1,680 11,089 1.06 Jefferson Jct. 5,264 5,600 10,864 1.04 Kaukauna 7,840 2,576 10,416 1.00 Total-Above Stations 520,347 230,498 750,845 % of All Stations 77.6 61.5 71.9 Total-All Stations 670,433 374,648 1,045,081 Source: 1978 FRA Waybill Sample. (Factored to 100 - sample size assumed to be O. 89%) • V-22 Conunodities Shipped by Rail It often is stated that railroads are best suited for hauling the heavy bulk commodities. Although these commodities are not always the best revenue generators for the railroads it is a fact that the railroads are the most efficient haulers of ores, grain, lumber, coal and pulpwood. These five groups of commodities are the top five commodities moved by rail in Wisconsin as can be seen in Table V-7. Metallic ore is the largest, consisting of over 18 percent of the total rail shipments, followed by pulp and paper with 15.9 percent and food with 11 percent. Much of the pulpwood is shipped within the state. The flow of wood fiber by rail can be seen in Figure V-10. Much of the metallic ore is mined in Minnesota and shipped only a short distance within Wisconsin since it is off-loaded onto Great Lakes ships at Superior. One taconite mine is located near Black River Falls, Wisconsin. Undeveloped deposits of taconite are present in Ashland and Iron counties. One of the often repeated concerns of the rural residents served by the branch lines which are in jeopardy of abandonment is the problem of shipment of .coal and agricultural chemicals once a rail line is gone. Figures V-11 and V-12 show the relative quantities of these commodities destined for each county according to the One Percent Waybill Sample factored to one hundred percent. Milwaukee County and Douglas County both rank high in importing coal but for different reasons. Milwaukee County is the site of one of the largest coal fired power plants and Douglas County is the site of the docks where coal is loaded onto ships. Many of the other counties high in the quantities of coal imported are also the locations of power plants. Although important commodities, the actual quantities of agricultural chemicals are not high. Crawford County has historically received the largest volumes of agricultural chemicals primarily because a major wholesale distri butor is located in Prairie du Chien. Thus, the large volumes of agricultural chemicals shipped into Crawford County are later shipped out again (Jllostly by truck) to destinations in Wisconsin, Iowa, Minnesota, and Illinois. Origin-Destination of Rail Freight Shipments This section will discuss the locations with which Wisconsin has railroad interaction and the strength of that interaction. Again the source of data is the FRA one percent Waybill Sample and sampling error must be a consideration in the use of the data. In 1978 Wisconsin accounted for 4.45 percent of all rail traffic generated in the United States. This can be contrasted with its 2.17 percent share of the nation's population, the 2.87 percent share of the total railroad mileage, and the 2.73 percent share of the total highway mileage. Thus Wisconsin's volume of rail freight is higher than its share of the population and its proportionate share of transportation mileage. The data further .indicates that Wisconsin received more carloads from other states than it shipped to them. Table V-8 shows the top twenty states which interchange rail freight with Wisconsin. The table indicates that Minnesota accounts for the most terminating traffic (34.8%), while Illinois is the most prominent destination (15.6%). Overall Minnesota and Illinois account for over 36 percent of all traffic inter- changed with Wisconsin. V-23 TABLE V-7 WISCONSIN RAIL SHIPMENTS BY COMMODITY TYPE Two Carloads Carloads Percent of Digit Terminating Originating Total Total Rail STCC Commodity In Wisconsin In Wisconsin Carloads Shipments 01 Farm Products 76,613 8,065 84,678 8.10 08 Forest Products 224 0 224 0.02 09 Fresh Fish or Other 112 0 112 0.01 Marine Products 10 Metallic Ores 182,538 8,288 190,826 18.26 11 Coal 80,201 2,912 83,113 7.95 13 Crude Petrol./Nat. Gas 896 0 896 0.09 14 Nonmetallic Ores 11,314 12,547 23,861 2.28 19 Ordinance & Accessories 0 0 0 o.oo 20 Food & Kindred Products 41,552 76,273 117,825 11.28 21 Tobacco Products 0 0 0 o.oo 22 Textile Mill Products 1,568 560 2,128 0.20 23 Apparel/Other Textile Prod. 0 0 0 o.oo 24 Lumber & Wood Products 65,073 23,297 88,370 8.46 25 Furniture & Fixtures 1,344 1,456 2,800 0.27 26 Pulp, Paper & Allied Prod. 53,424 112,560 165,984 15.89 27 Printed Material 112 224 336 0.03 28 Chemicals & Allied Products 24,753 9,296 34,049 3.26 29 Petroleum & Coal Products 8,289 3,920 12,209 1.17 30 Rubber & Plastic Products 4,144 2,240 6,384 0.61 31 Leather & Leather Products 0 0 0 o.oo 32 Stone, Clay Glass & 19,153 17,360 36,513 3.49 Concrete Products 33 Primary Metal Products 30,576 4,032 34,608 3.31 34 Fabricated Metal Products 1,904 4,032 5,936 0.57 35 Machinery 2,465 5,265 7,730 0.74 36 Elec. Machinery & Supplies 448 1,680 2,128 0.20 37 Transportation Equipment 31,920 31,472 63,392 6.07 39 Misc. Manufactured Products 224 784 1,008 0.10 40 Waste & Scrap 24,976 22,177 47,153 4.51 41 Misc. Freight & Shipments 224 896 1,120 0.11 42 Empty Shipping Containers 1,344 2,576 3,920 0.37 43 Mail & Express Traffic 0 0 0 o.oo 44 Freight Forwarded Traffic 112 3,472 3,584 0.34 45 Shipper Association Traffic 336 2,016 2,352 0.23 46 Misc. Mixed Shipments 4,482 17,248 21,730 2.08 47 Small Packaged Freight 0 0 0 0 Shipments Total 670,321 374,648 1,044,969 100.00 Source: 1978 FRA Waybill Sample. (Factored to 100%). Does not include Canadian or Mexican shipments. V-24 FIGURE V-10 INTRASTATE SHIPMENT OF PULP WOOD AND WOOD CHIPS BY RAIL Width of line indicates relative volume of traffic. SOURCE: 1976 Waybill Sample. V-25 FIGURE V-11 SHIPMENT OF COAL TO WISCONSIN COUNTIES BY RAIL LEGEND • 10,000 and greater m 5,000 to 9,999 ~ 1,000 to 4,999 ~ 500 to 999 0 0 to 499 D None Reported SOURCE: Averaged 1975-78 FRA CARLOAD WAYBILL. Supplemented by data on unit coal trains. V-26 FIGURE V-12 SHIPMENT OF AGRICULTURAL CHEMICALS TO WISCONSIN COUNTIES BY RAIL WASHIIUIIN SAWYER LEGEND CARLOADS E;:;J 400 and greater @ 300 - 399 ~ 200- 299 ~ 100 • 199 0 less than 100 SOURCE: Carload Waybill Sample - average of years 1975, 1976, 1978 V-27 Wisconsin's interaction with other states tends to have an inverse relation ship with distance. In other words, the farther the state is from Wisconsin the fewer the shipments which are interchanged. Figure V-13 shows the interchange of traffic with the various groups of states. The entire group of North Central States, from the Dakotas to Ohio and including Wisconsin itself, accounted for over 74 percent of the traffic originating in Wisconsin and 57 percent of the traffic terminating in Wisconsin. The Rocky Mountain States provided the next largest volume of inbound rail shipments with over 9 percent followed by the Southeastern States with seven percent. Excluding the North Central States, the Southeast received the most rail shipments with 13 percent followed by the Northeast with over 12 percent. Unit Train Operations Of all the operational changes that have come to railroading over the past 20 years, those related to unit train operations are having the greatest impact. Unit trains are freight trains moving large tonnages of single bulk products between two points. They are unloaded on arrival and returned promptly for another load. Such trains cut costs by eliminating intermediate switching and increase utilization of freight cars and locomotives. Originally begun for coal traffic, unit trains of up to 100 cars, and in some cases even more, also haul grain, ore and other bulk commodities. In 1977, 49 percent of all coal carried by the railroads was carried by unit trains. Unit trains have drastically changed material-handling concepts and load ing and unloading methods. They have done more with less, increasing equipment utilization four, five, even six fold and vividly demonstrating the advantages and capabilities of the rail mode. In 1978 there were 12 unit train operations serving points in Wisconsin. Eight of these were coal trains serving power plants at Oak Creek, Columbia (Portage), and Sheboygan. Two other coal trains bring coal to Superior for transfer to Great Lakes ships. Ore is another commodity hauled to and from Wisconsin by unit trains as iron ore from the Black River Falls Mine is hauled to Indiana Harbor, Indiana and taconite ore from three different locations in Minnesota is hauled to Superior for transfer to Great Lakes ships. For example~ the Soo Line handled 76 unit grain trains last year which originated in Minneapolis or Duluth and moved through Wisconsin to points in the East. Table V-9 shows the unit train operations originating and terminating in Wisconsin. V-28 TABLE V-8 THE TOP TWENTY STATES WHICH INTERCHANGE FREIGHT WITH WISCONSIN Wisconsin Wisconsin Percent Terminated Originated Total of Total State Carloads Carloads Carloads Shipments Minnesota 232,831 16,016 248,847 25.23 Illinois 53,428 58,354 111,782 11.33 Michigan 42,224 19,040 61,264 6.21 Montana 43,793 1,456 45,249 4.59 North Dakota 39,760 2,240 42,000 4.26 Indiana 26,438 10,641 37,079 3.76 Ohio 12,880 15,_456 28,336 2.87 Texas 6,496 19,264 25,760 2.61 Missouri 6,496 16,128 22,624 2.29 Iowa 14,000 8,064 22,064 2.24 Pennsylvania 9,744 11,537 21,281 2.16 California 7,616 13,216 20,832 2.11 New York 6,720 12,656 19,376 1.96 Georgia 9,968 5,488 15,456 1.57 Kentucky 10,081 3,472 · 13,553 1.37 Oregon 8,288 4,480 12,768 1.29 Wyoming 10,976 1,120 12,096 1.23 Tennessee 3,472 8,288 11,760 1.20 Washington 6,722 4,592 11,314 1.15 New Jersey 1 2232 92968 11,200 1.14 Subtotal 553,165 241,476 794,641 80.57 All Other States • 58,471 76,405 134,876 13.67 Wisconsin (Intrastate) 56 2787 56,787 56,787 5.76 Total 668,423 374,668 986,304 100.00 Source: 1978 FRA Waybill Sample. V-29 FIGUREV-13 ORIGIN DESTINATION OF WISCONSIN RAIL SHIPMENTS Unknown Origin= 0.32% West Coast States 3.37% West f Coast States 5.95% t Rocky Mountain ~ East States < Northcentral 4.25% East I 8.47% States Northcentral States• 20.13% ""0 27.62% 14.05% 45.50% SouthcentraJ ~ States ~stern Southcentral ~""States 2.96% ~~::e, States 12.94% 6.78% 7.53% Unknown Destination = 0.27% ORIGIN OF SHIPMENTS TO WISCONSIN DESTINATION OF SHIPMENTS FROM WISCONSIN NOTE: Canadian Traffic is not included. In 1973 Canadian traffic amounted to 3.93% inbound and 2.09% outbound. SOURCE: 1978 Carload Waybill Sample TABLE V-9 UNIT TRAIN OPERATIONS IN WISCONSIN Route Number of Cars Per Cycle Origin Destination Connnodi~ Railroads Mileage Trainsets Train Time Enosville, Ind. Oak Creek, Wisc. Coal AWW /SOU /LN/CNW 348 1 100 3 days Sesser, Ill. Oak Creek, Wisc. Coal BN/CNW 448 NA NA NA Colstrip, Mont. Columbia, Wisc. Coal BN/MILW 1,031 NA 105 NA Colstrip, Mont. Superior, Wisc. Coal BN 827 NA NA NA Sheridan, Wyo. Superior, Wisc. Coal BN 1,028 NA NA NA Belle Ayr, Wyo. Columbia, Wisc. Coal BN/MILW 1,263 NA 105 NA Elm, Ill. Sheboygan, Wisc. Coal CNW 328 1 93 3 days f w I-' Elm, Ill. Pleasant Prairie, WI Coal CNW 328 1 NA 3 days Hanna, Wyo. Oak Creek, Wisc. Coal UP/CNW 1,166 1 115 5 days Nashwauk, Minn. Allouez, Wisc. Taconite BN 117 1 180 NA Broeker, Minn. Allouez, Wisc. Taconite BN 107 1 180 NA Keewatin, Minn. Allouez, Wisc. Taconite BN 117 1 140-180 NA Black River Falls, Wisc. Indiana Harbor, Ind. Iron Ore CNW/IHB NA 3 32 3 days Pro2osed in 1981 Coal Creek, N.D. Weston Spur Coal BN/MILW NA NA 110 NA NA - data not available Source: Railway Age, July 31, 1978. Updated by WisDOT to December, 1980. LAKE MICHIGAN RAIL FERRY SERVICE The present rail ferry service across Lake Michigan is provided by two rail companies which do not themselves operate intercity trackage in Wisconsin. The situation for these companies is in some respects analagous to the branch lines situation, i.e., the revenues received are presumably not adequate to meet the expenses of the service provided. The rail companies operating the ferry service are faced with the potential need to purchase new boats, as the ones presently in use are old, and have a relatively small capacity and a high crew requirement. As shown in Figure V-14, three Wisconsin cities were served by Lake Michigan rail ferry operations for at least part of 1979 - Milwaukee, Manitowoc, and Kewaunee. In addition, a ferry service begun in 1973 operates between Superior and Thunder Bay, Ontario. Historical Development of Rail Ferries The origin of rail ferry service dates back to 1849 when a Milwaukee to Grand Haven, Michigan water route was op~ned with small paddle vessels to handle passengers and bulk freight. In 1858 the Detroit & Milwaukee Railroad was constructed to Grand Rapids, Michigan and contracted paddle boats to haul its rail freight across the lake. Cargo was transferred from the rail cars to the ships for their journey across Lake Michigan and then transferred b~ck to rail cars. In 1874, the Flint & Pere Marquette Railway built track age to Ludington, Michigan and established service with chartered boats to Sheboygan to handle eastbound grain. Throughout the 1880's these rail lines provided and expanded service in conjunction with their railroad operations. The concept of rail shipments across Lake Michigan encouraged several central Wisconsin rail lines, including the present day Green Bay & Western, to be constructed in the 1870's and 1880's in the hope of attracting wheat ship ments from the Dakotas to ship via the ferry service instead of through Chicago. In 1892, service was also begun by the Toledo, Ann Arbor & North Michigan Railroad with leased ships between Frankfort, Michigan and its nearest Wisconsin port, Kewaunee. To reduce handling costs, the railroad purchased two wooden car ferries and put them into service in late 1892. The ferries had ice breaker bows so they were able to operate all-year around. This method of shipping whole rail cars across the lake opened a new route of east-west rail transportation, but business depressions in the early 1890s made shippers reluctant to trust their cargo to such a new service. The company went bankrupt in 1893 but was reorganized in 1895 as the Ann Arbor Railroad. With the return to prosperity, shippers were more willing to use the ferries and service was expanded to Menominee via Sturgeon Bay and later to Manitowoc. After the mid-1890 1 s, rail ferry service was an established success. The Flint & Pere Marquette Railway decided in 1897 to enter the rail ferry business and began service to Manitowoc with the first steel ferry on the lakes. The Wisconsin Central Railway and Chicago & North Western built ferry slips at Manitowoc to acconnnodate the ships providing service to the city. In 1897 another railroad in Michigan began service with wooden car ferries between Muskegon and Milwaukee, and in 1900 this company and the Flint & Pere Marquette Railway merged to form the Pere Marquette Railway (which was later purchased by the Chesapeake & Ohio Railway). V-32 FIGURE V-14 MAP OF LAKE MICHIGAN CAR FERRY ROUTES I E I I I ,~~-- c>,R~-·~'f,9 ... ~.!!!:?'---eo!!"-.i~g,a.2..-; --- OPfMISH --- ONA --- H.lffl..AN --- I ~ ~-s t AN STEl 1-'ltOKACH~=-r I A K I L !OL[WILD M A $. 0 N IITELY C E A N A N E '( SH[LIY I I \ I I CUDAHY T A S. MILWAUKEE \ OAK CREEK \ \ SOURCE: Official Railway Map of the State of Michigan, Michigan Public Service Commission, Jan. 1965 V-33 The Grand Trunk Car Ferry Company succeeded the old Detroit & Milwaukee Railroad and opened car ferry service between Milwaukee and Muskegon in 1903. That service was abandoned in 1978. When early problems with severe weather, schedules, stability of cargo and economic depressions were solved, ferry service flourished and rail car ferry service on Lake Michigan became the most extensive of its kind in the world. Historically, ferry traffic at Kewaunee has represented about 98% of the total cargo tonnage handled in the port. In Manitowoc the ferry has accounted for 76% of port tonnage. In total, the rail ferries carry about two million tons of freight across Lake Michigan. Kewaunee now accounts for the largest share of the tonnage but prior to the abandonment of the GTW route, Milwaukee held that distinction. Total eastbound shipments from Wisconsin are twice the amount of west bound receipts at the ferry ports. The main commodities moving eastward include pulp and paper products, lumber and wood products, and food products. Freight cars bound for the west contain more diversified cargoes, with non-metallic minerals and products the most connnon load. Many of the westward moving freight cars are empty since much of the rail traffic does not originate in the east and the unloaded empties must be returned to the west. Although hauling of railroad freight cars is the main business of the rail ferries, additional revenue is obtained from carrying automobiles, trucks, and passengers across the lake. In 1976, the last year for which complete data is available, 170,337 passengers, and 57,341 motor vehicles were transported via rail ferries. Table V-10 con tains a record.of traffic carried by the ferries since 1970. Present Status of the Ferries The status of ferry service across Lake Michigan is presently very shakey. In 1977, the Chesapeake and Ohio (C&O) applied to the Interstate Connnerce Commission for authority to abandon its entire fleet. So far, only the Milwaukee to Ludington route has been approved for abandonment. Recently a new application was filed to abandon the Manitowoc-Ludington route. The Ann Arbor Railway filed for bankruptcy in 1973 and its ferry service is currently being operated under contract with the State of Michigan by the Michigan Interstate Railway Company (MIRC) pursuant to subsidies from the States of Michigan and Wisconsin. A third carrier, the Grand Trunk Western (GTW) abandoned its service in 1978. However, there recently has been some considerations of a tug-barge operation across Lake Michigan which could ·replace or supplement car ferries. C&O Ferry Operations. The Chesapeake and Ohio presently operates two routes between Wisconsin and Ludington, Michigan: Kewaunee Ludington and Manitowoc-Ludington. Three coal-fired steam vessels are available: the City of Midland, the Badger and the Spartan. The service carries rail freight cars, passengers, and automobiles. The vessels have capacities of 22 to 24 rail cars, up to 50 auto mobiles on the upper decks, and up to 520 passengers during the summer months. During the non-tourist season (September to June), the vessels operate on a non-scheduled basis between the four ports. The volume of freight available dictates what port will be served. In periods of low traffic, V-34 TABLE V-10 ANNUAL FERRY TRAFFIC CARRIED - 1970-1979 CHESAPEAKE & OHIO 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Loaded Cars 77,387 52,469 46,262 41,958 34,104 29,092 26,987 25,002 21,917 22,791 Empty Cars 38,778 29,773 12,967 12,741 13,132 12,678 11,705 11,419 10,843 9,611 Passengers 170,072 197,465 175,133 174,850 185,054 168,395 156,051 151,917 141,472 125,558 Motor Vehicles 52,443 61,970 57,024 56,457 59,182 54,429 51,470 51,052 49,450 50,988 GRAND TRUNK WESTERN Loaded Cars 18,784 10,890 10,537 8,864 7,277 5,161 5,315 N/A N/A Empty Cars 6,516 4,045 3,369 4,094 3,112 2,930 2,599 N/A N/A <: I u.) ANN ARBOR U1 Loaded Cars 38,593 38,472 33,206 26,421 18,624 14,777 12,690 8,807 9,862 20,320 Empty Cars 17,842 19,009 17,751 13,245 10,577 8,931 6,507 3,862 N/A N/A Passengers 22,570 29,666 20,857 15,227 13,307 14,268 14,286 / 18,712 / 26,784 I 18,645 Autos 7,813 10,820 7,957 5,777 3,949 4,354 5,9941 7, 714,.b 11,6731 7,479 Semis 1,218 2,084 2,254 809 1,201 1,464 TOTAL Loaded Cars 134,764 101,831 90,005 77,243 60,005 49,030 44,983 Empty Cars 63,136 52,827 34,087 30,080 26,821 24,539 20,811 Passengers 192,642 227,131 195,990 190,077 198,361. 182,663 170,337 Mo tor Vehicles 61,474 74,874 67,235 63,043 64,332 60,247 57,341 1/ - Total motor vehicles are included under autos for the Ann Arbor beginning in 1976. Source:· C&O, GTW and Michigan Interstate Railway Co. two of the boats were tied up at Ludington with the remaining one in operation. During most of the 1979 tourist season, scheduled service operated eight times a week between Ludington and Milwaukee with a different departure time every day. Seven days a week there was daily round trip service between Ludington and Manitowoc with additional trips on Thursday and Saturday. There was also one daily round trip between Kewaunee and Ludington with an additional trip on Monday. Scheduled service for 1979 lasted from May 25 to September 4. From August 1 to September 4, an additional boat was added so that on most days there were two sailings daily from Milwaukee and Manitowoc and one from Kewaunee. The C&O provides the switching service for the ferries at Ludington and Milwaukee. Switching at the other ports is provided by the Green Bay and Western Railway at Kewaunee and the Chicago and North Western Tr,ansportation Company at Manitowoc. The primary commodities currently transported include chemicals, food, paper products, and lumber. Ann Arbor Ferry Operations. The Ann Arbor has been operated under subsidy by the Michigan Interstate Railway Company since October 1, 1977. Initially, one line has been operated from Kewaunee to Frankfort, Michigan. Service on a second line from Manitowoc to Frankfort was resumed in January 1979 with the vessel ''Milwaukee" leased from the former G'IW operation. Unscheduled service is provided for about two round trips a day six days a week to Kewaunee and less frequently to Manitowoc. The Ann Arbor currently operates three vessels: the Viking, the Arthur K. Atkinson, and the Milwaukee. The Arthur K. Atkinson suffered a broken crank shaft in 1973, thereby necessitating an embargo of service between Frankfort and Manitowoc until the Milwaukee was obtained in 1979. The Viking capacity is 22 fifty-foot rail cars. The vessel can be configured to carry 19 freight cars and 6 semis, or 15 freight cars and 25 autos, or 6 semis and 40 autos. A maximum of 300 passengers can be accommodated regardless of the freight configuration. The Arthur K. Atkinson has a capacity of 22 fifty-foot rail cars or large trucks, 40 autos, and up to 390 persons. The Milwaukee also has a capacity of 22. fifty-foot rail cars but will now be used primarily for back-up now that the AKA is back in operation. The major commodities currently hauled include paper products, wood, and chemicals. Switching service is provided by the Ann Arbor at Frankfort, by the Green Bay and Western (GB&W) at Kewaunee, and by the Chicago and North Western (CNW) at Manitowoc. Relationship of Ferries to the Green Bay and Western Railroad If cross Lake Michigan ferry service terminates, feeder lines in both Michigan and Wisconsin could be adversely affected. The most seriously impacted line in Wisconsin could be the Green Bay and Western Railroad. Operating betwee.n Winona, Minnesota, and Kewaunee, Wisconsin, the GB&W is the only major east-west route across the central part of Wisconsin. In connection with the Ann Arbor or the C&O ferry service, it provides a bypass route around Chicago. The relatively small size of the GB&W (250 miles of main-line) necessitates extensive interchange of traffic with connecting V-36 carriers in order to maintain viability. About 37 percent of the GB&W's total interchange traffic is exchanged with the C&O and Ann Arbor car ferries at Kewaunee. The loss of this traffic could seriously affect the future viability of the GB&W which in turn could impact a large area across central Wisconsin including Green Bay. For example, it was not until the Green Bay and Western Railroad was extended to Kewaunee and linked with the car ferries that it became a profitable railroad. Prior to institution of car ferry service, the predecessors of the GB&W had gone bankrupt three times. The Quality of Ferry Passenger Service The length of season of the scheduled C&O service has slowly dwindled (April 26 to October 24 in 1970 vs. May 25 to September 4 in 1979). Ann Arbor scheduled passenger service was eliminated in 1971, and the Grand Trunk terminated all passenger service in 1971. The C&O fleet has dropped from 6 to 3 vessels, and the Grand Trunk Western (GTW) has been abandoned entirely. It is felt that the inconvenient travel times and lack of current information on routes and schedules has tended to discourage passenger utilization. Several observations were made regarding the quality of service to ferry passengers by the ICC staff as a result of their visits to prepare an·environmental impact statement. The discussion below is from their analysis. Passengers with round trip tickets and auto reservations for the first trip were not advised that additional return trip reservations were needed. Reliable information concerning non-scheduled service between Kewaunee and Ludington was not easily obtainable. Indeed, it is not even listed on C&O advertising for passengers. The American Automobile Association travel guide for Michigan and Wisconsin lists the embargoed Manitowoc-Frankfort routing but not the Kewaunee-Ludington or Kewaunee-Frankfort routings. On June 21, 1976, during the passenger survey, the ICC staff rode the non-scheduled route. Discussion with C&O officials had indicated that this boat left Kewaunee at approximately 6 a.m. The actual departure time was about 4 a.m., but not because the vessel was filled. There were only 12 freight cars. (about 52 percent of capacity) and no paying passengers on it. A number of deficient facilities and operational practices were also observed which could limit optimal utilization of the ferry vessels. Two of the three slips in Ludington, as well as one of two in Manitowoc, are currently in need of repair. This is especially a problem in Manitowoc because the damaged slip cannot have rail cars loaded or unloaded on it. However, this is the slip that has the upper deck loading ramp for auto mobiles. Therefore, a ferry must load autos in one slip, pull out, re-doc~ and load rail cars on the other slip. This adds about 1 hour to the trip and therefore when there is heavy automobile and rail freight traffic, the ferries rarely leave on time. WisDOT has applied for federal funds to repair one of the slips and to adjust the upper deck loading ramp in Manitowoc. Other actions such as adding bow thrusters to the C&O vessels which could cut down on the 1 hour delay, have not been taken. The ICC staff also noted that deferred switching at the ports also tends to reduce the utilization of the vessels. The CNW does not load freight cars in Manitowoc between 2:30 p.m. Saturdays and 6:30 a.m. Mondays. This causes ferries to leave with no freight whatsoever during weekend runs. V-37 RAIL PASSENGER SERVICE Historical Trend The first rail passenger service in Wisconsin was initiated in 1850 between Milwaukee and Wauwatosa and for the most part grew rapidly, reaching a peak during World War I. After the war, a variety of circumstances caused ridership to decline until World War II when military movements and fuel rationing caused a large upturn. After the war, traffic again began declining reaching a point where the 125,000 passengers boarded in 1979 was only 0.62 percent of the 20,188,000 passengers boarded in 1920. Figure V-15 graphically shows the historical trend of rail passenger ridership in Wisconsin. As train ridership declined, railroads reduced service, schedules, and promotion which in turn contributed to further declines in ridership. The only real growth in passenger ridership on railroads since 1920 was on the rail car ferries, but since the 1960's that has also been declining. Creation of AMTRAK Federal policy towards rail passenger transportation took a drastic turn during 1970. Up to that point the policy was mainly to try to preserve passenger trains as long as economically possible. The bankruptcy of the Penn Central during 1970 led to considerable concern about rail passenger transportation ~olicy. Policy makers realized that the inability to profitably operate passenger trains contributed to the financial difficulties of the Penn Central and of the rail industry in general, and it no longer seemed reasonable to require the ailing railroad industry to assume the burden of providing a money losing public service. Congress passed the Rail Passenger Service Act of 1970 to insure that railroads would not be burdened by passenger trains, but that the nation would still have some needed passenger train service. The Act established the National Railroad Passenger Corporation (known as Amtrak) to "own, manage, operate, or contract" for the operation of modern intercity passenger train service. The corporation began operations on May 1, 1971 over a basic network of passenger routes. Amtrak eliminated the financial burden of those railroads that operated passenger trains by enabling them to discontinue their intercity passenger trains if the railroads would purchase stock in the company or otherwise contribute to the new corporation. Amtrak contracts with the railroads to operate Amtrak-owned equipment over railroad-owned tracks. Pre-Amtrak Service in Wisconsin As the frequency of service declined after World War II and the number of points served diminished, connectivity became more difficult and departure and arrival times less convenient. Convenience is a very important factor to intercity travelers in selecting their mode of travel. V-38 FIGUREV-15 WISCONSIN RAILROAD PASSENGERS SINCE 1920 (Class 1 Railroat:ls) 20 <: I uJ \0 "'ai Cl C: a, "' c.."' -0 10 "'C: 0 ~ 5 1920 1930 1940 1950 1960 1970 1980 Year SOURCE: Wisconsin Transportation Commission Wisconsin rail passenger service declined rapidly during the period pre ceding the inauguration of Amtrak service. For example, at one time there had been ten trains daily between Madison and Chicago. The C&NW operated six and the Milwaukee Road provided four. The C&NW removed one pair of trains in May 1961, another in July 1963, and ceased operations entirely in September 1965. The Milwaukee Road continued to provide one pair of daily trains, supple mented by additional weekend service, until May 1971. Ridership on the Milwaukee Road trains dwindled rapidly from 1968 to 1971. Patronage on the daily train declined at a rate of 17 percent yearly, while the weekend service declined by 30 percent a year southbound and 20 percent northbound. The Milwaukee Road consistently lost money on this service. In the last year of operation, the average fare paid was less than half the per passenger cost, as measured on a fully-distributed cost basis. Ridership history and rising operating costs offered little hope at the time that this route could be "turned around". All passenger train service between Madison and Chicago was eliminated in May 1971 with the advent of Amtrak-sponsored service. In addition to the loss of the Madison-Chicago route, Wisconsin lost passenger service from Green Bay to Milwaukee, from Superior to Minneapolis, from La Crosse south along the Mississippi River, and seasonal service from Ashland to Green Bay when Amtrak began operating passenger trains. Current Rail Passenger Service in Wisconsin Amtrak (originally called Railpax) began operating intercity rail passenger service on May 1~ 1971 over a. basic system designated by the Secretary of Transportation. Figure V-16 shows the current Amtrak service as well as the other passenger routes serving Wisconsin. The initial basic system would have provided no service in Wisconsin. Chicago and Seattle were designated as end-point cities, but the exact route was unspecified. The State of Wisconsin registered its dissatisfaction with the proposed network, and when Amtrak connnenced operations, service was pro vided between Chicago and Milwaukee and between Chicago and Minneapolis. Thus, the following Wisconsin cities are currently served by Amtrak: Sturtevant, Milwaukee, Columbus, Portage, Wisconsin Dells, Tomah, La Crosse and Superior. Madison was connected to the system via limousine service to Columbus, however, that service is no longer provided by Amtrak. An additional Amtrak route which serves some Wisconsin residents was added later and was initially subsidized by the State of Minnesota and for a few years by the Upper Great Lakes Regional Commission. This route runs from the Twin Cities to Duluth and cuts through Wisconsin at Superior. There is a scheduled stop at Superior. Moreover, small sections of two commuter routes to Chicago extend into Wisconsin at Walworth and Kenosha. The C&NW operates the service to Kenosha and the Milwaukee Road operates the servi~e to Walworth. On two previous occasions, the Milwaukee Road has been denied discontinuance of its Walworth route. The frequency of service at Kenosha consists of nine southbound and ten northbound trains on Monday thru Friday with reduced schedules on weekends and holidays. Service at Walworth is one southbound train each Monday thru Friday morning and one northbound train each weekday evening. There is no service on weekends or holidays. V-40 FIGURE V-16 RAIL PASSENGER ROUTES SERVING WISCONSIN Minneapolis To LEGEND 9 Kenosha Walworth°' - AMTRAK Route I I - - Commuter Route I I I ', I Gl~nview ' Chicago Connection to al I points v-u The long-distance trains through Wisconsin are known as the North Star with once daily service between Chicago and Duluth via the Twin Cities, and the Empire Builder with tri-weekly service (daily during the peak season) between Chicago and Seattle. The Empire Builder passes through Glacier National Park. Prior to October 1, 1979 a train called the North Coast Hiawatha provided service on the days that service was not provided by the Empire Builder. That train was eliminated, along with several others throughout the nation, in a cutback of Amtrak service enacted by Congress. The Chicago-Milwaukee corridor receives service from four daily short haul trains in each direction (one of which operates only six days per week) which operate only between Chicago and Milwaukee plus the service from the long-distance trains. The long-distance trains offer double decked superliners with sleeping, dining, lounge, and coach facilities. The short-haul trains are turboliners with only coaches and a snack and beverage car. Analysis of Additional Routes A major part of the Wisconsin state rail planning process has involved the investigation of current Amtrak services, and analysis of the potential for expanded rail passenger activitx in the state. In 1975, WisDOT prepared a study of rail passenger service,..!/ in order to acquire a perspective on rail operations, pre-Amtrak rail passenger services and Wisconsin train service since the beginning of Amtrak, were reviewed. Many reasons were found why passenger service has declined in Wisconsin and the nation with the result being the extremely limited passenger service now provided. The 1975 study is currerttly being updated. Two intensive surveys were performed to provide useful information about passenger attitudes and about what kinds of amenities would attract new riders. During August, 1974, the Wisconsin DOT made an on-board survey of train riders who were using Amtrak services. Responses were elicited from a representative sample of rail users to ascertain what they liked or did not like about the then current rail passenger services. These responses were subjected to statistical analysis to determine any significance between the socio-economic characteristics of train riders and the attitudes they expressed. In September, 1974, a mail-out survey solicited the general public's attitudes (both rail users and non-users) toward rail and other modes of transportation. The results indicated that many Wisconsinites believe rail passenger service can meet their transportation needs in intermediate distance markets, and are willing to spend public funds to develop service. However, citizens have no illusions about the rather poor quality and reliability of Amtrak services. Their support of rail appears to be based on a belief that rail passenger service has intrinsic qualities that can be developed and exploited. That survey was repeated in June, 1976, and again in June, 1980 with virtually the same results. In the 1975 analysis of potential new Wisconsin rail passenger routes, the following were selected for study: 1/ "Wisconsin State Rail Plan: The Future of Wisconsin Rail Passenger Service" (Wisconsin DOT: November, 1975). V-42 1) Milwaukee-Green Bay (via either Sheboygan, Plymouth, or the Fox Valley Corridor); 2) Chicago-Madison (via Janesville); 3) Minneapolis/St. Paul-Superior/Duluth; 4) Dubuque-La Crosse (via Prairie du Chien); 5) Milwaukee-Minneapolis/St. Paul (via Eau Claire); 6) Rhinelander-Milwaukee (via Green Bay); 7) Green Bay-Minneapolis/St. Paul (via Appleton/Oshkosh and Eau Claire); 8) New Lisbon-Rhinelander (via Wausau); 9) Prairie du Chien-Madison; 10) Green Bay-Superior (via Eau Claire and/or Rhinelander/Ashland). Three existing demand models that were applied in the northeast corridor were calibrated to determine the importance of various modal impedance vari ables (e.g., travel time, travel cost, and frequency of service) in fore casting probable ridership levels on these ten routes. Operating cost estimates of initiating new rail passenger services were obtained from the Federal Railroad Administration's Amtrak cost simulation model..1/ Finally, track rehabilitation cost estimates were obtained from both the individual railroads and a U.S. Diyartment of Transportation report, containing infor mation on the subject.- Once demand estimates were made, energy and environmental implications of rail passenger trains were calculated and forecasts were made of rider ship effects of added trains on other public transportation carriers and the auto..ll The energy and environmental effects (air and noise pollution) were found to be minimal. On the other hand it was found that rail passenger service could produce some financial problems for the intercity bus carriers. High track repair expenses presented special problems for service expan sion. It was found that new routes would require large capital expenditures to upgrade roadbeds for handling even moderate operating speeds of 50 to 60 miles per hour. State and local funds would be necessary to meet at least one-half of those costs. l/ Ernst and Ernst, "Research Study to Develop a Plan and Techniques to Measure the Effectiveness of the National Rail Passenger Service, Vol. 1: . Technical Report, Prepared for the Federal Railroad Administration, U.S. Department of Transportation" (Washington, D.C., July 1973). This des cribes a computerized, interactive, time sharing model, which predicts operating costs on a train-by-train or railroad-by-railroad basis, given changes in ridership, schedules, or service levels. J/ U.S. Department of Transportation, "Rail Service in the Midwest and Northeast Region, A Report by the Secretary of Transportation," Federal Register 37, No. 30, Pt. II (March 1972), p. 5405. 1/ See Harbridge House,· Inc., "An Analysis of the Proposed Amtrak Milwaukee Green Bay Service and Its Impact on Existing Intercity Bus Companies and Other Competing Transport Modes; A Report Prepared for the Wisconsin Department of Transportation" (October 1975), p. IV-1. V-43 In the update of the 1975 report which is currently underway, the following potential new Wisconsin rail passenger routes were selected for detailed study: 1. Chicago-Milwaukee via Kenosha and Racine; 2. Chicago-Madison; 3. Milwaukee-Green Bay; 4. Milwaukee-Twin Cities via Fond du Lac, Neenah, Stevens Point and Eau Claire. These corridors were chosen on the basis of projections contained in the 1975 report as having the greatest ridership potential and on the basis of current interest by citizens and public officials. Cost figures will again be developed for capital improvements required to initiate two daily round trips operating at 60 mph maximum speed and the necessary operating subsidies based upon estimated ridership and the resulting passenger revenue. WisDOT has also participated in a study of commuter rail services from the Kenosha, Lake Geneva, and Walworth areas into Chicago. On-Board rider ship surveys and surveys of community attitudes have been conducted as well as an inventory of area transport services provided by all modes, ridership patterns, schedules, fares, operating performance, equipment, stations, and right-of-way conditions. These commuter rail studies have been coordinated with the Illinois Regional Transit Authority (RTA) and the Illinois DOT. Any subsidized Wisconsin services could be run by the RTA under Section 207 of the RTA's enabling legislation (pertaining to extra-territorial operations). The Wisconsin General Assembly voted in the Spring of 1980 to provide $200,000 to the City of Racine for track upgrading between Kenosha and Racine. These two cities will then subsidize the RTA to extend commuter rail service from Kenosha to Racine. V-44 CHAPTER VI RAIL LINES POTENTIALLY SUBJECT TO ABANDONMENT [49 CFR, Section 266.15(c)(3)] Introduction Prior to 1974, changes in local rail service had not involved coordinated federal-state-local effort to develop alternatives to rail abandonments or the discontinuance of rail service. Abandonments were sought in a haphazard, piecemeal manner. There was limited opportunity for states to assess possible alternatives and shippers and affected communities were placed in a reactive situation. As the problems of weak railroad financial wherewithal, redundant rail facilities, and debilitated physical plant continued to grow, carriers increasingly advocated the abandonment of nonproductive lirtes as a part of the solution to the problem. But the complex nature of railroad problems, and an understanding that there are no simple singular actions that carriers, states, or the federal government can take to provide solutions, gained sudden and widespread recognition with the bankruptcy of nine railroads in the Northeast and the Midwest all within the last several years. The 4R Act recognized that rail planning cannot continue to be an isolated reactive activity and, under Section 802 of that Act, requires the railroads to give advance notice of their abandonment plans. That law requires the railroads to prepare, by May 1, of each year as a minimum, maps of their complete system showing all lines that they consider potentially subject to abandonment. For the first time, communities, shippers, and government officials are made uniformly aware of the abandon ment intentions of the railroads. Given the authority and funding ability of most states, these are the lines upon which state rail plans should initially focus in determining the course that state action should take. Abandonment of rail lines is decided by the Interstate Connnerce Commission (ICC). The ICC has established procedures and requirements for abandonment procedures which are found in the Code of Federal Regulations Title 49, Part 1121. The System Diagram Maps Under the revised abandonment process, each rail carrier is required to file a system map depicting all lines· of .railroad it operates. The system diagram map must show five color-coded categories of line as follows: VI-1 0 Category 1 -- all lines which the carrier will seek to abandon within three years (color-coded red); 0 Category 2 all lines under study by the carrier which may be subject to future abandonment attempts (color-coded green); 0 Category 3 - all lines for which an abandonment application is pending before the ICC. (color-coded yellow); 0, Category 4 -- all lines that are being operated under the rail service continuation provisions in the 3-R Act and 4-R Act (color-coded brown); and 0 Category 5 -- all other lines the carrier owns or operates (color-coded black or blue). The filing of carrier system diagram maps has generated considerable public interest and confusion. Many people have erroneously equated these filings and the associated newspaper notices with actual abandonment appli cations. Thus, there is a need to broadly publicize the basic advance notification intent of the system diagram map requirement. · The notice of prospective abandonments provided by the system maps should allow more time for state and local planning and evaluation of light density rail lines. Assessing the viability and evaluating alternatives to rail service on a specific line can begin long before the carrier actually files its abandonment application. With proper planning, many prospective abandonments may never materialize. When service on a rail line is authorized to be discontinued, it can be with greater assurance that the advance planning will allow state and local planners adequate time to determine which lines must be retained, to develop priorities for subsidization, and to coordinate the state's rail network with the overall transportation system. The maps may also serve other purposes beyond rail planning functions. For example, recreation planners can use the maps to identify rail rights-of way which may become available for recreational uses, such as expanded hiking and bicycling trails. Presentation of a broad inventory of lines will enable available resources to be directed at those lines best suited for alternative public uses rather than solely to lines which are immediately available for ·purchase. This enhanced opportunity for planning rather than reacting also exists for wildlife, highway, utility corridor, and a host of other non-rail functions. Nationwide Pending and Prospective Abandonment Status Table VI-1 presents composite data, by railroad, on the number and' miles of lines identified on carrier-filed system maps for categories 1 through 3 as of January 1, 1978, the last date for which nationwide information is available. It can be readily determined from this set of tables that the Milwaukee Road had by far the most miles identified as prospective abandon ments (3,800 miles, or 37.7 percent of its 1976 rail miles). It should be VI-2 TABLE VI-1 PENDING AND PROSPECTIVE RAIL ABANDONMENTS (By Railroad) Total Potential 1976 Rail Railwaz Category 1 Category 2 Category 3 Abandonments Miles Percent AT&SF 139 251 48 438 12,366 3.5 B&M 262 162 - 424 1,317 32.2 BAR 39 55 - 94 532 17.7 BN 1,521 - 40 1,525 22,670 6.7 Central Vt. 3 - - 3 377 0.8 Chessie 206 294 743 1,243 11,685 10.6 CNW 846 314 577 1,737 9,977 17.4 ConRai:L 22 732 - 866 N/A N/A DM&IR - 9 - 9 487 1.9 DT&I 11 - 31 42 588 7.1 DW&P 70 - - 70 170 41.2 <: Frisco 206 101 307 4,598 6.7 H - I 999 10.5 w GTW 60 - 45 105 ICG 151 - 931 1,082 9,159 11.8 IT 42 - - 42 447 9.4 KCS 17 54 - 71 1,665 4.3 L&N 124 83 63 270 6,571 4.1 MEC 25 - 33 58 908 6.4 Milwaukee 1,193 2,006 601 3,800 10,074 37.7 MKT 65 - 38 103 2,223 4.6 MoPac 73 212 40 325 11,262 2.9 N&W 266 - 40 306 11,643 2.6 P&LE 7 4 127 138 274 50.3 Rock Isl. 245 - - 245 7,247 3.4 SCL 352 103 114 569 9,019 6.3 SLSW 156 - - 156 1,441 10.8 Sao 210 168 49 427 4,590 9.3 Southern 235 37 10 282 5,956 4.7 SP 88 - 478 566 11,449 4.9 UP 259 277 - 536 10,072 5.3 WPRRC - - - - 1,482 .4 Others 203 42 539 _784 N/A N./.A_ Total 7,, 208 4,803 4,612 16,623 200,000 8.3 As of Jan. 1, 1978 Source:_ Inters_tate Commerce Commission TABLE VI-2 PENDING AND PROSPECTIVE RAIL ABANDONMENTS (By State) Eligible Abandoned State 1975 State Category 1 Category 2 Category 3 Mileage 1/ Total Mileage Percent Alabama 22 11 16 165 214 4,534 4,7 Arizona 64 0 0 15 79 2,036 3,9 Arkansas 73 24 37 131 265 3,522 7,5 California 414 0 4 257 675 7,291 9,3 Colorado 0 67 15 66 148 3,334 4.4 Connecticut 3 21 0 85 109 634 17,2 District of Columbia 0 6 0 0 6 30 20,0 Delaware 9 0 0 56 65 291 22,3 Florida 203 9 14 255 481 4,075 11,8 Georgia 21 54 14 112 201 5,414 3,7 Idaho 135 43 161 116 455 2,681 17.0 Illinois 844 100 595 1,076 2,415 10,555 22.9 Indiana 331 234 119 359 1,543 6,357 24.3 Iowa 1,838 58 337 819 3,052 7,547 40.4 Kansas 159 28 0 159 346 7,514 4.6 Kentucky 146 61 46 108 36.i. 3,517 10.3 Louisiana 112 22 70 241 445 }, 710 12.0 Maine 25 55 0 146 226 1,660 13,6 Maryland 11 1 6 350 368 1,062 34.7 Massachusetts 68 25 77 135 305 1,404 21.7 Michigan 405 84 142 1,566 2,197 5,901 37.2 Minnesota 927 76 140 950 2,093 7,294 28.7 Mississippi 100 311 186 246 843 3,432 24,6 Missouri 359 25 257 274 915 6,010 15.2 Montana 264 0 956 270 1,490 4,862 30.6 Nebraska 140 50 37 277 504 5,360 9.4 Nevada 0 40 0 74 114 1,573 7.2 New Hampshire 74 0 0 172 246 761 32,3 New Jersey 3 34 68 190 295 1,676 17.6 New Mexico 0 0 0 14 14 2,057 0.7 New York 143 25 0 1,660 1,828 5,215 35.1 North Carolina 140 0 29 144 313 4,104 7.6 North Dakota 419 36 119 61 635 5,060 12.5 Ohio 156 430 11 1,206 1,803 7,506 24.0 Oklahoma 118 82 170 227 597 4,807 12.4 Oregon 0 44 0 123 167 3,043 5,5 Pennsylvania 167 31 0 1,402 1,600 7,867 20,3 Rhode Island 31 0 0 21 52 169 30,8 South Carolina 117 0 22 135 274 3,063 8,9 South Dakota 875 33 552 665 2,125 3,342 63,6 Tennessee 105 122 0 159 386 3,101 12.4 Texas 288 113 253 442 1,096 13,255 8.3 Utah 3 0 0 14 17 1,726 1.0 Vermont 3 0 14 290 307 767 40.0 Virginia 3 9 1 229 242 5,848 4.1 Washington 36 0 828 208 1,072 4,723 22.7 West Virginia 4 56 0 241 301 3,450 8,7 Wisconsin 1,137 16 438 573 2,164 5,733 37.7 Wyoming 0 0 0 9 9 1,778 0,5 Totals 10,495 2,436 5,534 16,993 35,458 200,651 17.7 1/ Eligible abandoned mileage·means the miles already abandoned since passage of the 3R Act (January, 1974) for the northeastern states and since passage of the 4R Act (February, 1976) for all other states, The total shown above determined each state I s allotment of federal rail funds· for FY 80. Source: Federal Railroad Administration As of October 1, 1979 VI-4 noted that those figures are prior to the Milwaukee Road cut-back of two thirds of its system and the complete demise of the Rock Island. The Chicago and North Western, which owns the most mileage in the state, ranked second nationwide in total mileage (1737 miles) and sixth in the percentage of miles (17.4%) expected to be pruned from its system. It is also apparent from the tables that, with the exception of the Milwaukee Road, the carriers were extremely conservative in the category 2 identifications. While the Milwaukee Road listed a total of 2,006 miles of track in category 2, the Burlington Northern Railroad did not include any lines in this category. Although the Burlington Northern has, for example, apparently listed all of its lines with questionable viability in category 1, this action does not compel the railroad to actually file any abandonment applications. Listing a line in category 1 only indicates that, at this point in time, the car rier's management has determined that it will seek abandonment within three years if the factors which influenced that decision do not change. Impacts among the states are highlighted in Table VI-2. This table demonstrates a heavy concentration of prospective abandonments in the midwest, particularly South Dakota, Iowa, Michigan, and Wisconsin. Collectively, the nation has seen almost 17,000 miles of rail line approved for abandonment in the second half of the seventies. Another 18,500 miles are faced with a threat of abandonment. Reference to the individual maps would show that possible abandonments are widely distributed among branch and main lines, and that extensive geographic regions may be faced with widespread elimination of lo.cal rail service. Wisconsin Pending and Prospective Abandonment Status As of October 1, 1979, Wisconsin ranked fourth in the nation in rail mileage (438 miles) then under Interstate Conunerce Conunission (ICC) consideration for formal abandonment. The State ranked second in the total mileage of those lines which the railroads indicated are in danger of abandonment within three years, (This does not include the car ferries which are not part of the above percentages because car ferry mileage has never been included in the official rail mileage of the State). Table VI-3 and Figure VI-1 show the lines within Wisconsin included on carrier-filed system diagram maps. Note that they have been updated to reflect the situation as of January 15, 1981 and therefore do not match Table VI-2 which presents data as of October 1, 1979, the latest date for which nationwide summaries are available. Table VI-4 sunnnarfzes the potentially abandoned mileage within Wisconsin by railroad company. Rail Lines Carrying Less Than 3 Million Gross Tons Per Mile The local Rail Service Assistance Act of 1978 corrected a major deficiency of the 4R Act by establishing a preabandonment program whereby federal funds could be used for rehabilitation of light density rail lines without first being approved for abandonment. Light density lines are defined as those rail lines with an annual traffic density of three million VI-5 FIGURE VI-1 D RAIL LINES POTENTIALLY SUBJECT TO ABANDONMENT (COMPOSITE SYSTEM DIAGRAM MAP) jllilfllll:( \"" ran~,~ .... ·:.ol?.... f .. o .. , ! * LEGEND .... SUBJECT TO ABANDONMENT WITHIN THREE YEARS IIIIIIIIIHMII SUBJECT TO ABANDONMENT WITHIN THREE YEARS ONLY IF THE MILWAUKEE ROAD IS NOT REORGANIZED POTENTIAll Y SUBJECT TO AIANDONMENl 1111111 ABANDONMENT APPLICATION PENDING PRESENTLY OPERATED WITH PUBLIC ASSISTANCE PUlCHASEO FOR FUTURE RAIL OPERATiON ABANOON,MENT APPROVED -... ABANDONMENT REJECTED SUPUIKIR DETA/l MllWAIJKH DETA!l VI-6 TABLE VI-3 RAIL LINES SUBJECT TO ABANDONMENT Company Name Termini Mileage Company Name ~ Mileage Category 1 - Lines for 'Which an Abandonment Application is Anticipated Within Lines Purchased for Future Rail Operation 3 Years 125.0 MILW Durand-Trevino 14.t& C&NW Rhinelander-Washburn MILW Tomahawk-Heafford Jct. 5. 77 I Reedsburg-Camp Douglas 34.3 C&NW 108.5 MILW ,Walworth-Avalon 13.;JJ C&NW Butler-Adams MILW Mayville-Fond du Lac 18.~ South Appleton-Appleton 1.6 MILW 69.1 MILW Janesville-Avalon 5.sJ MILW ¥.adison-Richland Center C&NW Gillett-Wabeno 44.sZ/ Greenwood-Marshfield 22.6 soo 3.6 C&NW Tipler-Michigan State Line 9.lJ! soo Glenwood City-Downing Jct. ICG Madison-Freeport 45.oI! METWR. Mukwonago-East Troy _L2 Subtotal Category 1 371.9 Total 154.8 Category 2 - Lines Potentially Subject to Abandonment Lines with Preliminary Approval for Abandonment 24.oY soo Webster-Boylston Jct. C&NW Lake Geneva-Ringwood, IL 9.9§.! soo Cameron-Rice Lake --2.d.. C&NW Ripon-Bancroft 58.9 MILW Lone Rock-Prairie du Chien 54.o2! Subtotal Category 2 30.7 Total 122.8 Category 3 - Lines for 'Which an Abandonment Application is Presently Pending Before ICC Lines Disapproved or Withdrawn from the Abandonment Process in Past Three Years 88.0 MILW Green Bay-Iron Mt. <1 Pulaski-Gillett 16.2 C&NW Klevenville-Mt. Horeb 3.5 H C&NW C&NW Ashland-Washburn 14.5 I C&NW Hurley-Ironwood, MI 0 :¥ '1 Monico-Watersmeet, MI 43: 7_/ C&NW Rosemere Area of Manitowoc 0.7 C&NW 76.7 C&O Kewaunee-Ludington, MI (car ferry) 30. s!:.J C&NW Northline-Spooner Clintonville-Eland 29.8 C&O Manitowoc-Ludington, MI (car ferry) 30. 9!!.f C&NW 35.9 C&NW Marshfield-Wausau Wisconsin Rapids-Marshfield 25.1 Total 80.1 C&NW 30.9!:.! C&O Manitowoc-Ludington, MI (car ferry) Subtotal Category 3 347.1 ii Mileage shown is the estimated portion within Wisconsin. The total proposed Category 4 - Lines Operated With Public Assistance abandonment is 55.7 miles. y Mileage shown is the estimated portion within Wisconsin. The total proposed Brillion-Forest Jct. 6. \1 B&FJ 31.~/ abandonment to Ironwood, MI is 2.6 miles. AA(MIRC) Kewaunee-Frankfort, MI (car ferry) Manitowoc-Frankfort, MI (car ferry) 39.9.i 11 Mileage shown is the estimated portion in Wisconsin. The total proposed AA(MIRC)_ 37.8 abandonment to Watersmeet, MI is 52.9-miles. NBN Webeno-Tipler Sparta-Viroqua 32.2 !!.I Wisconsin mileage for car ferries is assumed to be approximately half of CM&N 80.7 the total routes. CM&N Janesville-Mineral Pt. Milton Jct.-Waukesha 41.0 21 Mileage shown is the estimated portion within Wisconsin. The ICC approved CWRC 32.4 discontinuance of Milwaukee Road operation of this line provided that it is CRR Durand-Eau Claire N. Milwaukee-Oshkosh, Markesan, Cambria, Mayville ill.d sold to another operator. Negotiations with the Escanaba and Lake Superior WSRC Railroad are currently progressing. The E&LS is cu=ently providing interim Subtotal Category 4 449.7 emergency service. 6/ Purchased by Northern States Power Company. Grand Total -Categories 1 thru 4 1,199.4 7/ Purchased by Wisconsin Department of Transportation. 8/ Mileage shown is the estimated portion within Wisconsin. The total proposed Lines Purchased or Operated by Other Railroads without Public Assistance - abandonment to Ringwood, IL is 17.4 miles. 9/ Currently embargoed with no interim service provided. A segment in Prairie Prairie du Chien (former MILW) 1.85/ BN 88.6=' - du Chien has been sold to the BN. E&LS Green Bay-Ontonagon, MI (owned by MILW) Total 90.4 As of January 15, 1981 TA.ISL~ V.L-4 SUMMARY OF ABANDONMENT STATUS BY RAILROAD COMPANY (Does not include Car Ferries) Mileage with Preliminary Current Mileage Subject to Abandonment Approval for Wisconsin/ Railroad Company Category 1 Category 2 Category 3 Category 4 Total Abandonment Mileageb Milwaukee Road 70.7 o.o 88.6 o.o 159.3 54.0 886.6 Chicago & Nor.th Western 267.8 o.o 227.6 o.o 495.4 68.8 1,919.9 Soo Line 26.2 30.7 o.o o.o 56.9 o.o 1,305.0· Municipality of East Troy 7.2 o.o o.o o.o 7.2 o.o 7.2 Marinette, Tomahawk & Western o.o o.o o.o o.o o.o - o.o 13.2 Brillion and Forest Junction o.o o.o o.o 6.7 6.7 o.o 6.7 <:: H Nicolet Badger Northern o.o o.o o.o 37.8 37.8 o.o 37.8 I 0:, Chicago, Madison & Northern 0;0 o.o o.o 112.9 112.9 o.o 112.9 Chippewa River o.o o.o a.a 32.4 32.4 o.o 32.4 Central Wisconsin o.o o.o a.a 41.0 41.0 o.o 41.0 Wisconsin & Southern o.o o.o o.o 147.2 147.2 o.o 147.2 All Others a.a ~ o.o o.o a.a o.o 625.4 Total 371.9 30.7 316.2 378.0 1,096.8 122.8 5,135.3 Definitions: Category 1 - Lines for which an abandonment application is anticipated within three years. Category 2 - Lines potentially subject to abandonment. Category 3 - Lines for which an abandonment application is presently pending before ICC. Category 4 - Lines presently operated with public assistance (State ownership of right of way is considered public assistance). 1/ Only those abandonments which have received final approval and are no longer ~perated have 1:>een deducted from current Wisconsin rail mileage •. As of January 15. lQ.P"I or less gross tons per mile. In special cases, at the discretion of the U.S. DOT Secretary, lines with densities up to five million gross tons may be included in the program. Wisconsin's advance capital program, which is described in Chapter IV, is also applicable, but is not necessarily limited to, these lines. For both the state and federal programs, lines which have gone thru the abandonment process are eligible for other programs. In addition, lines classified in category one on the system diagram maps are also excluded from the state's advance capital program but are eligible for other programs. Figure VI-2 shows the lines carrying less than five million gross tons and less than three million gross tons per year. VI-9 FIGURE VI-2 LIGHT DENSITY RAIL LINES LEGEND Lines carrying less than 3 million gross tons per year 1111111111 Lines carrying 3 million to 5 million gross tons per year Source: 1979 traffic density maps, corrected to reflect known recent changes in traffic patterns. VI-10 CHAPTER VII ANALYSIS OF LINES SUBJECT TO ABANDONMENT [49 CFR 266.lS(t)(S),(6),(7), and (8); (d)(v)] Introduction The most immediately important part of the state rail plan is the analysis of the lines which might be abandoned at some time in the future. The finding of acceptable solutions to problems created by abandonment of rail service has been primarily the role of the states. The results of the analysis for each line contained in this chapter will play a significant role in the state's decision-making process. It must be recognized, however, that all of the analyses are tentative and subject to revision whenever better or additional data are available. Often good information about a line is not revealed until the abandonment application is filed or even until a hearing takes place. Accurate cost estimates are usually not available until detailed appraisals and engineering surveys are completed. Normally, branchline analyses consist of several basic elements: (1) an independent financial analysis of the existing carrier's operation, (2) an estimate of the costs of implementing one or more alternatives should the line be abandoned, (3) an estimate of the benefits of the various alternatives, and (4) an assessment of the environmental impacts of the various alternatives. A benefit/cost ratio is then calculated based on the second and ~hird elements. It is this ratio which is a key indicator in determining the advisability of investing state and federal funds for continued operation. It can also play a major role in determining WisDOT's initial position in abandonment proceedings. Summaries of procedures for calculating some of the above elements are contained in Appendices A,B, and C. Line-by-Line Analysis The following pages present the results of the financial, economic, and environmental analyses of all the lines currently on system diagram maps as of November 1, 1980, plus three lines not currently proposed for abandonment, which are being considered for rehabilitation projects. Table VII-1, which summarizes the results for all lines, is followed by detailed stuiunaries for each individual line. It must be emphasized that the results are continually subject to revision as new and better data becomes available. Data by station for those lines for which an abandonment application has not been filed is marked confidential because individual shippers can be identified. When abandonment applications are filed this data can be released. Although the branch line methodology does not easily lend itself for use for car ferry analyses, data representative of some of the same elements included in the branch line analysis was obtained for the Ann Arbor ferries from various other studies. In the case of the C&O ferries, an analysis of the impacts of abandonment was completed for WisDOT by Harbridge House, a Cambridge, Massachusetts based consulting firm. A summary of the Harbridge House analysis is included in Appendix D. VIT-1 Disposition of Lines Included in Earlier Rail Plan Analyses but Dropped from this Update The previous rail plan consecutively numbered the fifty lines that were included in its branch line analysis. Since then, the disposition of several of those lines has been settled and those lines will now be dropped from the branch line analysis contained in this report. Rather than renumber the remaining lines and perhaps cause confusion, the original numbers are retained for those lines, A summary of the disposition of the dropped lines is as follows: Line #1 - Ripon-Bancroft: No action will be taken to continue service on this line or to preserve the corridor. Abandonment was approved in December, 1979 but operation continued until late 1980 due to various appeals. Line #2 - Merrillan-Marshfield: The abandonment of this line will become effective in March 1981. No action will be taken to continue rail service, However, as part of the conditions of abandonment, the C&NW must provide team track facilities on another nearby line. Line #4 - Conover-Phelps: No action was taken to continue service on this line or to preserve the corridor. Operations ceased in February 1979. Line #5 - Beloit-Evansville: Approximately one mile of the land corridor will be acquired for the DNR for scientific studies. Operations ceased in March, 1979. Line #8 - Shawano-Eland: This segment has been removed from the C&NW's system diagram map and is no longer subject to abandonment. Line #10 - Gillett-Scott Lake: The line ceased operation in July 1979. The segment from Wabeno to Tipler was purchased with track by WisDOT and is now operated under contract by the Nicolet Badger Northern Railroad. The segment north of Tipler and south of Wabeno was purchased without track in order to preserve the corridor. Line #11 - Tunnel City-Medary Jct.: The right-of-way of this line was purchased for the DNR for development for hiking, biking, snowmobiling, and nature study. It lies adjacent to the Bangor Wildlife Area and will connect with the Elroy-Sparta trail. No shippers lost service when operations were terminated in August, 1977. Line #12 - Trempealeau-Winona: The right-of-way of this line was purchased by the Wisconsin Division of Highways and Transportation Facilities to be land banked for possible future highway use. No shippers lost service when operations were terminated in August, 1977. Line #14 - Lancaster-Mt. Horeb: Operation of this line ceased in July 1980. No action was taken to continue rail service. Portions of the right".'"of-way will be purchased for highway use and other portions will be acquired by the DNR for recreational use. VII-2 Line #15 - Hayward-Bayfield: A total of 77.3 miles was filed for abandonment, with 62.8 miles of that granted by the Interstate Commerce Commission. The section from Ashland to Washburn remains but operations on the other part of the line ceased in November, 1977. WisDOT attempted to purchase the · right-of-way for DNR but found the title so clouded and the cost so high that the acquisition effort was dropped. Line #16 - Tomahawk-Heafford Jct.: This line was recently approved for abandonment. Because of its potential for restoration of a thru route, WisDOT purchased the land and track to preserve that option. There are no shippers directly served by this segment. Line #18 - Ripon-Berlin: There was no local interest in continuing rail service on this line. Operations ceased in June, 1978. The three counties through which the line passed purchased the right-of-way for recreational use. Line #23 - Trevino-Durand: Northern States Power Company (NSP) of Eau Claire purchased this line for the purpose of securing rail service for the construction and operation of the prospective Tyrone Nuclear Power Plant northeast of Durand. The plan to build a nuclear power plant has been w:i,thdrawn and it is not known if NSP will dispose of the right of way or consider a coal fired plant in the same area. Line #35 - Mukwonago-East Troy: Although technically·still on the system diagram map and categorized as subject to abandonment within three years, there are now no plans to abandon this railroad since a rehabilitation project was completed. ' Line #41 - Milwaukee-Muskegon Car Ferry: Because of the very large cost and few benefits, no action was taken to continue service on this route. Operations ceased October, 1978. Line #42 - Algoma-Casco Jct.: Because this line has been placed under new management, it is no longer being considered for abandonment. Therefore, it has been withdra~ from the branch line analysis. Line #43 - Tomahawk-Kings: This line was approved for abandonment in July 1980 and no action will be taken to continue its rail operation. Line #45 - Walworth-Avalon: Because of potential restoration as a thru route, WisDOT purchased the land and track to preserve that option. There are no shippers on the line and the Milwaukee Road had not operated over the line for some time prior to abandonment. Line #46 - Cambria-Portage: WisDOT made an offer to purchase this line on the basis that it would preserve a connection at Portage should a new operator ever take over the lines east of Cambria. However, after the new short-line opera~or indicated that the segment would not be needed, the offer to purchase was withdrawn. Line #48 Brokaw-Tomahawk: The Milwaukee Road has indicated that this line is no longer _potentially subject to abandonment. Thus, it has been withdrawn from the branch line analysis. VII-3 THIS PAGE INTENTIONALLY LEFT BLANK VII-4 TABLE VII-1 SUMMARY OF BRANCH LINE ANALYSIS Discounted Discounted Net Discounted Discounted Net Net Net Present Net Net Present Line Benefits Costs B/C Value Line Benefits Costs B/C Value ~ ~ ~~~~~ __(§.Q.QQ2. ~ ~ ~Carloads~.~~~ Merillan-Marshfield 47 Green Bay-Iron Mountain, MI (Continued) l. Team track at Humbird TI./a q3 150 40 3.75 llO 2. Stiles Jct.-Pound (shortline) 14.5 218 1,111 434 2.56 677 3. Alt. 2, Rehab. to Class II 14.5 218 130 500 .26 (370) Wausau-Wisconsin Rapids 4. Green Bay-Pound (shortline) 38.0 231 630 1,138 .55 (508) 1. Marshfield-Edgar (shortline) 23.0 594 (141) 754 . (896) 2. Marshfield-Marathon City 49 Glenwood City-Dm.ming Jct. (shortline) 29.0 594 426 945 .45 (519) 1. Entire ~i-ne (shortline) 3.6 43 (1,061) 8r * (~,142) 3. Edgar-Marshfield, Greenwood- Marshfield (shortline) 45.6 1019 1,209 1,578 • 77 (369) 51 Madison-Richland Center 4. Marat:hon City-Marshfield, 1. Entire line (shortline) 64. 7 2012 14,719 1,769 8.32 12,950 Green"Wood-Marshfield (shortline) SL 6 1019 1,775 1,738 1.02 37 2. Madison-Mazomanie-Sauk City 30.1 1231 6,687 829 8.06 5,858 3. Entire line, w/Class II rehab. 64. 7 2012 1,661 1,235 1.35 426 Lake Geneva-Ringwood, IL 1. Entire line (short.line) 17.4 135 (582) 1,631 * (2,214) 52 Janesville-Avalon 2. Entire line, w/Class II rehab. 17.4 135 396 870 .46 ( 474) 1. Entire line (short.line) 5.8 185 (221) 294 * (515) 2. Entire line (CM&N) 5.B 185 935 294 3.18 641 Medary Jct.-Galesville 1. Team track at Trempealeau n/a 86 101 77 1.31 24 53 Reedsburg-Camp Douglas 1. Entire line plus H&NE (sh.ot'tline).39~'2 564, 1,524 J:,292 1.18 232 Pulaski-Gillett 2. Reedsburg-Elroy plus H&NE - 21.3 708 2,095 1,009 2.08 1,0,87 l. Entire line (shortl1ne) 16.2 253 (l·,321) 41;7 • (1,768) (shortline) 3: Union. Center-Camp Douglas plus 21.5 606 1,551 735 2.11 816 19, 2 7 to 32 North Milwaukee - Cambria, H&NE (short.line) Oshkosh, Markesan, Mayville and 4. Alternative 1, w/Class II rehab. 39.2 708 476 1,960 .24 (1,484) Menomonee Falls 5. Alternative 2, "W/Class II rehab. 21.3 708 21,8 1,065 .23 (817) 1. Entire line (W&S) 147.2 8077 42,063 7,4()3 5.68 34,665 6. Alternative 3, 1.1/Class II rehab. 21.5 606 ,245 1,075 .23 (830) 2. Entire line, w/Class II rehab. 147 .2 8077 10,557 1,728 6.11 ff,829 54 Rhinelander-Washburn 20 Spart:a-Viroqua 1. Entire line (short.line) 125.0 4364 (3,377) 3,187 * (6,563) 1. Entire line (CM&N) 32.2 732 2,8f'l7 1,954 1.44 853 2. Hurley-Mercer (short.line) 60.8 789 (90) 1,677 * (1,587) 2. Entire line, w/Class II rehab. 32.2 732 841 2,256 .37 (1,416) 3. Hurley-Mercer (Class I) 60.8 789 . 614 1,677 * (1,062) ;:; 4. Ashland Extension (Class I) 1.0 1530 '3,206 247 12.98 2,9·59 21 Monroe-Mineral Point ~ 1. Entire line (CM&N) 46.3 388 2,739 2,084 1.31 655 55 Monico-Watersmeet 2. E:ttire line, w/Class II rehab. 46.3 388 413 800 .52 . (387) 1. Entire line (short.line) 43. 7 807 1,010 1,991 .51 (980) 2. Fm. south-Eagle River (Class I) 25. 7 807 1,211 1,090 5.11 121 22 Milton Jct.-Waukesha 3. Fm. south-Eagle River (shortline)25.7 571 795 1,090 • 73 (295) · 1. Entire line (WCRC) 41.0 309 (578) 768 . (1,346) 4. Fm. north-Conover (short.line) 17.0 236 (300) 560 * (860) 2. Mil ton Jct.-Whitewater (WCRC) 12.6 241 (577) 236 . ( 813) 3. Entire line, '-"/Class II rehab. 41.0 309 964 2,050 .47 (1,086) 58 Northline-Spooner l. Entire line (short.line) 76. 7 1003 (1,408) 6,132 * (7,540) 24 Durand-Eau Claire 2. Turtle Lake-Cumberland (s 'line) 12.5 296 (240) 614 . (855) 1. Entire line (CRR) 32.4 1497 1,939 4,632 .45 (3,035) 3. Turtle Lake-Cumberland (Class I) 12. 5 296 400 614 .65 (214) 2. Entire line, w/Class II rehab. 32.4 1497 355 810 .44 (455) 4. Spooner-Cumberland (Class I) 22.4 345 91 1,125 .OB (1,035) 25 Lone Rock-Prairie du Chien 59 Clintonville-Eland l. En'tire line (short.line) 54.0 729 (1,264) (747) . (2,011) l. Entire line (shortline) 29. 7 ' 143 (467) 1,941 * (2,409) 2. Madison-Sauk City-Richland 2. Clintonville-Marion (C&NW) .6.8 - 82 185 271 .68 (85) Center-Prairie du Chien 118.0 3223 11,976 5,770 2.08 6,206. 3. Clintonville-Marion (shortline) 6.8 82 (21) 271 * (250) 3. Madison-Sauk City-Richland Center-Boscobel (shortline) n.2 2812 13,415 4,459 3.01 8,956 61 Webster-Boylston Jct. 4. Prairie d!J. Chien (BN) 2.0 953 3,508 100 35.08 3,408 1. Webster-Danbury (Class I) 8.9 553 1,724 95 18.08 1,629 2. Webster-Danbury (short.line) 8.9 553 1,056 95 11.07 960 26 Janesville-Monroe 1. Entire line (CM&N) 33.4 1506 3,725 362 10.29 3,363 POTENTIAL ADVANCE CAPITAL PROJECTS 2. Entire line, w/Class II rehab. 33.4 1506 2,541 1,sg3 1.34 643 ACl Wausau-Tomahawk 1. Rehab. to Class II 41.5 10,054 4,869 4,000 1.21 869 33 Marshfield-Greenwood AC2 Racine-Waxdale l. Entire line (short.line) 22.6 425 116 300 • 3q (184) l. Rehab. to Class II 6.1 4,997 555 2,300 • 24 (1,745) 2. Entire line plus Wausau- 59.6 1019 1,580 2,309 .68 (729) AC3 Waxdale-Beloit Marshfield 1. Rehab. to Class II 62. 7 3,917 5,781 3,540 1.63 2,241 34 Freeport-Madison l. Entire line (shcirtline) 58.9 921 (572) 3,396 . (3,96g) 2. Monroe-Monticello plus CM&N 12.2 253 806 qo2 _3g (q6) 47 Green Bay-Iron Mountain, MI l. Entire line, w/Class II rehab. 88.6 295 17,522 2,570 6.82 14,953 and operation by E&LS + bridge (*) An asterisk indicat:es that benefits are nesuitive. Lines #1, 2, 4, 5, 8,. 10-12-, 14-16, 18, 23, 35, 41-43, 45, 46, 48 have been dropped from the analysis. (See pages VII-2 through VII-3 for disposition.) A rail service continuation project has been completed for line ill3; loss of lines #17, 44, and 60 lJOuld not result in loss of service, to any shipp'ers; and, plans for abandonment of lines R50 and 56 are likely to be withdrawn. Therefore, quantit,utive analysis of these lines are not: included. LINE //2 MERRILLAN - MARSHFIELD (C & NW) Greenwood 500 , 0 '1111, Loyal . , C&NW Q,•oSpokeville 500 ,,,,,,, ...... ar ,e '''c/i•witt pur N 283Q If ~,,, 500 500 ,, 0 • 0 • ,, Arpin 0 0 0 ~ C&NW ~ § ;S ~ 0 11111111111 0 10 20 Sea le l 11 = 8 miles NARRATIVE This 37.5 mile line traverses Clark County with its extremities in Wood and Jackson Counties, In 1978, 15 carloads originated and 166 carloads terminated on the line. A total of 165 cars were handled on the line in 1979. Wood and paper products were the principal outbound commodities and the principal inbound commodities were fertilizer, feed and limestone. Track conditions are fairly poor in spite of the fact that the rail is almost entirely 90 lb. with some segments of 100 and 112 lb, rail. Many ties are cut, rotten or broken. Several grade crossings in Wood County have been paved over, some rail ha·s been removed, and rail cars are being stared on the line between Chili and Marshfield. Trains operate at 10 mph between Merrillan and Chili, There are no operations between Chili and Marshfield, The C & NW filed for abandonment of this line in November, 1979. The ICC has approved abandonment with service termination in January, 1981. Alternatives for continued rail operation have been determined by previous analysis to be not economically feasible. Thus, a team track with transloader is now being considered. VII-6 ALTERNATIVES EVALUATED 1 •. Expansion and rehabilitation of team track facilities, plus the installation of a transloader at Humbird. (The base case would be trucking by Neillsville shippers to and from Marshfield.) CARLOADS BY STATION (1978) Estimated 1979 Originating Terminating Station Population Carloads Maj. Conunodity Carloads Maj. Commodity Neillsville 2881 6 Paper Products 87 Ag. Chemicals PROJECTED ANNUAL BENEFITS OF PROJECT Annual Cost of Trucking Without Team Track Project $56,170 Annual Cost of Trucking With Team Track Project 45,136 TOTAL ANNUAL BENEFIT (DISBENEFIT) . $11,034 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits of Team Track Project $149,952 Discounted Salvage Value 0 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $149,952 Discounted Costs $40,000 TOTAL DISCOUNTED COSTS $40,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the project,) Energy Consumption Annual Net Benefit +664 gals.· Air Emissions Annual Net Benefit +.14 tons BENEFIT/COST RATIO 3,75 NET PRESENT VALUE $109,952 PAYBACK PERIOD (In Years) 1 LINE 113 MARSHFIELD - WAUSAU (C&NW) 11111111111 0 10 20 30 WOOD Scale t"= 13 milu NARRATIVE This C&NW line extends west and south from Wausau to Marshfield for a distance of 37.0 miles in Marathon County in the central part of the state. The C&l~v had previously indicated that the 22.0 mile segment from Edgar to Marshfield was potentially subject. to abandonment but in March 1980 extended that desig nation to include the Wausau to Edgar segment. Excluding Marshfield, which has alternative service by the Soo Line, there were 594 cars originated or terminated on the line in 1979 with lumber, limestone, furniture, food, and fertilizer being the principal commodities. The C&NW originated or terminated an additional 1,135 carloads at Marshfield hut those carloads were handled by a train crew operating between Wisconsin Rapids and Marshfield (Line !ISO). Train service on this segment is provided from Antigo through Eland and Wausau and rarely goes the whole way to M.arshfield·. The timetable speed is 30 mph and the weight limit is 263,000 lbs. The track is a mixture of 90, 100 and,112 lb. rail laid at various times during the past 50 years. Ballast is crushed rock or gravel. In September 1980 the C&NW filed an application for abandonment of this line along with Line I/SO, Wisconsin Rapids - Marshfield. Shippers at Wausau and Wisconsin Rapids would not lose service by this abandonment. Some shippers in Marshfield may have to make arrangements with the Soo Line for continued service. The stations of Marathon City, Edgar, Stratford, Opal and Fenwood would lose service if the abandonment is approved. VII-S- ALTERNATIVES EVALUATED 1. Continuation of service from Marshfield to Edgar by a shortline 2. Continuation of service from Marshfield to Marathon City by a shortline. 3. Continuation of service from Edgar to Marshfield and from Greenwood to Marshfield by a shortline. 4. Continuation of service from Marathon City to Marshfield and from Greenwood to Marshfield by a shortline. TRAFFIC AND OPERATING INFORMATION (1979} Alt. 1 Alt. 2 Alt. 3 Alt. 4 Mileage 37.0 23.0 29.0 45.6 51.6 Number of Round Trips Per Year 105 50 50 50 50 Est. Time Per Round Trip (Hrs.) 7.6 8.8 14.2 15.4 Terminating Carloads 373 373 373 739 739 Originating Carloads 221 221 221 280 280 Total Carloads 594 594 594 1019 1019 Carloads Per Mile 16 26 20 22 20 Bridge Traffic 0 0 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads Maj. Commodity Carloads Maj. Commodity Edgar 1184 193 Furniture 116 Limestone, lumber Fenwood 165 0 0 Marathon City 1558 28 Lumber 129 Fertilizer *Marshfield 17553 100 Wood 1035 Coal, building material, feed Opal uninc. 0 0 Stratford 1400 0 123 Limestone,fertilizer * Traffic at this station is carried by the Wisconsin Rapids to Marshfield line (Line #50). In addition the Soo Line railroad also serves this station. · ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER 1 Carrier's Estimate (1980) / WisDOT Estimate (1978) Revenue $1,088,498 $815,426 Avoidable Costs On-Branch Costs 764,848 403,510 Off-Branch Costs 874,751 435,984 Return on Investment· 468,030 123,726 Rehabilitation 61,190 0 Other Costs 0 0 Total Avoidable Costs $2,168,819 $963,220 ESTIMATED SUBSIDY $1,080,321 $147,794 y The C&NW estimate also includes the Wisconsin Rapids to Marshfield line. VII-.9 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 Alternative 4 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE . Annual Cost of Truck Operations $ 202,589 $ 202,589 $374,150 $374,150 Annual Cost of Rail Operation 235,422 199,279 323,924 287,662 Reduction in Annual Costs of Rail Operation Due to Rehabilitation 0 0 0 0 TOTAL ANNUAL BENEFIT (DISBENEFIT) $ (32,833) $ 3,310 $ 50,226 $ 86,488 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $(446,200) $ 44,993 $682,571 $1,175,372 of Rail Operation Discounted Salvage Value of Facilities 304 2935 381 2 325 526 2204 599 2 174 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $(141,265) $ 426,318 $1,208,775 $1,774,546 ..;: 1:-i & H Land Track Acquisition $ 639,968 $ 799,990 $1,012,707 $1,172,729 I New Conn·ections 0 0 0 0 qI-' Discounted Costs of Rehabilitation 115 2000 145 2000 565 2000 565 2 000, TOTAL DISCOUNTED COSTS $ 754,968 $ 944,990 $1,577,707 $1,737,729 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit + 1087 gals. + 367 gals. + 2861 gals • + 2141 gals • Air Emissions Annual Net Benefit - .19 tons - .40 tons • 17 tons • 39 tons BENEFIT/COST RATIO (Note 1) .45 • 77 1.02 NET PRESENT VALUE (COST) $(896,233) $(518,672) $ (368,932) $ 36,817 PAYBACK PERIOD (In Years) (Note 2) (Note 3) 40+ 20 1 No ·benefits except salvage value are projected for this alternative• 2 Because this alternative provides no benefits except for salvage value, payback of public investment could not be achieved. 3 Benefits would never pay back costs. LINE //6 LAKE GENEVA - RINGWOOD, ILL, (C & NW) WALWORTH . ct ,,.Q_Elkhorn Lyo,m.,. M1lw. R. • ,tf' ""-/'"'"'i-.T' rdweJJt/JY' Delevan -VA..,T Darien ..z.:,._ Lake Genova -..._Mllw. Rd. ~lworth -I..);,~..,...../'\ Zonda '().Shuon ~ ' C&NW 'QHarvard ., ·c&NW Ulllll 1111" 0 10 20 30 40 Scale 1" = 13 miles NARRATIVE This line lies in the southeastern part of the state, and extends from Lake Geneva to Ringwood, Illinois, a distance of 17.4 miles and is part of a line which extends to Crystal Lake, Elgin and on to Chicago. In 1978, 1 car originated and 29 terminated on the line. Since that time the. Burlington Consumer Co-op has opened a new branch plant at Genoa City which is expected to ship and/or receive over 100 carloads per year. Fertilizer ingredients and construction materials have been the major products hauled over the line. Service by the C & NW has ·been provided approximately once per week, on the average. Track conditions are poor, and speeds are limited to 15 mil~s per hour. Most of the line is laid with 90 or 100 lb. rail, a result of the fact that commuter passenger service to Chicago was provided until recently. This line lies in a major corn and hay producing area, and there are also a number of small manufacturing firms in the region. However, there are several other rail lines nearby. The. ICC granted preliminary approval for abandonment of this line in September, 1980. VII-11 ALTERNATIVES EVALUATED 1. Continuation of service over the entire line at minimum speed by a short-line. 2. Rehabilitation from Class I to Class II operating speed. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Mileage 17.4 17.4 17 .. 4 Number of Round Trips Per Year 50 100 100 Est. Time Per Round Trip (Hrs.) 3.8 3.8 1. 7 Terminating Carloads 29 Originating Carloads 1 Note 1 Note 1 Total Carloads 30 135 135 Carloads Per Mile 1.7 8 8 Bridge Traffic 0 0 0 Note 1: Includes an additional 105 cars for the Burlington Consumer's Co-op which recently started operations. CARLOADS BY STATION (1979) · Estimated 1980 Originating Terminating Station _P_o~p_u_l_a_t_i_o_n_ Carloads Maj. Commodity Carloads Maj. Commodity Richmond, IL 1153 0 1 Unknown Genoa City 1266 1 Unknown 11 Feed, fertilizer Pell Lake Uninc. 0 0 Lake Geneva 5565 0 17 Lumber ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER Carrier's Estimate (1980) WisDOT Estimate (1978) Revenue $15,708 $ 11,191 Avoidable Costs On-Branch Costs 86,715 121,176 Off-Branch Costs 9,489 0 Return on Investment 204,920 77,625 Rehabilitation 59,035 ·229',640 Other Costs 157 Total Avoidable Costs ~328,900 $428,441 ESTIMATED SUBSIDY $344,608 $417,250 VII-12 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Op~rations $ 62,431 $ 0 Annual Cost of Rail Operation 154,132 0 Reduction in Annual Costs of Rail 0 14,561 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ (93,701) $ 14,561 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%). Discounted Benefits (Disbenefits) $(1,273,769) $197,886 of Rail Operation Discounted Salvage Value of Facilities 691,271 198,360 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $ (582,498) $396,246 Land & Trac~ Acquisition $1,402,113 $ 0 New Connections 0 0 Discounted Costs of Rehabilitation 229,640 870,000 TOTAL DISCOUNTED COSTS $1,631,753 $870,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project.) Energy Consumption Annual Net Benefit -1306 gals. +7512 gals. Air Emissions Annual Net Benefit - .39 tons +2.23 tons BENEFIT/COST RATIO (Note 1) .46 NET PRESENT VALUE (COST) $(2,214,251) $(473,754) PAYBACK PERIOD (In Years) (Note 2) (Note 3) 1 No-benefits are projected for this alternative. 2 Because this alternative provides no benefits except salvage value, payback of public investment could not be achieved. 3 Benefits would never ?ay back costs. VII-13 LINE /17 MEDARY JCT. -, GALESVILLE (C & NW) 11111111111 'I 0 10 20 30 40 Scale t'' = 13 miles NARRATIVE This line, 22.5 miles in length, was abandoned in 1980. By previous analysis, continued service was found to not be a feasible alternative. A number of shippers in Galesville have expressed an interest in the expansion and rehabili tation of a team track on the Burlington Northern mainline at Trempealeau. The upgrading would permit handling of the commodities shipped and received by the Galesville shippers. In 1977, 70 carloads originated and 62 carloads terminated on the line. Of that amount, 68 originating carloads and 54 terminating carloads were at Galesville. Outbound freight consists largely of canned goods, while inbound freight is mostly building materials and fertilizer. VII-14 ALTERNATIVES EVALUATED 1. Rehabilitation and expansion of team track facility at Trempeal~au. The base case is trucking of freight to La Crosse. CARLOADS BY STATION (1977) Estimated 1980 Originating Terminating Station Population Carloads Maj. Commodity Carloads Maj. Connnodity Galesville 1291 47 Canned fruit 39 Lumber PROJECTED ANNUAL BENEFITS OF PROJECT Annual Cost of Trucking Without Team Track $ 36,135 Annual Cost of Trucking With Team Track 29,356 TOTAL ANNUAL BENEFIT $ 6,779 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits of Team Track Project $ 92,127 Discounted Salvage Value 7,778 TOTAL DISCOUNTED BENEFITS $100,905 Discounted Costs 77,000 TOTAL DISCOUNTED COSTS $ 77,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the project.) Energy Consumption Annual Net Benefit +508 gals. Air Emissions Annual Net Benefit +.11 tons BENEFIT/COST RATIO 1.31 NET PRESENT VALUE $23,905 PAYBACK PERIOD (In Years) 13 VIL-15 LINE #9 PULASKI - GILLETT (C & NW) • •• •• • ••.. •• •• •. Gillett OCONTO CO. SHAWANO CO. ~n.duel I I I I I I I I -1 1 1 ~·~ 0 10 20 Zachow41111t Scale t" = Smiles NARRATIVE This segment was part of a branchline from Pulaski to Scott Lake, Michigan. The ICC granted abandonment of the northern most 89.4 miles of this line, from Gillett to Scott Lake on November 6, 1978. The Pulaski-Gillett section is 16.2 miles in length and extends north through Shawano County to Gillett in Oconto County. In 1979 there were 87 carloads. originating and 166 carloads termina ting on the line. The principal outbound commodity was canned goods and the principal inbound commodities were lumber and fertilizer. Train service on the line averages twice per week from Green Bay and return. The timetable speed is 30 mph and the maximum weight is limited to 210,000 lb. All rail is 72 lb. rolled and laid in 1906. The C & NW filed an application for abandonment of this line in October, 1980. VII-16 ALTERNATIVES EVALUATED 1. Contin~ation of service over entire line by a shortline operator. TRAFFIC AND OPERATING INFORMATION ·. (1979) Alt. 1 · Mileage 16.2 16.2 Number of Round Trips Per Year 29 50 Est. Time Per Round Trip (Hrs.) 3.2 3.2 Terminating Carloads 166 166 Originating Carloads 87 87 To tal Car loads 253 253 Carloads Per Mile 16 16 Bridge Traffic 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads Maj. Connnodity Carloads Maj. Connnodity Krakow Uninc. 0 3 Limestone Green Valley Uninc. 0 29 Fertilizer Gillett 1308 87 Food 134 Salt, logs, propane ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER Carrier's Estimate (1980) WisDOT Estimate (1978) Revenue $215,585 $140,357 Avoidable Costs On-Branch Costs 148,506 95,285 Off-Branch Costs 132,006 63,491 Return on Investment 56,095 35,679 ' Rehabilitation 122,340 Other Costs 2,166 Total Avoidable Costs $461,113 $194,455 ESTIMATED SUBSIDY $244,528 $54,098 vn-17· BRANCHLINE ANALYSlS SUMMARY Alternative 1 PROJECTED ANNUAL BENEFITS (DISBENEFITS} OF RAIL SERVICE Annual Cost of Truck Operations $ 74,737 Annual Cost of Rail Operation 182,850 Reduction in Annual Costs of Rail 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ (108,113) BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $ (1,469,256) of Rail Operation Discounted Salvage Value of Facilities 147,908 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $(1,321,348) Land & Track Acquisition $ 324,3591 New Connections 0 Discounted Costs of Rehabilitation 122,3401 TOTAL DISCOUNTED COSTS $ 446,699 ENVIRONMENTAL IMPACTS (A positive nwnber reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net-Benefit -1030 gals. Aid Emissions Annual Net Benefit - .45 tons BENEFIT/COST RATIO (Note 2) NET PRESENT VALUE (COST) $(1, 768,047) PAYBACK PERIOD (In Years) (Note 3) 1 Based on C & NW estimate. 2 No benefits are projected for this alternative. ·3 Because this alternative provides, no',benefits except salvage .va1ue, pay back of public investment .could .not be achieved. vn..:.1s LINE //13 BRILLION - FOREST JCT. (B & FJ) .... C&NW MANITOWOC iF,ancis Creek \ Two Rivers \ Collins t~· s0 V111lders Ql I IQ Uffl'f,~.~······ v-- Alverno _11111Ill I I 1-1 I I I I I I I I 0 10 20 Scale 1 "= Smiles NARRATIVE This branchline formerly was a part of a C & NW line which extended west from a point 4000 feet west of the C & NW's Milwaukee-Green Bay mainline at, Rosemere to about one mile west of the intersection of the C & NW and the Milwaukee Road at Forest Jct., a distance of 26.3 miles. In 1976, the last year under C & NW operation, there were 110 originating and 178 terminating carloads on that line of which 198 carloads were generated by the shippers between Brillion and Forest Jct. The C & NW line was abandoned on November 9, 1977. Since the abandonment, a consortium of shippers in Brillion and Forest Jct. have formed the AFW Realty Co. and have contracted with Trans Northern, Inc., a shortline operation, to provide service through a connection with the Milwaukee Road at Forest Jct. WisDOT has provided state and federal funds for track rehabilitation, operating subsidy, and construction of an intermodal interchange facility. The bulk unloading facility, installed at the end of the line, is capable of handling a wide range of bulk material. The track which is mostly 72 lb. rail is now in good condition since rehabilita.:.. tion work has been completed during .the summers of 1978 and 1979. The principle connnodities are inbound fertilizer and lumber and outbound farm and garden machinery. VII-19 TRAFFIC AND OPERATING INFORMATION (1979) Mileage 6.7 Number of Round Trips Per Year As Required Estimated Time Per Round Trip (Hrs.) 1.6 Terminating Carloads 62 Originating Carloads 130 Total Carloads 192 Carloads Per Mile 28.7 Bridge Traffic 0 CARLOADS BY STATION (1979) Estimated 1979 Originating Terminating Station Population Carloads Maj. Connnodity Carloads Maj. Connnodity Forest Jct. Uninc. 0 71 Lbr., bldg. material Brillion 2752 62 Machinery 31 Fertilizer Transloader 0 28 Fertilizer BENEFIT-COST ANALYSIS Annual Cost of Alternative Truck Operations $89,002 Annual Cost of Rail Operations Normalized Maintenance of Way $18,090 Equipment Maintenance 12,176 Transportation Operations 27,764 General and Administration 24,011 82,041 TOTAL ANNUAL BENEFIT OF RAIL SERVICE $ 6,961 TOTAL PUBLIC COSTS - Annual Operating Subsidy $90,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit 6,961 gals. Air Emissions Annual Net Benefit 1.35 tons BENEFIT/COST RATIO .08 VII-20 LINE t/17 APPLETON - SOUTH APPLETON (MILW. RD.) I I I I I I I 0 2 4 6 8 11 Sule 1 - 2milu NARRATIVE This segment extends from a point near the Outagamie - Winnebago County line called South Appleton, to Oneida St. in Appleton, a distance of 1.7 miles. In 1976, the last full year that it was operated by the Milwaukee Road; there were 35 carloads originated and 306 terminated on the line. The major outbound commodity was paper products and the major inbound commodities were pulp, coal, and food products. The track on this line is 75 lb. rail laid in the late 1920 1 s and 60 lb. rail laid in 1902 which has deteriorated to the point that the Milwaukee Road can no longer operate on the line without extensive repairs. Effective April 4, 1978, the C & NW was granted trackage rights, to serve the former Milwaukee Road ship_pers. Thus, the Milwaukee Road has, in effect given its shippers to the C & NW and has indicated that it will seek to abandon this line within the next three years. Because no shippers would lose rail service, no other alternatives will be explored unless later it is found that the C & NW cannot or will not continue· service. VII-21 LINES #19, 27, 28, 29, 30, 31 & 32 NORTH MILWAUKEE - CAMBRIA, OSHKOSH, MARKESAN, MAYVILLE AND MENOMONEE FALLS (WICONSIN AND SOUTHERN) GREEN LAKE Sussex NARRATIVE This system of former Milwaukee Road lines extends from about 37th St. at North Milwaukee to Horicon where a branch goes to Cambria (formerly to Portage) and another goes to Oshkosh. At Iron Ridge another branch goes to Mayville, at Granville a branch goes to Menomonee Falls, and at Brandon a branch goes to Markesan. In 1979, there were 4,889 carl~ads originated and 3,188 carloads terminated on the line. The primary connnodities were canned goods, fertilizer, lumber, paper products, limestone, coal and steel. 'lJle track is mostly 90 lb. rail from N. Milwaukee to Horicon, 75 lb. from·Horicon to Cambria, 90 lb. with segments of 112 lb. from Horicon to Ripon, 56 lb. thru 85 lb. from Brandon to Markesan, 75 lb. from Granville to Menomonee Falls, about two-thirds 65 lb. and one-third 75 lb. from Ripon to Oshkosh and 75 lb. and 85 lb. from.Iron Ridge to Mayville. WisDOT purc;.hased these lines in March 1980. In July 1980,- the Wisconsin·and Southern Railroad began operation under a contract with the local transit commission. A rehabilitation project is currently underway. VII-Zc ALTERNATIVES EVALUATED 1. Continuation of service by the Wisconsin and Southern at minimum speeds. 2. Rehabilitation from Class I to Class II operating speeds. TRAFFIC AND OPERATING INFORMATION (1979~ Alt. 1 Alto 2 Mileage 147.2 147.2 147.2 Number of Round Trips Per Year Varies by segment Est. Time Per Round Trip (Hrs.) Terminating Carloads 3188 3188 3188 Originating Carloads 4889 4889 4889 Total Carloads 8077 8077 8077 Carloads Per Mile 54.9 54.9 54.9 Bridge Traffic 0 0 0 CARLOADS BY STATION (1979) Estimated 1977 Originating Terminating Station Population Carloads Maj. Commodity Carloads Maj. Commodity Menomonee Falls 32,945 15 Varied 68 Steel Granville Uninc. 2 Lumber 87 Lumber Germantown 9,286 34 Farm Products 90 Food Pdts, Lbr. Richfield Uninc. 60 Farm Products 139 Food Products Slinger 1,634 12 Farm Products 10 Food Products Hartford 7,314 399 Food Products 175 Paperboard Woodland Uninc. 13 Pulp-Paper 11 Chemicals Iron Ridge Uninc. 0 44 Chemicals Horicon 3,631 71. Machinery 98 Steel Rolling Prairie Uninc. 0 0 Beaver Dam 14,265 697 Food, Farm Pdts. 740 Clay-Concrete Elec. Equip. Primary Metals Fox Lake 1,290 0 97 Fab. Meta.ls Randolph 1,561 115 Lumber 98 Lumber Cambria 697 190 Food Products 8 Farm Products Burnett Uninc. 0 4 Coal Atwater Uninc. 0 22 Ag. Chemicals Waupun 8,099 152 Canned Gds, Cans 673 Grain Mill Pdts. Brandon 851 O' 102 Chem,Petro,Cans Ripon 6,964 124 Household Appl. 250 Metal.Pdts~ Fairwater 374 209 Canned Goods 51 Ag. Chemicals Utley Uninc. 0 0 Markesan 1,433 947 Canned Goods 271 Ag. Chemicals Mayville N/A 1742 Limestone 107 Paper Products Pickett Uninc. 99 Canned Goods 4 ;Farm Products Fisk Uninc. 8 Grain 39 Fertilizer V-II-23 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $4,237,344 $ 0 Annual Cost of Rail Operation 1,289,384 0 Reduction in Annual Costs of Rail 0 762,306 Operation Due to Rehabilition TOTAL ANNUAL BENEFIT (DISBENEFIT) $2,947,960 $ 762,306 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $40,062,787 $10,359,740 of Rail Operation Discounted Salvage Value of Facilities 2,004,689 196,988 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $42,067,465 $10, 556, 728 Land & Track Acquisition $ 3,394,002 $ 0 New Connections 0 0 Discounted Costs of Rehabilitation 4,008,982 1,727,970 TOTAL DISCOUNTED COSTS $ 7,402,924 $1,727,970 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project.) Energy Consumption Annual Net Benefit +429,550 gals. +52,000 gals. Air Emissions Annual Net Benefit + 127 .4 tons + 15.4 tons BENEFIT/COST RATIO 5.68 6.11 NET PRESENT VALUE (COST) $34,664,551 $8,828,758 PAYBACK PERIOD (In Years) 1 2 VII-24 LINE f/20 SPARTA - VIROQUA (CHICAGO, MADISON & NORTHERN) ~,;, .,,·--c~f!'P ,, McCoy IACROSSE CO. VERNON CO. 11111111111 0 10 20 11 Scale 1 = 8miies Viroqu111 NARRATIVE This former Milwaukee Road branch line extends south from the Milwaukee Road mainline in Sparta, 32.2 miles through Monroe and Vernon Counties, to a forked terminus in Viroqua. In 1977 .there were 7 originating and 743 terminating carloads on the line. Almost 47% of the shipments were agricultural chemicals; with other major commodities being grain mill products, food products, lumber, and non metallic minerals. Track conditions are poor. The entire line consists of 60 lb. rail laid around 1892. A rehabilitation project is currently underway which will correct many of the deteriorated conditions. The ICC approved the line for abandonment, but in February 1980, WisDOT purchased the line. It is now operated by the Chicago, Madison and Northern Railway under contract with the Viroqua-Westby-Vernon Rail ·Transit Commission. VII-25 ALTERNATIVES EVALUATED 1. Continuation of service by the CM&N at minimum speeds. 2. Rehabilitation from Class I to Class II speeds. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Mileage 32.2 32.2 32.2 Number of Round Trips Per Year 156 156 156 Est. Time Per Round Trip (Hrs.) 7.6 7.6 3.8 Terminating Carloads 708 708 708 Originating Carloads 24 24 24 Total Carloads 732 732 732 Carloads Per Mile 22. 7 22.7 22.7 Bridge Traffic 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Orisinating Terminating Station Population Carloads Maj. Commodity Carloads Maj. Connodity Melvina 113 0 0 0 Cashton 827 0 20 Food, sand Westby 1784 1 Unknown 172 Fertilizer, lumber Viroqua 3595 24 Fertilizer 516 Fertilizer VII-26- BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 436,672 $ 0 Annual Cost of Rail Operation 250,826 0 Reduction in Annual Costs of Rail, 0 42,937 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 185,846 $ 42,937 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $2,525,652 $ 583,518 of Rail Operation Discounted Salvage Value of Facilities 281,255 257,236 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $2,806,907 $ 840,754 _Land & Track Acquisition $ 171,057 0 New Connections 0 0 Discounted Costs of Rehabilitation 1,782,922 2,256,464 TOTAL DISCOUNTED COSTS $1,953,979 $2,256,464 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project.) Energy Consumption Annual Net Benefit +9,930 gals. +18,970 gals. Air Emissions Annual Net Benefit + 1.08 tons + 5.6 tons BENEFIT/COST RATIO 1.44 .37 NET PRESENT VALUE (COST) $852,928 ($1,415,710) PAYBACK PERIOD (In years) 11 (Note 1) I Benefits would never pay back costs. VII-27 LINE //21 MONROE - MINERAL POINT (CHICAGO, MADISON AND NORTHERN) LAFAYETTE Lllil II II I I 0 10 20 30 40 Scale t" = 13 miles NARRATIVE This former Milwaukee Road branchline extends west from Monroe to Gratiot then north to Mineral Point, a distance of 46.3 miles through Green, Lafayette, and Iowa Counties. In 1977 there were 5 carloads originating and 388 carloads term inating on the line. Data for that year was used for the analysis because since that date, traffic has been affected by embargoes. The major commodities received were fertilizer, limestone and sand and gravel. The physical condition of the line is fair. Rail is almost all 65 lb. laid from 1903 to· 1913 with short segments of used 75 lb. and rerolled 85 lb. rail. The bolts and angle bars are worn as is most of the 65 lb. rail. Cross ties are a mixture-of hardwood, softwood, and untreated ties, and on the average 30% will need replacement within five years. Ballast is poor and consequently drainage is only fair. The line parallels and is subject to seasonal flooding by the Pecatonica River. Usually every spring the line is embargoed for varying time periods due to a soft road bed. The maximum weight limit is 240,000 lbs"' This line has been purchased by WisDOT and since March 1980 bas been operated by the Chicago, Madison and Northern. A grant to rehabilitate the line was approved in September 1980. VII-28 ALTERNATIVES EVALUATED 1. Continuation of service at minimum speeds over the entire line by a short-line. 2. Rehabilitation from Class I to Class II operating speeds. TRAFFIC AND OPERATION INFORMATION (1977) Alt. 1 Alt.2 Mileage 46.3 46.3 46.3 Number of Round Trips Per Year 50 50 Est.'Time Per Round Trip (Hrs.) 11.1 11.1 11.1 Terminating Carloads 383 383 383 Originating Carloads 5 5 5 Total Carloads 388 388 388 Carloads Per Mile 8.4 8.4 8.4 Bridge Traffic 0 0 0 CARLOADS BY STATION (1977) Estimated 1980 Originating Tetminating Station Population Carloads Maj. Commodity Carloads Maj. Commodity Browntown 272 1 Paper 3 Fertilizer South Wayne 524 0 54 Fertilizer Gratiot 295 0 23 Lime, Fertilizer Darlington 2420 2 Miscellaneous 76 Lime, Fertilizer Calamine Uninc. 1 Fertilizer 76 Fertilizer Slateford Uninc. 0 0 Mineral Point 2360 1 Miscellaneous 151 Lime, Fer.tilizer VII-29 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 378,358 $ 0 Annual Cost of Rail Operation 199,669 0 Reduction in Annual Costs of Rail 0 23,696 TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 178,689 $ 23,696 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $2,428,392 $322,022 of Rail Operation Discounted Salvage Value of Facilities 310,833 91,200 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $2,739,225 $413,222 Land & Track Acquisition $ 214,091 $ 0 · New Connections 0 0 Discounted Costs of Rehabilitation 1,870,245 800,000 TOTAL DISCOUNTED COSTS $2,084,336 $800,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project.) Energy Consumption Annual Net Benefit +16,418 gals. +8,705 gals. Air Emissions Annual Net Benefit + 2. 79 tons + 2.58 tons BENEFIT/COST RATIO 1.31 .52 NET PRESENT VALUE (COST) $654,889 ($386,778) PAYBACK PERIOD (In Years) 12 (Note 1) 1 Benefits would never pay back costs. VII-30 LINE //22 MILTON JCT - WA0KESHA (CENTRAL WlSCONSIN) -.., s fort AtkinsoJ/ 'WAUKESHA CO. I I I I I I I I I I I O 10 20 I Sule 1"= Smiles NARRA'IIVE This former Milwaukee Road line extends southwest, from a point near the inter section of the line with the C & NW 9s line from Milwaukee to Madison, at Waukesha to Milton, near Milton Jct. The line traverses 41.0 miles of mostly agricultural area of southeastern Wisconsin touching parts of Waukesha, Jefferson, Walworth, and Rock Counties. Th-is line is part of the first rail line in Wisconsin which. was built beginning in 1852 to connect the Great Lakes with the Mississippi River. The line was eventually extended from Milton to Madison and then to Prairie du Chien by 1857. In 1979 there were 22 carloads originating and 287 carloads terminating (a total of 309 carloads) on the line. The principal out bound commodities were grain and fertilizer and the principal inbound commodity was fertilizer. · · The track consists primarily of 75 lb. rail, laid between 1899 and 1918, with. intermittant sections of 90 and 100 lb. rail. All of the joints are worn and ·about 50% of the cross ties will need renewal within five years. Ballast consists of gravel which is fouled with dirt. Because the section from Whitewater to Milton is rarely used, it has become nearly overgrown with weeds. This line has been purchased by WisDOT and is now operated by the Central Wisconsin Railroad under contract with the local rail transit commission. VII-31 ALTERNATIVES EVALUATED 1. Continuation of service over the entire line at minimum speed by the Wisconsin Central. 2. Continuation of service from Milton Junction to Whitewater at minimum speed by a shortline. 3. Alternative 1 with rehabilitation from Class I to Class II operating speeds. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Alt. 3 Mileage 41.0 41.0 12.6 41.0 Number of Round Trips Per Year 150 150 50 150 Est. Time Per Round Trip (Hrs.) 9.0 9.0 4.6 4.1 Terminating Carloads 287 287 239 287 Originating Carloads 22 22 12 22 Total Carloads 309 309 241 309 Carloads Per Mile 7.5 7.5 19.1 7.5 Bridge Traffic 0 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads Maj. Commodity Carloads Maj. Commodity Bethesda Uninc. 0 0 Genesee Uninc. 10 Grain, Soybeans 0 N. Prairie 852 0 0 Eagle 1,011 0 6 Lumber Palmyra 1,542 0 42 Chemicals Whitewater 10,626 11 Chemicals 239 Chemicals Lima Center Uninc. 1 Unknown 0 VII-32 BRANCHLINE ANALYSIS SUMMARY Alternative l Alternative 2 Alternative 3 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 191,136 $ 90,078 $ 0 Annual Cost of Rail Operation 246,796 136,594 0 Reduction in Annual Costs of Rail Operation 0 0 150,846 Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ (55,660) $ (46,516) $ 150,846 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $ (756,421) $(632,151) $ 730,733 of Rail Operation Discounted Salvage Value of Facilities 1782 779 54 2 942 233 2 700 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $ (577,642) $ (577,209) $ 964,433 <: Land & Track Acquisition 266,677 81,954 0 H H New Connections 0 0 0 I w Discounted Costs of Rehabilitation 5012530 1542130 2 2 050 2 000 w TOTAL DISCOUNTED COSTS $ 768,207 $ 236,084 $2,050,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project.) Energy Consumption Annual Net Benefit -58,200 gals. -45,000 gals. +25,800 gals. Air Emissions Annual Net Benefit 17.2 tons - 13. 2 tons + 7. 7 tons BENEFIT COST RATIO (Note 1) (Note 1) .47 NET PRESENT VALUE (COST) $(1,345,849) $ (813,293) $(1,085,567) PAYBACK PERIOD (In Years) (Note 2) (Note 2) (Note 3) 1 No benefits are projected for this alternative. 2 Because this alternative provides no benefits except salvage value, payback of public investment could not be achieved. 3 ~enefits would never pay back costs. LINE /124 DURAND - EAU CLAIRE (CHIPPEWA RIVER RAILROAD) 0 "'o ------au Cl,ire 9()Altoona-~. EAU CLAmE CO. I 11 I I I I I I I I 0 10 20 Scale 1" = Smiles •• NARRATIVE This former Milwaukee Road line was part of a line which originally ran from Eau Claire southwest across the Mississippi River to connect to the Milwaukee Road's mainline. The bridge is long since gone and an abandonment application for the 14,1 section of the line from Trevino to Durand was approved in 1978. In 1978 there were 1603 carloads originated and 1063 carloads terminated on the Durand to Eau Claire segment almost all at Durand and Eau Claire. The principal out bound commodities were food and paper products and the principal inbound commod ities were food products and fertilizer. The track is primarily 60 lb. rail laid in the 1890's and in poor condition with short sections of 56, 65, 67, and 75 lb. rail. Weights are limited to 220,000 lbs. The Northern States Power Co. had planned a nuclear power generating plant to be located 8 miles northeast of Durand on this branchline and purchased a s~gment of track from Trevino to Durand to be used during construction. It is possible that the segment of track now owned by NSP may eventually prove to b~ the best alternative for serving Durand. This line was purchased by WisDOT in 1980 and is now operated by the Chippewa River Railroad. VII-34 ALTERNATIVES EVALUATED 1. Continuation of service at minimum speed by the Chippewa River Railroad. 2. Rehabilitation to Class II operating speeds. TRAFFIC AND OPERATING INFORMATION Alt~ 1 Alt. 2 Mileage 32.4 32.4 Number of Round Trips Per Year 100 100 Est. Time Per Round Trip (Hrs.) 7.2 3.7 Terminating Carloads 1060 1060 Originating Carloads 437 437 Total Carloads 1497 1497 Carloads Per Mile 46 46 Bridge Traffic 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads Maj. Commodity Carloads Maj. Commodity Eau Claire 49,582 1141 Paper 772 Chemicals Caryville Uninc. 7 Paper 0 Meridean Uninc. 0 0 Red Cedar Uninc. 0 5 Clay Products Durand 2,104 455 Food Products 286 Food, Chemicab VII-35 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 429,381 $ 0 Annual Cost of Rail Operation 333,790 0 Reduction in Annual Costs of Rail 0 19,319 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 95,591 $ 19,319 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $1,299,082 $262,545 of Rail Operation Discounted Salvage Value of Facilities 639,847 92,340 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $1,938,929 $354,885 Land & Track Acquisition $ 326,950 $ 0 New Connections 0 0 Discounted Cqsts of Rehabilitation 4,304,892* 810,000 TOTAL DISCOUNTED COSTS $4,631,842 $810,000 * Includes $3,000,000 for bridge rehabilitation ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project.) Energy Consumption Annual Net Benefit -2,575 gals. -5,980 gals. Air Emissions Annual Net Benefit - 1.31 tons - 1.78 tons BENEFIT/COST RATIO .45 .44 NET-PRESENT VALUE (COST) $(3,034,913) $(455,115) PAYBACK PERIOD (In Years) (Note 1) (Note 1) 1 . Benefits would never pay.back costs. VII-36 LINE 1,/25 LONE ROCK - PRAIRIE DU CHIEN (MILW. RD.) Richland Center ~¾ 0 • • 0 ~Ii:-? 0 0 Twin Bluffs~ o: Lynxville kthom Lone Rock ~~~ --ya. no ~ 11111111111 J 0 10 20 Scale 1"= Smilu NARRATIVE This branchline extends from Lone Rock, where a spur extends northwest to Richland Center, 54,0 miles to Prairie du Chien on the Mississippi River, It is part of the original rail line laid in Wisconsin, from Milwaukee, through Madison to Prairie du Chien. It was a secondary mainline until 1962 when the bridge over the Mississippi at Prairie du Chien was removed. In 1979 there were 490 carloads originated, 767 carloads terminated and 32 carloads of bridge traffic on the line. The primary connnodity is fertilizer with considerably smaller amounts of sand and gravel, metal products, lumber and paper. Prairie du Chien is by far the major station on the line. This line closely parallels the Wisconsin River and crosses it twice between Lone Rock and Prairie du Chien. It also interchanges with the Burlington Northern just south of Prairie du Chien at Crawford. The track is all 85 lb. rail laid in the 1920's and 90 lb. rail laid in the 1940's. Train service was provided three times per week by a train from Madison until the line was embargoed in March, 1980. Since that date no service has been provided except in Prairie du Chien where a two mile segment has been sold to the Burlington Northern. VII-37 ALTERNATIVES EVALUATED 1. Continuation of service from Lone Rock to Prairie du Chien by a shortline. 2. Continuation of service from Madison-Sauk City-Richland Center Prairie du Chien by a shortline. 3. Continuation of service Madison-Sauk City-Richland Center-Boscobel by a shortline. 4. Continuation of service in Prairie du Chien by the Burlington Northern. TRAFFIC AND OPERATING INFORMATION (1979~ Alt. 1 Alt. 2 Alt. 3 Alt. 4 Mileage 54.0 54.0 118.0 91.2 2.0 Number of Round Trips Per Year 150 50 150 150 150 Estimated Time Per Round Trip (Hrs.) 5.7 5.7 17.2 13.8 2.0 Terminating Carloads 767 397 813 469 654 Originating Carloads 490 332 2078 2343 299 Total Carloads 1257 729 3223 2812 953 ·Carloads Per Mile 23 13.5 27 31 476.5 Bridge Traffic 32 24 24 0 0 CARLOADS BY STATION. (1979) Estimated 1980 Ori~inatins Terminatins . Station Population Carloads maj. commodity Carloads maj. commodity Avoca 464 0 10 Fertilizer Muscoda 1256 135 Lumber, logs 159 Fertilizer Blue River 415 0 6 Sand & Gravel Boscobel 2498 24 Dry Milk 90 Fertilizer Woodman 99 0 0 Wauzeka .456 0 7 Sand & Gravel Bridgeport Uninc. 0 0 Crawford Uninc. 0 0 Prairie du Chien 5544 654 Fertilizer 995 Fertilizer VII-38 BRANCHLINE ANALYSIS SUMMARY Alternative l Alternative 2 Alternative 3 Alternative 4 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 76,055 $1,526,298 $1,523,744 $ 311,100 Annual.Cost of Rail Operation 184,018 770,138 633,255 Reduction in 4nnual Costs of Rail 49,623 Operation Due to Rehabilitation 0 0 TOTAL.ANNUAL BENEFIT (DISBENEFIT) 0 0 ($ 107,963) $ 756,160 $ 890,489 $ 261,477 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) of Rail Ope~ation ($ 1,467,215) $10,276,214 $12,101,745 $ 3,553,469 Discounted Salvage Value of Facilities 203 338 1 699 630 3 2 2 1 2313 2612 45 2 600 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) ($ 1,263,877) $11,975,844 ~ $13,415,357 $ 3,507,869 H H I Land & Track Acquisition $ 346,490 l.;.l $ 3,046,490 $ 2,354,575 $ New Connections 100,000 1.0 0 0 0 0 Discounted Costs of Rehabilitation -397 z 710 2 723 p26 2 104 615 TOTAL DISCOUNTED COSTS 2 2 2 2 0 $ 747,200 $ 5,769,516 $ 4,459,190 $ 100,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit - 151 gals. +21,832 gals. +31,737 gals. -2489 gals. Air Emissions Annual Net Benefit - .96 tons _ .99 tons + 2.10 tons - .88 tons BENEFIT/COST RATIO (Note 1) 2.08 3.01 35.08 NET PRESENT VALUE (COST) ($2,011,077) $ 6,206,328 $ 8,956,167 $ 3,407,869 PAYBAq{ PERIOD (In Years) (Note 2) 4 3 l 1 No benefits are projected for this alternative. 2 Because this alternative provides no benefits except for salvage value, payback of public investment could not be achieved. LINE II 26 JANESVILLE - MONROE (CHICAGO, ~·1ADISON, AND NORTHERN) ~ilw ~vansville ~· RrJ. ~ ~'\Iii, Milton~'. ... ~eyden j\_/ GREEN v--. ,,~ Janesville ••• ..~ ...0 •••• ~ ~~~ Browntown ROCK ' \iI / I II I I I I I I I i 0 10 20 Scale t"= Smiles NARRATIVE This segment of a former Milwaukee Road branchline extends west from Janesville for 33.4 miles through parts of Rock and Green Counties to Monroe, where the line continues on to Minerai Point. In 1979 there were 73 carloads originated and 1506 carloads terminated on this line. The majority of the outbound traffic was logs. The primary inbound commodities were sand and gravel, paper, and fertilizer and lesser amounts of lumber and food products. The track is mostly 65 lb. and 75 lb. rail laid in 1903 and 1927 respectively. The remainder consists of short sections of 85 and 90 lb. rail. The condition of the line is poor with many of the ties needing replacement and. the ballast fouled with dirt and sod. The line is now operated by the Chicago, Madison and Northern Railway Company under a lease arrangement with the Pecatonica Rail Transit Commission and the Wisconsin Department of Transportation. It was formerly a portion of -the Chicago, Milwaukee, St. Paul and Pacific Railroad, which was abandoned under the provisions of the Milwaukee Road Restructuring Act. It is operated by the CM&N in conjunction with another segment from Monroe to Mineral Point (line 1121), which earlier had been approved for abandonment under the normal processes of the Interstate Commerce Commission. VII-40 ALTERNATIVES EVALUATED 1. Continuation of service over entire line by the CM&N at minimum speed. 2. Rehabilitation from class one to class two. TRAFFIC AND OPERATING INFORMATION (1979~ Alt. 1 Alt. 2 Mileage 33.4 33.4 33.4 Number of Round Trips Per Year Unk. 250 250 Estimated Time Per Round Trip (Hours) 8.5 8.5 4.5 Terminating Carloads 1435 1435 1435 Originating Carloads 71 71 71 Total Carloads 1506 1506 1506 Carloads Per Mile 45.9 45.1 45.1 Bridge Traffic Unk. 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Hanover Uninc. 14 Sand & Gravel 1 Unknown Orfordville 1146 1 Unknown 50 Fertilizer Brodhead 3113 18 Logs 72 . Fertilizer Juda Uninc. 0 25 Sand, Paper Monroe 9618 38 Paper, Logs 1287 Paper Products, Non-Met. Ore VII-41 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 607,615 0 Annual Cost of Rail Operation 345,685 0 Reduction in Annual Costs of Rail 0 $ 166,807 Operation Due to Rehabilitation TOTAi ANNUAL BENEFIT (DISBENEFIT) $ 261,930 $ 166,807 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $3,559,634 $2,266,915 of Rail Operation ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +47,994 gals. +38,445 gals. Air Emissions Annual Net Benefit + 10.15 tons + 11.42 tons BENEFIT/COST RATIO 10.29 1.34 NET PRESENT VALUE (COST) $3,362,760 $ 643,122 PAYBACK PERIOD (In Years) 1 14 LINE f/33 MARSHFIELD - GREENWOOD (SOO LINE) MARATHON ..,,~ Riplinger Q# , ~# ~~ C Stratford Greenwood -s-0o ~# ,0~ CLARK ars ,e Chili .,,,,_.,Hewitt f'\ Spur N 283() v,, Auburndale 500 0 11 Granton _..,. ... 111()1 111 ~ ~ ~ 111 .- C) ~c!r~ WOOD v,;; Sherry olr,-,-1-,--,K'~r,-I -.I .. ,-.1-1~r---~1--=--~20 NARRATIVE Scale 1"= 6.7 miles This line lies in the north central part of the state, running northwest from Marshfield for a distance of 22.6 miles to Greenwood. In 1979, 49 cars originated and 332 terminated on the line. The outbound freight consists of canned foods and cheese. The inbound freight consists of fertilizer materials, ingredients for animal feeds, and building materials. Train service is provided approximately twice per week. Although it meets FRA Class I Standards, track conditions are pqor, and the line is often out of service during the spring when the ground is soft. The timetable speed is 20 mph. The track is the original 70 lb. rail laid in 1894 and 85 lb. rail laid in 1917. Ballast is the original which was placed in 1894. This line lies in an area of extensive canning and dairy farming activity. A major canning firm and several cheese factories along the line ship their products on a nationwide scale. Inbound products provides fertilizer and feeds 1 for farms in the area. The Soo Line has indicated this line may be tne subject of abandonment within three years. VII-43 ALTERNATIVES EVALUATED 1. Continuation of service over entire line by a shortline. 2. Continuation of service over entire line plus Wausau-Marshfield line by a shortline operator. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Mileage 22.6 22.6 59.6 Number of Round Trips Per Year 50 100 Est. Time Per Round Trip (Hrs.) 6.7 6.7 11.1 Terminating Carloads 332 366 739 Originating Carloads 49 59 280 Total Carloads 381 425 1019 Carloads Per Mile 17 Bridge Traffic 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Spokeville Uninc. 0 * Unknown Loyal 1251 * Food products * Ag. chemicals Greenwood 1176 * Unknown * Non-metallic ore * Indicates information which is confidential because an individual shipper could be identified. ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER ..;;C..;.a..;.r_r_ie__ r_'....;s;...... ;;E;.;;s_t_ima"--t_e----'(...___-) Wis DOT Estimate ( 19 78) Revenue $149,998 Avoidable Costs On-Branch Costs 140,448 Off-Branch Costs Not Available 88,644 Return on Investment 31,782 Rehabilitation 0 Other Costs 0 Total Avoidable Costs. $260,874 ESTIMATED SUBSIDY ~110,876 VII-44 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $171,561 $350,012 Annual Cost of Rail Operation 173,071 306,567 Reduction in Annual Costs of Rail 0 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) ($ 1,510) $ 43,445 BENEFIT-COST .ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) ($ 20,521) $590,418 of Rail Operation Discounted Salvage Value of Facilities 136,723 989,433 <: TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $116,202 $1,579,851 H H I .p- Land & Track Acquisition $299,831 $2,123,560 v, New Connections 0 0 Discounted Costs of Rehabilitation 0 185,000 TOTAL DISCOUNTED COSTS $299,831 $2,308,560 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +1744 gals. -2145 gals. Air Emissions Annual Net Benefit -.002 tons -1.22 tons BENEFIT/COST RATIO .39 .68 m;T PRESENT VALUE (COST) ($183,629) ($728,709) PAYBACK PERIOD (In Years) (Note 1) (Note 1) 1 . Benefits would never pay back costs. LINE If 34 FREEPORT - MADISON (CM&N) NARRATIVE Mondot -~n Plnin, .This former Illinois Central Gulf (ICG) ~,.,,/~~ branchline extends from near Freeport, Illinois, Milw, Rd, Middle~ north for 58.87 miles through Green and Dane Kleven~~cf Summo Counties, to Madison. In 1979 there were 266 ~V'~'vlt, carloads originating and 655 carloads Mt.Hort, ~ () terminating on the line. The major connnodities DANE shipped were food products and lumber. Of the total carloads, 603 were at Madison and could have been handled by the Milwaukee Road or C&NW. In fact all switching in Madison is accomplished by those carriers since the ICG has no shippers located directly on its tracks. Train service was provided by the ICG three times per week by a train running from Freeport to Madison and returning on Mondays, Wednesdays, and Fridays. The track is mostly 75 lb. rail rolled in 1904 and laid in 1920 and 1921, and 85 lb. rail rolled in 1900 and laid in 1922 and 1923. The remainder of the line has 90, 112, and 115 lb. rai.1. All of the rail is in fairly good condition. The speed limit is 20 mph except through a tunnel, near Monticello, where it is 10 mph. In October 1976, the ICG filed an application to abandon this line. After an initial ICC 1,c.G, decision denying the abandonment, the - abandonment was approved but delayed by several appeals. WisDOT has purchased the line and lilillliill service will be continued by the Chicago, 0 10 20 30 40 Madison and Northern. Scale l"= 13 miles VII-46 ALTERNATIVES EVALUATED 1. Continuation of service over entire line by a short-line. 2. Continuation of service from Monroe to Monticello as part of the Chicago, Madison, and Northern. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Mileage 58.9 58.9 12.2 Number of Round Trips Per Year Unk. 150 50 Estimated Time Per Round Trip (Hrs.) 9 9 2.5 Terminating Carloads 655 655 214 Originating Carloads 266 266 39 Total Carloads 921 921 253 Carloads Per Mile 15.6 15.6 20.7 Bridge Traffic 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. connnodity Madison 173,051 217 Varied 386 Varied Summit 0 17 Lumber Basco Uninc. 0 2 Lumber Belleville 1,338 9 Food, lumber 29 Lumber,Chemicals Monticello 955 19 Lumber 138 Food Products Monroe 9,618 20 Food Products 76 Chem.,lumber,food Clarno Uninc. 0 6 Food,metal pdts. Orangeville 0 0 Buena Vista 1 Trans. Equip. 0 Red Oak 0 1 Trans. Equip. Scioto· Mills 0 0 VII-47 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 92,607 $ 82,820 Annual Cost of Rail Operation 234,587 46,337 Reduction in Annual Costs of Rail 0 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) ($ 141,980) $ 36,483 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) ($1,929,515) $ 495,806 of Rail Operation Discounted Salvage Value of Facilities 1 2 357 2121 309 2 742 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) ($ 572,394) $ 805,548 Land & Track Acquisition $2,919,393 $ 605,004 <1 H New Connections 250,000 250,000 H I Discounted Costs of Rehabilitation 227 2000 47 2 020 .c-. 00 TOTAL DISCOUNTED COSTS $3,396,393 $ 902,624 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit -7639 gals. +6844 gals. Air Emissions Annual Net Benefit 3.0 tons + 1.3 tons BENEFIT/COST RATIO (Note 1) .89 ~T PRESENT VALUE (COST) ($3,968,787) ($ 96,476) PA;{BACK PERIOD (In Years) (Note 2) 40+ + No benefits are projected for this alternative~ 2 Because this alternative provides no benefits except for salvage value, payback of public investment could not be achieved. LINES 1136 & 1137 ANN ARBOR CAR FERRIES (MIRC) y· ' I I I /osce:oL.IJ. I I 1111111111 O 20 Scale 114 = 28miles NARRATIVE This rail and auto ferry system runs from Frankfort, Michigan to Kewaunee and Manitowoc, Wisconsin. It connects with the Green Bay and Western Railroad at Kewaunee, the C&NW and Soo at Manitowoc, and the rest of the former Ann Arbor Railroad at Frankfort. Service is currently provided by three vessels, the "Viking", the "Arthur K. Atkinson", and the "Milwaukee". The "Milwaukee" was formerly used on an abandoned GTW route between Milwaukee and Muskegon and was purchased by the State of Michigan. It is less efficient than the other two vessels and is intended to be used only as a back-up now that the AKA has been repaired. The Viking capacity is 22 fifty-foot rail cars. The vessel can be configured to carry 19 freight cars and 6 semis, or 15 freight cars and 25 autos, or 6 semis and 40 autos. A maximum of 300 passengers can be accommodated regardless of the freight configuration. The Arthur K. Atkinson has a capacity of 22.fifty-foot rail cars, 40 autos, and up to 390 persons. The Milwaukee can also carry 22 fifty foot rail cars. The Ann Arbor was one of the bankrupt rail companies studied but excluded from the CONRAIL system. The Ann Arbor, including the carferries, became eligible under Title IV of the 3R Act to receive federal subsidy through the states of Wisconsin and Michigan. In 1976, the Ann Arbor was acquired by the state of Michigan which then contracted with CONRAIL to operate the railroad and carferry. CONRAIL has since been replaced by the Michigan Interstate Railway Co. which now operates the entire Ann Arbor system including the carferry. Wisconsin and Michigan have used federally provided funds to subsidize operations since April 1, 1976. VII-49 TRAFFIC AND OPERATING DATA 1978 1979 Mileage - Kewaunee route 63.67 63.67 Mileage - Manitowoc route 79.73 79.73 Carloads (a) Eastbound loads 7,609 16,320 (b) Westbound loads 2,253 4,000 (c) Total loads 9,_862 20,320 (d) Total empties 4,322 Unk. Passengers 26,784 18,645 Motor vehicles 11,673 7,479 Carloads per mile 69.3 141. 7 BENEFIT/COST ANALYSIS Rate Advantage for Wisconsin Shippers $4,413,ooo!/ Wisconsin's Share of Subsidy 885,000 Benefit/Cost Ratio 4.99 ENVIRONMENTAL IMPACTS Energy Consumption 37.2 x 109 BTU Air Emissions 4 tons l./ The rate advantage for Wisconsin shippers was calculated by Transportation and Economic Research Associates, Inc. and published in its report entitled Economic Benefits of Lake Michigan Car Ferry Service, December 1976. This figure should be recalculated after a year's experience under the new federal deregulation act which could significantly alter the existing rate structure. In addition, it should be noted that it is not necessary to have more than one carferry route to maintain this rate advantage. Therefore, in calculating a benefit/cost ratio, those benefits should be applied to one route only. Wisconsin has chosen to · apply it to the Ann Arbor route because of the route's secondary impacts on the GB&W Railroad. VII-50 ROUTE 38 KEWAUNEE - LUDINGTON, MI. CAR FERRY (CHESAPEAKE AND OHIO) '( . I I I / ,,,,.,,.," <:::: /______~L. __ : ------(.) I I 1111111111 O 20 40 60 80 14 Scale 1 = 28miles NARRATIVE This rail and auto ferry runs from Kewaunee, just east of Green Bay, southeast across Lake Michigan.for a distance of approximately 61 miles to Ludington, Michigan. This service is operated by the Chesapeake and Ohio (C&O) Railway and is one of three routes from Wisconsin points to Ludington. Rail connections to Kewaunee are provided by the Green Bay and Western Railway. In 1979 12,148 loaded rail cars and 4,781 empty cars crossed Lake Michigan on this route. The majority of the traffic is eastbound, and paper products make up a large share of the total. Also in 1979~ 14,901 passengers and 7,956 automobiles also used the ferry. The C&O operates three vessels, all of which can accommodate 22 to 24 50-foot rail cars. Two vessels - the Spartan and Badger - can accommodate 16 automobiles on their upper deck and the Midland can carry 50 automobiles on its upper deck. All can carry additional automobiles on their lower decks if space permits. A minimum of 3.4 hours are required for a one-way trip across the lake. One scheduled round trip was provided daily during the 1980 summer months with extra trips on Mondays and Fridays, while sailings· are "as needed II for the remainder of the year. On December 30, 1977, the C&O filed an applica~ion to abandon all their ferry lines. However, the C&O later withdrew its proposal to abandon this route as part of a negotiated settlement. Barring substantial change of circumstance, the C&O will not file for abandonment of this line until at least 1983. VII-51 TRAFFIC AND OPERATING DATA 1976 121.§. -1979 Mileage 61 61 61 Carloads (a) E~stbound loads 7572 6324 7456 (b) Westbound loads 4570 4515 4692 (c) Total loads 12142 10839 12148 (d) Total empties 4645 4590 4781 Passengers 10087 12637 14901 Motor Vehicles 4206 5668 7956 Carloads per mile 199.0 177. 7 199.1 FINANCIAL DATA Revenue Freight Traffic $3,888,111 Passengers, Autos~ etc. $ 151,529 Miscellaneous Charges $ 5,628 Switching Absorptions ($ 53) Total Revenue $4,045,215 Avoidable Cost of Continued Service On-branch costs $3,253,447 Off-branch costs $2,845,014 Return on Value $ 222,45,2 Annualized Cost (1/10) of Rehabilitation $ 5,085 Total Avoidable Cost $6,325,998 Net Contribution (loss) ($2,280,783) AVOIDABLE IMPACTS See Appendix D for a detailed summary of impacts. VII-52 ROUTE 39 MANITOWOC - LUDINGTON, MI. CAR FERRY (CHESAPEAKE AND OHIO) ,· I /c CJ / I .0 C E A .. N A I 11111111111 0 20 40 60 80 Scale 111 = 28miles NARRATIVE This rail and auto ferry runs from Manitowoc, east of Lake Winnebago, across Lake Michigan for a distance of 60 miles to Ludington, Michigan. This service is operated by the~Chesapeake and Ohio (C&O) Railway, and is one of three such routes from Wisconsin points to Ludington. Rail connections at Manitowoc are provided by the Soo Line and the Chicago and North Western. In 1979, 4,308 loaded rail cars and 1,917 empty cars crossed Lake Michigan on this route. Traffic is about equally divided between eastbound and westbound freight. Paper products and lumber are the major commodities going east, while chemicals and salt are important westbound commodities. Also in 1979, 54,145 passengers and 24,836 automobiles used this ferry. Eight scheduled round trips weekly (daily with an extra trip on Saturday) were provided daily during the 1980 summer months, and sailings are "as needed" for the r~inder of the year. All of the C&O ferries used can accommodate 22 to 24 rail cars. Two vessels - the Spartan and Badger - can accommodate 16 automobiles on their upper deck and the Midland can carry 50 automobiles on its upper deck. All can carry additional automobiles on their lower decks if space permits. A minimum of 3.3 hours are required for a one-way trip across the lake. Provisions of a 1978 negotiated settlement that provided for continued operation of this line expired in January, 1980, and the C&O filed an application for abandonment in December, 1980. VII-53 TRAFFIC AND OPERATING DATA 1976 1978 1979 Mileage 60 60 60 Carloads (a) Eastbound loads 2909 1946 2362 (b) Westbound loads 2377 1870 1946 (c) Total loads 5286 3816 4308 (d) Total empties 3156 2377 1917 Passengers 75845 68194 54145 Motor Vehicles 25864 24220 24836 Carloads per mile 88.1 63.6 71.8 FINANCIAL DATA (1976) Revenue Freight traffic $-1,972,841 Passengers, Autos, etc. $1,100,677 Miscellaneous Charges $ 6,109 Switching Absorptions ($ 206,914) Total Revenue $2,872,713 Avoidable Cost of Continued Service On-branch costs $2,937,956 Off-branch costs $ 900,477 Return on Value $ 222,452 Annualized Cost (1/10) of Rehabilitation $ 54,880 Total Avoidable Cost $4,115,765 Net Contribution (loss) ($1,243,052) IMPACTS OF ABANDONMENT See Appendix D for a detailed summary of impacts. VII-54 ROUTE If 40 MILWAUKEE - LUDINGTON, MI. CAR FERRY (CHESAPEAKE AND OHIO) ,, ______..._.,.,.-f,.,._ ... ,,,,,_'!.,,__ __ >< • I ~ I A·Y 0 I I \ "',.,,, ___ _ ------~~:.~;,Y"Jl..--- 1 \ I I \ I 1111111111 O 20 40 60 80 Scale 111 = 28miles NARRATIVE This rail and auto ferry ran from Milwaukee across Lake Michigan to Ludington, Michigan, a distance of approximately 97 miles. This service was operated by the Chesapeake and Ohio Railway and was one of three C&O routes from Wisconsin points to Ludington. Rail connections at Milwaukee were provided by the Milwaukee Road and the Chicago and North Western. In 1979, 6,335 loaded rail cars and 2,913 empty cars crossed Lake Michigan on this route. Eastbound and westbound carloads are approximately equal in volume. A wide variety of products are involved, including chemicals, machin~ry and fabricated metal goods, metal castings, and flour. In 1979, 56,572 passengers and 18,196 automobiles also used this ferry route. Eight scheduled round trips weekly were provided during the 1980 summer months, with sailings scheduled "as needed" the remainder of the year. The vessels used on this route can accommodate 22 to 24 rail cars. Two vessels - the Spartan· · and Badger - can accommodate 16 automobiles on their upper deck and the Midland can carry 50 automobiles on its upper deck. All can carry additional automobiles on their lower decks if space permits. On December 30, 1977, the C&O filed an application to abandon this route and the ICC issued a preliminary decision approving the abandonment. However, during the summer of 1980 the State of Michigan subsidized a continued operation. No decision has been made by Michigan as to whether to reinstitute service during 1981. VII-55 TRAFFIC AND OPERATING DATA 1976 1978 1979 Mileage 97 97 97 Carloads {a) Eastbound loads 4776 3062 2471 {b) Westbound loads 4783 4200 3864 {c) Total loads 9559 7262 6335 {d) Total empties 3904 3876 2913 Passengers 70119 60641 56512 Motor Vehicles 21400 19562 18196 .. Carloads per mile 98.5 74.9 65.3 FINANCIAL DATA (1976) Revenue Freight traffic $3,786,952 Passengers, Autos, etc. $ 990,604 Miscellaneous Charges $ 15,789 Switching Absorptions 0 Total Revenue $4,793,345 Avoidable Cost of Continued Service On-branch costs $4,406,390 Off-branch costs $1,795,671 Return on Value $ 222,452 Annualized Cost (1/10) of Rehabilitation $ 6,035 Total Avoidable Cost $6,430,548 Net Contribution {loss) ($1,637,203) IMPACTS OF ABANDONMENT See Appendix D for a detailed summary of impacts. VII-56 LINE 1144 CRIVITZ - MARINETTE (MILW. RD.) OCONTO 0"""""' 10 20 Scale 1" = 13 miles NARRATIVE This section of .rail line had been the Milwaukee Road I s connection between Marinette and the rest of its system. However, in 1978 a trackage rights agreement was reached with the C&NW whereby the Milwaukee Road will continue serving all of its Marinette customers by operating over C&NW tracks between Green Bay and Marinette. In turn, the Milwaukee Road has indicated that it will seek to abandon 16.8.miles between Crivitz and Marinette with a small amount of its track in Marinette remaining in operation. The only station which would lose.service is Porterfield which has had no traffic in recent years. The rail:is mostly 75 lbs. some of which was laid up to 80 years ago. The Milwaukee Road has indicated this line may be the subject of abandonment within the next·three years. At this time there appears to be little need for this line, .;s0 no alternatives for rail service continuation have been completed. VII-57 LINE #47 GREEN BAY - IRON MT. (ESCANABA AND LAKE SUPERIOR) NARRATIVE This former segment of Milwaukee Road is part of a line which extends into Michigan's upper peninsula and connects with other lines there. The section in Wisconsin is 88.6 miles long and extends through Brown, Oconto, and Marinette Counties. In 1979 there were 2 carloads originated and 198 carloads terminated on the line. In addition, over 11,000- carloads of overhead traffic moved over the line from Michigan to Green Bay. The primary outbound MARINETTE commodities were pulpwood and food products. The primary inbound commodities were fertilizer and lumber.· Train service is daily except Sundays with two trains, one in each direction. The track is almost entirely 90 lb. rail with short sections of 100 lb. rail near Lena and Pembine totalling 4.3 miles and .3 miles of 112 lb. rail near Pembine. Track and ballast conditions are in reasonably good condition except for the Stiles Jct. to Pound segment. OCONTO The Milwaukee Road bankruptcy court permitted that railroad to end service on this line in 1980. The Escanaba and Lake Superior has • since been providing service as·an ICC-designated • temporary operator. The E&LS is seeking to buy ~tC&NW the line from the Milwaukee Road trustee. ~ Ocon~ !lGrNn Valley u Krakow -- tifilllllli 0 10 20 30 40 Sc.lie 1" = l3 miles VII-58 ALTERNATIVES EVALUATED 1. Rehabilitation of the entire line to Class II and operation by the E&LS. 2. Continuation of service at minimum speed from Stiles Jct. to Pound by a shortline. 3. Same as Alternative 2, except rehabilitation to Class II speeds. 4. Continuation of service at minimum speed from Green Bay to Pound by a shortline. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Alt. 3 Alt. 4 Mileage 88.6 88.6 14.5 14.5 38 Number of Round Trips Per Year Unk. 50 50 50 50 Est. Time Per Round Trip (Hrs.) 19.6 ·8.5 4.0 2.3 4.7 Terminating Carloads 196 279 210 210 223 Originating 'Carloads 2 16 8 8 8 Total Carloads 198 295 218 218 231 Carloads Per Mile 2.2 3.3 29.5 29.5 6.1 Bridge Traffic 1058 1058 0 0 0 CARLOADS BY STATION (1979) Station Estimated 1980 Originating Terminating Population Carloads maj. commodity Carloads maj. commodity Cormier Uninc. 0 0 Siding 120 Uninc. 0 0 0 Abrams Uninc. 0 10 Food pdts., lumber Stiles Jct. Uninc. 0 0 0 Lena Uninc. 0 33 Food pdts.,fertilizer Coleman 775 1 Grain Mill Pdts. 69 Fertilizer Pound 363 56 Fertilizer, food Beaver Uninc. 0 0 Crivitz 1039 0 18 Petro pdts. Wausaukee 603 0 3 Petro pdts. Amberg Uninc. 0 1 Farm machinery Beecher Lake Uninc. 0 0 Pembine Uninc. 1 Logs 6 Scrap McConnell Landing Uninc. 0 0 VII-59 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 Alternative 4 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations 0 $ 203,454 0 $ 214,587 Annual Cost of Rail Operation 0 U6,241 0 206,392 Reduction in Annual Costs of Rail $1.,265, 741 0 $ 5,391 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $1,265,741 $ 67,213 $ 5,391 $ 8,195 BENEFIT-COST A."Nl'ALYSIS (Assumes Project Lire of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $17,201,423 $ 913,424 $ 73,264 $ 111,370 of Rail Operation ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +175,677 gals. +12,829 gals. +2150 gals. +1560 gals. Air Emissions Annual Net Benefit + 52.2 tons + 2.52 tons + .64 tons + • 72 tons BENEFIT/COST RATIO 6.82 2.56 .26 .55 NET PRESENT VALUE (COST) $14,952,689 $ 677,17l. ($ 369,736) ($507,780) PAYBACK PERIOD (In Years) 2 1 50+ (Note 1) 1 Payback of public investment would never be achieved. LINE 1/49 GLENWOOD CITY - DOWNING JCT. (SOO LINE) 19 30 31 ] 6 ( ill 1111111 0 2 4 6 8 Scale t" .. 2mile.s NARRATIVE This branchline is a 3. 6 mile spur track b'etween Downing and Glenwood City in west central Wisconsin between Chippewa Falls and the Mississippi River. When originally built, the line extended northwesterly to Cylon and was part of the main line from Chippewa Falls to Minneapolis. In 1910 the present line between Downing Jct. and Cylon was built and the subject line was relegated to branchline status. Then in the 1940's it was further downgraded to a spur, wheh the Glenwood City to Cylon section was abandoned. In 1978 there were 36 carloads terminating on the line, mostly fertilizer. There was also one originating carload. The track is 85 lb. rail laid in 1925. The Soo Line has indicated that it plans to file an application for abandonment of this line.within three years. VII-61 ALTERNATIVES EVALUATED 1. Continuation of service at minimum speed by a shortline. TRAFFIC AND OPERATING INFORMATION (197<}) Alt. 1 Mileage 3._6 3.6 Number of Round Trips Per Year Unk. 50 Estimated Time Per Round Trip (Hours) .9 .9 Terminating Carloads 43 43 Originating Carloaas 0 0 Total Carloads 43 43 Carloads Per Mile 10.3 10.3 Bridge Traffic 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Downing 251 0 * Crushed & broken stone Glenwood City 934 0 * Crushed & broken stone, ag. chemicals NOTE: An asterisk indicates data which is confidential because an individual shipper could be identified. VII-62 BRANCHLINE ANALYSIS SUMMARY Alternative 1 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 15,135 Annual Cost of Rail Operation 97,174 Reduction in Annual Costs of Rail 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) ($ 82,039) BENEFIT-COST ANALYSIS (Assumes Proje~t Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) ($1,114,910) of Rail Operation Discounted Salvage Value of Facilities 541381 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) ($1,060,529) <;:l Land & Track Acquisition $ 45,381 H H New Connections 0 I Discounted Costs of Rehabilitation 361000 °'w TOTAL DISCOUNTED COSTS $ 81,381 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit -202 gals. Air Emissions Annual Net Benefit - .1 tons BENEFIT/COST RATIO (Note 1) NET PRESENT VALUE (COST) ($1,141,910 PAYBACK PERIOD (In Years) (Note 2) l No qenefits are projected for this alternative. 2 Because this.alternative provides no benefits except for salvage value, payback of public investment could not be achieved. LINE !ISO MARSHFIELD - WISCONSIN RAPIDS (C & NW) Chili .,,.fj C, 11111111111 0 10 20 Scale 1 "= Smiles NARRATIVE This branchline extends from Marshfield to Wisconsin Rapids and is jointly owned and maintained by the Soo Line and the C & NW. The Soo has trackage rights on the C & NW between Wisconsin Rapids and Arpin, and the C & NW operates over Soo tracks between Arpin and Marshfield. Both railroads serve the stations along the line. In 1979 there were 53 carloads originated and 186 carloads terminated on the line by the C&NW. The major inbound commodities were wood and agriculture chemicals. Train service has been provided by the C&NW about three times per week by trains operating from Marshfield to Wisconsin Rapids and return. The speed limit is 10 mph and the weight limitation is 263,000 lb. The track between Wisconsin Rapids and Arpin is entirely 72 lb. rail rolled and laid in 1901. The track between Arpin and Marshfield is entirely 85 lb. rail laid from 1928-1949. The ballast is new'on the C&NW section of the line. In September, 1980 the C & NW filed an application for abandonment of this line and Line #3. The Soo Line has indicated that it plans to continue operation of the line regardless of the C & NW action, in which case, there would be no actual abandonment. Pending clarification of wh,ether or not rail service would be lost for any shipper, further analysis of alternatives will not be made. VII-64 LINE #51 MADISON-RICHLAND CENTER (MILW RD) RICHLAND Richland Center 11111111111 0 10 20 30 40 NARRATIVE Scale t" = 13 miles This 64.7 mile line is a segment of a line from Madison to Prairie du Chien with spurs to Richland Center and to Sauk City. The spur to Sauk City extends into the federally owned Badger Ordnance Works. Traffic at the Ordnance Works is referred to as ''Merrimac Traffic" even though the siding is located 4 miles from Merrimac: The track from Madison to Lone Rock is 40 miles long, and except for short sections of 100 lb. rail totalling about 2.5 miles, is equally divided between 90 lb. rail and 85 lb. rail most of which was laid about 1928. Service is three times per week in each direction on alternate days. The 15.5 mile branch from Lone Rock to Richland Center is among the oldest and lightest rail in the state. It is a mixture of rail from 56 lb. to 75 lb. laid from 1897 to 1950. Weights are limited to 220,000 lb. Service is provided as needed. The 9.2 mile branch from Mazomanie to Sauk City/Prairie du Sac also consists of some of the oldest and lightest rail in the state, being predominately 60 lb. r~il laid in the 19th Century with short sections of 70, 75, 90, and 100 lb. rail laid up to 1942. The 3.6 mile extension beyond Prairie du Sac into Badger Ordnance Works is classified as side track, and thus not included in the 9.2 miles. Weights are limited to 220,000 lb. Service is provided as needed by the Madison to Prairie du Chien train. In 1979 there were 2012 carloads on the line, 267 originating and 1745 terndna ting. About 29 percent of the traffic on the line originates or terminates on the Richland Center spur and about 13 percent originates or terminates on the Sauk/Prairie du Sac spur. This line will likely not be part of a reorganized Milwaukee Road and may be approved for abandonment by the bankruptcy court. VII-65 ALTERNATIVES EVALUATED 1. Continuation of the entire line at minimum speed by a shortline. 2. Continuation of the Madison to Mazomanie and Sauk City segment at minimum speed by a shortline. 3. Alternative 1 plus rehabilitation from class 1 to class 2 operating speed. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Alt. 3 Mileage 64.7 64.7 30.1 64.7 Number of Round Trips Per Year Unk. 150 150 150 Estimated Time Per Round Trip (Hours) 17.3 17.3 8.9 9.5 Terminating Carloads 1745 1745 171 1745 Originating Carloads 267 267 1060 267 Total Carloads 2012 2012 1231 2012 Carloads Per Mile 31.1 31.1 57.1 31.1 Bridge Traffic 0 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Middleton 11,956 drapery hardware building mater. Cross Plains 2,426 0* * farm machinery Black Earth 1,331 0 * chemicals Mazomanie 1,423 0 * lumber Arena 446 0 *0 Spring Green 1,465 lumber fertilizer Lone Rock 646 * .chemicals * chemicals Gotham Uninc. * railroad ties 0* Twin Bluffs Uninc. *0 0 Richland Ctr. 4,628 * logs * coal,fertilizer Sauk City 2,812 * canned goods * grain mill pdts. Merrimac 420 * chemicals * NOTE: An asterisk indicates data which is confidential because individual shippers could be identified. VII-66 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $1,450,043 $ 726,470 Annual Cost of Rail Operation 410,050 273,305 Reduction in Annual Costs of Rail $ 111,886 Operation Due to Rehabilitation TOTAL .ANNUAL BENEFIT (DISBENEFIT) $1,039,993 $ 453,165 $. 111,886 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) of Rail Operation $14,133,505 $6,158,511 $1,520,537 Discounted Salvage Value of Facilities 5852416 528 2 288 140 2 790 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $14,718,921 $6,686,799 $1,661,327 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +56,047 gals. +14,131 gals. +44,601 gals. Air Emissions Annual Net Benefit + 10.0 tons + 1.8 tons + 13.2 tons BENEFIT/COST E.ATIO 8.32 8.06 1.35 NET PRES~T VALUE (COST) $12,949,865 $ 5,857,511 $ 426,327 PAYBACK PERIOD (In Years) 2 2 15 LINE ff 52 JANESVILLE-AVALON (Not Currently Operated) Edgerton c'l'lRC b ~.nsv,lle . M11to~c1't~,...,.-~ ••• Leyden Milton cell e.,.._..: I WALWORTH tv "11 -ua ... I Elkhorn 0 C~~alon ,, 4-4' ~c!~' ~ •• .. DelavanQ Orfordville Afton ~ • o' Tiffany~ Bardwell ••Oa11en ROCK \ \ Clinton Jc.._-o,:- •• . \ 1'\ •• • •c:wit;tworth -,p ..,...... ,Porters ______(?"~ ~. Beloit 't'),Sharon 1111 ll()~nda '-1» •• Beloit • 11111111111 0 10 20 Scale t" = 13 miles NARRATIVE This 5.8 mile segment is a portion of a former Milwaukee Road mainline between Madison and Chicago and formerly carried passenger trains. It was purchased by WisDOT in February 1980 although operation by the Milwaukee Road continued until July 1, 1980. The track is 130 pound rail in very good condition since it was a former mainline. The weight limit is 263,000 lbs. In 1979, there were 185 car.loads originating or terminating at Avalon, most of which was outbound grain. At present there are two shippers at Avalon: The Avalon Farmers Supply is a grain milling and storage facility and Tracy and Sons Farms is a seed corn shipper. Avalon Farmers Supply has a·storage capacity of one million bushels and often ships by truck because of the non-availability of rail cars. There currently is being considered a proposal to restore service to this line by extending the service of the Chicago, Madison and Northern which presently operates from Janesville to Mineral Point. VII-68 ALTERNATIVES EVALUATED 1. Continuation of service by an independent short-line. 2. Continuation of service by extending the CM&N from Janesville. TRAFFIC AND OPERATING INFORMATION All Alternatives Mileage 5.8 Number of Round Trips Per Year 50 Estimated Time Per Round Trip (Hours) 1.6 Terminating Carloads 8 Originating Carloads 177 Total Carloads 185 Carloads Per Mile 31. 9 Bridge Traffic 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj~ connnodity Avalon Uninc. 177 Grain 8 Fertilizer VII-69 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 90,636 $ 90,636 Annual Cost of Rail Operation 116,757 31,688 Reduction in Annual Costs of Rail 0 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) ($ 26,121) ($ 58,948) BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) ($354,987) $801,107 of Rail Operation Discounted Salvage Value of Facilities 133,927 133,927 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) ($221,060) $935,034 ~ H Land & Track Acquisition $293,700 $293,700 H I New Connections 0 0 -..J 0 Discounted Costs of Rehabilitation 0 0 TOTAL DISCOUNTED COSTS $293,700 $293,700 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +15,765 gals. +15,765 gals. Air Emissions Annual Net Benefit + 3.2 tons + 3.2 tons BENEFIT/COST RATIO (Note 1) 3.18 NET PRESENT VALUE (COST) ($514,760) $641,334 PAYBACK PERIOD (In Years) (Note 2) 1 1 No benefits are projected for this alternative 2 Because this alternative provides no benefits except for salvage value, payback of public investment could not be achieved. LINE //53 REEDSBURG - CAMP DOUGLAS (C&NW) VERNON CO. JUNEAU CO, SAUK CO, I I I I I I I I I I I 0 10 20 NARRATIVE Scale 1"=8miles This C&NW line extends northwest from Reedsburg to Camp Douglas for a distance of 34.3 miles in Sauk and Juneau Counties in the lower central part of the state. A short-line railroad, the Hillsboro and Northeastern, is dependent upon this line for access to the nation-wide rail network. The segment proposed for abandonment does not include a connection with the Milwaukee Road mainline at Camp Douglas. Service is provided from Madison through Reedsburg. The speed limit is 35 MPH from Reedsburg to La Valle, and 10 MPH north of La Valle. The rail is mostly 100 lb. laid 45-60 years ago, and the ballast is crushed rock or gravel. Approximately half of the 564 carloads shipped from or received on the lirie·in 1979 were food and kindred products, with the remainder a mix of fertilizer, petroleum, machinery and other products. Elroy accounted for 300 of the 1979 carloads, while Hustler had none. 144 cars were interchanged with the Hillsboro and Northeastern. The C&NW has indicated this line is subject to abandonment within three years. VII-71 ALTERNATIVES EVALUATED 1. Continuation of service over entire line plus the Hillsboro & Northeastern by a short-line. 2. Continuation of service from Reedsburg to Elroy including the Hillsboro & Northeastern by a short-line. 3. Continuation of service from Union Center to Camp Douglas, plus the Hillsboro and Northeastern at minimum speeds, by a short-line. 4. Alternative 1 plus rehabilitation from Class I to Class II operating speeds. 5. Alternative 2 plus rehabilitation from Class I to Class II operating speeds. 6. Alternative 3 plus rehabilitation from Class I to Class II operating speeds. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1&4 Alt. 2&5 Alt. 3&6 Mileage 34.3 39.2 21.3 21.5 Number of Round Trips Per Year Unk. 50 50 50 Est. Time Per Round Trip (Hrs.) 6.25 11.4/6. 7 7.8/5.2 7.3/4.8 Terminating Carloads Unk. Unk. Unk. Unk. Originating Carloads Unk. Unk. Unk. Unk. Total Carloads 564 708 708 606 Carloads Per Mile 16 18 33 28 Bridge Traffic 0 0 0 0 Interchange Traffic 144 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity La Valle 378 * Lumber * Wonewoc 786 * Minerals, feed * Batteries Union Center 173 * Food products * Food products Elroy 1402 * * Steel tanks Hustler 142 0 0 Hillsboro 1202 * Fertilizer * Fertilizer * Indicates information which is considered confidential because it could identify an individual shipper. ESTIMATED SUBSIDY REQUIRED .FOR CONTINUED OPERATION BY CURRENT CARRIER Carrier's Estimate WisDOT Estimate (1978) Revenue $287,940 Avoidable Costs On-Branch Costs 191,120 Off-Branch Costs Not Available 185,270 Return on Investment 103,307 Rehabilitation Other Costs Total Avoidable Costs $479,697 ESTIMATED SUBSIDY $191,757 VII-72 BRANCHLINE ANALYSIS SUMMARY Alternative Alternative Alternative Alternative Alternative Alternative ___;l;;;,__ 2 3 4 5 6 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 307,544 $ · 307,544 $ 274,134 $ 0 $ 0 $ 0 Annual Cost of Rail Operation 230,143 177,i42 179,273 0 0 0 Reduction in Annual Costs of Rail 0 0 0 18,572 9,321 9,007 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 77,401 $ 13·0. 202 $ 94,861 $ 18,572 $ 9,321 $ 9,007 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $1,051,880 $1,769,445 $1,289,155 $ 252,393 $ 126,082 $ 122,405 of Rail Operation Discounted Salvage Value of Facilities 471 2 734 3252996 261 2 796 223 2 440 1212410 122 2 550 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $1,523,614 $2,095,441 $1,550,951 $ 475,833 $ 248,082 $ 244,955 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +4785 gals. + 5865 gals. +3286 gals. +5639 gals. +1690 gals. +2165 gals. Air Emissions Annual Net Benefit + .59 tons + .91 tons + .29 tons +6.94 tons + .50 tons + • 64 ton.s. BENEFIT/COST RATIO 1.18 2.08 2.11 .24 .23· .23 NET PRESENT VALUE (COST) $ 231,860 $1,086,538 $, 815,588 ($1,484,167) ($ 816,918) ($ 830,045) PAYBACK PERIOD (In Years) 8 2 3 (Note 1) (Note 1) (Note 1) 1 Benefits would never pay back costs. LINE {/54 RHINELANDER - WASHBURN (C&NW) IRON VILAS ASHLAND 11111111111 0 10 20 30 Scale t"= 13 miles ONEIDA Roosevelt <:,o~~\o,.,, NARRATIVE Spur 21 \~hinelander Woodboro QII Oneida s:!.. This line runs through the north-central part of the state to Ashland and Washburn on Lake Superior, for a distance of 125,0 miles through On.eida, Vilas, Iron, Ashland and Bayfield counties, Inter-railroad connections exist with the Burlington Northern at Ashland and Ashland Junction; and the Soo Line at Hurley, Saxon and Ashland, The segment under discussion for abandonment does not extend as far as the Soo Line in Rhinelander, The line handled 4364 carloads in 1979 with lumber and wood products accounting for eighty percent of the traffic, Paper products, waste and scrap, and petroleum and coal products accounted for another eighteen percent, Ashland accounted for sixty-eieht percent of the carloads, Mercer for eighteen percent and Woodruff for 4 percent. Service is provided from Antigo through Rhinelander, The speed limit is 10 MPH and 30 HPH and the maximum weight permitted 5.s 263,000 lbs. The rail is mostly 90 lb. rail between Rhinelander and Hurley and 110 lb. north to Ashland. The Ashland Junction to Washburn segment is 80 lb. The lighter rail is 50-60 years old, and rail 110 lbs. and over less than 40 years. The ballast from Rhinelander to Ashland is gravel placed 15-30 years ago; from Ashland Junction ·to Washburn, cinders placed 60 years ago. The. C&NW has indicated this line may be the subject of abandonment within three years. VII-74 ALTERNATIVES EVALUATED 1. Continuation of service over the entire line by a shortline operator. 2. Continuation of service from Hurley to Mercer by a shortline. 3. Continuation of service from Hurley to Mercer by a Class I railroad (Soo Line), 4. Continuation of service to Ashland shippers by the Sao Line. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alts. 2&3 Alt. 4 Mileage 125.0 125.0 23.0 1.0 Number of Round Trips Per Year Unk. 100 100 250 Est. Time Per Round Trip (Hrs.) 19.8 19.8 4.3 1.9 Terminating Carloads link. Unk. Unk. Unk. Originating Carloads Unk. Unk. Unk. Unk. Total Carloads 4364 4364 789 1530 Carloads Per Mile 35 35 53 1530 Bridge Traffic 0 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Orisinating Terminatin~ Station Population Carloads maj. commoditr Carloads maj. commodit:y: **Ashland * Converted wood, Wastes, scrap raw wood * **Ashland Jct. * Barksdale 0 0* Cedar Raw wood **Hurley * Raw wood * Petroleum,beverages Lac du Flambeau * Raw wood * Lake Tomahawk * Raw wood * Wood products Manitowish * * Petroleum, wood * * products McNaughton * * Mercer * Raw wood * Wood products Odanah * Raw wood * Powell * Raw wood **Saxon Raw wood * Wood products, * * chemicals Van Buskirk 0 0 · Washburn * Raw wood * Chemicals Woodruff * Raw wood * Petroleum * An asterisk indicates information which is confidential because an individual shipper could be identified. ** These stations are also served by Burlington Northern or Soo Line Railroads. VII-75 ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CVRRENT CARRIER Carrier's Estimate WisDOT Estimate (1978) Revenue $1,570,032 Avoidable Costs On-Branch Costs 940,991 Off-Branch Costs 1,009,865 Return on Investment Not Available 369,776 Rehabilitation Other Costs Total Avoidable Costs $2,320,632 ESTIMATED SUBSIDY $ 750,600 VII-76 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 Alternative 4 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 261,106 $ 155,923 $ 155,923 $ 272,120 Annual Cost of Rail Operation 616,445 218,789 166,979 44,483 Reduction in Annual Costs of Rail Operation Due to Rehabilitation 0 0 0 TOTAL ANNUAL BENEFIT (DISBENEFIT) $ (355,339) $ (62,866) $ (11,056) $ 227,637 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $(4,829,057) $ (854,349) $ (150,251) $3,093,587 of Rail Operation Discounted Salvage Value of Facilities 1 2453 2443 7642524 764 2524 1122 632 BENEFIT/COST RATIO (Note 1) (Note 1) .37 12.98 NET PRESENT VALUE (COST) $(6,562,988) $(1,586,762) $(1,062,314) $2,959,219 PAYBACK PERIOD (In Years) (Note 2) (Note 2) (Note 2) l 1 . There are no benefits, except salvage value. 2.Benefits would never pay back costs. LINE //55 MONICO - WATERSMEET, MI (C&NW) FOREST It I 111 I I I II 0 10 20 30 Scale .1 " - 1-3 miles. Roosevelt O Q Stars Gagen Atkins Argonne Spur 250 -• <:>0 ,•~ 1111011 •O• D11111t'"'\LA11()11, Spur !~·t· etander Spur 231 ~~c-onsin Jct. Cohen Spur~ in : WoodboroQII .d S..... • Ill _ O ne, a pur •,:,, : 0 • 0 Malvern on1co Crandon Q • 1• Pelican Lake A~ .. NARRATIVE - ::: •#,. This line runs through the northeastern part of the state from Monico to Land O'Lakes. It continues on to Watersmeet, Michigan. The Wisconsin portion is located in Oneida and Vilas counties. Approximately 9.2 of the 52.9 m:f.les are in Michigan, with 43.7 miles in Wisconsin. The proposed abandonment does not include the station of Monico. The line crosses the Soo Line seven miles north of Monico, but there is no inter-line connection. In 1979, 807 carloads were handled including 370 at Eagle River, 201 at Three Lakes, and 182 at Conover. Of the total carloads, 517 were lumber and wood products, 178 were food, 97 were LP gas, and the remainder were various' other products. Service is provided from the north originating in Watersmeet or Ironwood, and from the south originating in Antigo. Speed is restricted to 10 MPH, weight to 220,000 lbs. The rail is mostly 72 lb. laid in the 1920's with some 90 and 100 lb. laid in the 1940's. Most of the ballast is cinders, with some dirt and gravel. The C&NW filed an application for abandonment of this line in November, 1980. VII-78 ALTERNATIVES EVALUATED 1. Continuation of service over the entire line by a shortline. 2. Continuation of service from the south to Eagle River by a Class I railroad. 3. Continuation of service from the south to Eagle River by a shortline. 4. Continuation of service from the north to Conover by a shortline. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Alt. 3 Alt. 4 Mileage 43.7 43.7 25.7 25.7 17.0 Number of Round Trips Per Year Unk. 100 100 100 50 Est. Time Per Round Trip(Hrs.) 7.3 6.4 5.4 5.4 4.6 Terminating Carloads 193 193 192 192 1 Originating Carloads, 614 614 379 379 235 Total Carloads 807 807 571 571 236 Carloads Per Mile 18 18 22 22 14 Bridge Traffic 0 0 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj, commodity Gagen Uninc. 0 0 Three Lakes Uninc. 153 Pulpwood 48 LP gas, lumber Clearwater Lake Uninc. 0 0 Eagle River 15,998 226 Cranberry pd ts., 144 Cranberry products, Pulpwood LP gas Conover Uninc. 181 Pulpwood 1 Lumber Land O'Lakes Uninc. 54 Pulpwood 0 ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER Carriers Estimate (1980) WisDot Estimate (1978) Revenue $ 527,736 $364,447 Avoidable Costs On-Branch Costs 542,617 333,292 Off-Branch Costs 466,977 175,705 Return on Investment 225,168 95,319 Rehabilitation 0 0 Other Costs 51277 0 Total Avoidable Costs $1,240,039 $814,564 ESTIMATED SUBSIDY $ 712,303 ~450,117 VII-79 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 Alternative 4 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 297,773 $ 222,275 $ 222,275 $ 75,498 Annual Cost of Rail Operation 261,947 150,533 181,122 107,839 Reduction in Annual Costs of Rail 0 0 0 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 35,826 $ 71,742 $ 41,153 ($ 32,341) BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $ 486,875 $ 974,974 $ 559,269 ($439,514) of Rail Operation Discounted Salvage Value of Facilities 523 000 2352890 235 890 1392025 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) 1 2 $1,010,150 $1,210,864 $ I 795,159 ($300,489) < H Land & Track Acquisition $ 866,533 $ 326,302 $ 326,302 $219,879 H I New Connections 2,50,000 250,000 250,000 0 00 0 Discounted Costs of Rehabilitation 8741000 514 1 000 5142000 3402000 TOTAL DISCOUNTED COSTS $1,990,533 $1,090,302 $1,090,302 $559,879 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +3293 gals. +1921 gals. +1921 gals. -188 gals. Air Emissions Annual Net Benefit + .01 tons + .19 tons + .19 tons + .29 tons BENEFIT/COST RATIO .51 1.11 .73 (Note 1) NET PRESENT VALUE (COST) $ 980,383 $ 120,562 ($ 295,143) ($860,368) PAYBACK PERIOD (In Years) 4o+ 16 40+ (Note 2) 1 No benefits are projected for this alternative. 2 Because this alternative provides no benefits except for salvage value, payback of public investment could not be achieved. Pages VII-81 through VII-84 were removed just prior to printing. The Chicago and North Westem railroad recently removed from its system diagram map Line #56, West Bend Fond du Lac; and Line #57, Manitowoc-Green Bay. By federal regulation, any application for abandonment of a line must be preceded by placement on the railroad's system diagram map for a minimlllll of five months. VII-81 BURNETT LINE //58 SPOONER-NORTHLINE (C&NW) POLK Almena Barron Jct. Turtle Lak •••0 ••()111C()1111 II Po skin Barron Joelf:J•• soo Amery ,,,... Lill Ii I 111 I ,1()1•0'"'. Oeronda BARRON 0 10 20 30 40 Scale t" = 13 miles DUNN NARRATIVE This line is 76, 7 miles long and is located in St. Croix, Polk, Barron, and Washburn Counties,· Shippers at the end points - Spooner and Northline - will be unaffected, Annual traffic on the line was 1045 carloads in 1979. Of that amount, 648 carloads or 62 percent of the total was at the stations of New Richmond and Turtle Lake, which are also served by the Soo Line. The only remaining stations on the line originating or terminating more than one carload were Cumberland with 296 carloads, Shell Lake with 53 carloads, and Clear Lake with 47 carloads, This remaining traffic results in only 5,2 carloads per mile of track per year, Food products were by far the major commodity (44%), followed by feed (22%) and fertilizer (10%). The Stokely Van Camp Company in Cumberland is the major outbound shipper of food products and Domain Industries in New Richland was a receiver of soybean meal and wheat middlings used to produce animal feed, Feed and fertilizer were received by several small farm supply outlets at several stations, The line is usually operated as though it is a stub-ended branchline from Spooner, In all of 1978 and for most trips in 1979, the train went to New Richmond and returned to Spooner the same day, However, in 1979, there were also a few trips from Hudson to New Richmond, Finally in March of 1980, the trip from Spooner to New Richmond. began to take two days, probably because of slow orders,· The C&NW cites the general condition of the line as fair, noting that speed restrictions due to track condition limit speed to less than 10 mph on all but five miles of the track, The rail is 90 and 100 lb, laid 50 to 70 years ago, The C&NW filed an application for abandonment of this line in October 1980, VII-85 ALTERNATIVES EVALUATED 1. Continuation of service over entire line by a shortline operator. 2. Continuation of service from Turtle Lake to Cumberland by a shortline. 3. Continuation of service from Turtle Lake to Cumberland by a Class I railroad. 4. Continuation of service from Spooner to Cumberland by a Class I railroad. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Alt. 3 Alt. 4 Mileage 76.7 76.7 12.5 12.5 22.4 Number of Round Trips Per Year 139 100 50 50 5-0 Est. Time Per Round Trip (Hrs.) 10.2 10.2 2.7 2.7 6.2 Terminating Carloads 789 789 119 119 172 Originating Carloads 221 221 177 177 173 Total Carloads 1003 1003 296 296 345 Carloads Per Mile 13 13 24 24 15 Bridge Traffic Unk. 0 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station PoEulation Carloads maj. commoditi Carloads maj. connnodity Burkhardt 0 0 *New Richmond 13 Food products 591 Food, feed Deer Park 0 1 Clear Lake 27 Food products 20 Machinery Clayton 0 0 *Turtle Lake 0 2 Electrical equip. Comstock 0 0 Cumberland 177 Food products 119 Metal products, fertilizer Barronett 0 0 Shell Lake 0 53 Fertilizer * Stations are also served by the Soo Line Railroad. ,. ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER Carrier's Estimate (1980) WisDOT Estimate ~1978~ Revenue $ 686,196 $ 501,516 Avoidable Costs On-Branch.Costs 730,288 44_5,173 Off-Branch Costs 453,467 267,652 Return on Investment 771,540 212,964 Rehabilitation Other Costs 62861 Total Avoidable Costs $1 2 955 2 295 $ 925 1 910 ESTIMATED SUBSIDY $1,275,960 $ 424,394 VII-86 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 Alternative 4 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 131,468 $ 96,650 $ 96,650 $ . 115,843 Annual Cost of Rail Operation 400,146 127,079 79,977 132,823 Reduction in Annual Costs of Rail 0 0 0 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) ($ 268,678) ($ 3-0, 429) $ 16,673 ($ 16,980) BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) ($3,651,334) ($ 413,530) $ 226,586 ($ 230,758) of Rail Operation Discounted Salvage Value of Facilities 22 243 2 038 173 2 268 1732268 321 2 669 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) ($1,408,296) ($ 240,262) $ 399,854 $ 90,911 Land & Track Acquisition 1 301,849 301,849 565,414 <1 $4,514,569 $ $ $ H New Connections H 0 0 0 I co Discounted Costs of Rehabilitation 1 2 617 2500 312 2 500 312 2 500 560 2 000 -...J TOTAL DISCOUNTED COSTS $6,132,069 $ 614,349 $ 614,349 $1,125,414 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or ·a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit -9708 gals. +243 gals. +243 gals~ -1476 gals. Air Emissions Annual Net Benefit -3.11 tons -.10 tons -.10 tons - • 64 tons BENEFIT/COST.RATIO (Note 2) (Note 2) • 65 .08 NET PRESENT VALUE (COST) ($7,540,363) ($854,611) ($214,495) ($1,034,503) PAYBACK PERIOD (In Years) (Note 3) (Note 3) 50+ (Note 3) 1 Based on C&NW Estimate. 2 No benefits are projected for this alternative. 3 Because this alternative provides no benefits except salvage value, payback of public investment could not be achieved. .... LINE II 59 CLINTONVILLE - ELAND (C&NW) . ~Birnamwood - -•o-l/l Nome I Bowler .,~- 0 111111() Eland c & N w a.-.... ~, ~ 41,()0 #. r am --- Lyndhurst ~~. Thornton ~0"11o Shawano I 11 I I II I I I I SHAWANO 0 10 20 Scale 1"=8miles NARRATIVE This line is 29.7 miles long and is located in Shawano and Waupaca Counties. If abandonment is approved, service will be lost at Wittenberg, Tigerton, and Marion. Shippers at the endpoints, Eland and Clintonville, will be unaffected. Annual traffic from the three affected stations has declined from 277 in 1973 to 176 in 1978 and to 138 in 1979. Seventy percent of the traffic in recent years has been lumber and wood products; seventy percent has been inbound; and sixty-five percent has been handled at Marion. Service to the affected stations has been twice-weekly, from Antigo through Eland. The rail is 90 and 100 lb. rail laid 40-60 years ago. The ballast between Clintonville and Tigerton is gravel last placed 20-45 years ago. Tigerton to Eland ballast is rock, much of which was placed during the past ten years. Speed is restricted to 10 MPH; maximum weight is 263,000 lbs. The C&NW filed application for abandonment of this line in October, 1980. VII-88 ALTERNATIVES EVALUATED 1. Continuation of service over entire line by a shortline operator. 2. Railbank land and track, with service resumption as part of a larger system in five years. 3. Continuation of service from Clintonville to Marion by a shortline. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Alt. 3 Mileage 29.7 29.7 6.8 6.8 Number of Round Trips Per Year 106 50 50 50 Est. Time Per Round Trip (Hrs.) 3.7 3.7 1.1 1.1 Terminating Carloads 97 97 75 75 Originating Carloads 46 46 7 7 Total Carloads 143 143 82 82 Carloads Per Mile 4.8 4.8 12.1 12.1 Bridge Traffic Unk. 0 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Wittenberg 1004 5 Food products 14 Potash, Building Materials Tigerton 819 28 Lumber or plywood 1 Marion 1431 12 Saw logs 83 Sawlogs ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER Carrier's Estimate (1980) WisDOT .Estimate (1978) Revenue $ 81,479 $ 58,843 Avoidable Costs On-Branch Costs 237,869 150,738 Off-Branch Costs 73,528 35,3.78 · Return on Investment 331,259 95,146 Rehabilitation Other Costs 815 Total Avoidable Costs $643,471 $281,262 ESTIMATED SUBSIDY $561,992 $222,419 VII-89 BRANCHLINE ANALYSIS SUMMARY Alternative 1 Alternative 2 Alternative 3 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 77,993 $ 45,044 $ 45,044 Annual Cost of Rail Operation 177,520 37,183 54,952 Reduction in Annual Costs of Rail Operation Due to Rehabilitation 0 0 0 TOTAL ANNUAL BENEFIT (DISBENEFIT) ($ 99,527) $ 7,861 ($ 9,908) BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) 4 Discounted Benefits (Disbenefits) ($1,352,572) $ 71,850 ($134,650) of Rail Operation Discounted Salvage Value of Facilities 885.272 114.000 1141 000 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) ($ 467,300) $ 185,000 ($ 20,650) Land & Track Acquisition $ 1,941,3851 $ 271,000 $ 271,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or~ reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit -830 gals. +191 gals. +191 gals. Air Emissions Annual Net Benefit -.37 tons -.12 tons -.12 tons BENEFIT/COST RATIO (Note 2) .68 (Note 2) NET PRESENT VALUE (COST) ($2,048,685) ($ 85,150) ($ 250,350) PAYBACK PERIOD (In Years) (Note 3) (Note 5) (Note 3) 1 Based on C&NW Estimate. 2 No benefits are projected for this alternative. 3 Because this alternative provides no benefits except for salvage value, payback of public investment could not be achieved. 4 Assumes rail service would be resumed after five years in "railbank", thus benefits are for 6th through 20th year only. 5 Benefits would never pay back the public investment. LINE l/60 CAMERON - RICE LAKE (SOO LINE) "Haugen ~Tuscobi1 t• ice Lake Barron 11111110•••• 500 I I I I I II I I I I 0 10 20 11 Scale 1 = Smiles BARRON NARRATIVE This 6.8 mile line is located in northwestern Wisconsin in Barron County. Abandonment would not affect Sao Line shippers in Cameron, and the Chicago and Northwestern serves both Cameron and Rice Lake. Inter-railroad connections with the C&NW exist at both those locations. In 1979, 923 carloads were handled by the Soo Line at Rice Lake. Of the total, 575 were forest and wood products and 207 were petroleum and coal products. The rail is light - 60 and 80. lb. track; and ballast was last placed in 1900. The Soo Line has indicated this line is under study for potential abandonment. It is assumed that the C&NW would serve all Soo Line shippers in Rice Lake · so no further analysis has been made. VII-91 LINE 1161 WEBSTER - BOYLSTON JUNCTION ..- - _ ...... illli,!~!'91 (SOO LINE) _ .- - -- - DETAIL DOUGLAS BUR NETT jiiiillllll 0 10 20 30 Scale 1"=13miles • NARRATIVE ..• The middle twenty-eight miles of this 54.6 mile line are in Minnesota, near the northwestern border of Wisconsin, The southern nine miles are in Burnett County and the northern seventeen miles are in Douglas County. There are no connections with other railroads within the designated segment. Webster and Boylston Junction would be unaffected. In 1979, 555 carloads were handled on the line. Two of those carloads were at Patzau with the remainder at Danbury. The principal commodities were lumber and wood products which accounted for over 500 cars. The remaining cars were fertilizer. The track is almost all 80 lb. rail laid in 1911; the ballast was placed in the 1940 1 s.· The line formerly carried some through traffic between Minneapolis-St. Paul and Duluth-Superior which has since been rerouted through Ladysmith. The Soo Line has indicated that this line is under study for potential abandonment. It should be noted, however, that Danbury has the highest traffic volume on the entire line between Dresser and Superior. VII-92 ALTERNATIVES EVALUATED 1. Continuation of service from Webster to Danbury by the Soo Line. 2. Continuation of service from Webster to Danbury by a shortline operator. TRAFFIC AND OPERATING INFORMATION (1979) Alt. 1 Alt. 2 Mileage 54.6 8.9 8.9 Number of Round Trips Per Year Unk. 50 50 Est. Time Per Round Trip (Hrs.) 8.2 3.7 3.7 Terminating Carloads 3 2 2 Originating Carloads 552 551 551 Total Carloads 555 553 553 Carloads Per Mile 10 62 62 Bridge Traffic Unk. 0 0 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station PoEulation Carloads maj. commodity Carloads maj • commodity Danbury Uninc. * Pulp Logs * Salt Patzau Uninc. * Canned Foods * Canned Foods * An asterisk indicates information which is confidential because an individual shipper could be identified. ESTIMATED SUBSIDY REQUIRED FOR CONTINUED OPERATION BY CURRENT CARRIER Carrier's Estimate WisDOT Estimate (1978) Revenue $183,160 Avoidable Costs On-Branch Costs 296,179 Off-Branch Costs 139,416 Return on Investment Not Available 72,54.8 Rehabilitation Other Costs Total Avoidable Costs $508,143 ESTIMATED SUBSIDY $324,983 VII-93 ;,:, :- ':t.::::· /4 .•:\· BRANCHLINE ANALYSIS SUMMARY • Alternative 1 Alternative 2 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations $ 200,389 $ 200,389 Annual Cost of Rail Operation 76,695 125,899 Reduction in Annual Costs of Rail 0 0 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 123,694 $ 74,490 BEN~FIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $1,681,001 $1,012.319 of Rail Operation Discounted Salvage Value of Facilities 43z.496 43 z.496 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $1,724,497 $1,055,815 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a· reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit +1912 gals. +1912 gals. Air Emissions Annual Net Benefit + .20 tons + .20 tons BENEFIT/ COST RATIO . 18.08 11.07 NET PRESENT VALUE (COST) $1,629,111 $ 960,429 BAYBACK PERIOD (In Years) 1 1 LINE /!AC 1 WAUSAU - TOMAHAWK (MILW. RD.) NOT CURRENTLY PROPOSED FOR ABANDONMENT ...... - ~Oo---l"'lt••' - -~11-,,..WC Heafford Jc . Brad le • Tannery •• Jersey City 6 Tomahawk Bay Mills • Somo Jct. ! .. ~ Wi ,n Dam LINCOLN llllllilill 0 10 20 30 40 MARATHON Scale 1" = 13 miles Marathon City C & NW "'•• ee••••••••Schofield Ringle Kelly•••••o, NARRATIVE This segment extends north from Wausau to Tomahawk, a distance of 41.5 miles. The line lies in parts of Lincoln and Marathon Counties. Traffic flow is generally from north to south. In 1979 there were 2249 carloads originated and 3766 carloads terminated. Principal outbound commodities were paper and millwork. Inbound commodities were raw wood, wood pulp, and petroleum pro ducts. There were 4039 carloads of bridge traffic on-junctional at Tomahawk. Train service is provided once a day, six days per week in both directions by a crew based in Wausau. The timetable speed is 15 miles per hour. The track is largely 85 lb. rail laid from 1911-1916 with short sections of 90 and 100 lb. rail laid subsequent to that. The section between Brokaw and Tomahawk was shown on the 1978-1979 system diagram maps as potentially subject to abandonment, however further study by the Milwaukee Road resulted in the line being included on the Milwaukee II Core System. The Milwaukee Road has suggested this line as a candidate for an "advance capital" rehabilitation project. An explanation of advance capital projects is contained on page IV-5. VII-95 ALTERNATIVES EVALUATED 1. Rehabilitate to 25 MPH. TRAFFIC AND OPERATING INFORMATION Alt. 1 Mileage 41.5 Number of Round Trips Per Year 312 Est. Time Per Round Jrip (Hrs.) 12.4 Terminating Carloads 3766 Originating Carloads 2249 Bridge Traffic 4039 (Tomahawk only) Total Carloads 10054 Carloads Per Mile 242.3 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Wausau 30,368 Brokaw 251 * Paper * Raw wood, pulp Merrill 9,390 * Millwork * Sawmill Irma Uninc. Tomahawk 3,767 * Wastes, Scraps * Petroleum prod., Chemicals * Indicates information which is confidential because an individual shipper could be identified. VII-96 BRANCill.INE ANALYSIS SUMMARY Alternative 1 PROJECTED ANNUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations 0 Annual Cost of Rail Operation 0 Reduction in Annual Costs of Rail $ 354.119 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 354,119 BENEFIT-COS+ ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $4,812,479 of Rail Operation Discounted Salvage Value of Facilities <: 456,000 H TOTAL DISCOUNTED BENEFITS (DISBENEFITS) H $5,322,479 I "° Land & Track Acquisition 0 " New Connections 0 Discounted Costs of Rehabilitation 4,000,000 TOTAL DISCOUNTED COSTS $4,000,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit 119,995 gals. Air Emissions Annual Net Benefit 35.6 tons 1.33 B~FIT/COST RATIO $1,322,479 NET PRESENT VALUE (COST) PAYBACK PERIOD (In Years) 13 LINE /!AC 2 RACINE - WAXDALE ("1ILW, RD. ) NOT CURRENTLY PROPOSED FOR ABA..~DONMENT 0 I 2 SCALE 1 )_===::J MILES NARRATIVE This segment extends south and west from Racine to Waxdale in Racine County, a distance of 6,1 miles, Traffic generally flows from east to west, In 1979 there were 3673 carloads originated and 1315 carloads terminated, ~rincipal outbound commodities were agricultural machinery, cleaning products and chemicals, Inbound commodities were petroleum products, chemicals, and various commodities typically utilized by the ~opulation and businesses of large industrial cities (Racine), The track is composed of 112 lb, rail, In 1978 the line served as the main connection for Milwaukee with Kansas City, Since that time the traffic has been rerouted through 8hicago, leaving only local traffic. The line has been shown on system diagram maps as potentially subject to abandonment, but is now shown as part of the proposed Milwaukee II Core. The '11ilwaukee Road has suggested this line as a candidate for an "advance capital" project. An explanation of advance capital projects .is contained on page IV-5, VII-98 ALTERNATIVES EVALUATED 1. Rehabilitate to 25 MPH. TRAFFIC AND OPERATING INFORMATION Alt. 1 Mileage 6.1 Number of Round Trips Per Year 260 Est. Time Per Round Trip (Hrs.) 5.3 Terminating Carloads 1315 Originating Carloads 3673 Total Carloads 4997 Carloads Per Mile 819.2 Connecting Traffic 9 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station Population Carloads maj. commodity Carloads maj. commodity Racine 86,000 * Agric. Mach. * Varied Racine Jct. .. Uninc. Waxdale Uninc. * Cleaning Prod., * Petrol. Prod., Chemicals Chemicals * Indicates information which is confidential because an individual shipper could be identified. VII-99 BRANCHLINE ANALYSIS SUMMARY Alternative 1 PROJECTED A..mIDAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations 0 Annual Cost of Rail Operation 0 Reduction in Annual Costs of Rail $ $21,526 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 21,526 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) $ 292,541 of Rail Operation Discounted Salvage Value of Facilities 262,200 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $ .. 554,741 ~ Land & Track Acquisition H 0 ~ New Connections 0 I-' Discounted Costs of Rehabilitation 0 $2,300,000 0 TOTAL DISCOUNTED COSTS $2,300,000 ENVIRONMENTAL IMPACTS (A positive number reflects a savings in energy or a reduction in emissions because of the rail project) Energy Consumption Annual Net Benefit 6812 gals. Air Emissions Annual Net Benefit 2.0 tons BENEFIT/COST RATIO .24 N~T PRESENT VALUE (COST) ($1,745,259) PAYBACK PERIOD (In Years) 40+ LINE IIAC3 WAXDALE - BELOIT C-!ILW. RD.) NOT CURRENTLY PROPOSED FOR ABANDONMENT WALWORTH 11111111111 0 10 20 30 40 NARRATIVE Scale 1" = 13 miles This segment extends west from Waxdale in Racine County through Walworth and Rock counties to Beloit, a distance of 62.7 miles, In 1979 there were 714 carloads originated and 3164 carloads terminated, Principal outbound commodities were agricultural products, confections and beverages, Inbound products were chemicals, fresh fruit and sugar, Bridge traffic consisted of 39 carloads, The track is mainly 112 lb, rail, In 1978 the line served as the main connection for ~ilwaukee with Kansas City, Since that time the traffic has been rerouted through Chicago, leaving only local traffic. The line has been shown on system diagram maps as potentially subject to abandonment, but is now shown as part of the proposed Milwaukee II Core, The Milwaukee Road has suggested this line as a candidate for an "advance capital" project, An explanation of advance capital projects is contained on page IV-5, VII-101 ALTERNATIVES EVALUATED 1. Rehabilitate to 25 MPH. TRAFFIC AND OPERATING INFORMATION Alt. 1 Mileage 62.7 Number of Round Trips Per Year 260 Est. Time Per Round Trip (Hrs.) 8.8 Terminating Carloads 3164 Originating Carloads 714 Bridge Traffic 39 (Burlington) Total Carloads 3917 Carloads Per Mile 63.5 CARLOADS BY STATION (1979) Estimated 1980 Originating Terminating Station PoEulation Carloads maj. commodity Carloads maj. connnodity Union Grove 3496 * Canned fruit * Chemicals Kansasville Uninc. * Coal,Kindred Foods Burlington 9199 * Confection,Bev. ,'( Fresh Fruit,Sugar Elkhorn 4598 * Field Crops * Saw Mill, Chemicals Delavan 5715 * Silk * Saw Mill, Paper ·Darien 1143 * Canned Fruits * Canned Fruit Clinton Jct. 1626 * Field Crops * Chemicals,Grain mill * Indicates information which is confidential because an individual shipper could be identified. VII-102 BRANCHLINE ANALYSIS SUMMARY Alternative 1 PROJECTED A.'K!NUAL BENEFITS (DISBENEFITS) OF RAIL SERVICE Annual Cost of Truck Operations 0 Annual Cost of Rail Operation 0 Reduction in Annual Costs of Rail $ 395,714 Operation Due to Rehabilitation TOTAL ANNUAL BENEFIT (DISBENEFIT) $ 395,714 BENEFIT-COST ANALYSIS (Assumes Project Life of 20 Years, Discount Rate of 4%) Discounted Benefits (Disbenefits) of Rail Operation $5,377,742 Discounted Salvage Value of Facilities 403,560 TOTAL DISCOUNTED BENEFITS (DISBENEFITS) $5,781,302 BENEFIT/COST RATIO 1.63 NET PRESENT VALUE (COST) $2,241,302 PAYBACK PERIOD (In Years) 9 CHAPTER VIII WISCONSIN'S RAIL PROGRAM [49 CFR, Section 266.• 15 (c) (3) (vi) and (vii); (c) (9) (iv); (c) (12); and (d)(2)(iii) and (v)J Introduction The Wisconsin rail program represents the efforts of the state to implement solutions for rail transportation problems affecting the well-being of the economy and citizens of Wisconsin. The program is administered by the Division of Transportation Assistance of the Wisconsin Department of Transportation. Rail service continuation subsidies, correction of mainten ance deficiencies, preservation of corridors, and substitute service projects are integral parts of the assistance program. The various sources of funds, both federal and state, were discussed in Chapter IV. The remainder of this chapter discusses the currently funded projects and provides data concerning the actual operating experience of those projects. In addition, a listing of the possible projects which might be implemented before the end of 1981 is included as Table VIII-5. From that list some projects will be submitted for federal aid, some may be state aided and some may not be implemented at all. Operating Subsidy for the Ann Arbor Ferry Since April 1, 1976, the States of Wisconsin and Michigan have subsidized the operating losses of the car ferry service between Kewaunee, Wisconsin and Frankfort, Michigan, formerly provided by the bankrupt Ann Arbor Railroad. The service was originally operated by CONRAIL, under contract to Michigan, with equipment leased by Michigan from the Ann Arbor's trustees. Since October 1, 1977 Michigan Interstate Railway Company has been operating the ferry as well as the entire former Ann Arbor Railroad. An agreement between Wisconsin and Michigan, which divided the subsidy cost attributable to the ferry operation, was initiated on April 1, 1976, coincident with the availability of federal funds for rail service continuation under Section 402 of the Federal Regional Rail Reorganization Act of 1973 (3R Act). For the first operational year of that program, federal funds covered 100% of the subsidy cost, but in the second year, starting April 1, 1977, a 10% state (local) match was required. Beginning April 1, 1978, the program was shifted to the 4R Act (Rail Revitalization and Regulatory Reform Act) and a t~enty percent match was required until October 1, 1980 when the matching requirement increased to 30 percent. The impacts of loss of this service have been studied in several reports by R. L. Banks and Associates, Harbridge House, the Wisconsin-Michigan Bi-State Task Force, and others. Those reports analyzed the impacts of the loss of the ferry on the Green Bay and Western Railroad and the resultant economic impact upon the economies of the Fox and Wisconsin River VIII-! Valleys and determined that the direct economic impact of abandonment is in excess of the subsidy cost of continued service. The continuation of the AA ferry operation was also found to be the most favorable alternative from an environmental impact viewpoint in that the all-rail and especially the all-truck alternatives would contribute substantially to air, water, and noise pollution and increased fuel consumption. A summary of the costs and revenues attributable to the Ann Arbor's marine operations is contained in Table VIII-1. A summary of traffic data for the past several years is presented in Table VIII-2. WisDOT has committed a total of $885,000 of which $619,500 are federal funds and $265,500 are state funds for Wisconsin's share of the subsidy for the period from October 1, 1980 to September 30, 1981. TABLE VIII-1 FINANCIAL PERFORMANCE ANN ARBOR MARINE OPERATIONS 4/1/76-3/31/77 4/1/77-3/31/78 4/1/78-3/31/79 4/1/79-3/31/80 Subsidy $1,335,470 $1,462,459 $1,387,418 $1,315,600 Lease 259,000 259,000 259,000 259,000 Taxes Other 245 15 TOTAL $115941715 $117211474 $1 1 646 1 418 $1 1574 1600 Acc. Maint. or Rehab $ $ $ $ 680,000 Revenues $1,088,933 $ 885,394 $1,110,211 $1,290,500 SOURCE: Michigan Department of Transportation ARTHUR K. Atkinson (AKA) Ferry Rehabilitation and Operating Subsidy An application for $500,526 under Title IV of the Regional Rail Reorganization Act (3R Act) of 1973 to rehabilitate the Arthur K. Atkinson (AKA) car ferry and Place the vessel back into full service was approved in 1977 and completed in 1980. The AKA was returned to service in August 1980. VIII-2 TABLE VIII-2 RECORD OF TRAFFIC ANN ARBOR CAR FERRY Total Carloads Total Passensers Total Highwaz Vehicles 1976 1977 1978 1979 1980 1976 1977 1978 1979 1980 1976 1977 1978 1979 1980 January 1,041 756 806 1,387 1,827 277 213 313 361 400 157 110 239 212 183 February 1,100 278* 719 1,714 1,578 292 34* 354 299 374 150 28* 264 130 201 March 1,244 516* 781 1,802 1,483 318 170* 554 530 489 185 106* 359 249 264 April 1,192 839 787 1,606 1,286 620 52L 751 968 826 355 281 472 416 399 May 1,043 910 760 1,695 .1,375 661 934 1,516 1,172 1,203 370 414 730 522 629 June 990 882 718 1,187 1,405 1,536 2,033 3,164 906 2,720 600 814 1,425 390 1,198 July 975 763 801 1,693 1,337 2,650 5,564 7,309 4,265 5,234 958 1,959 2,762 1,554 1,870 October 1,086 767 855 2,093 1,544 863 1,062 1,697 1,587 1,168 464 530 851 737 597 November 852 732 817 1,473 1,413 432 574 552 743 699 292 334 334 353 362 December 919 ...... m. ~ ~ 1°,465 ~ 518 ~ 556 713 _lli __.BQ.__ill_ _ill_ 306 Total 12,690 8,793 9,862 20,320 17,831 14,286 18,712 26,784 18,645 22~869 5,994 7,714 11,673 7,626 9,397 * The Viking was out of service from February 8, 1977, to March 16, 1977, due to ice condit~ons and boat repair. Source: Michigan Inter.state Railway Company The AKA had been in operation by the Ann Arbor until August, 1973 when the vessel's crankshaft was broken, the vessel was laid up, and the Manitowoc-Frankfort line was embargoed. The AKA had served both the 63.67 mile route from Kewaunee, Wisconsin to Frankfort, Michigan, and the 79.73 mile route from Manitowoc, Wisconsin to Frankfort, Michigan. The rehabilitation completed in 1980 restored the vessel to its previous operating condition. Carferry Dock Rehabilitation An application for federal financial assistance to repair the car ferry slips in the ports of Kewaunee and Manitowoc has also been approved by the FRA. The estimated costs are $367,362 for the C&NW dock at Manitowoc and $39,877 for the GB&W dock at Kewaunee. However, given that a possible change in the type of car ferry vessels is being considered, this project has been delayed and the funds may be reprogrammed. The two car ferry slips currently in use by the C&O at Manitowoc are leased from the Chicago and North Western Transportation Company. The slips are located in the outer harbor of Manitowoc. Car ferry slip #1 (the westernmost slip) is now out of rail service because it is in disrepair and because the short apron is unsuitable for modern-day railroad cars. How ever, the C&O still uses it as an auto loading facility. Ferry slip #2 (the eastern100st slip) is currently used by the C&O ferries and formerly by the Ann Arbor for railroad car loading. As a result of the condemnation of slip #1 for serving rail freight cars, ferries now tie up at slip #1 to discharge and load autos and passengers via the auto ramp and then shift to slip #2 in order to discharge and load rail cars. This procedure results in an average delay of approximately 1 to 1-1/2 hours at the pier. Slip #2 does not require complete rebuilding but only modest repairs. The proposal to rehabilitate the Manitowoc ferry dock recommends repair of slip #2 and realignment of the auto loading and unloading ramp. This is the least-cost alternative and would eliminate the unnecessary delay caused by shuttling the ferries back and forth between the two slips. Establishment of the Brillion-Forest Jct. Railroad The initial application for federal 4R funds for this project was approved in April, 1978 and provided rail service continuation assistance, accelerated maintenance assistance, and substitute service assistance to continue rail t·ransportation service from Forest Junction to the eastern Calumet County line near Brillion. The accelerated maintenance and a bulk commodity rail car loader/unloader and team track facility at the ~astern end of the line were completed in 1978. The impetus for the project was provided by three major shippers on this segment of a former Chicago and North Western branch line who have established a corporation (AFW Realty Co., Inc.) and purchased 6.7 miles df line. AFW has contracted for operating service with the Brillion and Forest Junction Railroad Company, a short line formed for the purpose of providing this service. The new short line connects with the Milwaukee Road at Forest VIII-4 Junction. It was originally projected that shipping volumes and resultant revenue will reach a point where the line would be self-sustaining by 1982 and until that time, rail service continuation assistance would be required. The current $45,000 grant (50% of total subsidy requirement of $90,000) to the city of Brillion for assistance to this line runs through September, 1981. This is the final year of public assistance for this project. the experience of the B & FJ has not met expectations. As can be seen in Tables VIII-3 and VIII-4, traffic has been relatively low and the losses higher than originally anticipated. Recent implementation of a TOFC agreement with the Milwaukee Road, after years of negotiation, is seen as the keystone to future profitability of the B&FJ. Establishment of the Nicolet Badger Northern Railroad A 4R project to construct an interchange to connect approximately 36 miles (from Wabeno to Tipler) of a former Chicago and North Western line to the Soo Line Railroad at a point approximately two miles west of Cavour was completed in October 1980. In addition, applications were submitted by the Forest Transit Commission to the Economic Development Administration, Farmers Home Administration, and Upper Great Lakes Regional Commission for funds to cover the cost of rehabilitation of the line. The prospective operators of the line do not anticipate the need for any operating subsidies. WisDOT purchased the right-of-way and track from the C&NW and leased the facilities to the Forest Transit Commission composed of Forest County and the towns of Long Lake and Tipler in Florence County. The Transit Commission has contracted with Transportation Cybernetics, Inc. to operate the line. The total cost of the interchange was $250,000 of which $200,000 was provided through federal 4R funds. Rehabilitation of the Municipality of East Troy Wisconsin Railroad The Municipality of East Troy Wisconsin Railroad, established in the 1930's, is one of the few municipally owned railroads in the nation. A major rehabilitation of its 7.2 miles of track was completed in November, 1979. The project used $151,000 of state funds, $324,000 from. the Economic Development Administration, and $225,000 from the Village of East Troy for a total of $700,000. The project was the first major rehabilitation of the line since 1907. VIII-5 TABLE VIII-3 RECORD OF TRAFFIC BRILLION AND FOREST JCT. RAILROAD Carloads by Station Forest Jct. Brillion Transloader Total ____1978 19791___ 19807_ ____1978 19792___ 19804_ 1978 1979 1980 1978 1979 1980 January 2 12 -~23 February 5 11 8 5 1 0 14 16 March 7 6 12 7 2 0 21 13 April 17 4 15 1 0 0 32 5 May 4 1 5 10 3 2 12 13 June 4 6 0 6 4 4 0 0 1 10 10 5 July 9 6 6 3 5 16 0 2 24 12 13 46 August 4 7 3 4 14 13 0 3 0 8 24 16 September 4 6 0 7 3 9 0 2 2 11 11 11 October 2 7 2 6 3 18 5 2 6 13 12 26 November 5 5 0 3 11 16 2 5 5 10 21 21 December 2 0 1 10 11 32 5 6 3 17 17 To_tal 30 71 41 39 93 135 12 28 55 81 192 231 Source: Brillion and Forest Jct. Railroad TABLE VIII-4 FINANCIAL PERFORMANCE BRILLION AND FOREST JCT. RAILROAD Twelve Months Ending Twelve Months Ending June 30 2 1979 June 30 21980 Operating Revenues $· 13,884 $ 23,935 Operating Expenses Normalized Maintenance $ 25,277 $ 58,192 Equipment 14,595 12,176 Transportation 31,163 27,764 General & Admin. 18,834 24,011 Sub-Total $ 89,869 $ 122,143 Operating Gain (Loss) ($ 75,985) ($ 98,208) Other Expenses Accelerated Maintenance $ 33,073 $ 488 Interest Expense 3,176 5 2129 Sub-Total $ 36,249 $ 5,617 Net Gain (loss) Before Subsidy ($ 112,234) ($ 103,825) Source: Brillion and Forest Jct. Railroad VIII-6 Establishment of the Chicago, Madison, & Northern (Sparta-Viroqua Line) On February 22, 1980, WisDOT acquired the abandoned Sparta-Viroqua branchline, including land and improvements from the Milwaukee Road for an award of damages of $171,057, using state rail funds. An Improved Railroad Property Agreement between the Viroqua-Westby-Vernon Transit Commission and WisDOT granted ownership of the improvements on the property to the transit commission. The major condition for the grant was the payment of 20% of the value of the improved property by the Commission to WisDOT. Since, the total value of the improvements was determined to be $108,186, the Commission paid $21,437.20 and the state paid $85,748.80. Although ownership of the land remains with the Department, the land was leased to the Commission which was empowered to use it for railroad operation. The Commission has subsequently contracted with the Chicago, Madison and Northern Railway Company to operate the line with operations actually beginning March 4, 1980. To restore the line to a reasonable condition, the Commission requested rehabilitation funds from the state in the amount of $1,912,964. In turn, the state requested 4R funds from the FRA and received approval to fund the first phase of the project in the following manner: First Phase . Funding Source/Total (9/1/80-5/1/82) Total Project Federal Railroad Administration $337,672 $1,224,297 WisDOT 84,418 306,074 CM & N Railway Company 35,735 191,297 V-W-V Transit Commission 69,768 191,296 Project Total $527,613 $1,912,964 The Commission will provide 20% of the rehabilitation costs through a combination of public and operator funds. The state will provide 80% of the total cost using a combination of state and federal funds. Establishment of the Chicago, Madison, and Northern (Janesville-Mineral Point Segment) WisDOT acquired the abandoned Janesville-Mineral Point branchline from the Milwaukee Road in two separate transactions using state rail furids: The Monroe-Mineral Point segment was acquired for an award of damages of $214,091 on February 26, 1980 and the Monroe-Janesville segment was·similarly acquired for $361,900 on March 27, 1980. Subsequently the improvements on the property valued at $453,367 were conveyed to the Pecatonica Transit Commission. The Commission paid $90,673.40 (20% of the value of the improvements) under the.· terms of the grant. The Commission then contracted with the Chicago, Madison & . Northern Railway Company to operate the line, effective March 2, 1980. VIII-7 In addition, rehabilitation funds were requested, in the amount of $4,177,161, to upgrade the line, with first phase funding being approved in October, 1980. A breakdown of the various sources of the funds is as follows: First Phase Funding Source/Total (9/1/80-5/1/82 Total Project Federal Railroad Administration $565,834 $ 2,668,434 WisDOT 141,459 667,108 CM&N Railway 123,303 416,921 Pecatonica Transit Connnission 53,520 418,512 Project Total $884,116 $ 4,177,161 Establishment of the Central Wisconsin Railroad WisDOT acquired the abandoned Milton Junction - Waukesha branchline from the Milwaukee Road on February 26, 1980 at an award of damages cost of $266,677 using state rail funds. Subsequently, the improvements on the property, valued at $205,950, were granted to the City of Whitewater. The terms of the grant agreement required the City to pay 20% ($41,190) of the value. The City then contracted with the Central Wisconsin Railroad Company to operate the line beginning March 4, 1980. Establishment of the Wisconsin and Southern Railroad In February and March 1980, WisDOT acquired the following segments of the Milwaukee Road's Northern Division using state rail funds: Ripon to Oshkosh, $138,900; N. Milwaukee to Horicon, $1,644,000; Horicon to Cambria, $347,880; Horicon to Ripon, $830,090; Brandon to Markesan, $88,500; Granville to Menomonee Falls, $108,020; and Iron Ridge to Fond du Lac, $236,780. The total cost of the entire package was an award of $3,157,390. Subsequently, the improvements on the property, valued at $2,200,000, were conveyed to the East Wisconsin Counties Rail Transit Connnission under a grant which required that the Commission pay $440,018 or 20% of the value of the improved property. The property conveyed to the Commission did not include the Mayville to Fond du Lac segment of the Iron Ridge-Fond du Lac line. The Commission then contracted with the FSC Corporation for operation of the line as the Wisconsin & Southern Railroad Company. The new company began operations on July 1, 1980. Later, the transit commission requested rehabilitation funds which were approved as follows: Funded First Phase Funding Source/Total (10/1/80-2/1/82) Total Project Federal Railroad Administration $1,329,453 $3,954,745 WisDOT 332,363 988,686 East Wisc. Counties Rail transit comm. 415,494 1,235,858 Project Total $2,077,270 $6,179,289 VIII-8 In addition, the operator has received loan guarantees and bonds from the Farmers' Home Administration. FSC provided the full amount of the local share for the transit commission. Continuation of Service to Midland Co-op in Fond du Lac The Iron Ridge-Fond du Lac line was acquired by WisDOT through condemnation on March 27, 1980. Subsequently, the improved property on 5520 feet of the line, which connects the Midland Cooperative in Fond du Lac to the Sao Line, was conveyed to Fond du Lac County. The County paid WisDOT 20% of the total value of the improved property, or $4550 of the $22,751 total, under the terms of the agreement. Fond du Lac County then contracted with the Sao Line for operation of the segment. In addition, the County requested rehabilitation assistance for the line which was granted as follows: Funding Source/Total Project Cost State $104,630 Sao Line Railroad 20,000 Fond du Lac County 6,158 a. FSC Corp. $5450 b. Midland Coop $ 708 Project Total $130,788 The project is underway and scheduled for completion in 1981. Establishment of'the Chippewa River. Railroad WisDOT acquired the abandoned Durand-Eau Claire branchline on March 22, 1980 at an award of damages cost of $235,000, using state rail funds. Subsequently, the improved property, valued at $130,607, was conveyed to the Western Wisconsin Tri-County Transit Commission. Under the terms of the grant, the Commission paid WisDOT 20% of the total value of the improved property, or $26,121. The Commission contracted with the Chippewa River Railroad Company for operation, beginning in July 1980. Because of the need for very costly bridge repairs, this operation may be ended in the spring of 1981. Acquisition of the Janesville-Avalon Line WisDOT purchased the abandoned Janesville-Avalon line from the Milwaukee Road on March 27, 1980 at an award of damages cost of $293,700 using state .rail funds. The line is currently not being operated but discussions are underway to restore rail service to Avalon. Acquisition of the Walworth-Avalon Line WisDOT purchased the abandoned Walworth~Avalon segment from the Milwaukee Road on February 26, 1980 at an award of damages cost of $363,919 using state rail funds. The state has removed, but preserved the option to reinstall, the rail diamond at Bardwell, and has banked the line for possible future restoration of rail service. VIII-9 Acquisition of the Tomahawk-Heafford Junction Line WisDOT purchased the abandoned Tomahwawk-Heafford Junction line from the Milwaukee Road on February 26, 1980 using state rail funds at an award of damages cost of $67,878. The state then conveyed the improvements on the property to Lincoln County. Under the terms of the grant agreement, Lincoln - County paid the state 20% ($12,230) of the total value of the improvements ($61,150) and will preserve the line for possible future restoration of rail service. Racine-Kenosha Rail Passenger Demonstration Project A two year experimental rail passenger service project to extend Chicago oriented commuter service from Racine to Kenosha will begin in the spring of 1981. The estimated cost is $1.6 million for track rehabilitation plus about $600,000 per year for operating subsidy. These costs will be funded primarily by the federal government with matching funds to be provided by local governments. Portions of the cost of rehabilitation will be provided by the Chicago and North Western Railroad and WisDOT, with the latter providing $200,000. Other Potential Projects Potential projects for 1981 and beyond are shown in Table VIII-5. As required by 49 CFR 266.15(c)(12), projects are listed in priority order. The priority ranking system, explained more fully in Appendix F, employs the following five criteria: · a. Eligibility - Projects must meet federal and state statutory requirements. b. Service continuation - Projects which will continue rail service without interruption or with only minimal interruption are generally ranked above "railbanking" projects. c. Self-sufficiency - Projects where revenues are projected to cover operating costs are generally ranked above projects where revenues will not cover operating costs. d. Essentiality - Essentiality of rail service is defined and applied to Wisconsin rail lines in Chapter IX. Generally, the more essential lines are ranked above the less essential lines. e. Benefit-Cost ratio - Within the above groupings, the projects are ranked in order of their ratio of net benefits to net costs. In addition, several factors which may change the actual timing, scale, d'escription, or priority of projects must be recognized: a. Private railroad company decisions regarding the timing of abandonment applications may determine whether a potential rail service continuation project would actually be undertaken in any given year. The railroad company also determines, for the most part, the actual segments proposed for abandonment and thus potentially eligible for inclusion in a project. VIII-10 b. All costs and benefits are subject to revision as project concepts are firmed-up and as more and better data and cost estimates become available. c. Rail abandonment impacts not measureable in dollars and therefore not included in the project ranking methodology, might also be taken into consideration in the final project selection. d. Most projects, with the exception of the cross-lake ferry operating subsidy, require local participation and local funding, and the lack of those elements will effectively eliminate a project. e. A shortage of state and/or federal funds may delay or eliminate the funding of the lowest ranking projects. It should also be noted that any lines or parts of lines which are not continued in a rail operation are eligible for substitute service projects or for corridor preservation utilizing the Wisconsin Department of Transportation's corridor preservation program. Three such projects are specifically included in Table VIII-5, but the circumstances cited above may cause other listed projects to be changed to substitute service or corridor preservation projects. As a final note, federal regulations require that the rail plan include a "program of projects" which identifies potential projects and anticipated submission dates for which the state might submit applications for federal funds. The regulations also require that the projects be prioritized, that the amount of funds and the location, duration, and type of project be identified. Appendix J, which is an expansion of Table VIII-5, is intended to fulfill those requirements. VIII-11 TABLE VIII-5 PRELIMINARY LIST OF POSSIBLE RAIL SERVICE CONTINUATION PROJECTS Benefit/ Estimated Future Costs ($000) Line I/ Self Cost Land & Priority Project Alt. /1 Miles Sufficiency Essentiality Ratio Track ~ Other Total 1 Ashland Restructuring 54-4 1.0 Yes 95 12.98 247 0 0 247 2 Madison-Richland Center, 51-1 64.7 Yes 59 8.32 1,122 1,882 0 3,004 Acquisition and Rehab. 3 Wisconsin & Southern Rehab. 19 et al 147.2 Yes 45 6.11 5,737 0 5,737 4 Weston Spur-Tomahawk AC-1 41.5 Yes 66 1.33 0 4,ooo3 0 4,000 Class II Rehab. 5 Trempealeau Team Track 7-1 Yes 50 1.31 0 0 77 6 Green Bay-Iron Mountain, 47-1 88.6 Yes 25 6.82 0 2,570 0 2,570 Class II Rehabilitation 7 Humbird Team Track 2-1 Yes 16 3.75 0 0 40 3 8 Waxdale-Beloit, Class II Rehab. AC-3 62.7 Yes 29 1.63 0 3,540 0 3,540 1 9 Ann Arbor Ferries, 36 31.8 No 50 4.99 0 o 8854 885 Operating Subsidy 10 Janesville-Monroe, 26-2 33.4 No 50 1.34 1,898 0 1,898 Class II Rehabilitation 11 Reedsburg-Elroy and Hillsboro, 53-2 21.3 No 25 2,08 617 392 0 1,009 Acquisition and Class I Rehab. 12 Sparta-Viroqua, Class I Rehab. 20-1 32.2 No 25 1.44 1,783 0 1,783 13 Monroe-Mineral Point, 21-1 46.3 No 25 1.31 1,870 0 1,870 Class I Rehabilitation 5 14 Monico-Eagle River, 55-2 25.7 No 25 1.11 326 514 250 1,090 Acquisition & Class I Rehab. 15 Marathon City-Marshfield- 3-4 51.6 No 22 1.02 1,173 565 0 1,738 Greenwood, Acquisition & Class I Rehab. 16 Madison-Freeport, Acquisition 34-2 12.2 No 25 0.89 0 250 5 250 and New Interchange 17 Turtle Lake-Cumberland, 58-3 12.5 No 25 0.65 302 312 0 614 Acquisition and Class I Rehab. 18 Milton Jct.-Waukesha, Class II 22-3 41.0 No 20 0.47 2,050 0 2,050 Rehabilitation 19 Clintonville-Marion, Acquisition 59-2 6.8 No 25 0.68 180 0 0 180 for Railbank · TOTALS 720.5 3,967 27,113 1,502 32,582 1 Items for which expenditures have been completed in a previous year. 2 "Substitute service" project. 3 "Advance capital" rehabilitation project. 4 Operating subsidy 5 Construction of new connection NOTE: This table includes all possible projects which preliminary analyses show might be justified under federal criteria. From this list, some projects may be submitted for federal aid, some may be entirely state aided, and some may not be implemented at all. It is also possible that some new projects could be added. Furthermore, it should be recognized that project concepts, priorities, eligibility, and cost estimates are subject to extensive revisions as local studies, abandonment proceedings, and other opportunities for new information and analysis are available. All lines, not included in the above list, are eligible for substitute service or corridor preservation (state funds only) projects provided the benefits of the proposed project exceed the costs. VIII-12 CHAPTER IX DETERMINING THE ESSENTIAL RAIL SYSTEM Introduction Most railroad facilities in the United States were constructed in an earlier, expansionary era, under vastly different market conditions from those which prevail today and when there was very little competition from other modes. The changes which have occurred in market structure and intermodal competition have led to the current situation where there are now many miles of track and other facilities of the wrong kind and in the wrong location to survive in the current competitive climate and under modern development patterns. These changing conditions and situations have forced the railroad industry to make significant changes in its economic and physical structure. This is especially true for financially troubled railroads, such as the bankrupt Milwaukee Road. Many railroads are currently analyzing specific line segments in their systems in order to eli minate unnecessary lines and to consolidate some traffic onto parallel or connecting lines in order to reduce operating and maintenance costs. Of the major, multi-commodity transportation modes, only railroads own essentially all the fixed facilities needed to conduct their business. The full ownership of the plant causes the cost of operation of that plant to be fixed relative to other modes who pay either a user charge, as in the case of truckinf, or no user charge at all, as in the case of inland water transport. Furthermore, two or more railroads often provide duplicate services to specific locations, resulting in several expensive to maintain and underutilized facilities serving the same limited market. Given that it is financially impossible for some railroads to maintain all of their fixed plant· to minimum standards, the alternative often chosen by the railroad is to reduce the amount of fixed plant in order to at least maximize the benefit of any scarce resource investment by maintaining the most important track segments and eliminating the less important track segments. Because federal 4R funds are now available through the state to aid the railroads in track rehabilitation for non-abandoned lines, a prime issue will be to determine where to invest those public funds. This attempt to evaluate the total state rail system will help to provide guidance for determining investment priorities. A further benefit from such an analysis is that it can also provide guidance in determining how a segment proposed for abandonment relates to the overall rail system. The State should not allow a segment of line to be abandoned and perhaps lost forever, if later that segment will be needed for thru-traffic or if it is ·the best route to a particular location which faces loss of other rail service routes. Designation of essential corridors will thus enable the State to better develop its position in abandonment proceedings, to evaluate when 1 Recently passed federal legislation calls for instituting for the first time, a user tax (fuel tax) on inland waterway commercial traffic. IX-1 public financial assistance for rail service continuation is justified, or to determine when the corridor should be preserved even if current con tinuation of rail service cannot presently be justified. Methodology for Evaluating the Total Railroad System There are several considerations associated with a systemwide rail ana lysis. Perhaps the foremost of these is the lack of data for lines not included on the system diagram maps (see Chapter VI for an explanation of system diagram maps). This lack of specific data is due to the fact that the railroads are privately owned businesses and are under no obligation to reveal certain types of information about their internal operations. The exception to this occurs when a line is filed for abandonment and to some extent when a line is included in categories 1 and 2 on the system diagram map. The ICC requires specific data for these lines to be made available to the public. Another consideration stems from two organizational aspects of the railroad industry. First, most railroad companies are independently managed, each pursuing its own goals in its own way. The individual com~ panies differ widely in size, financial condition, operating aspects, and managment philosophy. Second, railroads compete intensively among them selves for available traffic. These two characteristics in combination with current regulatory and anti-trust policy prohibit a significant degree of integration and coordination between railroad companies. This lack of integration and coordination makes a systematic rationalization of the existing rail system very difficult - conceptually, competitively, and operationally. Another consideration is the fact that the State has not been offi cially designated a significant role in rail matters, other than its role in determining the final disposition of abandoned lines. This situation makes the validity and usefulness of State rail system analyses somewhat questionable. However, the state's role is expanding. Dispite having acknowledged and evaluated the conceptual and opera tional problems associated with statewiqe rail system analysis, it was affirmed that the potential benefits associated with such an analysis were significant and that such an analysis should be pursued. It was determined that the primary input to the evaluation of the existing Wisco.nsin rail system should be rail transport oriented economic activity data obtained for each place located on the rail network. These data would provide a profile of the spatial distribution of rail transport oriented economic activity and would therefore provide a profile of the spatial distribution of potential demand for rail service. The choice of economic activity data was based on two considerations: First, as has already been indicated, rail traffic data is not generally available to public agencies. Second, even if traffic data were available, its use could obscure a latent potential demand for rail freight service since such data profiles shipping behavior for a single point in time. (That is, the average use of rail service by a firm could be significantly higher than what is indicated by single time period traffic data.) It was then determined that economic activity data should be used to develop a classification of places. The highest order class in the place classification scheme would contain those places which demonstrate the IX-2 greatest potential demand for rail freight service. The lowest order class in the classification scheme would contain those places which demonstrate the least potential demand for rail freight service~ This classification of places would provide the primary input to the process of determining which segments and subnetworks of the existing rail network are essential for the efficient operation of the regional economies which comprise the State economy. The specific economic activity criteria used to determine the essen tial rail network include the following: 1. A basic classification of places on the basis of rail transport oriented manufacturing and wholesale/retail activity. 2. Location of fossil fueled electric power plants and heating plants. 3. Location of water ports (water rail transfer facilities). 4. Location and output of mines and certain types of quarries. 5. Location of grain elevators and/or processors and their rail traffic levels. 6. Location of pulpwood production areas and their rail traffic levels. 7. Fertilizer distribution facilities. The following national defense and system performance/continuity cri teria were also included: 1. Location of military bases. 2. The benefit/cost ratio calculated in Chapter VII for lines included on system diagram maps. 3. A spacing criteria so that no area of the State will be an excessive distance from ra~l service. 4. A system continuity criteria which minimizes excessive circuity in car routing. These specific activity criteria were applied to the existing State rail , system as shown in Table IX-I. Each set of criteria generates a rail subsystem, each of which is a tier in a hierarchy of subsystems which represents a set of alternative levels of essential rail service for the State. The first set of criteria generates the most essential rail subsystem. Similarly, the sec·ond set of criteria generates the second most essential rail subsystem, and finally, the last set of criteria generates the least essential rail subsystem. A line must meet any one of the criteria for the tier in which it is classified. It should be noted that provision for future increases in the need for rail service has been incorporated into the criteria by including proposed power plants, potential mines, and any other known new rail dependent facilities. Although documented evidence of any type of future growth is also incorporated into the benefit/cost calculations, some unanticipated future IX-3 growth is accounted for by allowing any line with a B/C ratio within .10 of the cut off for a higher tier to be given the benefit of the doubt (uncertainty) and moved to the next highest tier. The classification criteria were developed to apply to branch lines only. The criteria are not generally applicable to mainlines whose essen tiality derives primarily from their role in interregional traffic movement and to a much lesser extent from the origination and termination of local traffic. The FRA designations for mainlines and branchlines were used in this analysis .Jj It should be recognized that although updated from the previous rail plan, this is still a preliminary attempt at determining rail line essentiality using a state-level rail system analysis approach. It should be recognized that both the essentiality determination process and the individual branch line analysis process are undergoing an evolutionary process. Undoubtedly, refinements to the process will continue to be introduced in future rail plan updates. The basic classification of places on the basis of rail transport oriented manufacturing and wholesale/retail activity which provided the place type criteria in Table IX-1 was obtained through an analysis of 1977 employment data contained in a computer file maintained by the Wisconsin Department of Industry, Labor and Human Relations (DILHR). A data matrix of the following general form was obtained through computer processing of the DILHR file: Activity 1, Activity 2, •••• Activity n Place 1 x11, •••••••••••, X1n = X Place m ...... , X mn This data matrix provided the basic classification criteria for the place classification analysis. Each element in the matrix is an employment level in specific types of rail transport oriented manufacturing or wholesale/retail activity at a specific place. The rows of the matrix provide a profile of rail transport-oriented manufacturing and wholesale/retail activity for 355 places located on the Wisconsin rail network. The activity variables were formed by grouping individual four digit SIC (Standard Industrial Classification) activi ties (industries) on the basis of their demonstrated propensity to use rail freight service. National input-output coefficients indicating the dollar's worth of rail freight transportation required by four digit SIC industries to produce one dollar's worth of final production were used to group the four-digit manufacturing activities. Data from the Census of Transportation was used to group the four-digit SIC wholesale and retail activities. These data indicate the percentage of freight traffic, classified by Standard Transportation Commodity Code (STCC), moving into the East North Central census region by rail. 1/ Federal Railroad Administration, Final Standards, Classification, and Designation of Lines of Class I Railroads in the United States, January 19, 1977. IX-4 (The East North Central census region is comprised of Wisconsin and four other midwest states.) Ten manufacturing and three wholesale/retail activity variables were developed for the classification analysis. All places on the Wisconsin rail network with very marginal levels of employment in rail transpor tation oriented economic activities were excluded from the classification analy sis. A discussion of the employment level criteria used to exclude places from the classification analysis is included in the technical paper referred to on page IX-6. The data matrix X described above was transformed into a new data matrix of the following form: Activity 1 ••.•.•• Activity k Place 1 ...... , Ylk = y Place m 0 Yml ' • • • • • • • • • • ' Ymk k = 1,4 The activity variables in this data matrix were formed by weighting, grouping and summing the activity variables contained in the original data matrix as follows: Yl = lOXl + 9X2 + 8X3 Y2 = 7X4 + 6X5 + sx6 3X Y3 = 4X7 + 8 + 2X9 + XlO Y4 = 9WR1 + 6WR2 + 2.SWR3 where x1 , ••• , x10 are the manufacturing activity employment variables and WR1 , WR2 , and WR3 are the wholesale/retail activity employment variables. The variables were weighted according to the degree to which the set of economic activities they represent demonstrate a propensity to use rail freight service. The reduction of the dimensionality in the original classification criteria data matrix X through specification of the new data matrix Y was performed to assure the efficient operation of the com puterized classification algorithm that was used to perform the place classification and to help assure meaningful final classification results. The final place classification was obtained using a computerized mathematical/statistical method generally referred to as cluster analysis. Data input to the classification algorithm was the data matrix Y containing the four classification criteria variables Y1, ••• ,Y4. The first run of the algorithm generated 22 groups of places. The mean vectors associated with these groups Yi= (Yi1, ••• ,Yi4) (i = 1,22) were retrieved and used as classification criteria input for a second run of the cluster analysis algorithm. The results of the second run of the algorithm using the group mean vectors in combination with some systematic subjective evaluation produced a final classification of places consisting of five place classes. Each of these classes contained places with similar concentrations of rail transport IX-5 oriented economic activity. A sixth place class was added to the classi fication consisting of major metropolitan centers located in and adjacent to Wisconsin (Milwaukee, Minneapolis, St. Paul, Chicago). The final basic classification of places is displayed in Figure IX-1. The individual four-digit SIC industries contained in the manufac turing, wholesale and retail activity sectors demonstrate a high degree of variability with respect to propensity to use rail freight service. It was for this reason that a more analytical, quantitative basic classifica tion of places based on these economic acivity sectors was performed. Many of the other types of economic activity criteria included in Table lX-I demonstrate a much lesser degree of within sector variability with respect to the use of rail freight service and therefore could be entered into the rail line classification analysis in a more qualitative manner. A similar place classification analysis -was performed for the 1978 Wisconsin Rail Plan. In this analysis, the dimensionality of the original classification criteria data martix (a matrix very similar to X) was reduced to five principal dimensions of rail transport oriented economic activity using a mathematical/statistical method generally referred to as principal components analysis. The principal dimensions obtained in this analysis are analogous to the composite variables Y1, ••• ,Y4 specified above. They are linear combinations of the original economic activity variables. An intractable problem was encountered with this particular application of pr.incipal components analysis. The principal components method combined highly rail-oriented and moderately/marginally rail oriented activities into the same principal dimensions (linear combinations). This was an undesirable result for reasons which are readily apparent. In retrospect, it was concluded that principal com ponents analysis is not an appropriate method to use in a classification analysis when the set of classification criteria being used has a hierarchical structure as is the situation here. Principal components analysis (with varimax rotation) was applied to the data matrix X described above, and the same activity grouping problem was encountered to an even greater extent. The more subjective approach of specifying the composite variables y 1, ••• ,Y4 resolved the variable grouping problem associated with principal components analysis. The classification of places based on the composite variables conformed better to available rail traffic data than did the classification of places which was developed for the 1978 Rail Plan. A detailed explanation of the methodology used to develop this basic place classification based on rail transport oriented manufacturing and wholesale/retail activity can be found in a WisDOT technical report entitled "Place Classification for State Rail System Planning" (forthcoming). That report is based on a general place classification methodology developed· by Berry (1965)1 and Berry, et al (1972) 2 and on a 1 Berry, B.J.L., "The Mathematics of Economic Regionalization", Proceedings, Brno Conference on Economic Regionalization, Brno: Czech Academy of Sciences, 1967. 2 Berry, B.J.L., (ed.), City Classification Handbook, Wiley-Interscience, New York, 1972 •• IX-6 specific application of cluster analysis developed by Greene, et al (1979).1 The following types of economic activity were not introduced into the basic classification: 1. Utility plants 2. Mining activity 3. Waterports (water/rail transfer facilities) 4. Primary forest products production These activities were excluded from the basic place classification because it was determined that employment was not a good measure of their rail traffic generation potential at specific locations. Water/rail transfer activities, utility plant operations and mining activities are all highly mechanized activities with relatively low labor/capital ratios. This characteristic suggests that employment would understate the actual rail traffic generation potential associated with these activities, par~ ticularly relative to other types of rail transport oriented economic acti vity which are generally more labor intensive in nature. In the case of primary forest production (and also utilities), the DILHR computer file did not provide employment information in the required detail and/or for mat. The use of employment information was also somewhat questionable for wholesale/retail fertilizer distribution and grain storage/processing, again because of relatively low labor/capital ratios. Military bases were introduced into the analysis independent of their employment levels because of their importance to national defense. Each of these elements was stratified, where appropriate, into several quantifiable levels. Elements judged to have a similar need for rail service were then grouped into one of the six groups of activity criteria. Table IX-1 shows all of the elements included in each criteria grouping. A brief discussion of the activities not included in the basic classification is presented in the following pages with their locations displayed in Figures IX-2 through IX-5. Greatly increa.sed use of coal and wood lies at the heart of most proposed national energy plans. But without adequate transportation capability to deliver the additional millions of tons of coal from the mines, there can be no massive conversion from other fuels. Utility plants are presently and will continue to be, the prime users of coal. Therefore, the location.· of these plants should be a prime determinant in establishing the essential rail system. Locations of the major electric power plants and heating plants are shown on Figure IX-2. 1 Greene, David L., Robin Dubin and Connie Begovich, "Multivariate Classification of Automobiles Using an Automobile Characteristics Data Base," Oak Ridge National Laboratory, 1979. IX-7 TABLE IX-1 CRITERIA FOR ESTABLISHING LEVELS OF ESSENTIALITY FOR BRANCH LINES Tier 1 Lines Tier 4 Lines (Continued) 1. Connect major metropolitan areas (i.e., Milwaukee, Chica30, Twin 4. Provide access to major fertilizer wholesalers. Cities, etc.). 5. Provide access to mines and quarries shipping less than 100,000 2. Provide access to power plants and heating plants using an average tons, but more than 10,000 tons a year. of 100,000 tons or more of fuel a year. 6. Provide access to power plants and heating plants using less than 3. Provide access to waterport facilities which ship/receive more than 25,000 tons of fossil fuel per year and having a generating capacity 1~000,000 tons per year. greater than 5,000 kW. 4. Provide access to mines or quarries shipping more than 200,000 tons 7. Provide connections and system continuity for lines in Tier 4 or of material per year by rail. above to avoid excessive circuity where the predominant flow of traffic is to or from the location served by the connection. 5. Provide access to military bases designated by the Department of Defense as requiring rail service. Tier 5 Lines 6. Provide the only interstate connections to lines considered essential 1. Connect type 5 industrial places to higher level lines.Cl) to surrounding states. 2. Penetrate pulpwood gathering areas shipping between 10 and 20 car Tier 2 Lines loads per mile by rail. 1. Connect type 2 industrial places to higher level lines.Cl) 3. Provide access to closed mines with potential for reopening more than five years in the future and operating mines and quarries 2. Provide access to power plants and heating plants using less than producing less than 100 carloads per year. H 100,000 but more than 25,000 tons of fuel per year. ~ 4. Provide rail service to station locations which otherwise would lie :::0 3. Provide access to waterports shipping/receiving less than 1,000,000 more than 25 miles from rail service. tons per year. 5. Provide access to fertilizer retailers. 4. Provide access to mines or quarries shipping more than 100,000 tons of material per year by rail. Tier 6 Lines 5. Provide access to locations with proven but as yet untapped mineral 1. Connect type 6 industrial places to hig~er level lines. deposits. 2. Penetrate pulpwood gathering areas shipping less than 10 carloads Tier 3 Lines per mile by rail. 1. Connect type 3 industrial places to higher level lines.Cl) 3. Any location, not otherwise classified, which generates rail traffic. 2. Penetrate pulpwood gathering areas shipping more than 30 carloads Redundant Lines per mile by rail. 1. Lines which originate or terminate no traffic and are not required 3. Connect system diagram map lines deemed profitable. for system continuity. 4. Provide access to major grain elevators or grain processing plants of more than 500,000 bushel storage capacity. Tier 4 Lines (l)For each 30 miles of rail line necessary to connect these places to higher level lines, the classification should be reduced by one class. 1. Connect type 4 industrial places to higher level lines.Cl) For example, a type 1 place requiring more than 30 miles but less than 60 miles of line to connect to the higher level system should be treated 2. Penetrate pulpwood gathering areas shipping between 20 and 30 aa a type 2 place. carloads per mile by rail. 3. Provide a routing where there is no adequate paralleling highway. FIGURE IX - 1 A CLASSIFICATION OF WISCONSIN PLACES ON THE BASIS OF RAIL TRANSPORT ORIENTED ECONOMIC ACTIVITY / / ,-;/ ,y LEGEND ,,;? -:/ ,,;/'1/ / ~ Type 1 Place ... Type 2 Place • Type 3 Place • Type 4 Place ... Type 5 Place • Type 6 Place SUPERIOROETAll MllWN..IKEE DETAIi. Source: WISDOT Analysis IX-9 Commercial waterports by their very nature are intermodal transfer points. Thus some other mode of transportation must carry commodities to and from the ports in order to have any water transportation at all. Like railroads, water transportation is an efficient mover of bulk commodities, so it is only natural that railroads and waterports should exchange considerable quantities of traffic with each other. The locations of major commercial waterports are also shown in Figure IX-2. The Department of Defense is one of the largest and most important users of the nation's railroad system. During peacetime, about 100,000 carloads of defense shipments move annually throughout the nation. In times of war, mobilization requires the massive rail transportation of military equipment, ammunition and supplies. In 1975, the Military Traffic Management Command evaluated the defense requirements for rail service and developed a listing of installations which require rail service. The Wisconsin locations which include Fort McCoy, Camp Williams/Volk Field, and the Badger Army Ammunition Plant are also depicted on Figure IX-2. A major Wisconsin commodity which is best moved by rail, is ore, both metallic and non-metallic. Except when used within the local area, the heavy weight and bulk nature of such commodities make rail service the only practical means of transport. Figure IX-3 shows the location of the major mines and quarries in the state. The movement of fertilizer by rail is very important to the state's agricultural economy. Because it is normally a bulk commodity and is imported to the state from relatively distant places, rail transportation is the only economical way to ship fertilizer long distances. Almost all phosphate fertilizer used in Wisconsin originates in central Florida. Potash is mined in Saskatoon, Saskatchewan and Carlsbad, New Mexico with the majority of Wisconsin's supply coming from Saskatchewan. Urea imported to this country is shipped to Donaldsonville, Louisiana or Houston, Texas and transported by rail or truck from there throughout the nation. Normally the ingredients for fertilizer are shipped to blending locations which then sell the combined product locally. The major Wisconsin blending locations are shown on Figure IX-4. Although grain production in Wisconsin is not as great as in other midwestern states, there are certain locations where large v9lumes of grain must be moved by rail. Figure IX-5 shows the locations of the major grain elevators (shippers of grain) as well as the major grain processing loca tions (receivers of grain) in the state. In the northern part of Wisconsin, the forest products industry accounts for most of the generated rail traffic. Logging activities are usually carried out by small, independent contractors who rarely employ more than a half-dozen workers. There is great variety in the operations of these small entrepreneurs. Some loggers both cut and haul timber short distances by truck (20 miles or less) to rail sidings or local purchasers, while others do· only the cutting and subcontract the hauling to inde pendent truckers. Much long-distance trucking is done by authorized contract carriers, using semi-trailers or multiple trailer trucks; .however, a growing amount of the long-haul trucking is being done by the loggers themselves. Loggers obtain supplies of uncut timber, called "stumpage", IX-10 FIGURE IX-2 LOCATIONS OF MAJOR PORTS, UTILITY PLANTS, AND MILITARY BASES IN WISCONSIN D LEGEND .,.,#"-- Q Water Ports shipping/receiving . .,,,,;'..-..P" - _,,. V!.:!J more than 1,000,000 tons per year --~ Q Water Ports shipping/receiving 'l!Y less than 1,000,000 tons per year. Power Plants using more than ® 100,000 tons of fossil fuel per year. Power Plants using less than 100,000 tons ® bµt more than 25,000 tons of fossil fuel per year. Power Plants using less than 25,000 tons ® of fossil fuel per year. Heating Plants using more than. 100,000 tons of fuel per year. Heating Plants using between 100,000 and 25,000 tons of fuel per year. Heating Plants using less than 25,000 tons of fuel per year. Defense Installations Requiring Note: Broken circles indicate proposed facilities. @ Rail Service Source: Public Service Commission, Wisconsin Department of Administration, and U.S. Department of Defense. IX-11 FIGUREIX-3 LOCATIONS OF MAJOR MINES AND QUARRIES r::t / 'LEGEND Mines or Quarries Shipping @ Over 2,000 Carloads per Year Mines or Quarries Shipping Between 2,000 and 1,000 Carloads per Year @ Mines or Quarries Shipping Less than 1,000 Carloads per Year Proven but as yet untapped Mineral Deposits Closed Mines with potential for reopening M = Mines Q = Quarries Source: Wisconsin Geological and Natural History Survey. IX-12 FIGUREIX-4 LOCATIONS OF MAJOR FERTILIZER BLENDING FACILITIES D LEGEND • Fertilizer Wholesalers • Major Fertilizer Retailers Source: Wisconsin Department of Agriculture IX-13 FIGUREIX-5 LOCATION OF MAJOR GRAIN ELEVATORS AND GRAIN PROCESSING PLANTS D LEGEND • Major Grain Elevators • Major Grain Processors IX-14 Source: Rail Traffic Data FIGURE IX - 6 LOCATION OF NATIONAL, ST A TE, AND COUNTY FORESTS IN WISCONSIN D / / / LEGEND / / / / [fil National and State Forests / / / lllJ County Forests / Source: Wisconsin Highway Map I]{-15 either bidding for acreage offered for cutting or by contracting with a paper mill or timber wholesaler who has previously arranged for a supply of stumpage. Most of this land is in national, state, or county forests, but private lan downers can also offer stumpage for bidding or arrange with the local county forest agent to have their timber appraised and offered for sale. Figure IX-6 shows the locations of national, state, and county forests in Wisconsin. It should be noted that although the total volume of pulpwood that originates in the state is quite large, it is spread over an extensive area and divided among many lines making it difficult for rail lines in Wisconsin to carry sizeable densities. Primary agricultural production was not identified as a significant user of rail service since unprocessed agricultural products are not generally shipped by rail until after they have passed through some type of consolidation/storage and/or processing facility. These processing and consolidation/ storage facili ties are included in the set of economic activities discussed above. The Essential Rail System The process of determining the essential rail system was begun by iden tifying the current mainline system using the FRA definition. Then the routes which satisfy the criteria shown in Table IX-1 for Tier One lines were added by connecting those places to mainlines. The process was repeated for Tier Two lines and so forth until finally the Tier Six lines were added. Those lines not included in one of the tiers can be considered redundant or non-essential. Where two line~ served the same purpose, one was selected over the other based upon relative length, physical condition, maintenance effort required, and traf fic levels at intermediate points. Figures IX-7 and IX-8 show the application of the criteria from Table IX-1 to the railroad system of Wisconsin. Figure IX-7 is an application of the cri teria to the rail system assuming that the pattern of multiple private ownership will continue to exist while Figure IX-8 applies the criteria to the rail system as though it were under a single ownership thus ignoring the present ownership pattern. Both applications can be useful input into decision making depending upon the type of problem to be resolved and the solutions currently available. Relationship of the Systemwide Classification of Lines to Existing or Poten~ial Governmental Rail Programs The previously discussed evaluation of the rail system will not be of any use unless it is applied in some manner to assist decision making. Theoretically the existing rail programs provided for by the 4R Act and supple mented by matching state funds, the state programs provided for by Wisconsin statutes, and any potential new rail programs should be related to the essen tiality hierarchy. Table IX-2 is a guide to show how these current or proposed programs normally would be applied to the various types of lines and what the State's abandonment position with regard to the current carrier may be. However, it should be recognized that in addition to the line essentiality cri teria that there may be other factors which will influence decisions such as the quality of the title of land or the value of reuseable rail; etc. For example, where the costs of clearing title for a land purchase will be excessive for a highly speculative future rail need, the advisability of proceeding with the purchase should be re-examined. Likewise lines with high quality rail may be very valuable to the railroads for upgrading lines elsewhere. IX-16 FIGUREIX-7 A RAILROAD SYSTEM FOR WISCONSIN ASSUMING CONTINUED MULTIPLE PRIVATE OWNERSHIP D LEGEND Mainline Tier 1 Line •••• / .A.A.A.A- Tier 2 Line / 1111111111111 Tier 3 Line ••••• Tier 4 Line ...... Tier 5 Line ······®· Tier 6 Line No Symbol Redundant Line Determination of essentiality in these areas should be the subject of a terminal study. IX-17 FIGUREIX-8 A RAILROAD SYSTEM FOR WISCONSIN ASSUMING SINGLE OWNERSHIP OF THE SYSTEM D LEGEND Mainline Tier 1 Line •••• / ., . i. --...... Tier 2 Line / 111111111111111 Tier 3 Line ..... Tier 4 Line AA.II.AAA Tier 5 Line .. ••••••••. Tier 6 Line .: No Symbol Redundant Line Determination of essentiality in these areas should be the subject of a terminal study. NOTE:- It should be emphasized that the above rail system is strictly theoretical since the liklihood of single ownership of the rail system is very remote. Furthermore, there are many other possible configurations for such a system. IX-18 ••~,,.~~=•M•-n .. ,~ .J -= ~,cU__ ·--· ····~c······ ~=1cGut1JE=FuR.1tt]Jtrrr•tG~tH1rctass·t.fTC:A'.'rfbr.~C)}'~LiNE"s~·rC) ·~ .•. ~ ...... •• ...... , EXISTING OR POTENTIAL GOVERNMENTAL RAIL PROGRAMS Classification of Line Type of Program/Abandonment Position Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Redundant 1. State land acquisition (a) For continued rail, includes structures * * * + + II (b) For future rail, includes structures * * * + + - 1/ -1/ (c) For other transportation, no structures * * * * + + + (d) For scenic or recreation, includes structures '* * * * + + + 2. Acquisition of track for lines approved for abandonment (a) State purchase * * * + (b) State grant to local group * * * * + ff ff 3. Track rehabilitation for lines approved for abandonment * * + + If If H * X I ~ 4. Track rehabilitation for non-abandoned lines + + '° * 5. Initial State abandonment position guide 0 0 0 0/U u U/S s Key: Type of Program *=Lines where program could apply but is not expected to be needed. +=Lines where program would most likely apply. ff= Lines where program is possible but unlikely or because local interest in rail service continuation is likely to be discouraged by the high costs or other issues. = Lines where program would ~ot apply State Abandonment Position 0 = ~pposition most likely U = uncommitted S = support most likely 1/ In certain instances, some segments might be rail banked to preserve options for alternative connections for an eventual new operator of an adjacent segment. . }'. ··. CHAPTER X THE MILWAUKEE ROAD BANKRUPTCY AND CONTINGENCY ANALYSIS Introduction For the Milwaukee Road, which has been in bankruptcy proceedings since December of 1977, 1981 will be a fateful year. In all likelihood, the rail road's future course of action will be set during the year and the Trustee will have begun the process of implementing the railroad's prescribed destiny by years' end. While the Trustee has stated a desire to reorganize the Milwaukee Road, if possible, the continued existence of the Milwaukee Road as an operating railroad and a corporate entity beyond 1981 is by no means certain as the year begins. Under federal railroad bankruptcy law, the bankruptcy court appoints a Trustee who takes control of the railroad. The Trustee's task is to continue service and preserve the assets of the company to the extent possible until such time as the Trustee can recommend to the court and to the Inter state Commerce Commission a plan for the future of the company. The plan can propose reorganization of the company or a portion of the company, or it can recognize that a company or system will never be self-sustaining and recommend liquidation of all assets. Milwaukee Road Trustee, Richard B. Ogilvie, has submitted one reorganiza tion plan for the company which was rejected by the Interstate Cotmnerce Commission in March, 1980. Also rejected at that time were a competing plan which proposed to operate the entire system and a plan to cease operations and liquidate. The effect of the rejection of all plans, coupled with large scale abandonments approved by the court, was to allow the Trustee to operate essentially the system proposed by his rejected reorganization plan for an indefinite period, and to postpone all major decisions. According to the current court-imposed timetable, the Trustee must file by January 15, 1981, either a reorganization plan, a report on the feasi b.ility of reorganizing the railroad, or a liquidation plan. While the Trustee continues to believe that the railroad can be reorganized, the Milwaukee Road has suffered traffic and revenue losses as a result of the 1980 national economic decline. The effects of the recession, the timing of a national recovery and other uncertainties could combine to convince the Trustee to propose liquidation in January, even though he might believe the railroad could be reorganized in a normal economic climate. In addition, while the Trustee may propose a second plan to reorganize the company in January or shortly thereafter, the plan must be approved by the Interstate Cotmnerce Commission and the bankruptcy court before it can be implemented. Given the trend of ICC policy, the possibility of a second and perhaps final rejection must be considered. If the ICC finds insufficient potential in the current Milwaukee system, it is unlikely that any portions X-1 of that system will hold more promise. A second ICC rejection might leave the Trustee with no alternative except to reconnnend liquidation; or the ICC, which has the prerogative of developing its own plan, could reconnnend liquidation to the court. Despite the fact that the Milwaukee Road has made significant improve ments in track and equipment condition, equipment supply, transit times and even traffic levels since the first reorganization plan was submitted, from the foregoing it is clear that the Trustee might not be allowed to attempt to reorganize the railroad even if he reconunends that it be attempted; and if he is allowed to attempt reorganization, there is no guarantee that he will succeed in bringing the company out of bankruptcy. For a variety of reasons, the Wisconsin Department of Transportation has supported the Trustee's efforts to improve and reorganize the Milwaukee Road. Nonetheless, liquidation of the remaining Milwaukee Road system clearly could occur in 1981 or succeeding years. Accordingly, WisDOT has analyzed the remaining Milwaukee Road system in Wisconsin regarding possible interest in various lines by other carriers, WisDOT policies and applicability of state rail programs. A ranking of possible outcomes for each line has been developed, in priority order according to WisDOT's analysis of the desirability of various outcomes. Background Information on the Bankruptcy On December 19, 1977, following losses totalling over $100 million in the three preceding years, the Chicago, Milwaukee, St. Paul and Pacific Railroad Company, connnonly called the Milwaukee Road, filed a petition for protection from certain debts and obligations of the company under Section 77 of the Federal Bankruptcy Act. The financial weakness of the Milwaukee Road was well known to those familiar with the railroad industry. Yet the actual filing for bankruptcy, which raised a cloud of uncertainty about the continued existence of Wisconsin's oldest ~ailroad, was a source of significant concern among the thousands of shippers, thousands of employees and hundreds of connnunities in Wisconsin which were dependent on the Milwaukee Road. Since filing for bankruptcy, the Milwaukee Road has continued in operation under the control of Federal District.Court Judge Thomas R. McMillen of Chicago, and two Trustees appointed by him to operate the company. Although the ultimate fate of the company, reorganization or liquidation, is yet to be decided, a series of significant changes have already taken place in the Milwaukee Road, both systemwide and in Wisconsin, as a foundation for a possible reorganization effort. To understand the impacts to date in Wisconsin of the Milwaukee Road bankruptcy, and to assess what the future may hold, it is helpful to review the history of the railroad before bankruptcy, the sequence of events during the bankruptcy, and the as yet unresolved issues which will determine the fate of the company. X-2 History of Previous Bankruptcies - As descendant of Wisconsin's first railroad, and namesake of the state's largest city, the Milwaukee Road has been closely interrelated with Wisconsin's growth and development since the railroad's and the state's first seven miles of track, from Milwaukee to Wauwatosa, were opened in 1851. Consequently, the Milwaukee Road has been a long-standing subject of interest in Wisconsin. Though there were a few periods of prosperity early in its history, the Milwaukee Road has experienced financial problems for much of its existence. In 1857, only six years after the first rail line in Wisconsin was built, the two major corporate forerunners of the Milwaukee Road declared bankruptcy as part of a national economic decline. Both were reorganized, and in 1867 were consolidated into the Milwaukee and St. Paul Railway which soon expanded throughout the Midwest. In 1874, the Milwaukee and St. Paul acquired a line into Chicago and became a successful, regional railroad known as the Chicago, Milwaukee and St. Paul. This brief period of prosperity lasted ·until 1901, when acquisition of the Chicago, Burlington and Quincy by the Great Northern and the Northern Pacific drastically changed midwestern traffic patterns. Milwaukee Road management sought to offset traffic losses through expansion into new mid western markets, and through construction of its own Pacific Coast extension to compete directly for transcontinental traffic. But the railroad never fully recovered from the burden of debt it acquired during this period of expansion. The Pacific extension opened in 1909 and by 1925 the Chicago, Milwaukee, St. Paul and Pacific had gone bankrupt. It was reorganized in 1926 but again went bankrupt in 1935. The railroad continued operating under the bankruptcy laws for ten years until the surge of World War II traffic made it possible to reorganize in 1945. The 1977 bankruptcy petition of the Milwaukee Road followed 32 years of solvency, but capped a steady decline in the railroad's traffic and physical condition during that period. Following 25 years of marginal profitability, the Milwaukee Road operated at a loss six of the last seven years prior to bankruptcy, accumulating an operating loss of some $105 million during the three immediately preceding years. Thes~ losses took their toll as locomotive, car and track investments were deferred. The Milwaukee Road's net investment in rail property used in transportation declined some $49 million, or almost 8.5% between 1972 and 1976, accelerating the loss of traffic aud revenue. When a disasterous early winter snowstorm paralyzed the Midwest in 1977, disrupting rail movements and the flow of rail revenues, the Milwaukee Road was pulled over the brink into official insolvency. Following the filing of the 1977 bankruptcy petition, a wave of anxiety swept through Wisconsin's business community, since the Milwaukee Road owned nearly one-quarter of the rail trackage in Wisconsin and carried a similar share of the rail traffic. In southern Wisconsin, it constituted nearly 50 percent of the rail mileage. It served each of Wisconsin's eight largest cities, and 16 of the 20 largest. For 184 communities, it provided the only rail freight service.· It employed directly some 3,000 Wisconsin citizens in many parts of the state. Quite understandably, many people whose jobs and businesses depended on the Milwaukee Road were concerned about the im.mediate impact of bankruptcy. X-3 The Railroad Bankruptcy Process - A sudden and complete collapse of rail service provided by the Milwaukee Road would have caused a serious problem for Wisconsin industries. It is the intent of federal railroad bankruptcy laws to prevent such disruptions when a railroad financial crisis occurs. By almost any standard, those laws have accomplished their purpose, in Wisconsin at least, during the Milwaukee Road bankruptcy. When a railroad files for bankruptcy in federal district court, the stockholders and company management relinquish control of the company and its assets to the court. The federal district court judge has complete control of the company within the goals of the law, and.· appoints a Trustee to run the company on his behalf on a day-to-day basis. The goals of the bankruptcy law are to continue operations and serve the public interest to the maximum degree possible, and to the degree possible preserve the assets of the company, while the Trustee conducts studies to determine the future potential of the railroad. Often, these two goals conflict because the continuing operations of an unprofitable bankrupt railroad almost always will result in sizable new losses which must be covered through property sales or high priority loans, both of which reduce the value of assets remaining to pay off creditors and stock holders. In such cases, courts have tended to rule in favor of continued operations for the public interests and against creditors and stockholders who oppose erosion of the company's assets. Generally, courts have drawn the line in using up company assets at the point at which reorganization is clearly no longer possible, or the point at which continued operation causes a "taking" of private property, i.e., when the value of secured claims against the railroad exceed the value of the assets. To date, the claims against the Milwaukee Road, plus borrowings which have been necessary to keep it in operation, still exceed the appraised value of the railroad, although the margin has dropped significantly. The amount of future borrowing which may be allowed is unknown. In the period since it declared bankruptcy, the Milwaukee Road has incurred losses of more than $200 million and has borrowed heavily from the federal government and from property sale proceeds to cover these losses. One of the first decisions of the first Trustee, Stanley Hillman, was to contract with a consulting firm to analyze the potential of the Milwaukee Road System, and of various smaller system configurations to determine if any portion of the railroad could serve as the basis for a reorganized company. This study, by Booz-Allen & Hamilton was completed in April, 1979 and has served as a basis for a number of subsequent studies. Following issuance of the BAH study, Trustee Hillman concluded that the study demonstrated that there was no possibility of reorganizing the total 9,800 mile system and that the Milwaukee Road "Lines West" (from Miles City, Montana to Seattle) would cost so much to rehabilitate, and had such limited traffic potential that reorganization would not be feasible if those lines were included. The BAH study and this decision set the stage for a protracted legal, regulatory and legislative struggle. X-4 Embargo - In April, 1979, shortly after the BAH report was released, Trustee Hillman announced that the railroad faced an imminent shortage of cash. To prevent a systemwide shutdown, he proposed an immediate embargo, or suspen sion of service, on all but 2,400 miles of the 9,800 mile Milwaukee system then in operation. Operations would continue the mainline from Louisville to the Twin Cities, and would include all Wisconsin lines not already filed for abandonment, except one. The embargo was originally to begin on May 15, but later extended to May 31, when the railroad would run out of funds. The essence of the Trustee's argument was that additional borrowings would be needed for operations of any kind beyond May 31. Since the BAH report showed that the entire system was not reorganizable, he said he could not justify borrowing to operate the whole system. Therefore, if he proposed borrowing he must limit use of the funds to that part of the system which still might be reorganized. Since the BAH study had identi fied the lines west, plus numerous Midwestern branch lines as unprofitable, the Trustee said, borrowing to operate them was unjustified; thus those lines would be "cashless" and subject to embargo under law. WisDOT supported the embargo proposal in court because the alternative would have been shutdown of the entire Milwaukee Road system in the state. The result of the court hearing was a ruling by Judge McMillen that he did not have the power to permit such an embargo in the absence of an actual reorganization plan. In the meantime, however, Congress had passed a resolution to provide emergency loan funds to keep the Milwaukee Road in operation. The court allowed the Trustee to use these funds to sustain operations of the entire railroad until a reorganization plan could be filed. The judge also ordered the Trustee to designate the entire system as Category I on its ICC system diagram map, to facilitate rapid abandonment of lines should such action be required in the future course of the proceedings. Lines West - Almost from the beginning of the bankruptcy proceedings, serious questions were raised about the future of the line to the Pacific Northwest. Shippers and public officials from Montana, Idaho and Washington, along with railroad employees, had begun organizing an effort to fight abandonment. When the Trustee proposed the embargo to include Lines West, the effort to save the western lines began in earnest. The employee group, S.O.R.E. (Save Our Railroad Employment), argued against the embargo in court, claiming that the BAH study in fact showed that the western lines could be profitable if rehabilitation funds were provided. Various shipper groups argued that embargo would leave the Burlington Northern with a virtual monopoly for all traffic in Montana. Although embargo was not permitted, these arguments were not accepted by the court. The employee group then proposed a plan for employee ownership and reorgani zation of the transcontinental system, an Employee Stock Ownership Plan (ESOP). Through the involvement of Montana's Congressional delegation, the ESOP approach gained significance. In the resolution which provided emergency funds for the Milwaukee Road, the U.S. DOT was instructed to conduct various studies of the Milwaukee system and the ESOP proposal. X-5 On July 31, 1979, Acting U.S. DOT Secretary Graham Claytor, transmitted four reports to Congress. In summary, the reports found: That even massive rehabilitation at no cost to the railroad would not make the western lines viable; that the ESOP proposal was not feasible as then constituted; that labor protection costs could rangeup to $521 million in the case of total liquidation; and that the BAH study was "valid, consistent and reasonable" as a basis for decisions. Shortly thereafter, U.S. DOT announced that it would no longer loan funds to the Milwaukee to preserve service on the western lines. Milwaukee II - In early August, 1979, newly appointed Trustee Richard Ogilvie (Mr. Hillman had resigned for health reasons), announced completion of a reorganization plan, based on a new system configuration called ''Milwaukee II", and a second embargo proposal. Milwaukee II, which is shown in Figure X-1, would consist of 3,400 miles, primarily in the Midwest, to Louisville, Kansas City, Duluth and Miles City. However, some 400 miles of line in Wisconsin would be dropped, more than half of which had not previously identified as subject to abandonment. The date of the second embargo was set for September 17, or as soon thereafter as feasible. The railroad at the same time also formally filed application to abandon all lines west of Miles City. qourt hearings on the second embargo were set. Before the hearing, however, an appeals court reversed the judge's initial embargo ruling, affirming his authority to allow embargo. With this ruling and U.S. DOT's refusal to provide funds for lines west, in September Judge McMillen approved the embargo plan. But because of pending Congres sional action, the effective date was set back to November 1, 1979. Congressional Action and ICC Findings - The earlier interest of the Montana delegation along with the interest of other members of Congress who wanted a non-federal resolution of the problem, produced a willingness to consider special legislation. Debate over what was needed continued through October and an apparent impasse was reached between those in Congress who wanted the full system to continue operating and those who favored the Trustee's plan which entailed less federal involvement and funding. However, the embargo went into effect as scheduled on November 1. On November 4, a compromise bill, the Milwaukee Road Restructuring Act, was passed. The Act said that the entire system should be operated until April 1, 1980 and provided funding for such continued operation. The court withdrew the embargo and systemwide operations resumed. ... In addition, this new Act gave special preference to the ESOP proposal .~ ..: ... which had been reconstituted. The group, now called New Milwaukee Lines, was to be given first consideration if it submitted its own reorganization plan. Funding under the Act was to be available until April 1, 1980, or until 60 days after one of several "events" described in the Act occurred. These events were tied to potential rejection of the ESOP proposal. On December 31, 1979, the ICC rejected the New Milwaukee plan, .which was considered to be such an "event". This meant that the Milwaukee system as a whole had to be operated only until March 1, 1980. At that time, the Trustee X-6 THE PROPOSED MILWAUKEE U CORE N 0 R T H \ MTI D A K 0 T A \ '- M I C H \ 0 - '-·-"-.-. y MILES ~ ~ ~~~RIGHTS. . ---·-----· • c -- OVER 8.N. . Sl~SETON '\." Ll,, ( TO BILLINGS ~..>¥- s O I N S I N fnMENOMINEE ~~¥ I t'P~~<;) WAUSAU ---1 s 0 u T H D A K 0 T A I ~ I -.J c,,"'-"" i ?/.,#"' -.,>s c~ TEAAEHAUTE \. \ I M S S O U R 1f _) I LOUISVILLE !.r,..,-.-...... J""·-v K Y. ... {• could implement whatever plan the court approved. The Act also changed the abandonment procedures for bankrupt railroads, giving the judge final authority, in this case beginning after any "event" had occurred. In February, the ICC recommended to the court that Lines West be abandoned. The ICC also recommended that a number of lines in Wisconsin be abandoned. Simultaneously, beginning in January, the ICC was considering the Trustee's proposed reorganization plan, and two other plans: An amended plan from New Milwaukee and a plan of liquidation filed by the stockholders. On February 25, 1980, the court approved a third embargo request, to be effective in stages on March 1 and April 1, which dropped all lines west of Miles City, Montana from the Milwaukee Road system. Several Wisconsin lines were to be left without service under this second embargo. On March 19, 1980, the Interstate Commerce Commission acted upon all the proposals then before it and issued a finding that none of the plans met the requirements of the Bankruptcy Act and thus it had to disapprove all three major plans. The Commission, however, retained jurisdiction to consider new or amended reorganization proposals. In May, 1980, the Trustee concluded that continued operation of Milwaukee II for the remainder of 1980 was both in the public interest and in the interest of the Milwaukee's creditors and shareholders. By January 15, 1981, the Trustee must file a report with the bankruptcy court on the feasibility of formulating a new plan of reorgani zation, or a plan for liquidation. At the same time, the federal judge has asked that the U.S. DOT and the ICC develop a contingency plan for orderly cessation of operations, should liquidation be found later to be necessary. The Trustee and officials of the railroad have continually maintained that they believe the remaining system, with certain modifications, can be reorganized. However, due to the recession, both carloadings and revenue are running below projections made in May of 1980, when the new configuration began full operations. One of the reasons the ICC rejected the initial reorganization plan was that the Commission found that the railroad would have had a rate of return too low to justify new investment. The ICC said a return of about 11 percent would have been required to justify reorganization. Since the average railroad industry rate of return has been about one-fourth of this amount for the last decade, it appears that the Milwaukee Road will have to demon strate a potential for extraordinary success to gain ICC approval for reorganization. Whether this can be done based on data grounded in a serious recession or on new projections remains a matter of considerable uncertainty. WisDOT Acquisition - When the Trustee announced the first plan for embargo, it was clear that certain lines in Wisconsin might be left without service. With subsequent plans, and the change in the abandonment law, it was clear that virtually any line identified as a drain on the railroad by the Trustee could be embargoed and abandoned in short order. Because WisDOT recognized that the vast majority of Milwaukee Road service in Wisconsin could be best preserved by creating a viable reorganized Milwaukee Road, WisDOT has generally supported the Trustee in his efforts X-8 to consolidate the system as long as such reorganization appears feasible. However, WisDOT also recognized that important local rail services would be lost through implementation of the Trustee's plan. When the November, 1979 embargo went into effect, the ICC was prepared to direct other railroads to provide service on embargoed lines. However, the Milwaukee Road Restructuring Act, which ended the embargo, prohibited such directed service until April, 1981. In November, 1979, recognizing that under the new circumstances many Wisconsin communities could lose rail service if the Trustee's plans were implemented, WisDOT began negotiations with the Milwaukee Road regarding means of continuing service on various Wisconsin branch lines which the railroad indicated a desire to abandon. In March, 1980, these negotiations resulted in an agreement with the railroad under which WisDOT, in conjunction with local transit commissions, would acquire 378 miles of Milwaukee Road lines to permit uninterrupted service on most lines. This was accomplished through an agreement by which WisDOT and the Transit Commissions could gain title to the lines immediately under Wisconsin emminent domain laws, with the price to be set through sub sequent application of condemnation law in court. Figure X-2 shows the lines which have been purchased by WisDOT as well as the lines which will remain in the proposed core and the lines which are currently embargoed. Through this action, WisDOT has been able to support the efforts of the Trustee to improve Milwaukee Road service, while seeking local solutions which continue b'ranch line service under contract with new shortline operators. During 1980, seven new Class III railroads began Wisconsin operations, six of them as a result of these negotiations with the Milwaukee Road. Milwaukee Road Prospects - Although the prospects for successful reorganization are uncertain at this point, it should be noted that the Trustee's efforts, to date, have brought improved service to Wisconsin. Since 1977, the Milwaukee Road has spent $48.5 million in borrowed federal funds to rehabilitate its Wisconsin main line, plus an additional $6 million of federal funds and some of its own funds on the Wisconsin Valley line. · In.the winters of 1977-78 and 78-79, Milwaukee Road operations were severely disrupted. Locomotive availability, track conditions, and car supply ail were poor, and service deterioration was significant. Continued use by the Milwaukee Road of borrowed federal funds has permitted rehabilitation of locomotives and cars, greatly reducing the bad order ratio. Locomotive performance under winter conditions can also be expected to improve as a result. Consolidation of the system to a midwestern core has greatly improved car and locomotive supply, which in turn has resulted in improved service to shippers. Continued emphasis on intermodal sprint trains has resulted in significant TOFC traffic increases on the mainline between Chicago, Milwaukee and Minneapolis. In December 1980, the federal court approved the borrowing of $32.8 million in ERSA funds through the end of April, 1981 which is an encouraging indication that the court believes that reorganization is possible. X-9 FIGUREX-2 CURRENT STATUS OF THE MILWAUKEE ROAD LEGEND Proposed Milwaukee 11 Core • • Purchased or option to purchase by E&LS 0--00-0 Purchased by WisDOT >OCCO Proposed for purchase by WisDOT XXX Embargoed (As of December, 1980) X-10 Finally, closer analysis of traffic data has brought a heightened awareness by the railroad of the importance of Wisconsin traffic. Conse quently, significant service improvements and reductions in transit times from Wisconsin to interchanges at Kansas City and Louisville have been achieved in recent months. Conclusion - Clearly, the Milwaukee Road has undergone many basic changes in three years of bankruptcy. It appears that improvements have occurred in Wisconsin's service as a result of the Trustee's efforts. At the very least, the past plight of the Milwaukee Road, with paralyzed operations and irate shippers, and teetering on the brink of extinction, is no longer the major transportation news story in Wisconsin. But as has been shown, its future is still far from settled. Consequently, WisDOT has examined the contingencies should liquidation actually occur. The Milwaukee Road may have improved in some respects; but the ICC, the bankruptcy court and stockholders have yet to decide whether the improvement justifies a fourth reorganization and a new future. We need to be prepared should that currently undesirable action arise. The remainder of this chapter presents background and criteria for such an analysis. Background Information on The Milwaukee Road System Until recently, the Milwaukee operated approximately 9,800 route miles of track in 16 states. Its sprawling system extended from Chicago north through Milwaukee to Ontonogan, MI; south and east to Louisville; south and west to Kansas City; west to Omaha and Rapid City; and north and west to Minneapolis St. Paul. From the Twin Cities, the Milwaukee's lines reached north to Duluth; south to Kansas City; and west across the Northern Tier to Seattle, Tacoma and Portland. Through the 1960's and 1970's, the Milwaukee did not adequately maintain its physical plant. Crosstie renewal deGlined from 800,000 in 1957 to 500,000 in 1958, 400,000 in 1960, and 300,000 through the remainder of the 1960's and 70's. By December 31, 1978, deferred maintenance on the railroad had reached $578.4 million. In its analysis of the system for the trustee~ Booz, Allen, and Hamilton, Inc. (BAH), estimated that, excluding light density lines, rehabilitation of the Milwaukee trackage would cost $482 million (1977 dollars). At the time of the partial embargo, much of the Milwaukee's system was subject to slow orders, was at or below Federal Railroad Administration (FRA) Class I (maximum 10 miles per hour) track safety standards, was weight restricted or restricted against hazardous materials, and had inordinately (and uncompeti tively) high transit times. The Milwaukee's locomotive and car fleets had also fallen into deep dis repair. Its locomotive bad order ratio (the ratio of locomotives prohibited from operating to·the total owned or leased) was about 21 percent for road locomotives and 13 percent for yard engines; its car bad order ratio was about 12 percent. BAH found that for adequate service systemwide (excluding light density lines), locomotive rehabilitation costs and car rehabilitation and acquisition costs would be $105 million and $627 million (1977 dollars), respectively. Although the Milwaukee has now rehabilitated about 116 locomotive units and 907 cars with federal funds available under the Railroad Revitalization and Regulatory Reform Act of 1976 (4R Act), and about three X-11 locomotives and 224 cars through shipper assistance, it continued to suffer severe power and car shortages prior to embargo. To rehabilitate track and to repair or acquire equipment necessary to normalize systemwide operations on the Milwaukee would have required an enormous and unjustified investment. A full-system refitting and refurbish ing program would have entailed, if not created, extraordinary supply prob le111S, and could so unpredictably drive up material costs as to render expense projections meaningless. Further, the Milwaukee's severely eroded, and probably unrecoverable, traffic base in many areas might not justify even the most conservatively forecasted investment requirements. Cognizant of those problems, no party has recently proposed or suggested continuation of the entire Milwaukee system as a single operating entity. Figure X-3 and Table X-1 present some basic systemwide data for the Milwaukee Road. Figure X-3 is a portion of the Milwaukee Road's 1978 traffic density map for Wisconsin. Traffic densities are normally expressed in millions of gross tons per mile with gross tons including the weight of loco motives and cars. Those lines carrying through traffic are readily apparent. Table X-1 shows the originating and terminating traffic on the Milwaukee Road in Wisconsin in 1978. As can be easily seen, food products and paper products led the outbound shipments while coal was by far the most predominant inbound connnodity. After coal, food products, lumber, paper products, chemi cals, and metal products were the next most frequently received inbound products. An important consideration in planning for a possible liquidation of the Milwaukee Road is the location and quantity of traffic at stations which are presently served by another railroad. Table X-2 lists such locations. Our computations show that almost 80 percent of the Milwaukee Road's traffic could be handled by another railroad without the inclusion of any rural lines, although in some cases new connections would have to be constructed. X-12 FIGURE X-3 MILWAUKEE ROAD FREIGHT TRAFFIC DENSITY-1978 REPUBLIC I .00 CMANNINu I .93 54 t MEAFFORD JCT. I -.-40 MENOMINEE 36 33 CRIVITIZ I 41 ':l:""~' 2.74. Figures represent million gross tons per mile, including locomotives and cabooses ~ '~~~~~ v.'lpll~~ TABLE X-1 MILWAUKEE ROAD ORIGINATING AND TERMINATING TRAFFIC IN WISCONSIN -1978- Revenue Freight Originating Revenue Freight Term.in- on the Milwaukee Road Within ating on the Milwaukee the State Road Within the State STCC Commodity Number of Number of tons Number of Number of tons Code carloads (2 2000 Eounds) carloads (2 1000 Eounds~ 01 Farm Products 1,607 121,124 5,357 405,609 08 Forest Products 5 63 104 5,925 09 Fresh Fish and Other Marine Products 38 1,925 10 Metallic Ores 2 100 228 12,983 11 Coal 800 47,134 41,171 3,777,152 13 Crude Petroleum, Natural Gas & Natural Gasoline 35 2,929 14 Nonmetallic Minerals, Except Fuels 8,763 644,942 3,963 270,128 19 Oromance and Accessories 8 300 9 448 20 Food and Kindred Products 25,454 1.219,451 12,095 663,079 21 Tobacco Products 2 38 161 4,848 22 Basic Textiles 211 2,928 314 6,150 23 Apparel & Other Finished Textile Prd., Inc. Knit 25 369 10 127 24 Lumber and Wood Products·~ Except Furniture 2,898 77,165 14,425 623,542 25 Furniture and Fixtures 156 1,820 727 5,662 26 Pulp, Paper and Allied Products 23,029 555,716 14,848 724,903 27 Printed Matter 93 3,170 5 243 28 Chemicals & Allied Products 4,414 188,286 11,108 864,931 29 Petroleum & Coal Products 660 29,047 2,665 167,952 30 Rubber and Miscellaneous 377 6,538 653 9,964 31 Leather & Leather Products 30 754 3 240 32 Stone, Clay & Glass Products 1,376 101,864 5,591 337,462 33 Primary Metal Products 412 23,012 12,722 878,616 34 Fabr. Metal Products, Exe. Ordn. Machy. & Transp. 1,421 26,419 431 10,701 35 Machinery, Except Electrical 1,865 42,439 475 9,182 36 Electrical Machinery, Equip. & Supplies 687 16,057 325 6,056 '37 Transportation Equipment 12,390 346,244 4,643 130,555 38 Instruments, Photo & Optical Goods, Watches & Clocks 1 62 39 Miscellaneous Products of ~; Manufacturing 60 998 106 1,407 40 Waste & Scrap Materials 10,372 558,518 5,387 268,496 41 Miscellaneous Freight Shipments 889 16,215 308 4,672 42 Containers, Shipping, Ret.Empty 1,025 19,338 1,272 13,570 44 Freight Forwarder Traffic 106 2,598 31 891 45 Shipper Assoc. or Similar Traffic 10 212 276 5,794 46 Misc. Mixed Shipments, Exe. Fwdr & Shi22er Assn. 82445 231 2 701 31024 59.082 Grand Total, Carload Traffic 107,593 4,284,622 142,510 9,275,224 47 Small Packa~ed Freight ShiEmts x:xxx 536 xxxx 140 Grand Total, Carload & LCL Traf.XXXX 4,285,158 xxxx 9,275,364 X-la TABLE X-2 ALTERNATIVE SERVICE AT -MILWAUKEE ROAD STATIONS Stations Currently Served ,,Alternative by Another Railroad.;, · ·· •. Railro.ad Appleton · CNW, SOO Bangor· CNW Beloit 1 -. .,.CNW.::: Bur ling ton: • , ,-. -~ SOO., Burnett CNW Camp.Douglas CNW Camp McCoy ·cNW1 Chippewa Falls CNW, soo Clinton Jct. CNW·~· De Pere CNW .Elil~. Clai:re,. .·. Cm,J:,,-SOO Fond du Lac: : , _ CNW; SOO Foresct. Jct. l3&F'.:J ' Germantown .·c·.1_1}· 1 • CNW·.:;· Grafton CNW Gr·een Bay ,· ~ ~,: ·.CNW- ,•. Hilbert 1,, ,, , :·c, ,., 1 •• _,,:_soq .. ,. Janesville CNW Junction City SQO::·,,, La Crosse cNW, .BN Mad}son , ·.. cmt Marinette .:CNW' Menasha • CNW,• soo Milwaukee Area CNW, SOO Nec-gdah , : •r... CNW Neenah;. . CNW,,\ SOO Nekoosa •··•. CNW, soo Oshkosh CNW, SOO Pembine· :SOQ,:, Plymouth cm(,,_,: . Pokegama BN, DMIR Port Edwards cNW;,, ,spo ... Prairie du Chien BN - Racine_ CNW Rando_lph;. CNW. Ripon : , CJW .,. Rothschild , . CNW~, Schof.ield , ·' ,CNW ,-, : Sl:1,nger . S0,0, Sparta CNW Superior,.· BN:,· ,SOO. ,:: ~ . . ·~- . '"' Tp_m.~. •·. ;,,PNW.~ .-..· Tomahawk M'l.'W ., Watertown CNW Waukesha CNW ::;>, Wausau CNW-· tv~uwatosa• .,CNW Waxqa.le C.NW :Wiscon$in Rapids .•. ,CNW,,:SOO, GBW X-15 WisDOT Objectives and Criteria for its Milwaukee Road Policy Chapter III presents the overall goals and objectives for rail transporta tion in the State of Wisconsin. However, the challenge of the Milwaukee Road bankruptcy and system reduction has necessitated the development of more specific objectives and criteria to guide departmental response to various aspects of the Milwaukee Road situation, namely: The abandonment of a large nuni>er of lines in the state in a short period of time; the efforts of the Trustees to keep the Milwaukee Road in operation and develop a reorganization plan; and disposition of vital parts of the Milwaukee Road should liquidation occur. Those specific objectives for the Milwaukee Road are as follows: Objective No. 1 - The continuation of rail transportation in the private sector to the greatest degree possible. Criterion 1. Consider government owned or subsidized rail service substitutes for Milwaukee ownership and operation only where there will likely be no interest by the private sector in independently operating a particular line. Objective No. 2 - The reduction of financial burdens on all of the railroads and the maximization of profits for the system as a whole. Criterion 1. Qnly former Milwaukee Road track serving profitable locations should be expected to be purchased by existing class one or class two railroads. 2. Generally, multi-railroad competition should be continued only where the volume of rail traffic can adequately support two or more railroads. Objective No. 3 - Continuation of service on marginal but essential lines through governmental assistance. Criterion 1. Those essential Milwaukee Road lines which do not generate a sufficient rate of return on investment to warrant purchase by class one or class two railroads should be considered for state and federal acquisition and rehabilitation assistance to continue rail service, provided that there is a benefit/cost ratio above one and on-going rail service is self-sufficient. Objective No. 4 - A streamlining of the total rail system by eliminating duplicate or unnecessary facilities while retaining satisfactory service whenever feasible.- Criterion 1. The carrier able to best meet transportation needs and requiring the least amount of track to serve profitable locations should generally have priority to take over those former Milwaukee Road services. X-16 Objective No. 5 :-:. Tl1e stren~thenin~ of, th.e other railr9ads .pres,ently providing servic'e fo Wisconsin 'to 'the extent1p6ssibl'e.' ·., ' ' ' · · Criterion • A' lii'igni1£1tan't ~hh¥E? objectives are not seriously, compr9m;i.sed - .-T .-,:·;i!f· 1 ;~f.,;/_[.\ --;~_:.-,.if' Y~> . Objective No~. Co~sider;1tion of, ~he des;!-J;.;L~ of sp~~if~t;!_ rai;l.ro,~d:~ to 6- 1 exp~n~ ·into ri~ ~~~f~tff':.' > · ••·;-'·'.' .~ ' , ., ,.1., 'Crited.btl' .·, ;",.,.t - . i ~) 1. Desires by the management of' t'irtA:t.'xiLr~lirbk'J~" t'61 exp1b'.c1 ':i.ht::6(, '' and compete in new markets via former Milwaukee Road lines should be considered to the extent that service is improved and that other objectives are not severely compromised. The WisDOT purchase of 3 78 miles of abandoned Milwaukee Road lines in . 1980 was undertaken because continuation of these lines in the private sector was unlikely. In an effort to recognize the burden that these lines might cause on the struggling Milwaukee Road, preservation of essential service was undertaken through governmental assistance rather than through opposition to abandonment. In supporting efforts of the Milwaukee Road to reorganize, WisDOT has recognized that the greatest amount of service to Wisconsin shippers could be preserved in the private sector through the successful reorganization of the Milwaukee Road. Any other alternative is likely to entail loss of more essential service, or additional public expense. As long as WisDOT continues to feel that the Trustee's plans and efforts meet essential Wisconsin needs and that reorganization remains an attainable goal, WisDOT will support reorganization. Should reorganization efforts fail, and liquidation be sought or ordered, WisDOT will use these same objectives and criteria in seeking continuation of the remaining Milwaukee Road system in Wisconsin. WisDOT Contingency Planning for the Milwaukee Road In order to the prepared, WisDOT has already made a preliminary analysis and prepared a tentative plan, should liquidation be authorized, but has chosen not to publish the results here because of the proprietary nature of the information, the possible damaging effects to the Milwaukee Road's efforts to survive, and the multitude of variables that could completely change the outcome. Some of those m~jor variables are: 1. The price that will be required for other railroads to purchase pieces of the liquidated Milwaukee Road. X-17 ,, ' t_1) 2. Freedom of entry for railroads to enter new markets. 3. Reasonable labor conditions. 4. The degree to which directed service will be made available by the federal government. 5. The attitude of the federal government. 6. The availability of state financing. Assuming that all of these variables are favorable, WisDOT has identified three to five options for continued rail service by other carriers for every Wisconsin segment of the Milwaukee Road and identified priorities for those options. However, until liquidation is virtually certain, WisDOT will not be more specific in published documents. ;• X-18 CHAPTER XI PUBLIC PARTICIPATION IN THE WISCONSIN RAIL PLAN [49CFR Section 266.lS(c)(lO)] Introduction The procedures for involving the general public in Wisconsin's overall transportation planning process are described in the Department's Action Pla~ for Transportation Development, published in January 1974. However, the unique characteristics of current railroad problems and the planning efforts required to solve those problems necessitate additional forms of public contact, input, and par ticipation. Therefore, WisDOT's rail planning and project development process provides for public participation in the following ways: 1. Much basic input for analysis is obtained through shipper surveys and contact with interested and/or affected groups or shippers. 2. Where local interest is indicated, WisDOT arranges for and participates in public meetings to provide assistance and guidance in understanding ICC abandonment procedures. 3. WisDOT, :where appropriate, promotes and helps to establish local user action committees to strive for alternative. solutions to abandonment. 4. Prior to taking any action on a line, WisDOT performs field investigations and participates in public infor mational meetings in the local area affected by the proposed abandonment. S. Public hearings are conducted on each. annual update of the rail plan and for individual pr9jects when requested to do so. 6. The testimony of parties to an abandonment proceeding is used to update the data used in the rail plan computations·. 7. A Rail Plan advisory committee guided the early phases of Wisconsin's rail planning efforts and was deactivated in 1976. 8. An advisory committee called RSAC (Rail Service Advisory Committee) was appointed by the Governor in 1978 and served many of the functions of the former advisory committee in ·:.-. addition to ~erving a much broader role in recommending new . "'·. state rail program initiatives for the 1979-1981 state budget. XI-1 9. Regional planning commissions, the planning agencies for regional groupings of local governments, have been provided state funds to study alternative solutions to rail abandonments. 10. A bi-state car ferry task force was formed by the Governors of the States of Wisconsin and Michigan to provide recommen dations concerning the car ferries. Several of the above activities are described in more detail below. The Rail Plan Advisory Committee Because of the variety of railroad problems and issues, and the many ways in which they affect the economy of the state, the inputs from various interest groups is important to the planning process. At the inception to the rail planning process, inputs from these interest groups were obtained through an advisory committee framework. This advi sory committee was the chief mechanism used to gain public input in Wisconsin's first rail plans. Members were provided with drafts of completed work and asked to comment on them and make suggestions as to which rail issues the plan should address. The advisory committee con sisted of 43 members, including railroad company officials, environmen talists, special interest associations representatives, elected public officials, and interested citizens. In addition, members of various other interest groups, not on the advisory committee and the press took part in meetings of the advisory·committee. The full committee was divided into subcommittees which met separately and paid special, detailed attention to topics within their interest areas. The subcommittees were as follows: Government, Labor, Lake Michigan Ferry, Railroad, Shipper, and Social and EnvirollJllental. The Rail Plan Advisory Committee was deactivated upon completion of the initial rail plan although many members have continued to play a key role in state rail activities. The Rail Service Advisory Committee In June 1978, the Governor appointed a new advisory committee to study the rail problems of the state and provide recommendations to the Wisconsin Department of Transportation for solving those problems. The committee is composed of the former speaker of the assembly as chairman; representatives of government at all levels , representatives of business, agriculture, the railroads, and labor, as well as several other interests. XI-2 The Governor specifically asked the committee to accomplish the following: 1. Consider the nature and magnitude of railroad problems in Wisconsin; along with a survey of their causes and effects; 2. Conduct such meetings, hearings, surveys, interviews, etc., as will permit fullest public input within the shortest possible time; 3. Make fullest possible use of information currently available through state agencies, particularly Wi'sDOT, and react to evaluations and proposals of that agency; 4. Review the federal, state, regional 1 local and private sec tor relationships in rail service and identify key areas for state involvement; S. Consider the degree to which various alternative levels and structures of railroad service will serve Wisconsin's present and future needs; 6. Consider the alternative problems, strategies and tools which are available to state government and assess their relative effectiveness in achieving railroad policy goals, with and without varying levels of private and public financial support; and based on these considerations; 7. Recommend to the Secretary whatever realistic policy and program alternatives will best promote the existence of an optimum network of rail service for all parts of Wisconsin. The committee met regularly during the later part of 1978 and played a significant role in developing the state rail policies reflected in this plan •. The Car Ferry Task Force Due to the importance of the rail ferries to Wisconsin and Michigan, the Governors in May 1976, appointed a six member, joint task force to assess the economic value of carferry services. Each state appointed one representative of a port city, one shipper, and one representative of the railroads. The task force was asked to address the following: 1. What should the position of the states be in regard to the carferry abandonment applications and continued ferry subsidy? 2. What efforts might be undertaken to improve freight and passenger traffic on the ferries? Are there specific marketing activities that should be begun? 3. Are there cost-effective steps that might be taken to improve the services provided by the ferries? XI-3 4. Are there additional specific actions to be taken that will increase business use and support of the ferries?" The task force met monthly in various Michigan and Wisconsin cities, with the final meeting occuring on December 17, 1976, in Lansing. The group received input from other advisory groups, orga nized labor, government officials and interested citizens which resulted in recommendations that were helpful to the states in deter mining their position at the C & 0 and GTW abandonment hearings and in the decision to continue subsidying the former Ann Arbor car ferries. Regional Planning Commission Involvement Regional Planning Comissions (RPC's) play an important role in providing information for the rail planning process. Numerous meetings of the Department of Transportation and RPC transportation planners have been held to coordinate data collection and analysis. In addi tion the RPC's have provided documentation of industrial parks, plant expansions, or other specific evidence of economic growth in their areas. They also usually play a lead role at the local level to identify rail users, to set-up local meetings, and to organize the local rail users. In addition, the regional planning commissions play a very important role in the refinement of the State Rail Plan. They have performed detailed analyses of alternatives and identified local sponsors for potential projects. In conducting these studies, the RPC's involve additional private and public officials as members of advisory committees and report progress to counties and municipalities. WisDOT recognizes that the RPC's are in close touch with .. local needs and are well qualified to evaluate and refine the alternatives for each line. State/Local Coordination for Lines Filed for Abandonment With the creation and staffing of the Bureau of Railroads and Harbors, WisDOT has expanded its field activities with local officials and rail users to learn first hand of the problems the shippers may encounter if abandon ment should occur, to provide information on state and federal assistance programs, and to encourage an examination of transportation service con tinuation options a~ early as possible. · Normally, the first step in the department's rail outreach process occurs when a line is initially placed on the system diagram map by the railroad. At that time a visit is made to the local area to determine who the rail users are after which each is mailed a copy of the survey form contained in Appendix G of this report. The infor mation thus derived provides preliminary information to WisDOT at an early stage of the abandonment process. Shortly after the railroad files its notice of intent to abandon, the rail users and public officials are.invited to an informational meeting in the local area. Such meetings are usually jointly conducted by personnel from WisDOT's Central and District Offices and the pertinent RPC. The purpose of that meeting is (1) to explain what the railroad intends to do, (2) to explain the ICC regulatory process for contesting the railroad's actions, (3) to provide information on the availability, requirements, pro cedural details, and applicability of the rail assistance programs, and (4) to offer technical assistance for the regulatory process or the develop ment of a rail assistance project. Then within a week or two after the XI-4 informational meeting, personal interviews are conducted with each rail user. The purpose of the interviews is (1) to collect specific data relating to railroad operations in order to better evaluate the abandonment. case of the railroad, the potential for short-line operation, and the vera city of claims about service and usage, (2) to obtain a feel for the willingness to financially assist a rail service continuation project, and (3) to clarify questions or issues concerning rail service and state programs. Information derived from the above steps is used to help determine WisDOT's "case position" in the ICC regulatory proceedings which will follow. In those cases where WisDOT's position is similar to that of the local officials and rail users there is considerable additional coordination effort to put forth the best common case before the ICC. Even in cases where WisDOT's position differs with that of local officials or shippers, information the department has developed concerning the line is made available to the local parties upon request. For those lines for which abandonment is authorized and local officials decide to pursue a rail assistance project, WisDOT and RPC staffs work very closely with the local sponsoring body to complete a study of the alternatives, to firm-up a pro ject, and to prepare the necessary applications. Other Coordination Activities Another means of creating public interest in the rail plan was through distribution of a monthly newsletter. In addition, the planning staff spoke at numerous meetings and made various press con tacts. State agency interaction took place through frequent monthly meetings of an Interdepartmental Coordinating Committee on Railroad Abandonment chaired by WisDOT and comprised of staff from the Trans portation Commission, State Planning Office, and the Departments of Administration, Business Development, Agriculture, Revenue, Natural Resources, and Local Affairs and Development. Participation with public representatives in other states occurred mainly through meetings of The Conference of States on Regional Rail Reorganization. In addition, Wisconsin planning staff met many times with Michigan planners, especially on Lake Michigan ferry issues. Wisconsin staff also met with Illinois, Iowa and Minnesota planners, and attended several public information meetings sponsored by different Michigan groups. The Rail Plan as an Environmental Impact Statement Public input and review of the State Rail Plan is part of the environmental review process required by the Wisconsin Environmental Policy Act (WEPA). Normally, a project involving federal funds such as the Rail Plan also would have been subject to an environmental review process under the National Environmental Policy Act. However, the 4R Act, which proyided the enabling funds, exempted state rail planning from NEPA on the grounds that the rail line analysis is solely the state's responsibility, not that of the federal agency. XI-5 WisDOT examined the environmental ramifications of the plan, and then classified the plan as a "Type II Action" which under WEPA guidelines requires consideration of an environmental analysis. However, the Department decided that it was not necessary or appropriate to prepare a separate environmental document since the analysis described in the plan report was adequate to justify its release as a Preliminary Environmental Report (PER). A PER has two purposes: to develop and com municate a preliminary environmental evaluation based on information and expertise available to the agency, and to solicit comments, suggestions, and additional information from other agencies, _.private organizations, and the public in order to improve the preliminary evaluation. WEPA guidelines require that certain steps be followed in notifying the public about the document and in incorporating public comments in the revised draft. After consulting the WEPA review pro cess, copies of the 1976, 1977, 1978 and 1979 plans were sent to the following agencies: The Governor's office, the Department of Natural Resources, and state and federal agencies having special expertise, interest, and jurisdiction; regional and county planning agencies; regional and district offices of the DOT; local public libraries; environmental groups; and elected state and federal officials. Copies of the plan were also supplied to individuals requesting the ra_il plan. This updated plan also updates the EIS and will be distributed to appropriate individuals. Public Hearings Public hearings were held on the most recent revisions of the State Rail Plan on September 14, 1976; October 24, 1977; September 25, 1978; January 22, 1979; and January 28, 1980. To publicize the hearings, press releases were issued to all news media and flyers were sent to a mailing list of persons known to have some interest in railroad transportation. A public hearing on this update is planned for early 1981. XI-6 APPENDIX A-1 METHODOLOGY FOR CALCULATING REVENUES AND COSTS ASSUMING A CLASS ONE RAILROAD OPERATION [49 CFR, Section 266.lS(c)(l)] Introduction Rather than simply accepting the railroads' computations of branch line finances, WisDOT performs a separate financial analysis using alternative procedures. For example, the railroads are required by the ICC to utilize procedures prescribed by the Rail Services Planning Office (RSPO) for computing their costs. As a check, WisDOT utilizes a related but different procedure developed by the United States Railway Association (USRA) when that agency analyzed the systems of seven bankrupt railroads to form Conrail. This appendix describes the basic assumptions, methods, and data requirements of the USRA method. A more detailed description is included in Viability of Light-Density Rail Lines - The USRA's Analytic Policies and Procedureslf, which provides detailed instructions, outlines the application of specific uniform system accounts, and presents the complete set of assumptions .J) This methodology has the advantage of being usable to test varying assumptions and alternatives for a particular line, or even part of a line. In using the alternative methodology, WisDOT has established the following basic assumptions as input for e~ch of its analyses. These assumptions may cause the results to differ from those which the railroads present because inefficiencies are eliminated: 1. On-branch costs include normalized maintenance. 2. An 11,0 percent return on investment is used. (This is con siderably higher than what the rail industry has actually been experiencing but lower than the current cost of capital, which the railroads used as a rate of return in computing branch line losses until 11.0% was established as a fair rate by the ICC.) 3, The cost for a four-man crew is used on all lines so that some lines are not penalized by showing bigger losses because a fifth man was available. 4. The number of round trips per year is based on a pre-selected, desirable level. of service, Railroad figures may have been affected by embargoes·or other unique circumstances. _l/United States Railway Association, Viability of Light-Density Rail Lines - The United States Railway Association's Analytic Policies and Procedures, Washington, March, 1976, J:./ Since publication of the above referenced USRA report, the railroad annual reports (R-l's) have been revised making it difficult for one, not familiar with the changes, to apply the methodology, A-1 5. Crew time and locomotive hours required for servicing the line are adjusted to at least a 10 MPH operation for those lines that presently are below that level. 6. Crews .and locomotives will be used productively on other lines, when not operating on the study line, so that there will be no costs of unproductivity. The following paragraphs describe elements of the USRA procedure and how it was applied in Wisconsin. Revenues On system (one railroad) revenues are usually provided by the railroad and therefore need not be estimated. When it is necessary to have revenue for the entire haul, and the actual amount cannot be obtained, the method described below can be used. The Federal Railroad Administration's report, published annually, entitled Carload Waybill Statistics provides average revenue by commodity for movements between various territories. These averages, based upon general origin and destination regions are applied to the carloads of commodities shipped on each of the evaluated branch lines to derive revenue estimates. This same source also provides a corresponding average length of haul for each commodity which should be used if off-branch costs are to be calculated for the entire haul. Thus, even though they are based on averages, both revenue and off-branch cost would be based on the same lengths of haul. On-Branch Costs On-branch costs are subdivided into nine separate components as follows: 1. Crew costs are based on the total number of hours spent on the line, the number of persons in the crew and a unit crew cost consisting of straight-time and over-time pay, constructive allowance, health and welfare benefits, and payroll taxes. Crew costs for each railroad were calculated from the carriers annual reports (R-1) to the ICC using worktable 2 on page 73 of the USRA's Analytic Policies and Procedures. The crew costs by employee type for a particular railroad divided by its total service hours for those employees yields the average hourly cost per employee, by type of employee. These costs are aggregated to yield average hourly cost factors for two, three, four, and five-man crews. These factors are then applied to on-branch train-hours to derive crew costs for a branch line. The costs thus computed for selected Wisconsin railroads are shown in Table A-1. A-2 TABLE A-1 1980 CREW COSTS FOR SELECTED WISCONSIN RAILROADS Crew Costs Per Hour C&NW MILW soo !CG Two Man Crew 39.39 39.22 39.09 39.63 Three Man Crew 55. 78 55.55 55.36 56.13 Four Man Crew 72.18 71.88 71.64 72.63 Five Man Crew 89.73 89.37 89.07 90.30 Source: Computed by WisDOT from 1978 annual reports of the carriers (R-l's) and factored by 1.288 to represent 1980. 2. Locomotive Costs are based on the number of hours spent on the line and an hourly locomotive unit cost. The unit cost was developed using Work Table 1 on pages 64 through 6 8 of the USRA' s Analytic Policies and Procedures. The carriers' total costs for locomotive repair, retirement, depreciation, rent and fuel were extracted from the annual reports (R-1) to the ICC. These costs are supplemented by indirect maintenance and labor costs and a 7. 2 percent return on net locomotive investment. The resulting system cost is divided by total system locomotive hours (hours.in road service are derivable directly from R-1 data, hours in switching service are derived indirectly by dividing total locomotive miles in switching service by 6 miles per hour). The result is a loco motive cost per unit hour figure which is multiplied by the total locomotive hours on a branch line to provide the estimate of locomotive costs attributable to the branch line. The costs computed for selected Wisconsin railroads is shown in Table A-2. TABLE A-2 1980 LOCOIDTIVE COS TS FOR SELECTED WIS CONS IN RAILROADS Locomotive Unit Costs Per Hour C&Ni'1 35.39 MII.W · 4-9i80 soo 31.40 ICG 35 .33 Source: Computed by WisDOT from 1978 Annual Reports of the carriers (R-l's) and factored by 1.288 to ·represent 1980. A-3 TABLE A-3 ON-BRANCH UNIT COST FACTORS FOR SELECTED WISCONSIN RAD.ROADS •• CNW MILW RD soo !CG STCC Cost/ Cost/ Cost/ Cost/ Cost/ Cost/ Cost/ Cost/ Code Name Car-Day Car-Mile Car-Daz Car-Mile Car-Day Car-Mile Car-Day Car-Mile 01 Farm Prod. 4.2914 0.1546 6.·1727 0.0698 4.0881 0.0583 3.9164 - 0.0461 (48 Forest Prod. 2.5773 0.0775 4.4566 0.0939 2.9516 0.0833 2.8275 0.0720 09 Fresh Fish 3.2416 0.0598 5. 6052 -.-759 3. 7121 0.0712 3.5563 0.0531 10 Metallic·Ores 4.0019 0.0489 6.9202 0.0665 4.5830 0.0523 4.3905 0.0408 11 Coal 4.0019 0.0489 6.9202 . 0.0665 4.5830 0.0523 4.3905 0.0408 13 Crude Petroleum 0.0399 0.1292 0.0692 0.1436 0.0457 0.1378 0.0439 0.1279 14 Nonmetallic Ores 3.9458 0.0501 6.8232 0.0675 4.5188 0.0536 4.3291 0.0421 19 Ordinance 3.8458 0.0513 6.6503 0.0684 4.4042 0.0564 4.2194 0.0434 20 Food or Kindred 3.0255 o.0641 5.2316 0.0788 3.4647 0.0715 3.3198 0.0567 21 Tobacco 3.8380 o.d514 6.6364 0.0685 4.3952 0.0565 4.2105 0.0435 22 Textile Mill Prod. 3.8018 0.0518 6.5741 0.0690 4.3538 0.0576 4.1711 0.0442 23 Apparel 2.8479 0.0657 4.9271 0.0814 3.2633 0.0824 3.1260 0.0600 24 Lumber 3.9940 0.0491 6.9063 0.0665 4.5737 0.0524 4.3818 0.0410 25 Furniture 3.8579 0.0510 6.6711 0.0683 4.4180 0.0562 5.6618 0.0431 26 Pulp-Paper Prod. 3.8979 0.0505 6.7402 0.0679 4.4638 0.0550 4.2765 0.0426 >I .I:'- 27 Printed Matter 3.1695 0.0609 5.4808 0.0772 3.6297 0.0738 3.4773 0.0547 28 Chemicals 2.3372 0.0817 4.0414 0.0976 2.6766 0.0886 2.5640 0.0765 29 Petroleum Prod. 0.9485 0.1106 1.6400 0.1256' 1.0862 0.1182 1.0406 0.1077 30 Rubber & Plastics 3.7978 0.0518 6.5671 0.0690 4.3492 0.0576 4.1667 0.0442 31 Leather 3.1374 0.0613 5.4253 0.0775 3.5931 0.0750 3.4421 0.0553 32 Stone, Clay, Cone. 3.9299 0.0501 6.7956 0.0672 4.5005 0.0541 4.3116 0.0421 33 Primary Metal 3.9100 0.0502 6.7610 0.0675 4.4776 0.0547 4.2897 0.0425 34 Fab. Metal Prod. 3.6937 0.0535 6.3873 0.0705 4.2302 0.0601 4.0524 0.0459 35 Machinery 3.7138 0.0531 6.4220 0.0701 4.2531 0.0598 4.0743 0.0456 36 Electric Machinery 3.6618 0.0538 6.3318 0.0708 4.1935 0.0612 4.0174 0.0466 37 Trans. Equip. 3.8659 0.0509 6.6848 0.0683 4.4272 0.0558 4.2413 0.0430 38 Instruments 3.2537 0.0603 5.6261 0.0769 3. 7261 0.0714 3.5694 0.0540 39 Mis. Prod. of Manu. 3.4337 0.0571 5.9374 0.0737 3.9321 0.0666 3.7670 0.0501 40 Waste & Scrap 3.8819 0.0514 6.7125 0.0687 4.4455 o.0550 4.2588 0.0434 41 Misc. Freight Ship. 3.2054 0.0603 5.5430 0.0768 3.6711 0.0730 3.5169 0.0541 42 Empty Containers 2.8493 0.0654 4.9271 0.0808 3.2633 0.0805 3.1260 0.0595 44 Freight Forwarded 2.5213 0.0103 4~3598 0.0855 2.8873 0.0909 2.7661 0.0656 45 Shipper Assoc. 2.3891 0.0721 4.1313 0.0873 2.7361 0.0944 2.6212 0.0677 46 Misc. Mixed Ship. 1.4447 0.0859 2.4981 0.0997 1.6543 0.1193 1.5849 0.0836 -- Source: 1975 Rail Form A computations by RSPO factored by 1.522 to represent 1980 costs. 3. Car-day Cost is developed from the average number of car-days on the line and a unit car-day cost. Car-mile cost is based on the approximate number of car miles on the line and an approximate unit cost. Per day and per mile freight car costs, by commodity, were developed by the RSPO for 1975 using the typical mix of car types used to transport each commodity. WisDOT factored these costs to 1980 by applying an AAR infla tion index value of 1.522. Table A-3 shows the derived per-day and per-mile freight car costs by conuoodity for selected Wisconsin railroads. 'lbese factors are applied to estimates of on-branch car-miles and car-days. '!be car-mile estimate is based on the average round-trip distance on the branch line. '!be car-day estimate is based -nn assumptions for time consumed in movement, switching, loading, and waiting for service, and depends on service frequency per week. The resulting estimates as developed by USRA are summarized in Table A-4. TABLE A-4 AVERAGE CAR-DAYS ON A BRANCH LINE Frequency of Service (Trips Local Intrasystem Interline Per Week) Traffic Traffic Traffic 1 19.00 11.00 11.00 2 15.29 8.29 8.29 3 12.05 6.38 6.38 4 11.07 5.82 5.82 5 10.43 5.63 5.63 6 9.14 4.64 4. 64 7 8.oo 4.00 4.00 Source: USRA 4. Caboose-day costs are computed by calculating the number of caboose days on the line and applying an approximate unit cost of $13.83 per. day. Caboose-mile costs are based on the number of caboose-miles and a caboose-mile unit cost of $.072 per mile. Since there are no. published per diem rates for cabooses, the costs employed were those of· equipped automotive box cars which have.approximately the same retail value as a,caboose. 5. Maintenance of way costs are computed using an average maintenance cost per mile for the appropriate type of track. Average normalized maintenance costs per mile were developed by USRA for various traffic densities. WisDOT has inflated these costs to 1980 using railroad price indexes reported by .the AAR. The results are presented in Table A-5 • . : A-5 TABLE A-5 AVERAGE MAINTENANCE COSTS MILUONS OF ANNUAL AVERAGE MAINTENANCE GROSS TON-MILES COSTS PER MILE ($) 0.0- 0.19 $ 5,629 0 .2- 4, 99 $ 6,663 5 .0- 9 .99 $ 7,510 10.0-14,99 $13,059 15.0-19.99 $16,149 20.0-24. 99 $19,271 Source: USRA, inflated to 1980 by WisDOT Variable maintenance cost factors are related to the maintenance of physical structures such as bridges, tunnels, and wharves and should be applied individually depending on the condition of the structures present on the 1 ine. Return on Investment This is an estimate of the opportunity cost to the carrier of continued operation. It is developed by applying a rate of return to the resale value of steel, ties, and land. A net liquidation value is determined by calculating the tons of steel and usable ties and obtaining an estimate of land values. The prices for salvagable items were determined by averaging the prices quoted in recent abandonment applications available to WisDOT. These average prices were then verified by local scrap dealers. Currently they are $88 per ton for scrap iron, $240 for reusable rail, and $5.00 per reusable tie. Land costs were estimated by the Bureau of Real Estate of.WisDOT. Estimated dismantling and removal costs were deducted at $11,000 per mile. The return on value was derived by applying an 11..Y percent rate of return to the liquidation value. Off-Branch Costs Costs incurred off-branch for the total.haul are computed usin~ variable carload unit costs found in Rail Carload Cost Scales for 1975._/ These 1J In Ex Parte No. 363, the Interstate Commerce Commission found 11 percent to be the average cost of capital for the railroad industry. 1:./ Interstate Commerce Commission, Rail Carload Cost Scales 1977, Washington, n.c., November 1979. A-6 costs are shown by territory and can be inflated for any current year. WisDOT inflated these costs to 1980 using an AAR inflation index of 1.350. On system costs were determined based upon the ratio of on-system revenue to total line-haul revenue applied to total line-haul off-branch costs. This method is necessary because on and off junction points are usually not known. The components of off-branch costs are: 1. Line haul cost is computed based on unit variable car-mile and ton-mile costs and the average length of haul for various shipments. The average length of haul is based on the commodity and origin-destination territory from the Carload Waybill Statistics minus the average haul for a branch line. Line haul costs for Region V (midwest) factored to 1980 are shown in Table A-6. 2. Terminal cost is based on unit variable carload and ton costs and reflects costs of the various switching operations in moving rail freight. Because these unit costs are developed on the basis of an entire carload movement, which already includes branch line costs, they must be reduced by 10% to avoid double counting of on-branch costs. Terminal costs for Region V are shown in Table A-6. TABLE A-6 LINE HAUL AND TERMINAL COSTS FOR OFF-BRANCH COST CALCULATIONS Line Haul Costs Terminal Cost Car Type Car-Mile Ton-Mile Carload Ton Box-General-Unequip. 0.54102 .006040 202.06 .015600 Box-General-Equip. 0.63647 .006040 202.06 .015600 Box-Special 0.79030 .006040 216. 92 .015600 Gondola-General 0.62590 .006040 216.92 .015600 Gondola-Special 0. 70137 .006040 216.92 .015600 Hopper-Open-General 0.66733 .006040 216. 92 .015600 Hopper-Special 0.66616 .006040 216.92 .015600 Hopper-Covered o.69043 .006040 216.92 .015600 Stock 0.67987 .006040 216.92 .015600 Flat-General 0.62600 .006040 216.92 .015600 Refr.-Meat-Mech. 0.97046 .006040 131. 20 .015600 Refr.-0/T Meat-Mech. 0. 80168 • 006040 131.20 .015600 Refr.-Meat-Non Mech. 0.97815 • 006040 131.20 .015600 Refr.-0/T Meat-Non Mech. 0.75045 .006040 131.20 .015600 ', '-.\'·,!, Tank-10,000-18,999 Gal. 0.86525 .006040 131.20 .015600 - .- . • Tank-28,000-31,999 Gal. o.98594 • 006040 131.20 .015600 . Source: Rail Carload Cost_Scales for Region V (average trains) for 1977 factored by 1.350 to 1980. A-7 Summary of Class One Revenue and Cost Formulas 1. Revenue a. total haul revenue = L n\llllber of carloads of each commodity x average revenue per carload b. on-system revenue = usually obtained from the railroads 2. On-branch cos ts a. crew costs = number of hours on-branch per trip x number of trips per year x average per-hour crew cost b. locomotive cost = ntnnber of hours on-branch per trip x number of trips per year x locomotive cost per hour x number of locomotives c. c;:ar-day cost = number of carloads x average days on line per car x cost per car-day d. car-mile cost = number of carloads per year x cost per car-mile x avg on-branch haul (mi.) x 2 (round trip) e. caboose-day cost = number of round trips per year x number of hours per trip + 8 hours per caboose-day x cost per caboose-day f. caboose..:mile cost = number of round trips per year x length of line (mi.) x cost per caboose-mile g. maintenance cost = length of line (mi.) x average yearly maintenance cost per mile 3. Return on Investment return on net salvage value = (land value + value of ties + .value of reusable rail+ value of scrap iron - cost of recovery) x rate of return 4. Off-branch costs a. line haul cost= [number of carloads x (average length of off-branch haul x unit car;..mile cost·+ number of tons x average length of off-branch haul) x unit ton-mile cost] b. terminal cost= [(number of carloads x unit carload cost) + (number of tons x unit ton cost)] x • 9 c. on-system off branch costs = (a+b) x on system revenue total haul revenue 5. Net contribution net profit (deficit) of operations= revenue - on-branch cost - return on investment - off-branch cost A-8 APPH:DIX A-2 ¾ETHODOLOGY FOR CALCULATING REVENUES A.ND COSTS ASSUMING A SHORT-LINE OPERATION [49 CFR, Section 266.15(c)(l)] Introduction One of the problems facing planners in dealing with rail branchline projects is the lack of accurate cost estimates for continuation of rail service. This is especially a problem if one of the alternatives is for the establishment of a short-line. To date, no one has to our knowledge developed a methodology for the quick estimation of short-line revenues and costs. To fill thi.s void, WisDOT has developed the following rule of thumb system to produce estimates for short-lines when more detailed studies are not available. The methodology was developed by combining the best parts of several studies on short-line finances and by reviewing the annual reports of various short-line carriers. Revenues The revenues obtained by a short-line railroad are directly related to the rate division agreements that are negotiated with the connecting railroads. · The variables that will determine the outcome of the negotiations are (1) the negotiating skill of the short-line railroad, (2) the willingness of the connecting railroads to be fair, and (3) the presence or lack of directives from the ICC requiring both parties to negotiate in good faith. Good agreements may be hard to come by due to the imbalance between the parties--the short-line railroad having everything to gain or lose and the connecting railroads having very little to gain. Often, only one rate division is negotiated between a pair of inter connecting railroads to apply to all freight interchanged between them, Such divisions are usually between 10-25% with 15% a representative weighted average. Unless it is known that another division can be negotiated, 15 percent should be used for rule of thumb purposes. Administration Costs The administration functions of a short-line railroad can be performed by either the owner or the operator but most likely by a combination of both. The activities involved are policymaking, legal services, insurance and claims, financing and accounting, management and supervision, fringe benefits, taxes, marketing and customer services, costs for offices and buildings, and costs for equipment. 1. Policymaking involves determining the course of action that the rail operation will take in its various areas of interest and then following up to insure that the course of action achieved the desired result. Policymaking can occur in the following areas: A-9 - Purchases and investments - Contracts - Employment practices - Marketing intensity - Level of service - Operating rules and procedures - Maintenance strategy Policymaking responsibilities usually rest with the highest levels of the organization. In Wisconsin, if a rail transit connnission is formed to oversee the rail operation, the commission itself would be responsible for policymaking. It may delegate some of this responsibility to people within the operating company but probably would not unless the operating company was a contractor or lessee required to absorb all losses. The expenses involved in policymaking involve only the expenses of commissioners attending meetings which would be on the order of $1,000-$2,000 per year. 2. Legal services will be required in many areas of the short-line railroad operation. They can be provided by a private attorney on a case-by-case basis or on a retainer basis or the owner or operating company can hire a full-time attorney. The latter would be done only if the estimated annual attorney fees exceed an attorney's salary plus overhead (office, secretary, travel expenses, etc.). A large part of the legal expenses will be incurred during the process of organizing the short-line railroad operation. The cost of these services will be on the order of $30,000. These activities will include: - ICC hearings. - Negotiations for purchase of the line. - Transfer of property title. - Acquisition of a certificate of public convenience. - Possible negotiation of a trackage right agreements. - Possible negotiation of division of revenue agreements. - Rate approval by the ICC and. the Transportation Commission. - Possible negotiation of contracts for employees. - Possible contract or lease with operating company. - Contract for line rehabilitation. - Contracts for acquisition of maintenance building, equipment, and insurance. After the railroad is operating, there will be recurring legal costs. These activities will include: - Renegotiation of contracts and agreements. - Settlement of disputes with adjacent land owners. - SettJ.ement of damaged freight claims. - Settlement of claims due to train accidents. - Enforcement of contracts. - Approval of rate changes with the ICC .and the Transportation Commissio·n. - Interpretation of ICC and Transportation Connnission rules and of federal and state laws, A-10 These services will probably cost from $5,000 per year for small short lines to upwards of $10,000 per year for large short-lines. These figures would loosely be tied to the volume of traffic handled since the exposure for legal problems would increase. Some of the legal activities can be handled through groups such as the American Short Line Railroad Association for negotiations and dealings with Class I railroads and the ICC and the Association of American Railroads for car hire administration. 3. Insurance and claims involves the financial and administrative aspects of protecting the railroad company from financial disaster. The finan cial disaster may result from legal judgments or unforeseen destruction of railroad property due to wrecks, vandalism or natural disaster. The railroad manager and office staff will spend some time in filling out forms and writing and answering correspondence. However, their salaries are accounted for below. Protection from liability claims will probably cost between $15,000 and $20,000 per year for liability insurance premiums to cover personal injury and property damage other than routine freight damage claims. Another $2,000 per year should be budgeted to pay routine freight damage claims. 4. Financing and accounting services includes all aspects of the operation relating to its collection and disbursement of funds. One to three people (depending on the volume of traffic) would have to be hired to perform the bookkeeping and billing duties. This would include main taining and submitting car usage report forms, annual financial state ments for ICC and the Transportation Commission, records for payment of trackage rights, records for demurrage charges, operating cost records for all equipment, structures, and right-of-way; payment of bills, salaries, car charges, contractural fees; and preparation of bills for transportation provided to shippers. The salary cost of a part-time bookkeeper would range from $5,000 to $17,000 per year. An annual audit will also be needed which will require the services of an accountant. Total accounting fees will probably range from $1,000- $2,000 depending on the services provided. 5. Management and supervision will be done by the railroad manager. The manager will be directly responsible to the owning and/or operating company chief executive or governing body for the successful operation of the railroad. The general direction of activities performed by the office staff, train crews, track maintenance crews, engine maintenance crews, and possibly contractors will be the responsibility of the manag~r. The manager's salary ranges between $20,000 per year and $30,000 per year depending on rail traffic volume. Large short-line.operations, such as one operating more than 75 miles of track or handling more than 2,000 cars per year, may need additional supervision, such as a chief bookkeeper who would be in charge Qf the office, a chief mechanic who would be in charge of engine maintenance, an engineer who would be in charge of each train crew, and a maintenance supervisor who would be in charge of maintenance of way and structures. A-rl 6. Fringe benefits - A major personnel expense other than salaries is the fringe benefit package. The package would include railroad contributions to retirement plans including railroad retirement or social security, health insurance plans, unemployment compensation, workmen's compensation insurance, sick leave, and vacation leave, A competitive benefit package will amount to 25%-30% of the payroll, 7. Taxes must be paid by the railroad to the State of Wisconsin. The tax rate is generally about $25 per $1,000 of property (including equipment) utilized in the railroad operation. Federal income taxes may also have to be paid. 8. Marketing and Customer Services - Marketing will consist primarily of contacting all shippers at least once a month and regular shippers once a week, The purpose of these visits will be to resolve any problems that may have arisen, take shipping orders, make shippers aware of other ways they can cut their total transportation costs by using rail service, and obtain leads on other potential shippers in the area. The railroad manager will probably be responsible for these contacts. The main aspects of customer service will be to inform the shipper ahead of time as to when his shipments will arrive so that unloading can be arranged and to check on the location of delayed cars. Personal contact between the manager and the line haul railroad may be necessary to iron out car delay problems. The cost of marketing and customer service normally would be included in the manager's salary. In addition there will be rather large telephone bills and travel expenses, The telephone bill would probably range from $1,000-$2,000/year and the cost of travel and marketing expenses would probably be $2,000 to $5,000/year. 9. Office and Maintenance Building - An asset that will most likely be required is a building to be used for locomotive maintenance, for storage of maintenance equipment, and for office space. Engine maintenance will require an area 60-70 feet long by 20-25 feet wide by 25 feet high, and the office area for three or four people should be about 300 square feet. A building 70 feet long by 40 feet wide would fill these requirements with room for storage. The building will probably cost on the order of $80,000-$90,000. Annual mortgage payments or rent payments for such a building would be about $10,000. 10, Radio Connnunication and Office Equipment - Radio communication and office equipment will also be necessary. It will facilitate communications between maintenance crews and train crews in work areas and members of train crews during switching operations. Therefore, mobile. stations for each engine, and the maintenance foreman vehicle(s) and a walkie-talkie for each train crew member would be desirable, The cost of the equipment will be about $2,000 while the annual maintenance and depreciation cost will be $400. The office equipment and furniture will cost about $8,000 with annual maintenance and depreciation costs of $600. 11. Miscellaneous Expenses will include heating and lighting buildings, water for buildings and engine cooling, telephone, copy machine, and office supplies. Generally, about $5,000 to $10,000 per year should cover these expenses. A-12 Operating Costs Operating costs are subdivided into four separate components as follows: 1. Crew costs "." Train operation will probably require a crew of two or three--an engineer and one or two people to handle switching. The salary of the engineer would be about $30,000/year and that of the trainmen would be about $25,000 each. One trainman may in a few instances be necessary to ride at the end of the train to check for operational problems and another trainman may be necessary to control vehicular traffic at grade crossings during switching operations. If the short-line is small, the crew will not be necessary on a full time basis and thus may have other employment or be used in other activities on the railroad. If this is a valid assumption for the short-line in question, an hourly crew cost should be applied to the total number of hours spent on the line. A reasonable estimate of costs for a two-man crew is $24 per hour. For a three-man crew, the cost would be about $34 per hour. The cost of fringe benefits is com puted elsewhere in this methodology. Usually a two man crew will be adequate. However, a third man to do maintenance and to fill-in for train duty during illness or vacations, etc., is highly desirable. 2. Locomotive costs, for the lack of a more precise method, are assumed to be equivalent to the average of locomotive unit costs per hour for class one railroads in Wisconsin, which in 1980 was $38 per hour. The method for developing the cost per hour was explained on page A-2. It includes costs for repair, depreciation, fuel, maintenance, labor, and return on investment. Total locomotive costs for a short-line are then calculated by multiplying the locomotive cost per unit hour to the total locomotive hours on the line. 3. Car-day cost is developed from the average number of car-days on the line and a unit car-day cost. Car-mile cost is based on the approximate number of car-miles on the line and an approximate unit cost. Per day and per car unit costs, by commodity, were developed by RSPO using the typical mix of car types used to transport each commodity. Table A-3 showed the derived cost per day and per mile freight car costs by corrnnodity for selected Wisconsin railroads. If no specific data is available, the data for the railroad to which the short-line would connect should be used. These factors are applied to estimates of on-branch car-miles and car-days. The car-mile estimate is based on assumptions for time consumed in movement, switching, loading, and waiting for service, and depends on service frequency per week. For short-lines it will be assumed that the number of car days on the line will be two days or the average interval between service frequency, · whichever is greater. 4. Maintenance of way costs consist of routine and preventive maintenance to keep the line from deteriorating. It involves monthly inspections of all track, biennial inspection of all bridges and culverts, annual replacement of about 3% of the cross ties and 1% of the rail, rehabili tation of 5-10% of the ballast, control of weeds and brush, snow removal, crossing repairs, turnout maintenance, and repair of fencing and signs. On the average, about $3,500 per mile should be expended yearly for this purpose. A-13-- Return on Investment This is an estimate of the opportunity cost to the carrier or to the government agency owning the land and track of continued operation. It is developed by applying a rate of return to the resale value of iron, ties, and land. A net liquidation value is determined by calculating the tons of steel and usable ties and obtaining an appraisal of land values. The average prices for scrap and reusable steel and ties was obtained from railroad contractors and various trade publications. They are $88 per ton for scrap iron, $240 for reusable rail, and $5.00 per reusable tie. Land costs were estimated by the Bureau of Real Estate of WisDOT. Estimated dismantling and removal costs should be deducted at $11,000 per mile. The return on value is derived by applying an 11 percent rate of return to the liquidation value. Summary of Short-Line Revenue and Cost Formulas 1. Revenue short-line revenue= connecting carrier revenue x rate division (generally about 15%) 2. Administrative costs a. transit commission expenses= $1,000 to $2,000 per year b, legal services= $5,000 to $10,000 per year c, insurance= $15,000 per year d. damage claims= $2,000 per year e. finance and accounting= $5,000 to $17,000 per year f. management and supervision= $20,000 to $30,000 per year g. fringe benefits= (finance and accounting salary+ management and supervision) x 25 percent h. taxes= assessed value x tax rate i, marketing and customer services= $3,000 to $7,000 per year j, office and .maintenance building= $10,000 per year k. radio communications equipment= $400 per year L office equipment and supplies= $600 per year m, miscellaneous expenses= $5,000 to $10,000 per year 3, Operating Costs a. crew costs= number of hours on-branch per trip x number of trips per year x average per-hour crew cost b. locomotive cost= number of hours on-branch per trip x number of ~ ..Jr. trips per year x locomotive cost per hour c. car-day cost= number of carloads x average days on line per car x cost per car-day d. car-mile cost= number of carloads per year x cost per car-mile. x avg. on-branch haul x 2 e. maintenance cost= length of line (mi.) x average yearly mainten ance cost per mile A-14 4. Return on Investment Return on net liquidation value= (land value+ value of ties+ value of reusable rail+ value of scrap iron - cost of recovery) x rate of return 5. Off-branch Costs Usually there are no off-branch costs for short-lines 6. Net contribution Net profit (deficit) of operations= revenue - on-branch cost - return on v~lue - off-branch cost (if any) ....,. A-15. APPENDIX B BENEFIT/COST METHODOLOGY FOR LIGHT DENSITY RAIL LINES [49 CFR, Section 266.15 (c)(S)] SECTION I THE OVERALL FRAMEWORK FOR WIS.CONSI.N I S BENEFIT /COST METHODOLOGY Introduction The Local Rail Service Assistance Act of 1978 requires that all rail projects eligible for Federal assistance, involving acquisition, rehabilitation, new construction, and substitute service, be the subject of a benefit/cost analysis. Subsidy projects do not require a benefit/cost analysis. · The objective of the benefit/cost analysis is to determine whether the public benefits, associated with the proposed rail projects, outweigh the public cost of project implementation. This is accomplished by computing the benefit/cost ratio - the expected benefits divided by the expected costs - for each rail project alternative. The benefit/cost ratios which are larger than unity would justify the use of public funds, while the ratios lower than unity indicate that public investments are not justified unless there are other extenuating circumstances. The benefit/cost methodology which follows incorporates many of the principles contained in the report published by FRA entitled, Benefit-Cost Guidelines, Rail .. Branch Line Continuation Assistance Program while using several simplier techniques for calculating the individual elements which make up the total analysis. Basic Assumpttons Geographic Frame of Reference - The first step in. the analysis of benefits and costs associated with rail service continuation alternatives, is to define the geographic perspective of the analysis (i.e., local, stat~~ or national) because of the different offsetting effects at each level of analysis. In Wisconsin, a local point-qf-view has been adopted as the most appropriate analysis framework. Generally, the local area is the minor civil divisions (MCD's) within three to six miles of the affected rail line. However, this does not mean that benefits accr~ing outside the local area cannot be included, provided that they are not off-set somewhere else in the economy. Benefits inside the local area are included even though they may be offset somewhere else. Discount Rate and ProjectLife - Rather than simply computing benefits and costs for a single y:ear, the benefits and costs should be computed over the entire life of the project. There-fore, it i-s necessary to determine- the 1 i fe of the project and to compute benefits ancf costs for each year of that life. In additfon, because or the extended time frame of tile analysis, such items as discount rates and inflation rates must al so be considerations. ·The ·discount rate should be equivalent to the real r-ate of interest for the party involved or the real rate of return which the money to be invested in the project would command if invested elsewhere. Thus, any benefits or costs which are estimated to occur at future times will be discounted to allow for s.ucn differences fn value. B-1 The discount rate selected by WisDOT reflects the fact that current interest rates in corrmon parlance do not typically differentiate between the opportunity cost and inflation components. For example, a current interest rate of 12% may well represent a 4% opportunity cost component and an 8% inflation component. Thus, in computing the present worth of future benefits and costs it was felt that the best approach would be to express all benefits and costs in constant dollars and to use a low discount rate reflecting only the opportunity costs. Thus a rate of 4% was selected for use on all Wisconsin rail projects. This discount rate is applied over a twenty year period for all projects unless the physical life of the improvement is 0 expected to be less. Otherwise it will be assumed that rail, ties, and other track material, with normalized maintenance, should physically last twenty years. Costs and Benefits Attributable to the Various Types of Projects It is important that only the benefits which will actually accrue as a result of a certain project be included in the analysis rather than all of the benefits of the rail line itself. For example, the impacts on the corrmunity, if the line were abandoned can be counted as benefits of a project which includes acquiring the property and making it minimally operational. But, projects which rehabilitate a facility above the minimum of 10 to 15 MPH can only count those benefits which accrue as a result of the increase in operating speed. Substitute service projects, such as the construction of a team track facility on another rail line, can include only the difference in cost between trucking to the new team track as opposed to tr~ck ing a greater di stance to some other 1ocat i_on. Summarized below are the types of benefits and costs which can be attributed to each type of project. Group 1 Projects - Continuation of Basic Rail Service at Minimum Levels 1. Benefits - (a) the net difference in cost of providing rail service versus the cost of trucking. (b) net wage losses if it is physically impossible to ship a certain corrmodity by truck and as a ,result .the shipper/ receiver would go out of business or reduce ~perations. (c) the discounted salvage value of the facilities at the e-nct - .of the project's life. 2. C0-sts - · (a) Purchase price of land an-d track (b) Rehabilitation costs to stabilize a line so that normal annual maintenance can be made to keep the line at an appropriate standard. B-2 (c) New connections or other facilities required for the basic operation. Group 2 Projects - Improvements in Operating Speed 1. Benefits (a) Decreases in operating cost such as reduced cost of derailments, reduced labor costs, reduced hotel and meal allowances, reduced fuel costs, and reduced car hire costs. (b) The discounted salvage value of the improvements made by the project. 2. Costs - Rehabilitation to speeds higher than class one. Group 3 Projects - Substitute Service Projects 1. Benefits (a) the net difference in cost of trucking to alternative railheads. (b) Decreases in loading/unloading costs. (c) Producer surplus for the operator of the line to which the traffic is diverted. 2.. Costs (a) Cost of team track faciltties. (b) Cost of transloaders. Formula for Computing the Benefit/Cost Ratio The previously described discount rate and project life, along with the actual or estimated benefits and costs are assembled into a benefit/cost ratio based on the formula below. n [Bkj 1 ] j=-1 (1 + i}i BCRk = n [Ckj 1 :t j=l (1 + i)j where BCRk = benefit/cost ratio of project k Bkj = benefits from project kin year j Ckj = costs of project kin year j ---1 = present worth discount factor at rate of discount i for jth ( 1+i)j year n t. = sum over n periods or years j=l In simple terms, the formula shows that the benefit/cost ratio is the discounted sum of the benefits divided by the discounted sum of the costs. Table B-1 and 8-2 show example applications of the above formula for group one and group two projects respectively. Incremental Basis of Comparison In order to avoid misleading results, the benefit/cost ratio should be used on an incremental basis. The alternatives should first be ranked in order of increasing total cost. The alternatives are then compared with the base condition and then each alternative is compared with the alternative of the next higher cost and so on until all alternatives have been evaluated. With this approach, each successive increment of cost is evaluated on the basis of whether or not it results in an equal or greater amount of benefit. The above formula can be modified to reflect this by substituting the difference in benefits for alternative 1 and alternative O (81 - 80 ) for total benefits (B) and the difference in costs for the two alternatives (C1 -C0 ) for total cost (C). 8-4 TABLE B-1 EXAMPLE BENEFIT/COST COMPUTATION FOR ACQUISITION AND REHABILITATION TO CLASS ONE - GROUP ONE PROJECTS - Discounted Acquisition Rehabil i - Rehabili Discounted Costs tation Discount tation Efficiency Efficiency Item Cost Year Costs Factor Costs Benefit~ Benefits Land 1 $515,077 .962 $495,504 $280,566 $ 269,904 & $214,091 2 515,077 .925 476,446 280,566 259,524 Track 3 515,077 .889 457,903 280,566 249,423 4 515,077 .855 440,391 280,566 239,884 5 .822 178,637 146,840 6 .790 178,637 141,123 7 .760 178,637 135,764 8 .731 178,637 130,584 9 .703 178,637 125,582 10 .676 178,637 120,759 11 .650 178,637 116,114 12 .625 178,637 111,648 13 .601 178,637 107,361 14 .578 178,637 103,252 15 , .555 178,637 99,144 16 .534 178,637 95,392 17 .513 178,637 91,641 18 .494 178,637 88,247 19 .475 178,637 84,853 20 .456 178,637 81,458 $214,091 $2,060,308 13.594 $1,870,244 $2,798,497 Calculation of Salvage Value of Project Current Market Value of Facilities $ 214,091 Addition to Value Due to Rehabilitation (Materials less salvage of replaced materials) $ 338,296 Total Salvage Value $ 552,387 Discount Factor at End of Project Life .456 Discounted Salvage Value $ 251,888 Ca lcul ati on of B/C Ratio Discounted Efficiency Benefits $-2 ,-798, 497 Discounted Salvage Value $ 251,888 Total Benefits $3,0-50,_385 Acquisi-tfon Costs $ 214,091 Discounted Rehabilitation Costs $1,870,244 · Total Costs '$2,G84,335 Total B + Tota-1 C = 1.46 fB)t Ratio} B-5 TABLE B-2 EXAMPLE BENEFIT/COST COMPUTATION FOR REHABILITATION TO CLASS TWO - GROUP TWO PROJECTS - Discounted Rehabili- Rehabili Discounted tation Discount tation Efficiency Efficiency Year Costs Factor Costs Benefits Benefits 1 $550,514 .962 $529,594 $1,265,555 $1,217,464 2 880,214 .925 814,198 1,265,555 1,170,638 3 880,214 .889 782,510 1,265,555 1,125,078 4 880,214 .855 752,583 1,265,555 1,082,050 5 .822 1,265,555 1,040,286 6 .790 1,265,555 999,788 7 .760 1,265,555 961,822 8 .731 1,265,555 925,121 9 .703 1,265,555 889,685 10 .676 1,265,555 855,515 11 .650 1,265,555 822,611 12 .625 1,265,555 790,972 13 .601 1,265,555 760,598 14 .578 1,265,555 731,491 15 .555 1,265,555 702,383 16 .534 1,265,555 675,806 17 .513 1,265,555 649,230 18 .494 1,265,555 625,184 19 .475 1,265,555 601,139 20 .456 1,265,555 577,093 13.594 $2,878,885 $17,203,954 Calculation of Salvage Value of Project Addition to Value Due to Rehabilitation $ 2,035,088 (Materials less salvage of replaced materials) Discount Factor at End of Project Life .456 Discounted Salvage Value $ 928,000 .Calculation of B/C Ratio Discounted Efficiency Benefits $17,203,954 . Discounted Salvage Value · 928,,000 .. Total Benefits $18,131,954 Ac_guisition Costs $ . 0 Discounted Rehabilitation Costs .· 2,878,885 .· Total Costs . $ 2,878,885 Total B + Total C = 6.30, {B/C Ratio) B-6 SECTION I I METHODOLOGIES FOR COMPUTING THE ELEMENTS FOR THE BENEFIT/COST ANALYSIS Methodology for Calculating the Costs to Continue Rail Service Appendix A-1 of the Wisconsin Rail Plan includes a methodology for calculating railroad costs for a class one railroad and Appendix A-2 includes a methodology for calculating the costs of a short-line operation. The appropriate portions of those methodologies will be used where actual operating costs are not available from the carrier. In addition, the cost of continuing rail service should include other identifiable costs such as the cost of replacing a highway overpass over the rail line. If such items are included in the state's highway construction program and those items would not be required if the rail line was abandoned or operated differently they should be included as a cost of continued rail operation. The total content of Appendix A is not repeated here but a summary of the basic computations which will be made is shown in Table 8-3. TABLE B-3 FORMULAS FOR COMPUTING RAILROAD OPERATING COSTS - ~o~y_tation of On-Branch Costs for C]ass One Railroads - a. crew costs = number of hours on-branch per trip x number of trips per year x average per-hour crew cost b. locomotive cost = number of hours on-branch per trip x number of trips per year x locomotive cost per hour x number of locomotives c. car-day cost = number of carloads x average days on line per car x cost per car-day d. car-mile cost = number of carloads per year x cost per car-mile x average on-branch haul x 2 e. caboose-day cost = number of round trips per year x numer of hours per trip + 8 hours per caboose-day x cost per caboose-day f. caboose-mile cost = number of round trips per year x length of line (mi.) x cost per caboose-mile g. maintenance cost = length of line (mi.) x average yearly maintenance cost per mile h. return on value = net liquidation value x 11% (this should be included only if the property remains in railroad ownership. If purchased by a public body, opportunity cost is accounted for by including the cost of acquisition as a project cost and the discounted value of the property at the end of the project life as a project benefit.) - Computation of the Cost to Operate a Short-Line Railroad - Administrative Costs a. transit conmission expenses= $1,000 to $2,000 per yer b. legal services= $5,000 to $10,000 per yer c. insurance= $15,000 per year d. damage,claims = $2,000 per year e. finance and accounting= $5,000 to $17,000 per year f. management and Jupervision = $20,000 to $30,000 per year g. fringe benefits= (finance and accounting salary+ management and supervision) x 25 percent h. marketing and customer services= $3,000 to $7,000 per year i. office and maintenance building= $10,000 per year j. radio conmunications equipment= $400 per year k. office equipment and supplies= $600 per year l. miscellaneous expenses= $5,000 to $10~000 per year Operating Costs a. crew costs = number of hours on-branch per trip x number of trips per year x average per-hour crew costs b. locomotive c_ost · = number of hours on-branch per trip x number of trips per year x locomotiv~ cost per hour c. car-day cost = number of carloads x average days on Tine per car x cost per car-day d. car-mile cost = number of carloads per year x cost per car-mile x average on-branch haul x 2 e. maintenance cost = 1e,:igth of line (mi.) ~l aver age yearly ma1ntenance cost perm, e B-8- Methodology for Calculating Trucking Costs Abandonment of light-density rail lines will require the use of alternate modes of freight transportation by shippers which previously relied on rail service. For purposes of this analysis, it is assumed that all shippers would transport their conmodities by truck to an alternate rail terminal, usually the nearest rail terminal. Even though some shippers would probably truck their goods directly to or from the origin/destination, it is extremely difficult to accurately calculate the costs involved, particularly because of the large number of diverse markets and suppliers and the possibility that these points could change. Only in the case where it is physically impossible to move a conmodity by truck would trucking costs to another rail head not be calculated. For these types of conmodities, the only alternative to loss of rail service is plant closure or relocation which is accounted for elsewhere. Two analysis methods have been used in combination by WisDOT. Method A, initially developed by the New York DOT, utilizes cost factors which vary by conmodity and by the weight transported and by the type of siding currently used, plus a small unit cost which varies by the weight and distance. Method B, initially developed by the Pennsylvania DOT, consists basically of a single unit cost which varies by both weight and distance transported, to which is added a cost per ton when additional handling is required •. The results of the two methods are averaged to produce the selected value for increased transportation costs. A summary of the formulas for each method is shown below in Table B-4. Table B-5 shows the ratios used to cohvert rail carloads to truckloads. In addition to these calculations, trucking costs should also include the additional costs to maintain the highway system. However, calculations for over fifty rail lines in previous rail plans have shown this cost, less. highway revenues, to be negligible for the relatively small amounts of additional traffic involved. However, should there be a ca~e where it is believecl that the additional cost would be significant, such costs will be calculated using Analysis Procedure 2-.24 contained in Volume II, Chapter Two of the Rail Pla·nning Manual published by FRA in July, 1978. B-9 TABLE 8-4 FORMULAS FOR COMPUTING TRUCKING COST Method A a. Trucking costs for each firm presently using a private siding: Bulk Cost = Tonnage of Bulk Conmodities x [$7.22 Per Ton + ($0.14 Per Ton x Distance to Nearest Alternative Railhead)] Non-Bulk Cost = Tonnage of Non-Bulk Conmodities x [$10.71 Per Ton + ($0.14 Per Ton x Distance to Nearest Alternative Railhead)] b. Trucking costs for each firm presently using a team track: Bulk and Non-Bulk Cost = Tonnage of Conmodities x [$3.74 Per Ton + ($0.14 Per Ton x Distance to Nearest Alternative Railhead)] Method B Increased Transportation Cost = Annual Tonnage x Cost Per Ton ($0.5863 Per Ton Per Mile) x Distance to Neaiest Railhead + Transloading Costs of $0.98 Per Ton (Transloading costs are included only for firms using their own siding since those now using a team track pay'transloading for the rail alternative now.) NOTE: (1) Total trucking costs will be assumed to be the average of Method A and Method B. (2) All of the above costs are in 1980 dollar vaTues and should be factored to represent costs for the same year for which rail costs are calculated. 8-10 TABLE B-5 RAIL TO TRUCK CARLOAD RATIOS BY COMMODITY CLASS Trucks/ Trucks/ STCC Carload STCC Carload 01 2.8 29 2.3 08 2.9 30 1.5 09 3.6 31 1.7 10 5.6 32 2.. 9 11 4.6 33 3.2 13 4.5 34 2.0 14 3.9 35 1.6 19 2.4 36 1.2 20 2.6 37 2.5 21 2.1 38 1.3 22 1.9 39 1.4 23 1.9 40 3.2 24 3.0 41 1.6 25 .9 42 1.3 26 2.6 44 1.2 27 1. 9 45 1.2 28 2.4 46 2.0 Average 2.4 NOTE: These 2-digit code classifications are those. listed in the Freight Commodity Statistics by the ICC. The definition of these 2-digit commodity classifications can be found in the Standard Transportation Commodity Code (STCC). Source: Calculated from the following ICC data sources: Freight Commodity Statistics of Class I Railroads in the United States (Western District) 1971 and Freight Commodity Statistics of Motor Carriers in the United States, ( North Western region), 1971. B-11 Methodology for Calculating Wage Losses Primary Job and Wage Losses - There will be a few shippers who ship very large commodities which are physically impossible to move over the highway system. In these instances it will be assumed that the plant would close or relocate outside the local area, if rail service is discontinued. The jobs associated with these closures will be assumed to be benefits of retaining rail service for the period of time that it takes for these people to find new jobs. The number of jobs lost and their associated salaries will be obtained directly from each shipper. After the initial unemployment impact, a small fraction of affected workers would probably find alternative work almost immediately--certainly quickly enough to avoid having to suffer significant loss of income. However, most affected workers would require some temporary compensation to enable them to seek and find new employment. A small number would require compensation for a continuing, longer term. These residual unemployment factors are very difficult to predict. However, the Michigan DOT and Michigan Bureau of Labor Statistics studied this problem in Michigan and developed the curve shown in Figure B-1. FIGURE B-1 RESIDUAL UNEMPLOYMENT 88% "Cl) j 62% ; ;:;:;:;:\'\:;:::;:;:::;::::':{J?f?i:i8% 1 1 137 %. l~!!if l+G,G,~f, j1$!(!!!!:!i /[l l!ll! : ~~~ :.:i#k4)#4.i#i.)#k tii a.. ·:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::: : : : : : : : : : : : : : : : : : : : : : :: : : : : : : : : :: : : :: : : :: : : : ~::;:::::::::::::::::::::: :: :: :::::::::::::!:::::::!:~:::::::::::~:::::::::::::::::::~:::::::::::::::\::::: •••••••••• ' •••••••••••• .! ...... ·~ ••• :~::::::::::::::::: :: :: : : : : : : : : : : : : : : : : ::: :: : : : : :·:::::::::::::: :: :: : : : : : : : : : : :•:•:•:•:•:::•:·~:·:·:·•:•:•:•:•:•:•-:•:•:•:•:•:•:•:•:•:•:•:•:•:•:•:•:•:·~·:•: 0 13 26 34 39 52 Nurnbu of Weeks ff-12 Residual unemployment levels were developed for the initial impact and at the ends of each quarter. When plotted and joined by straight lines, a shape approximating an exponential decay curvey was obtained. The integral of residual unemployment with respect to time may be obtained as the area under the appropriate part of the curve. These residual unemployment factors are intended to approximate reality, since it is unrealistic to assume that all impacted workers would remain unemployed forever. The average for the entire year (based upon the area under the entire curve) is 46.6 percent. This factor can be applied to the initial job losses and multiplied by the average county wage to obtain gross primary wage losses for the first year. It is assumed that virtually everyone is re-employed in the second year. Residual unemployment is assumed to require some form of compensation. Since unemployment compensation is available in Wisconsin for up to 34 weeks, the average residual unemployment for that period of time (55.8 percent) was determined and used to calculate the compensation that would be paid under current Wisconsin rates. In addition, public assistance can supplement unemployment compensation up to certain maximum amounts dependings on family size and location within the state. For example, the amounts for 1978 are shown in Table B-6. Before beginning any analysis, the latest figures should be obtained. TABLE B-6 MAXIMUM PUBLIC ASSISTANCE PAYMENTS BY REGION - 1978 Familt Size Location 2 members 3 members 4 members Southern 1/4 326 385 458 Next 1/4 317 372 444 Next 1/4 304 357 426 Northern 1/4 300 . 354 420 SOURCE: Wisconsin Department of Industry, Labor, and Human Relations. When unemployment compensation is less than those amounts, public assistance is assumed to make up the remainder. After 34 weeks, the residual unemployment (the average height of the curve in Figure B-1 is 29.3 percent) is assumed to receive the entire amount of public assistance. The formulas for primary wage losses are shown below in Table B-7. B-11 TABLE B-7 FORMULAS FOR COMPUTING PRIMARY WAGE LOSS 1 Gross Primary Wage = Initial Job Losses x 46.6% x Average County Wage Losses 2 Unemployment = Initial Job Losses x 55.8% x Rate Per Week x 34 Weeks Compensation Other Public = [Initial Job Lo~ses x 55.8% x (Rate Per Week - Assistance Unemployment Compensation Rate Per Week)3 x 34 Weeks] + [Initial Job Losses x 29.3%4 x Rate Per Week x 18 Weeks] Net Primary = Gross Wage Losses Unemployment Compensation - Other Wage Losses Public Assistance 1 The average residual employment for the entire year is 46.63 percent. 2 The average residual unemployment for the 34 weeks that unemployment compensation is available is 55.8 percent. 3 Not to be less than zero. 4 The average residual unemployment for the remaining 18 weeks of the year is 29.3 percent. Secondary Job and Wage Losses - The reduction in primary jobs, wages, and income may induce a dr-0p in the number of employees in service and service-related industries that the community is now able to support. Thus, additional job, wage, and income losses may occur. The magnitudes of these secondary losses and impacts will depend on the mix of "basic" and "non-basic" industries in the impact area. "Basic" industries are those which produce goods or services for non-local consumption. These include most manufacturing enterprises, agriculture, forestry and fisheries, and tourist or recreational attractions. "Non-basic" industries include most · service industries, retail and wholesale trade, fi.nance, insurance, real estate, and public utilities. - . The standard methodology for predicting the extent of secondary job losses involves the use of a multiplier which is the ratio of employment in non-basic industries to that in basic industries within a particular labor market. The multiplier is applied to the net primary personal income loss, recognizing that to the extent primary wage losses are offset, secondary employment would be unaffected. Therefore, the loss of secondary wages is based on the uncompensated loss in wages associated with primary jobs. Secondary job losses are obtained by dividing the secondary wage losses by the average county wage. B-14 Then, like the procedures used for primary job losses, secondary job losses are weighted to reflect the actual number of people and the time spent out of work during the year. Unemployment compensation and public assistance payments can also be calculated for the secondary job losses. The formulas for secondary wage losses are shown below in Table B-8. TABLE B-8 FORMULAS FOR COMPUTING SECONDARY WAGE AND JOB LOSS Gross Secondary Wage Losses= Net Primary Wage Losses x County Multiplier Gross Secondary Job Losses= Gross Secondary Wage Losses Average County Wage Net Secondary Wage Losses= Gross Wage Losses - Unemployment Compensation - Other Public Assistance Methodology for Calculating Salvage Value Benefits The salvage value of the facilities at the end of the life of the project should be considered as a benefit. However, it is important to apply the discount factor for the year assumed to be the end of the project life in order to express that future benefit in today's value and thus account for the opportunity costs of the capital tied up in those facilities over the life of the project. The formulas which will be,used are shown below in Table B-9. TABLE B-9 FORMULAS FOR CALCULATING SALVAGE VALUE BENEFITS Salvage Value Computation for Group 1 Projects= [Current Market Value of the facilities or the actual purchase price + Addition to the value due to rehabilitation (cost of recoverable materials less salvage value of replaced materials) - cost of recovery if not already included in current market value] x discount factor at end of project life Salvage Value Computation for Group 2 Projects =- Add-it-ion to value due to reh:abHttatiorr tcost_ of recoverabl~ matertaTs less- sal vag-e va:lue of replaced materials-) x discount- factor at end of tlroiect- Hfe:- B-15 Methodology for Calculating Operating Efficiency Benefits As a Result of Increases in Speed Rehabilitation projects, which result in upgrading of train operating speeds over a line, produce benefits to a railroad in the form of train operating cost savings such as reduced derailment, crew, lodging/meal, car-hire, and fuel costs. A method to compute these items when actual data is not available from the respective railroad .is shown below. Cost Avoidances Related to Derailments - Track deterioration leads to more numerous but individually less costly derailments. Conversely, rehabilitation will virtually eliminate track-related derailments, but those that do occur will probably happen at higher speeds and involve greater damage to freight and equipment. Derailment frequencies and particularly cost per derailment are difficult to predict accurately because of the large variances. However, studies conducted for the U.S. DOT and published i_n Rail S¥stem Investment Analysis, January 1980 for four 10 MPH to 25 MPH lines over a four year period showed an annual cost of $0.54 per train-mile. If it is assumed that derailments will be virtually eliminated as a result of rehabilitation, that figure times the number of train miles on a line will yield the annual savings in rerailment costs. Labor Cost Reduction - Operating speeds limited to 10 MPH greatly increase the amount of time required by the crew to travel the line. Savings attributable to operating at 25 MPH not only may include the reduced hourly wages but also the cost of overtime, the cost of dispatching a new crew, and/or the cost of food and lodging for crews away from home. The first step is to determine the time required to service the line. The following computations will be made for both the existing speed and the post project speed. Time Required Per Trip = Travel Time (Miles ..;.. Speed x 2) + Spotting Time (Carloads ..;.. Trips Per Year x .25 Hrs. Per Carload) The next step is to apply crew costs to each of the two travel times as follows: Crew Costs Per Year = Hours (Under 8) x Regular Crew Costs x Trips Per Year + Hours (Over 8) x Overtime Crew Costs x Trips Per Year • •• J •• The difference between the cost at.the existing speed and the proposed speed will be the net annu~l savings_for er~~ costs .• Reduction in Hotel and Me'al Allowances .or Crew Taxiing - For· r.elatively long lines, operating at slow speeds cari mean that tile crew may have fo be rested before making the return trip if the total hours exceeds 12. This results in either hotel and meal allowances, a return trip by car, or replacement with another crew. Since short-line railroads rarely have extra crews, the alternative of replacement with another crew will .not be considered further. Either of the two calcuTations below are completed whenever appropriate: B-I6 Hotel and Meal Allowances = $30 Per Room Per Night x $8 Meal Allowance x Trips Per Year x Number In Crew Crew Taxiing Costs = $.25 Per Mile x Miles to Home Base x 2 Reduced Fuel Costs - Operation at very slow speeds and frequent acceleration and deceleration in and out of slow orders forces a train to consume more fuel than if it operates at a steady speed. This phenomenon occurs despite the fact that rolling resistance is proportionately greater at higher speeds. To quantify the savings, it will be assumed that a 2000 horsepower locomotive will operate at one-third throttle at 10 MPH and consume 51 gallons of fuel per hour. At 25 MPH it will be assumed that the same locomotive will operate at one-half throttle and consume 70 gallons of fuel per hour. Thus the difference between the following two calculations will yield the net savings in fuel costs. 10 MPH Fuel Cost = 51 Gallons Per Hour x Number of Units x Hours Per Trip (excluding spotting time) x Trips Per Year x $.94 Per Gallon 25 MPH Fuel Cost = 70 Gallons Per Hour x Number of Units x Hours Per Trip (excluding spotting time) x Trips Per Year x $.94 Per Gallon Cost Savings for Car Hire - A railroad can reduce its costs by getting cars off its system and onto another railroad as rapidly as possible. This cost savings can be calculated by applying a cost per hour figure for per diem to the difference in hours required to move the car on and off line. The average hourly car-hire cost was obtained from several Wisconsin railroads. The following computations are made for this item: · Car Hire Cost Savings = $.80 Per Hour x Number of Cars Moved Per Year x Difference In Time Per Round Trip Now Versus After The Project Other Cost Savings - It should be recognized that there may be other cost savings depending on each unique situation. When these costs savings can be identified and quantified and are considerd reasonable they can be included as a benefit of the rehabilitation project along with the benefits already mentioned above. B-17 APPENDIX C METHODOLOGY FOR CALCULATING ENVIRONMENTAL IMPACTS Introduction Although environmental impacts cannot be quantified in monetary terms and therefore are not a part of the benefit-cost ratio, they are important nonetheless. Whenever the computed environmental impacts are significant, they must be a consideration in any decision affecting the continuation of service. Two of the environmental impacts are computed and shown in the branch line analyses in Chapter VII. They are energy consumption and air emissions. Although there may be other environmental impacts, as a result of rail abandonment, they are not contingent upon rail service continuation and can be prevented in ways that do not require continuation of rail service. Some methodologies for calculating environmental impacts are shown below. Energy Consumption Diversion of freight from rail to truck will produce changes in the amount of fuel consumed. Energy savings will result from the cessation of the relatively low-volume shipments associated with most light-density lines. Additional consumption of energy will occur as increased local and inter city truck traffic becomes necessary to transport such freight. Outbound diverted freight may be trucked to the nearest railhead and shipped the remaining distance by rail, or shipped the entire distance by truck. Inbound freight may be brought by rail to the railhead nearest the station losing service and then trucked the remaining distance, or inbound freight may move entirely by truck. For many bulk commodities, such as grain or· coal, short-haul trucking is an inevitable part of the movement. Manu--· facturers of low-bulk and high-value goods, if they are not already shipping by truck, would probably convert entirely to trucks. The average fuel efficiencies for rail and truck, and the different types of hauls are shown in Table C-1. TABLE C-1 AVERAGE FUEL EFFICIENCIES FOR RAIL AND TRUCK Fuel Constnnption Mode and Type of Movement Ton-Miles Per Gallon* Other** Rail Branch Linel 55 12.0 Gallons Per Hour Rai:1 Mafn Line2- 27.0 ·Truck Short Haul 3 65-- • 2: Gallon Per Hour Truck Main Hau14 55 1 Thirty- cars or less. 2 One-hundred-car train. 3- Dresel truck at 3Cf mph. 4. D-iesel--- trudc at 55" mph. Source:- *U. S., DO'f Transpnrtation S:ystem Center, Cambridg_e·, Kassacliusetts-•. **New York DOT. C-1 From these values, it can be seen that rail is definitely more fuel efficient on main lines, where relatively high densities can be attained. However, trucks are actually slightly more energy efficient when comparing a short-haul truck movement with a branch line rail movement. The formulas used to calculate the change in energy consumption are sum marized below in Table C-2. TABLE C-2 FORMULAS FOR COMPUTING ENERGY CONSUMPTION CHANGE RAIL DECREASE On Branch= Hours Per Trip x Number of Trips x 12 Gallons Per Hour Off Branch= Negligible Change TRUCK INCREASE F~r Commodities Trucked to Nearest Alternative = Tonnage x Distance x 65. Ton-Miles Per Gallon Railhead For Commodities Trucked= Tonnage x Distance x 55 Ton-Miles Per Gallon the Entire Distance Air Quality Alterations in the extent of rail usage or in the modes of transportation used to move existing traffic will result in an alteration in air pollution emissions. The extent of the changes resulting from an abandonment can be estimated based on the relationship between fuel consumption and the emission of air pol~utants. This is accomplished by multiplying the annual quantity of fuel consumed by the appropriate emission factor obtained from Table C-3. The difference between emissions under existing circumstances and those that would result after abandonment give the expected annual alteration in emissions • ... ". In considering the significance of increases in emissions, it must be remembered that i.ndividual transportation units are essentially moving point sources of ·pollution. Therefore, while a point 100 fe~t. ,dq'\'ffiw:l.nd of five locomotivef:i,or five trucks may exp~rience a momentary level of air pollution greater than some air quality. standards, this occi.tr:i:ence_-is ·. irregular and soon dissipated over a ~ider area. Small abandonments will probably never violate short-term standards. However, if ·the increase ·in air pollution from a·specific action does approach these levels, it will be necessary to evaluate short-term effects on air quality. -,The .dissipa:tion.. C-2 TABLE C-3 AVERAGE AIR POLLUTION EMISSION RATES FOR RAIL AND TRUCK (POUNDS PER THOUSAND GALLONS) Heavy-Duty, Diesel- Heavy-Duty, Diesel- Powered Trucks Powered Trucks Diesel-Powered l'ollutant Locomotives 30 MPH 50 MPH Motor Ships Carbon Mo1;1oxide 130 170 82 110 Hy4rocarbon 94 36 27 50 ~itrogen 370 277 305 270 CJ I w Sour~e: "Compilation of Air Pollutant Emission Factors," AP-42, Environmental Protection Agency, February 1976; and the Interstate Commerce Commission. of moving point source emittants and deconcentration of the location of these sources from a specific line to a region's highway system tends to spread air pollution over a large area. Noise Pollution Rail service discontinuance is likely to produce a net change in the magni tude and distribution of noise pollution. The cessation of daily train movements on light-density lines and the discontinuance of switching operations will reduce noise levels in the vicinity of the rail lines. Any major increases in truck traffic are likely to increase highway noise levels. The actual noise level is related to the type, number, and speed of the vehicles. Table C-4 presents ranges of noise levels emitted by trains and trucks. TABLE C-4 NOISE LEVELS FOR RAIL AND MOTOR CARRIER Noise Level Vehicle (dBA - 50 Feet From Vehicle) Trucks Light 70-85 Medium 80-89 Heavy-Duty 85-95 Railroads Diesel, Electric, Locomotives 88-98 Freight Cars 80-9-4 Passenger Cars 80-90 Source: Kerber, Matthew J., 1973-74, "Your Government and the Environment- A Supplemental Environmental Reference," Vol. 2-S, Output Systems Corporation. However, only the change in perceived noise level is of importance, not total noise. Even a major increase in the volume or frequency of sound generated may be of little significance in a very sparsely populated area. Consequently, the location of populations with respect to .the existing rail lines and the anticipated new truck routes must be considered. Procedures for calculating noise pollution requires much data and are quite complex. Consequently, it is useful to establish order-of-magnitude guide lines to indicate when impacts will be serious enough to justify further calculations. Guidelines suggested by Creighton-Hamburg tnc. are as follows: C-4 1. If existing peak-period truck traffic is greater than 40 trucks per hour and rail abandonment generates· fewer than 40 trucks in the peak period, impact will be negligible. 2. If existing peak-period truck traffic is less than 40 trucks per hour: Ratio of Generated to Existing Truck Traffic Noise Impact 0-0.15 Negligible 0.15-0.5 Slight 0.5-1.0 Further Analysis Required The procedure used when further analysis is required is shown in Table C-5. Water Pollution Discontinuance of rail service might have a small, positive effect on the water quality of an area because: 1. The need to employ herbicides to control right of way vege tation growth will be eliminated, reducing subsequent leaching and run off of such chemicals. 2. The potential for chemical pollution resulting from derail ments.and fuel oil spillages will be removed. However, little refueling is done on light-density lines and operating speeds are slow, thus reducing the potential for spillage. 3. The elimination of any existing railroad causeways contributing to the artificial impoundment of water may improve local water quality. Increased truck traffic may result in additional use of deicing compounds, which would result in damage to the local water regime. However, increases in truck volume are generally so small that they would not generate addi tional use of deicing compounds. Only in exceptional instances will the above factors produce a measurable change in the local water quality. Ecological Impacts In considering the ecological impact of a proposed railroad abandonment, the primary area of concern is the ecosystem within the rail.road right of way. Right of way vegetation often provides habitat for various wildlife populations, especially in the more rural areas, and, depending on the particular species, may provide either food, cover, or breeding and nesting sites. The right of way_vegetation can be an important factor to wildlife, if the right of way provides a limited habitat for the wildlife population and if it serves one of the above-mentioned biological purposes. TABLE C-5 FORMULAS FOR COMPUTING NOISE POLLUTION INDEX 1. Based on traffic volumes on anticipated truck routes before and after abandonment, and utilizing procedures described in NCHRPR //117, Highway Noise, A Design Guide for Engineers, and in NCHRPR #144, Highway Noise, A Field Evaluation of Traffic Noise Reduction Measures, calculate the L10 highway noise levels at 100 feet, before and after abandonment. 2. Using the above results, establish significance levels for highway noise before (SB) and after (SA) abandonment as follows: Highway Lio Noise Level Significance of Noise at 100 Feet Pollution Impacts 0 Less Than 45 dBA Of No Importance 1 45 dBA to 54 dBA Of Some Importance 2 55 dBA to 69 dBA Significant 3 70 dBA and Above Highly Significant The variables SB and SA take on the values O, 1, 2, and 3, depending upon the highway noise levels before and after abandonment. 3. Based on the average number of daytime and nighttime train operations before and after abandonment, establish significance levels for rail noise before (NB) and after (NA) abandonment as follows: N = Average Daily Equivalent Number of Operations= Nd+ lONn where Nd= Average Number of Daytime T~ain Operations Nn = Average Number of Nighttime Train Operations Nighttime operations are given ten times the weight of daytime opera tions, which on a decibel scale (logarithmic) is equivalent to adding ten dBA to the nighttime noise level. ·'' Average Da:i,ly Equivalent Number of Significance of Noise Train Operations (N) Pollution Impacts 0 0 SN S 1 Of No Importance 1 1 < N ~ 2 Of Some Importance 2 2 < N S 40 Significant 3 40 < N Highly Significant G-6 TABLE C-5 (CONTINUED) 4. Based on truck route and rail line data referred to earlier, calcula.te the number of residences located within 800 feet of the highway (PH) and within 800 feet of the railroad (PR) as follows: • PH= MuH FUH + ~H • FNH and PR=~• FUR+ MNR • FNR where ~= Input 1 (d) MUR = Input 2 (c) FUR= Input 1 (f) FUR = Input 2 (e) Input 1 (e) Input 2 MNH = ~ = (d) (g) FNH = Input 1 FNR = Input 2 (f) s. Calculate the index used to evaluate the noise impacts of abandoning the line as follows: Noise Pollution Index = (SA - SB)PH + (NA - NB)PR -~. C-7 However, even though important, WisDOT does not believe that ecological factors should be a consideration in rail abandonments. Railroads are not in the business of providing wildlife habitats or preserving prairie vege tation. There are other agencies to do this which can instituted measures to preserve the corridor should abandonment be approved. However, WisDOT requested the Wisconsin Department of Natural Resources to survey many of the lines potentially subject to abandonment to determine what types of significant wildlife and vegetation are within each rail corridor. This information, which can serve as a guide for ·other agencies to take action should abandonment be approved, is summarized in Appendix E. Historical and Archaeological Impacts Rail facilities, especially train stations, may be of historical signifi cance. Discontinuation of rail service threatens such historical sites because the rail operator will usually cease to maintain the stations. The Wisconsin DOT will cooperate with the Wisconsin State Historical Society (WSHS) in evaluating the historical significance of any rail facilities that are associated with rail lines potentially subject to abandonment. The WSHS will be sent a copy of the Wisconsin State Rail Plan, and any amendments thereto, which lists rail lines potentially subject to abandon ment. It is presumed that the WSHS will identify any historic sites associated with any rail line which the Rail Plan states as likely to be abandoned and will suggest procedures for protecting them. It should be pointed out here that it is possible for rail service itself to be con sidered historically significant. In addition, significant archaeological sites are likely to be found beneath rail rights of way. It is believed that literally hundreds of thousands of archaeological sites are buried beneath rights of way in Wisconsin. WSHS has statutory responsibility for protecting such sites. Generally, archaeological sites beneath rail rights of way will remain undisturbed due to abandonment. C-8 APPENDIX D DETAILS OF CAR FERRY ABANDONMENT ANALYSIS Introduction This appendix is a summary of a separate study prepared by Harbridge House, Inc., as part of the state rail planning effort. The study was entitled Impact of Lake Michigan Car Ferry Abandonment by Car Ferry Line, July 13, 1976, and culminated a series of rail planning reports prepared by Harbridge House for the Wisconsin Department of Transportation. The report examined the abandonment impacts of the ferries in terms of: - Air quality impacts - Noise - Water quality - Wildlife, aquatic life and vegetation - Solid waste disposal - Socio-economic impacts - Tax collections - Safety - Spillage of hazardous cargo - Land use - Energy consumption -.Growth po~ential The car ferries were studied under five different cases, assuming in each case that one line is abandoned while all the others continue to operate. A sixth route--the Kewaunee-Frankfort route-- was assumed to be operating in all five cases. During the study the Manitowoc-Frankfort route was tempo rarily out of service, since the vessel servicing this route, the Arthur K. Atkinson, was out of commission. Thus, the first case assumes that the Kewaunee-Ludington line is abandoned but the other five lines continue to operate. The second case assumes the Manitowoc-Frankfort route is abandoned but the other five lines continue to operate, and so forth. Each case is listed below. Case 1 - Abandonment of Kewaunee-Ludington Line Case 2 - Abandonment of Manitowoc-Frankfort Line Case 3 - Abandonment of Manitowoc-Ludington Line Case 4 - Abandonment of Milwaukee-Ludington Line Case 5 .. Abandonment of Milwaukee-Muskegon Line For each case it was assumed that some traffic from the abandoned route would divert to other routes and some would be diverted around the lake. The results of the shipper survey used to evaluate the economic impacts indicated that a majority of the traffic on an abandoned route would be diverted around the lake. Air Quality Impacts Knowledge of regional air quality trends provides a bench mark against which the significance of ferry-related pollutant impacts can be assessed. D-1 Ferry operations take place within two of Wisconsin's air quality control regio~s (AQCR's): the Lake Michigan AQcR.!/ and the Southeastern Wisconsin AQCR!f. Of the five major air pollutants associated with ferry, truck, rail, and auto transportation, ani>ient air quality for two pollutants (carbon monoxide and nitrogen dioxide) in both AQCR's is below both primary and secondary standards. In the Southeastern Wisconsin AQCR, the primary standards for particulates and hydrocarbons and secondary standards for particulates and sulfur oxides were being violated as of 1974. In the Lake Michigan AQCR, the secondary standards for particulates were exceeded as of 1974. Sources at the Wisconsin DNR and the Southeastern Wisconsin Regional Planning Commission indicate that air quality has improved over the last several years as a result of control measures undertaken. In addition, air quality maintenance plans are being developed in order to achieve continued improvement and long-term maintenance of the quality of the air. In summary, there is a trend toward impr~ved air quality in the areas affected by ferry-related operations. Nevertheless, recent (region-wide) violations of the particulate, hydrocarbon, and sulfur oxide standards within the areas indicates that relatively greater focus should be placed on these pollutants in the subsequent analysis. Presently, each of the C&O car ferries is in violation of DNR regulations concerning air quality. DNR has set criteria to determine whether air pollu tion is causing visual degradation. C&O ferries all have coal burning engines which emit smoke which degrades the visual environment. Th.is problem is only manifest when the ferries are docked with their engines operating, or entering or leaving the ports. To calculate the ambient concentrations of air pollutants attributable to car ferry operation and abandonment, emission factors for the various modes of transportation were obtained from EPA's Conq>ilation of Air Pollutant Emission Factors. Analysis of the maximum concentrations of pollutants at receptors was based on DPA's Workbook of Atmospheric Dispersion Estimates. A point source Gaussian dispersion model was used for the docked ferry. '!he moving vehicles were modeled as instantaneous sources, as they would not be emitting continuously or for time periods equal to or greater than the travel times from the source to the receptor. Of the five pollutants (particulates, sulfur oxides, carbon monoxide, nitrogen oxide, and hydrocarbons) associated with the transportation modes examined, only sulfur oxides, particulates, and hydrocarbons were modeled. 'Ihe averaging times and transport characteristics of carbon monoxide and nitrogen oxides did not permit reasonable estimates of pollutant concentrations using these simplified models • .!/includes the counties of Brown, Calumet, Door, Fond du Lac, Green Lake, Kewaunee, Manitowoc, Marinette, Marquette, Menominee, Oconto, Outagamie, Shawano, Sheboygan, Waupaca, Waushara, and Winnebago, -~/Includes the counties of Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, and Waukesha. D-2 '!he results of the analysis are shown in Table D-1 for each mode of transportation. '!he concentrations indicated represent the maximum concentrations resulting from operation of a single vessel or vehicle. In comparison, with the ambient air quality standards (also shown in Table D-1), the concentrations are negligible. Monitoring data in the port cities is available only for particulates. In 1975, according to DNR, Manitowoc data (at a site near the city hall) shows a maximum 24 hours' concentration of 183.5 ug/m3 and Milwaukee data (at a site 1.6 miles from the ferry terminal) shows a maximum 24-hour con centration of 259.60 ug/m3• (Presumably, both of these figures include the impact of the existing ferry service on air quality). At both sites the secondary standards (of 150 ug/m3) were exceeded. '!he ferry's contribution' to the violations at each port (coal ferries are assumed to operate out of both ports) is nevertheless of minimal significance in relation to other sources of particulate matter. Evaluation of ferry-related air quality impacts in terms of ambient concentration does not lend itself to comparison of the alternative cases. '!he concentrations resulting from operation of the alternative modes are not additive because they occur at different locations. Consideration of the number of people subject to concentrations resulting from ferry-related traffic provides little insight into the issue of prioritizing the cases because all three of the pollutants examined disperse over large areas. Sulfur oxides, in particular, represent a long-term intermedia (air, water, land) residue in the environment; and hydrocarbons contribute to the forma tion of photochemical oxidants at distances several hours away. Noise Impacts Because available methodologies for noise level prediction range from detailed procedures requiring extensive data to simple ranking schemes but provide very few alternatives between these extremes, both qualitative and quantitative means have been utilized in this analysis. '!he effect on sound quality of eliminating the noise from car ferries was assessed qualitatively by visiting the car ferry site and investigating those parameters contributing to the noise level. Noise associated with diverted rail and auto and truck traffic was analyzed using essentially the same technique employed to evaluate changes in rail branch line noise. Sources of noise include the grinding, banging, and other commotion which occurs during the loading process, and engine sounds while at berth and on the lake. Observation at ports and interviews with people working in the vicinity indicated that noise levels during loading do not interfere with conversation. However, occasional screeching (high-pitched, short-duration sounds) does occur during loading which may approach 60 or 65 d BA. While on the lake, the noise has no impact, as it is not heard by the general public on the shore. D-3 TABLE D-1 ESTIMATED MAXIMUM AMBIENT CONCENTRATION RESULTING FROM VEHICLE OPERATION Distance to Maximum Particulates Sulfur Oxides Hydrocarbons Concentration 24-hour 24-hojr 3-hour Vehicle {meters) ugLm3 uglm ugLm3 Coal Ferry Moving 900 0.0743 0.504 0.0226 In-Berth 900 0.0188 0.131 0.0385 Diesel Ferry Moving 600 0.0021 0 .0191 0 .0592 In-Berth 600 0.0005 0.0049 0 .1020 Train 300 0.0060 0.0136 0. 0319 Truck 100 0.0064 0.0133 0.0258 Comparable Ambient Air Quality Standards Primary 260 365 160 Secondary 150 Source: Harbridge House, Inc. (1976) For both railroad and highway noise, the volume of traffic is a key determinant of ambient noise levels. In this analysis, it was assumed that the annual number of trips is spread evenly throughout the year, resulting in one or two train trips per day, from 25 to 40 truck trips per day, and from 10 to 60 auto trips per day (Table D-2). When this diverted traffic is dis persed over a large geographical area and spread over a 24-hour period as it would be in the event of abandonment, the incremental change in rail and highway noise would be imperceptible and insignificant. TABLE D-2 ESTIMATED DAILY VOLUMES OF DIVERTED TRAFFIC Trains* Trucks Autos Case 1 1.4 38 15 Case 2 1.4 30 10 Case 3 1.4 28 80 Case 4 1.6 38 59 Case 5 1.0 24 0 * 'lhe partial trains are shown only to indicate that 2 trains will be required on alternate days. Source: Harbridge House, Inc. (1976) D-4 Water Quality Impacts Dredging - Dredging or removal of accumulated sediments in the channels and harbors of the Great Lakes is regulated by the u.~. Army Corps of Engineers. 'lhe Milwaukee, Manitowoc, and Kewaunee harbors require maintenance dredging or the removal of unconsolidated sediments which have been deposited in the harbor since the last dredging operation. a. Milwaukee Harbor The abandonment of either the Chesapeake and Ohio Car Ferry operation from Milwaukee, Wisconsin, to Ludington, Michigan, or the Grand Trunk-Western Car Ferry from Milwaukee, Wisconsin, to Muskegon, Michigan, would not affect the current dredging operations for the Milwaukee Harbor as these operations will continue regardless of car ferry abandonment. 'lhe channel and harbor, which have a project depth of 27 feet, are used by watercraft whose draft depth exceed the 18.5 feet draft of the ferries. b. Manitowoc Harbor The abandonment of either the Ann Arbor Car Ferry from Manitowoc, Wisconsin, to Frankfort, Michigan, or the Chesapeake and Ohio Car Ferry from Manitowoc to Ludington, Michigan, would not change the need for harbor dredging. The harbor, which has a project depth of 23 feet, is dredged to keep the car ferries operating as well as other deep draft vessels which serve companies located up the river. c. Kewaunee Harbor 'lhe Kewaunee Harbor's project depth of 20 feet is just deep enough for the C&O car ferry which has a draft of 18.5 feet. If the C&O Car Ferry from Kewaunee to Ludington were abandoned, this would allow a decrease in the required dredging depth as the Ann Arbor Car Ferry has a draft depth of 17 feet and only requires a project depth of 18.5 feet. 'lhe harbor's project depth would be main tained at 15 feet if both car ferry operations were abandoned. Consequently, with the abandonment of the C&O ferry operation at Kewaunee (Case 1), the amount of dredged spoil removed would be reduced, although dredging of the harbor and disposal of the spoils would still be required. The U.S. Army Engineer Division considers this dredging to a lesser depth in ~ewaunee Harbor to have "insig nificant environmental advantage. 111/ .!/Final E.I.S. for Kewaunee Harbor, Wisconsin, U.S. Army Engineer District, March 1975, p. 20. D-5 Oil or Fuel Spills and Discharges - There are two types of oil wastes generated by a car ferry-fuel oil waste and lubricating oil waste. The oil that drains into the bilges is primarily lubricating oil. Thus, there is a potential seepage problem with the lubricative oil and a potential spillage problem with both types of oil. According to the Federal Water Pollution Control Act and the Water Quality Improvement Act, it is illegal to discharge oil from any vessel into or upon the navigable waters of the United States. New pollution control regulations as of July 1, 1974, under the Water Pollution Control Act of 1972, require a holding tank with sufficient capacity to contain fuel wastes and a fixed piping system to pump these wastes to a shoreside facility or discharge point. The Grand Trunk Western car ferry from Milwaukee to Muskegon had a holding tank for the lubricating oil which seeped into the bilges of the vessel and was then blown out by ingesting steam into the bilges. The ferry was charged a fee for pumping of their bilges when they reached port and as much as 20 to 50 gallons of such oil waste was pumped out. Ann Arbor's diesel electric ferries do not cause any significant oil related pollution problems. Because the existing Chesapeake and Ohio ferries do not have holding tanks or oil separators, lubricating oil can seep into the bilges of these ships and then be blown into the lake by ingesting steam into the bilges. However, according to the EPA Environmental Emergency Section, the Depart ment of Natural R.esources and the Captain of the Port of Muskegon, no major oil or fuel spills or discharges have been attributed to the C&O car ferries or any of the other ferries in the past few years. Only one or two minor oil pollution incidents involving the car ferries have been reported in the past two years. In 1974, the one reported accident occurred during the taking of fuel and the error was attributed to the delivery company. While there have been no reports of major oil spills or discharges due to car ferry operations, the potential for such an occurrence is most likely on the C&O ferries, which do not have holding tanks for oil wastes. Thus, the abandonment of any of the C&O car ferries 't1ould decrease the minor potential for oil spillage and also decrease the current small discharge of lubricating oil into Lake Michigan. · Sanitary Waste - The major car ferry waste is sanitary wastes. Sanitary wastes are principally a function of the passenger capacity of a ship. Hence, the Chesapeake and Ohio and Ann Arbor car ferries which carry passengers would be the major violators. Otherwise, the problem of the disposal of sanitary waste is minimal, since the crew members are the only polluters on board the ships. State laws forbid the overboard disposal of wastes and require vessels to have holding tanks or some other appropriate treatment device. The C&O spent $300,000 installing holding tanks on its ferries, which are pumped out in Ludington, Michigan, by the city for a fee. The Ann Arbor•s Viking does, however, violate the no-discharge ruling as sanitary wastes are discharged into the lake. The Arthur K. Atkinson has holding tanks for the sanitary waste and presents no pollution problems. 'Ihe Grand Trunk Western ferry did not carry passengers and the ship did have holding tanks adequate for the crews. These sanitary wastes were pumped out in Muskegon. D-6 According to the Captian of the Port of }fuskegon, the Viking has not been prosecuted for the violation of the sanitary waste disposal regulation. However, the water chemist of the Great Lakes Basin Commission, also stated that the Viking's addition to the fecal coliform in Lake Michigan is minimal. 'Ihere are no problems with the disposal of garbage by any of the car ferries. It is bagged and taken off the ships by garl>age trucks in Michigan. 'llius, there is no impact on water quality resulting from sanitary waste disposal in any of the five case alternatives under study. Thermal Pollution - Thermal pollution standards for Lake Michigan apply primarily to stationary sources which utilize very high volumes of water. Vessels are not currently covered by the State of Wisconsin's standards nor is it likely that they will be in the near future. The diesel-electric engines of the Ann ~rbor car ferries do not ingest water and raise the temperature; consequently, there is no thermal pollu tion problem. 'lhe steam engine ferries, which include the C&O and the Grand Trunk Western, are thermal polluters. 'Ihe C&O ferries raise the temperature of the water 25 degrees between influx and efflux. However, as stated by the DNR and the water chemist for the Great Lakes Basin Commission, the thermal effects of car ferries are so minute as to be immeasurable. Consequently, the abandonment of any of the ferry routes under the five case alternatives would reduce the thermal pollution of Lake Michigan by a fraction. Ballast Waters - Ballast waters do not pose a pollution problem for the ferries. 'lhe ferries generally use either the lake waters or sand for ballast. After use, the ballast waters are dumped back into the lake with out having been affected. The sand that is used as ballast is sand that is stored in railroad cars which are loaded on and off the shift as ballast is needed. Water Quality Impacts Associated with the Redirected Traffic of Railroads and Motor Carriers - Water pollution from truck and rail occurs principally in service areas and is due to the leakage or spillage of oil, oil wastes, or wash water. Pesticides and herbicides applied along the rights-of-way are also potential water pollutants as is the usage of salt and sand during the winter. '!he waters affected by railroads and motor carriers are of a different type than those affected by the ferries--small ponds, water basins, streams, or underground water supplies versus Lake Michigan. This makes a difference with respect to the degree of impact of a pollutant. For example, a small oil spill will have a much greater effect on an underground water supply or a small pond than the same spill on Lake Michigan. No major spillage or leakage of oil, oil wastes, or wash water by rail or motor carriers have.been reported in Wisconsin in the last few years. 'lbe DNR considers ·the effect of diverted traffic on water to be negligible. In addition, the incresaed volume of traffic would have no effect on the amount of salting or sanding done in the water. Consequently, the potential for affecting the water quality of small ponds, water basins, streams or underground water supplies by leakage or spillage is very minor. D-7 Table D-3 summarizes the water quality impact of the five alternatives with regard to dredging, oil fuel spills, thermal pollution, and diverted traffic. TABLE D-3 SUMMARY OF WATER QUALITY IMPACT BY CASE ALTERNATIVE Oil Leakage Thermal Diverted Dredging and Spills Pollution Traffic Total 1 Minor Minor Minor Minor Minor Beneficial Beneficial Beneficial Adverse Beneficial 2 Minor Minor Adverse Adverse 3 Minor Minor Minor Minor Beneficial Beneficial Adverse Beneficial 4 Minor Minor Minor Minor Beneficial Beneficial Adverse Beneficial 5 Minor Minor Beneficial Beneficial Impacts on Wildlife, Aquatic Life, and Vegetation 'Ihe outer harbor area at Milwaukee is protected by a system of break waters which is 3.7 miles long. According to DNR officials, the water area adjacent to the breakwater is a resting place for waterfowl, gulls, old squaws, scaups, and bufflehead ducks in the winter. There are some lake fish inside the breakwaters such as suckers, carp, and alewives, but no spawning runs • 'Ihe car ferry slips at Manitowoc are located due south of the mouth of the Manitowoc River. 'Ihe area of the mouth, extending approximately 2000 feet into the lake and including the car ferry slip, is an excellent habitat for waterfowl and gulls according to DNR officials. 'Ihe river also has spawning runs of perch, trout, northern pike, smelt, and salmon. '!he car ferry slips in Kewaunee are sandwiched between two wildlife areas. Upstream from the slip on the Kewaunee River is an excellent habitat for waterfowl, songbirds, gulls, and muskrats. The area is of average quality for shorebirds and below average quality for pheasants. The area east of the ferry slip, which extends from the mouth of the river to the breakwater, is an excellent habitat for waterfowl. '.Ihe river has spawning runs of smelt, perch, northern pike, suckers, and trout. According to the DNR, the abandonment of any of the ferry operations would have a negligible effect on these habitats. Furthermore, the ferries' presence or absence has no effect on wildlife or natural habitats. D-8 Solid Waste Disposal No solid waste disposal problems are associated with any of the five car ferry alternatives. According to the Coast Guard Marine Inspection Office, these car ferries will either be sold for use in trade or will be converted to unmanned barges as were the three ex-Wabash ferries and the C&O's spare boat at Port Huron, the Pere Marquette. If unable to sell the vessels, they would probably be stored and sold later or sold for scrap. The Coast Guard anticipates no problems with solid waste disposal as there have been no problems in the past and there is no reason to believe there will be any problems with disposal in the future. Socio-Economic Impacts A survey of shippers, similar to that for rail branch line users, was performed to determine the socio-economic impacts of the abandonment of each car ferry. However, the car ferry survey was much more complex because many companies either utilize several ferry routes or could divert their traffic if a particular route were abandoned. Therefore, each firm was asked the impact of each ferry route assuming the other routes were all in operation. 'Ihe following data items were sought; 1. Changes in total wages as a result of ferry abandonment. 2. Changes in purchases of local goods and services. 3. Increases in consumer prices for goods sold in local area. Eighty companies were interviewed, of which 4 2 a re car ferry users • 'lhese users shipped 17,680 carloads which is 21.6 percent of the total car loads shipped on the car ferry system in 1973. The tablulated survey re sults for the above data items are presented in Table D-4. Although all data provided by individual firms is confidential, some general comments can be made on the type of response received. The findings indicate that for the most part shippers do not associate the abandonment of any given route (assuming the remaining routes are intact) with signifi cant economic consequences. The results indicate that the abandonment of a particular route would have little effect upon most of the shippers, provided that at least one ferry still remained. Impact on Tax Collections '!he only tax related to car ferry service is the utility tax adminis tered by the State of Wisconsin Department of Revenue and shared with the cities of Kewaunee, Manitowoc, and Milwaukee as per Section 76.16 of the Wisconsin Statutes. According to the Department of Revenue, the following revenues were received in 1975: Kewaunee $3,732 Manitowoc $1,589 Milwaukee Port municipally owned--city collects rent D-9 TABLE D-4 SUMMARY OF CAR FERRY ECONOMIC IMPACT SURVEY No. Firms Surveyed 'Who Used % of Ferry 1973 No. of Change in Pax:roll in 1975 Carloads RR Cars Likelz. .!!!Zh Low Kewaunee-Ludington 14 25 3,466 -1,493,057 -742,335 -2,243,780 Manitowoc-Frankfort* 19 3 482 + 40,000 + 40,000 + 40,000 Manitowoc-Ludington 19 23 2,335 - 97,679 - 85,519 - 115,919 Milwaukee-Ludington 11 51 7,157 0 0 0 Milwaukee-Muskegon 7 24.6 2,184 0 0 0 Change in Local Purchases Likelz. ~ Low t:, Kewaunee-Ludington + 5,000 + 6,000 + . 4,000 ....I Manitowoc-Frankfort 0 0 0 0 Manitowoc-Ludington 220,000 -200,000 - 240,000 Milwaukee-Ludington 0 0 0 Milwaukee-Muskegon 0 0 0 Change in Consumer Prices Likelz. High Low Kewaunee-Ludington 33,750 - 21,375 - 42,750 Manitowoc-Frankfort 40,000 - 40,000 - 40,000 Manitowoc-Ludington 0 0 0 Milwaukee-Ludington 180,000 -148,000 - 260,000 Milwaukee-Muskegon 50,000 - 50,000 - 50,000 *· As the Manitowoc-Frankfort route has not been in service since 1973, all answers apply either to 1973 or to the effects of the service discontinuance on former users. In eash case above, the tax is levied on the basis of port property real estate value and is independent of port usage. If any one line were abandoned, taxes would not change. Thus, none of the five cases has any impact on these taxes, since port properties would still be required under each. Should all service to a port be abandoned, the property would be reclassified from utility service to a local classification under the jurisdiction of the local county property tax assessor. In that case, the impact would depend upon the difference in tax rates for the property in question and the revenue-sharing practices of the taxing authority. Safet;y_ All five car ferries have received a permit of seaworthiness from the Marine Inspection Office and operate under lawful conditions. No marine casualties have been incurred by the car ferry operation in the past three years; that is, no damage exceeding $1,500 was reported and no person was incapacitated for more than 72 hours. According to the Coast Guard Marine Inspection Office, no change or very minimal change in safety and accident potential would occur due to car ferry abandonment. Spilling of Hazardous Cargo According to Coast Guard Regulations, it is illegal for passenger carrying ferries to transport hazardous cargoes. Thus, the C&O and the Ann Arbor car ferries, which carry passengers, do not transport hazardous cargoes. 'Ihe Grand Trunk Western car ferry between Milwaukee and Muskegon, which does not carry passengers, transports hazardous cargoes. However, there have been no reports of spillage on this car ferry route. Consequently, the case alternatives involving the C&O car ferries and the Ann Arbor car ferry will produce no effect on the spillage of hazardous cargo in Lake Michigan. 'lhe abandonment of the Grand Trunk Western car ferry between Milwaukee and Muskegon will.have a small, potentially bene ficial effect by eliminating the minimal potential for spillage of hazardous cargo. Land Use Changes 'Ihe Milwaukee harbor, located at the mouth of three rivers, supports numerous cargo terminals and dock warehouses which serve the general cargo trade. Other facilities include building materials, wharves, grain elevators, petroleum terminals, liquid cargo terminals, and recreational boating marinas, 'lhe C&O and Grand Trunk Western car ferry leased approxi mately four acres from the city containing a parking lot; a building, shared with the Harbor Commission and the C&NW Railroad; and a car ferry slip. 'lhe Milwaukee Sewage plant and other industrial uses adjoin the ferry facilities. As both ferries share facilities, abandonment of either the C&O or the Grand Trunk would still require complete usage of the available facilities by the remaining ferry. However, the abandonment of the facilities by both car ferry operations would have little impact on the configuration of tand use patterns as it entails so little acreage. D-11 There are two adjacent slips in the Manitowoc Harbor. 'Ihe facilities shared by the two car ferries are an office building, passenger and car ramp, trackage, docks, and dock lifts. The adjacent land is owned by the city and contains a sewage treatment plant. Anheuser-Busch has a malting plant with several grain elevators just up the river and the adjacent slip is owned by Manitowoc Utilities for its power plant just south of the car ferry slip. In general, the ferry facilities are surrounded by industrial uses and any land available as a result of abandonment would likely be put to an industrial use. 'Ihe Kewaunee Harbor, located at the mouth of the Kewaunee River, is the site for the C&O and Ann Arbor car ferry. The Green Bay and Western Railroad owns and operates the car ferry facilities which consist of a building, two slips, and railroad tracks which lead up to the facility. Kewaunee Engineering Company is adjacent to the ferry operation and on the other side of the river is the ArDrf Corps of Engineers which operates its own docks. An oil refinery with two oil retaining tanks is located up the river and abuts the edge of a wetland. Overlooking the ferry operation is an unoccupied 19-acre industrial park site. 'Ihe Ann Arbor and the C&O share office facilities but use two separate slips. However, no significant change in land use is expected if the C&O ferry between Kewaunee and Ludington is abandoned, as only a slip will be freed, which would not be enough land for any major change in land use. Energy Consumption Energy use in transportation varies widely as a result of numerous factors including miles traveled, load carried, speed, vehicle maintenance, type of fuel, and engine type, etc. Because of the broad range of values that these determinants of energy use can take, intermodal comparisons of fuel efficiency usually focus on application of average efficiency rates. 'Ihe methodology used in evaluating energy consumption for each of the five cases examined in this study is described below. A summary of the results, including comparisons among the transportation modes and the alternative cases, is followed by an assessment of limitations imposed by the assumptions utilized in the analysis. Estimates of annual energy consumption were made for each case based on average energy efficiency factors for the relevant transportation modes. For each of the ferries evaluated, energy use was estimated to be a function of total miles traveled. For the coal burning ferries, the energy efficiency factor used in this analysis was based on the planning figure of 70 tons of coal per ferry per day used by C&O officials. 'Ihe total for the three coal fired ferries of 210 tons of coal per day was allocated among the routes based on the relative proportions of average miles traveled per day. The calculations yielded an average energy efficiency for the coal burning ferries of 7.86 million BTU's per mile. 'Ihe diesel oil burning ferries were estimated to consume 1.2 pounds of fuel per shaft horsepower hour while underway. Based on a shaft horsepower of 2295 and an average speed of 14 miles per hour, an energy efficiency factor of 3.6 million BTU's per mile was calculated. Consumption while in port was estimated to equal about 15 percent of the fuel consumed in D-12 one hour while underway. Two hours of in-berth operation at each port were assumed for each round trip, yielding a factor of 7.6 million BTU's per round trip. The dies el electric ferry 1 s (Viking) energy eff id.ency was assumed to be 188.3 million BTU's per round trip based on underway consumption of 0.49 pounds of fuel per shaft horsepower hour, and the 15 percent factor for fuel consumed while in port for four hours per round trip. Truck and rail energy efficiency factors were assumed to be 3440 BTU's per net ton mile and 675 BTU's per net ton mile, .respectively. Automobile energy use was based on a factor of 2902 BTU's per passenger mil~. Conversion of the loaded ferry cars to tons was based on the factor of 40 tons per car. 'lb.is tonnage per car represented the estimated average tonnage per rail car transported by the ferries at the time. It was further assumed that each train carrying diverted freight from the abandoned ferry would carry the load (and empties) of 1,1, single ferry shipment. Therefore, based on the equal split between truck and rail transport of freight diverted from ferry operations, the number of round trip trains servicing the port cities of an abandoned ferry route would equal one half of the estimated round trip ferry operations. Conversion of the truck portion of the diverted freight to an approxi mate number of truck trips was based on an average of 21 tons per 40-foot truck trailer. It was assumed that no empty backhaul would be involved in the trucking operation. Table D-5 shows the substitution data for each of the five cases, based on the foregoing assumptions. As indicated, the Kewaunee-Ludington route accounts for the greatest annual truck and rail ton-mile figure. The largest number of passenger miles are traveled via the Manitowoc Ludington ferry route. Annual energy consumption for each ferry line as well as the diverted traffic is shown in Table D-6 by case. For each case, the total energy use represents the fuel requirements to transport the car ferry freight and passengers from port to port according to the traffic and diversion assumptions used in this study. Total fuel use ranges from 2211.9 x 109 BTU's (in Case 4) to 279.10 x 109 BTU's (in Case 2), with a median usage of 2633.2 x 109 BTU's (in Case 5). AJ5 shown in Table D-6, abandonment of the Midland (Case 1), the Badger (Case 4), and the Madison (Case 5) all results in lower annual energy consumption than continued operation of the routes. Growth Potential of Car Ferry Traffic 'Ihe growth potential .in the port communities and region due to continued operation of the car ferry service is seen as follows: Industrial and development plans are not specifically associated with the presence of the ferries. However, the continued operation of the ferries influences the transportation rate structure. 'Ihe availability of the ferries provides an additional mode of transportation across Lake Michigan, thus allowing shippers to bypass the congested Chicago yards. D-13 TABLE D-5 SUBSTITUTION DATA Number Number Rail and Rail of Highway Truck of Highway Truck Rail Ton Round Route Ton Round Passenger Route Passenger Number Freight Route Miles Trips Miles Miles Trips Per Miles Miles of Case Tons/Year Miles (x 106} (Trainsi (Trucks2 {x 1062 (Trucks) Year (Auto) (x rn 6) Autos 1. Kewaunee-Ludington Port to Port 275,660 530 146.1 247 466 128.5 6,892 17,995 466 8.4 5,656 Wisconsin Only 187 51.5 173 47.7 173 3.1 2. Manitowoc-Frankfort Port to Port 215,840 512 110.5 262 474 102.3 5,396 19,221 474 9.1 3,533 Wisconsin Only 120 25.9 116 25.0 116 2.2 t::I ....I 3. Manitowoc-Ludington .,:,,. Port to Port 205,440 454 93.3 237 409 84.0 5,136 87,920 409 40.0 29,344 Wisconsin Only 120 24.7 116 23.8 116 10.2 4. Milwaukee-Ludington Port to Port 275,520 376 103.6 293 330 90.9 6,888 74,031 330 24.4 21,557 Wisconsin Only 42 11.6 37 10.2 37 2.7 5. Milwaukee-Muskegon No Passen- No Passen- No Passen- Port to Port 177,260 269· 47.7 178 272 48.2 4,432 ger Service ger Service ger Service Wisconsin Only 42 7.5 37 6.6 Source: Harbridge House, Inc. (1976) TABLE D-6 ANNUAL ENERGY CONSUMPTION BY CASE (in io9 BTU'sl · Route O'erry) Case 1 Case 2 Case 3 Case 4 Case 5 Kewaunee-Frankfort (Viking) 170.3 170.3 170.3 170.3 170.3 Kewaunee-Ludington (Midland) X 613.5 613.5 613.5 613.5 Manitowoc-Frankfort (Atkinson) 312.2 X 312.2 312.2 312.2 Manitowoc-Ludington (SEartan) 447.1 447 .1 X 447.1 447.1 Milwaukee-Ludington (Badger) 892.0 892.0 892.0 X 892.0 Milwaukee-Muskegon (Madison) 215.2 215.2 215.2 215.2 X Diverted Traffic Total 564.8 452.9 456.4 453.6 198.1 Auto 24.3 26.4 104.4 70.9 -o- Truck 441.9 351.9 289.0 312.8 165.9 Train 98.6 74.6 63.0 69.9 32.2 2601.6 2791 2659.5 2211.9 2633.2 X Indicates abandoned route for each Case. Source: Harbridge House, Inc. (1976} D-15 Of all the commodities using the ferry, pulp and paper products represent the highest proportion on all routes. 'lhis indicates the importance of the ferry operations to one of Wisconsin's prime industries. Furthermore, in the Milwaukee region, food products are projected to con tinue to represent over one quarter of all commodities shipped. On the other hand, tourist travel on the ferries has declined. Most of the tourist travel is concentrated on the C&O routes and unless the C&O promotes greater interest in this service, it appears that tourist travel will decline rather than grow in the Manitowoc artd Milwaukee regions. D-16 APPENDIX E AN ASSESSMENT OF WILDLIFE AND VEGETATION IN RAIL CORRIDORS POTENTIALLY SUBJECT TO ABANDONMENT Introduction Rail line abandonments may significantly impact an area's vegetation and wildlife if the line is unpreserved or converted_to other uses. However, WisDOT recognizes that railroad companies should not be compelled to continue operating lines at a loss merely to maintain the natural environ ments existing in rail corridors, especially since other alternatives are available for accomplishing this. But, it is important to know which rail corridors possess significant and unique flora and fauna so that appropriate action can be taken in the event of abandonment.· Accordingly, WisDOT requested the Wisconsin Department of Natural Resources (DNR) to survey each corridor and report on its vegetation and wildlife. This appendix is a summary of the DNR findings. Wildlife and Its Relationship to Railroad Corridors Railroad rights-of-way provide a rich habitat for many types of wildlife. The term habitat as used in this report entails a number of functions such as nesting cover, escape cover, feeding area and travel routes. Every game manager contacted emphasized that the railroad corridors in his area are extensively used for cover and nesting. Therefore, in comparing the relative significance of each line as a habitat area, the important point that emerged was the availability of alternative habitat of the type pro vided by the right-of-way. In this regard, the lines included in the analysis fell neatly into three categories: a) If the rail line runs through intensively farmed areas with large field sizes and relatively gentle terrain where most of the land is available for cultivation, the right-of-way may be virtually the only cover available. In this case the right-of-way is extremely important both for habitat and reproduction, especially for game birds. All areas of this type are in the southern two-thirds of the state and such species as pheasant, Hungarian partridge, ruffed grouse, quail and songbirds as well as manunals such as rabbit, fox, raccoon, squirrel, badger and deer may utilize the right-of way. Destruction of the right-of-way in these kinds of areas would probably result in a significant decline in numbers of certain species. b) If the rail line runs through rural farm areas in which the terrain is more irregular with hillsides and ridgetops unsuitable for cultivation, these areas could provide brush or forest cover in addition to the rail right-of-way. Furthermore, if the fields are generally smaller in these areas, there will be more field edge habitat space available. While the right-of-way may at present be an important habitat location, the presence of numerous other habitat sites makes the right-of-way much less significant, so that destruction of the habitat in this setting would probably not result in any significant decline in populations. E-1 c) Rail right-of-way running through forested areas has value as a habitat since the right-of-way provides a break in the forest type. This edge effect provides a good habitat and feeding area for species such as deer and ruffed grouse. This is, in fact, exactly the kind of habitat that game managers try to create in their management programs. While alternative habitat and feeding sites of this quality may be scarce in these areas, there is other habitat available, though often not as choice as the forest edge created by the right-of-way. Thus destruction of the right-of-way probably would not lead to a decline in numbers of any species, but would contribute to a decline in the health and quality of habitat. Vegetation and Its Relationship to Railroad Corridors Many rail lines were established before farming and logging had destroyed or severly disturbed some of the state's most extensive native vegetational communities. Ten million acres of southern Wisconsin were once covered by prairie and savanna. Farming and cessation of fire have reduced the Wisconsin prairie community to isolated, scattered, remnant stands. Rail road rights-of-way provide an important refuge for the remaining prairie communities. The disturbance patterns of the rights-of-way resemble those of pre-settlement times, particularly in the use of fire for maintenance and in the absence of cultivation, and have allowed the original vegetation to persist in many cases. Although the rights~of-way are narrow, their continuous nature forms un interrupted avenues connecting various topographical regions. They provide a continuous range for seed dispersion and habitat for burrowing prairie animals. The ecological concept of an ecosystem does not mean a series of isolated communities with distinct boundaries, each with its own units of soil, topographical barriers, plants and animals, but rather a gradient along which each of the constituent factors of the system can vary. Communities generally melt into one another just as soil conditions or topography change gradually. Thus a rail corridor containing prairie stands may be more important than the isolated stands themselves because they include the surrounding communities and offer the potential for species migration. Other less important native plant communities may also depend on the maintenance of the railroad corridor for survival. Sedge meadows, often grading into wet prairies on their drier edges or cattail marshes in the wetter portions, would probably be expected to succeed to shrubby communities without continued burning or mowing of the right-of-way, which checks the invasion of shrubs such as dogwood and willow. Bogs are quite sensitive to disturbances and fluctuations in the water table. A major project such as highway construction within the right-of-way would almost surely have adverse effects. Forest areas bordering the rights-of-way are not included in this study because it is not cle~r that abandonment of the rail line would necessarily directly affect the plant community. Unless the area were actually cleared or soil and water disturbances and fluctuations were especially great, the effect of abandonment would probably be minimal. E-2 The prairies and wetlands are valuable because they represent some of the few remaining remnants of native plant communities, particularly in the southern agricultural portion of Wisconsin. Wildlife and Vegetation Impacts of Individual Corridors Ripon - Bancroft Most of this area is extensively farmed so little low brush habitat is available to wildlife. The right-of-way is an important and significant portion of available habitat space for pheasant, ruffed grouse, and Hungarian partridge and is particularly important for their nesting and reproduction. There are five locations of good to excellent sand prairie, and the portion from Bancroft to Wild Rose in particular is ·a very fine sand prairie with an abundance of native prairie vegetation. Rosemere - Forest Jct. This is an extensively farmed region. Thus, the right-of-way is essentially the only cover available. Since there is very little alternative habitat area of this type, destruction of the right-of-way probably would cause a reduction in the numbers of certain species. No significant native vegeta tion is presently found along this line. Sparta - Viroqua The terrain in this area lends itself to small fields so there is much edge habitat space available for ruffed grouse, rabbits and songbirds. While the right-of-way is used by these species, it does not make up a significant portion of the available habitat area. There are two choice stands of certain prairie species, one just north of Cashton and one north of Melvina. Purple prairie clover (Petalostemum purpureum), Yellow coneflower (Rudbeckia), Black-eyed susan, big bluestem and bergamot area in evidence. One prairie-old field area is. located just south of Sparta. Galesville - Trempealeau This is one of the few areas in the state with good quail populations. The right-of-way is the prime habitat for quail since alternate habitats, such as hedgerows, are rapidly disappearing. The quality of other hedgerow in this area for quail habitat is also not as good as that found in the right of-way. The right-of-way is used extensively by pheasant, though it is not prime.habitat for them. Taken as a whole, the right-of-way comprises a significant amount of available habitat. E-3 With regard to vegetation, the right-of-way consists mainly of sand prairie and also contains oak groves of burr and red oak. The following species were in evidence at the time of inspection: Lead plant (Amorpha canescens), big bluestem (Andropogon Gerardi), little bluestem (A. scoparius), blazing star (Liatris sp.), bergamot (Monarda fistulosa), vervain (Verbena sp.), spiderwort (Trandescantia virginiana), fleabane (Erigeron philadelphicus), black-eye susan (Rudbeckia hirta), prairie puccoon (Lithospermum), prairie rose (Rosa setigera), silver sage and shrubs such as red and black raspberry and dewberry (Rubus sp.). It is an excellent example of a railroad prairie and obviously one of the last remnants of the Trempealeau Prairie. Lancaster - Klevenville From Dodgeville west, the corridor provides the only good vegetation cover in otherwise open farm country. East of Dodgeville there are more hills and valleys and probably more alternate cover available. However, even in this area the right-of-way may still comprise a significant portion of available habitat. Deer, fox, cottontail rabbit, gray squirrel, fox squirrel, skunks, badgers, chipmunks, pheasant, Hungarian partridge, ruffed grouse and quail are species that use the area. One fair to poor prairie consisting of isolated prairie species with shrubs, weedy grasses and forbs was identified just west of Mt. Horeb. Two other badly distrubed areas containing prairie species were found southeast of Montfort and just north of Rewey. One excellent prairie remnant, the Ipswich prairie, is located between Ipswich and Cuba City. Monroe - Mineral Point The right-of-way is important for the same species found along Lancaster Klevenville line. As this is open farm country with little other cover available, destruction of the corridor would significantly reduce the number of available habitat sites. The Gratiot marsh was the only significant marsh area located on this line. However, it is too small and badly distrubed to warrant preservation efforts. Freeport - Madison The right-of-way is a critical niche for bobwhite quail. In both Dane and Green Counties there is very little other habitat for this species. Habitat sites are now declining in the area and populations of quail are declining proportionately. Elimination of the right-of-way would cause a significant reduction in the number of quail and possibly other wildlife. Along this corridor is one excellent prairie (1-1/2 miles long) about a mile south of Basco and a good prairie just north of Basco with these species present: Prairie dock (Silphium terebinthinaceum), wild rose (Rosa sp.), phlox (Phlox sp.), flowering spurge (Euphorbia corrollata), blue-eyed grass (sisyrinchium campestre), dogbane (Apocynum sp.), New Jersey tea (Ceanothus americanus) and rattlesnake master (Eryngium sp.). Two more good or very good mesic prairies exist on the Green County portion of this line south of Belleville and East of New Glarus as well as one thin soil, high lime prairie south of Monticello. E-4 Beloit - Evansville The right-of-way has a lengthy stretch of good quality habitat in a portion of the county that has few other such areas. It does comprise a signifi cant portion of the available habitat space. With regard to vegetation there are numerous examples of mesic, wet-mesic, and xerix prairie on this line. Whitewater - Waukesha This right-of-way is of minor importance to wildlife. Alternate habitat is sufficiently available for nesting of songbirds and small mammals which presently use the corridor. Significant plant connnunities include prairie remnants and prairie-old fields. Prairie remnants in this classification have a rich diversity of prairie species. Prairie-old fields are areas where reinvade·d prairie species are common but alien weeds still account for at least 50% of the total vegetation. Here quack grass or brome grass predominate among prairie species such as the following: False boneset (Kuhnia eupatorioides), rigid sunflo~er (Helianthus), smooth blue aster (Aster laevis) and tickseed (Coreopsis lanceolata). The prairie-old field designation is important because it indicates damaged prairie that has potential to recover or it indicates prairie in the process of taking over alien grass areas. It also is an abundant seed source of prairie restoration projects and it supplies the corridor links and buffer zones needed between prairie remnants without which most prairie animals would be unable.to exert their proper effect on the prairie community. The Waukesha County Park and Planning Commission has identified these remnant prairies as extremely important. Mukwonago - East Troy Loss of this right-of-way would not be overly harmful to birds and small animals. About 1.1 miles of this line pass through prairie remnant or prairie-old field vegetation. Lake Geneva - Illinois State Line This corridor is of minor importance to wildlife since alternate habitat sites are available. There are at least two areas of vegetation along this right-of-way which are definitely worth preserving. One is part of the Bloomfield Township Tamarack and Sedge Meadow and the second is the Pell Lake Railroad prairie remnant. Pulaski - Scott Lake The right-of-way provides a break in the forest type and thus comprises an edge habitat of high quality. These are essentially the same conditions as game managers try to create in management areas. Loss of the right-of-way would result in a decline in the quality of habitat but since other habitat is available, a decrease in numbers of any species is not expected. E-5 With regard to vegetation, there would be no significant effect if the corridor is lost as virtually the entire area is forested. Marshfield - Greenwood Eighty percent of the right-of-way is bordered by agricultural land while the remainder passes through woodlots and wetlands. The right-of-way provides the only wildlife habitat in the agricultural regions because everything that cannot be cropped or hayed is pastured, leaving only a few odd corners of brush, brushy fencelines or abandoned fields. Game spec~es that commonly inhabit the right-of-way include the cottontail rabbit, ring-necked pheasant, and to a lesser extent, fox and gray squirrels. Fur bearers such as raccoon, red fox and striped skunk utilize the right-of-way as travel lanes. The brushy cover along the right-of-way also hosts many species of songbirds as well as various small mammals. No specific assessment of the vegetation along this line was made. Conover - Phelps The primary wildlife value of this rail line is from the standpoint of summer range. The open tread provides some shrubs and grasses which are used by wildlife. The principal game species in this area are white-tailed deer, snowshoe hare, woodcock, black bear and coyote. Little negative impact on wildlife would result from the loss of this right-of-way. Loss of the corridor would have little effect on vegetation since it passes through a large forested area. Hayward - Bayfield Abandonment of this line might have a positive effect on deer and beaver populations by reducing deer motality resulting from train collisions and by obviating the necessity to remove beavers from areas in which their dams can cause track endangering floods. On the other hand, revegetation of the right-of-way by shrubs and event~ally trees would decrease the amount of open, grassy area which is an important food source for deer, especially in early spring and late fall. With regard to vegetation, there would be no significant impact if the corridor was not preserved as virtually the entire area is forested. Iron Ridge - Fond du Lac This line runs through both wooded, rolling hills and gentle terrain which is subjected to heavy agricultural use. Vegetation throughout the corridor is predominantely brush cover with heavy timber interspersed. Approximately 20 percent of the line is predominately grass covered with scattered brush. The line provides various degrees of undisturbed cover for game and non-game species. In addition, it provides a small reserve for some native prairie plants. E-6 If the corridor is not preserved there will be a significant loss of existing wildlife habitat since the area will quite likely be replaced by agricultural use. Milwaukee - Horicon This right-of-way runs through terrain that is primarily rolling hills, with about 80 percent of the line's vegetation composed primarily of brush with moderate to heavy interspersion of timber. The line provides excellent cover for pheasant, rabbit, squirrel, deer, Hungarian partridge, small mammals and songbirds. However, much of the land adjacent to the line provides similar quality habitat, which indicates that loss of the corridor would • not have a significant effect on wildlife. Horicon - Oshkosh The topography of the area of this line is basically flat to slightly rolling. The line passes through primarily agricultural land with scattered woodlots and marshes. Cover types along the route are grass and brush mixed (50 percent), light brush with scattered timber (20 percent), and moderate timber (15 percent). Several prairie plant communities which are locally rare exist along this corridor. In location of heavy agricultural use, the line provides scarce habitat for pheasants, songbirds, rabbits and small mammals. Since much of the land along the corridor is presently farmland, it may be c1ssumed that the prairie plant communities and wildlife habitat will be lost to agricultural uses if the line is abandoned. Horicon - Portage The land through which this line runs is both fla~ farmland and rolling wood landso Vegetation varies from heavy brush mixed ~ith moderate timber to grass mixed with light brush and scattered timber. At various locations the right-of-way provides a niche for locally scarce native prairie plants. A fair habitat is avail,able for rabbits, pheasants, squirrels, deer, songbirds and small animals. In the agricultural areas it is likely that abandonment of this line would result in the conversion of the corridor to farm uses, reducing scarce habitat at these locations. In other areas, agricultural conversion is less likely and alternate habitat is available if conversion would occur. Milton Junction - Whitewater; Beloit - Janesville; Afton - Beloit Due to the close proximity of these three lines and the similarity of land use and terrain in the area, these three corridors can be assessed as a group. All three traverse an area of intensive agricultural use, which is for the most part, gently rolling. Most of the land in the corridors, depending on the extent of disturbance, reflects their original prairie vegetation; Blue stems and Indian grass are common on all the lines as are composites and E-7 sedges. Encroachment by woody vegetation is noticeable at various locations on the Milton Junction-Whitewater line. The most common species include white oak, dogwood, and sumac. Good examples of a rapidly disappearing resource, the native prairie species, can be expected to be lost or destroyed, if the land is converted to agriculture. All of the corridors provide habitat for a wide variety of game and non-game animals. The most notable species are pheasants, rabbits, skunks, raccoons, opossums, and songbirds. Granville - Menomonee Falls There is little or no wildlife habitat or good vegetation associated with this short segment. Janesville - Monroe This line traverses an area of gently rolling to rolling terrain. The fertile soils lend themselves to intense agricultural use, dominated by dairy farming with some cash cropping of grains. The vegetation of the area was originally prairie. The blue stems and Indian grass reflect natural prairie vegetation along the corridor. Com posites and sedges are also represented. The corridor provides habitat for a wide variety of game and non-game species. Merrillan - Marshfield This line is composed of two quite different segments of about equal length. One segment passes through predominantly forested area of aspen and oaks with scattered marshes throughout. Common wildlife species here are the white tailed deer, ruffed grouse, woodcock, gray squirrel, snowshoe hare, cotton tail rabbit, coyote, beaver, otter and several songbird species. This part of the line provides a break in the forest type and increases diversity of habitat. Loss of this right-of-way would have minor impact on wildlife if the "openness" of the corridor were preserved. The second part of the Merrillan-Marshfield line passes through an inten sively farmed area which has scattered hardwood woodlots. Wildlife species along this segment included deer, cottontail rabbit, fox, gray squirrel, ruffed grouse, muskrat, and various small mammals and songbirds. This right-of-way provides the only breeding and winter shelter available in much of the area is traverses. Failure to preserve the latter segment could have a destructive effect on some of the wildlife species in the region. Trevino - Durand This right-of-way is located primarily in the Chippewa River flood plain and low land timber and shrubs are the predominant vegetation. Elm, ash, river birch, maple, white oak, aspent, box elder and cottonwood are common. Typical shrubs are sumac and dogwood, which are interspersed among canary grass, giant blue stem, Virginia creeper, dewberry and other rubus. The area is inhabitated by rabbits, squirrels, deer, muskrat, beaver, mink, E-8 ruffed grouse, woodchuck, barred owl, great horned owl, red-tailed hawk, red shouldered hawk, kestrel, and rodents. The impact of abandonment w9uld be quite significant in terms of the loss of wildlife cover and populations if the grade were leveled and used for farmland. Durand - Eau Claire This right-of-way passes through mostly agricultural land and wooded hills. Wildlife species include deer, ruffed grouse, gray squirrel, cottontail rabbit, pheasant, and red fox. Impact of abandonment of this corridor would be insignificant since plant succession of the right-of-way would most probably occur rather than its conversion to agricultural use. Tunnel City - Medary The area through which this land passes is generally woodland with some urban influence at the Medary Junction near La Crosse. Vegetation along the grade is composed of oak savanna, pine barrens, southern oak forest, and sedge meadow. Cover types include grasses, perennial weeds, sumac, wild plum, dogwood, tag elder, and scrub oak. Several wetlands also exist along this line and provide a rich variety of wetland plants. Wildlife is abundant along this corridor and includes aquatic bird and animal species such as ducks, herons, egrets, muskrat and beaver. This line is considered to have a very high value from a scenic, recreational and conservational viewpoint. Trempealeau - Winona This line generally passes through river bottom land which has scattered forestry and agricultural uses. The survey of this line revealed that the vegetation along this line consists mainly of invading woody shrubs with a high incidence of rose hips. The line abuts Perrot State Park and follows the Trempealeau Mountain range with the views and vistas being very scenic. Prairie du Chien - Lone Rock This right-of-way lies primarily in the Wisconsin River flood plain between the river and wooded bank slopes. Vegetation consists of lowland hardwoods (willow, soft maple, ash, elm) and southern oak forest. Brush species have in~aded the right-of-way and some remnant prairie vegetation has been main tained by railroad-caused fires. The area around the right-of-way is abundant with wildlife. Along with many waterfowl species, eagles utilize the river bottom and turkeys have been re-established in the area. Rough legged hawk, red-tailed hawk, barred owl, pileated woodpecker, quail, rabbit, and numerous songbirds were all observed along the corridor. Failure to preserve the right-of-way would have a mild to significant impact on the plants and wildlife. Remnant prairies existing in the corridor would be seriously reduced if the right-of-way was converted to other uses. E-9 Casco Junction - Algoma The topography around this line is primarily gentle hills of farmland inter spersed with isolated woodlots and cedar swamps. The right-of-way passes over several waterways and intermittent streams within this stretch. Vegetation along the line (other than agricultural crops) consists of red osier dogwood, willow, dead elm, ash, birch, sumac, wild cucumber, chicory, queen ann's lace and canary grass. Wildlife includes pheasant, grouse, woodcock, Hungarian partridge, deer and rabbits. Shawano - Eland Glacial activity in this region has made the area hilly with several low land creek basins. Much of the land is wooded with low land hardwoods (cedar, balsam, tamarack) interspersed with birch, elm, ash and maple. Dogwood, canary grass, ground juniper and cattail are also present along the route. There appears to be good food and cover conditions for grouse, Hungarian partridge, pheasant, rabbit, woodcock, raccoon and small rodents. Preservation of parts of this corridor is recommended in order to provide access to isolated woodlots where food and cover is available for wildlife. The grade crosses several prime trout habitat streams which may be impacted ir the corridor is converted to other uses. Tomahawk - Heafford Junction This right-of-way traverses an area of flat to gently rolling topography and passes through swampland, wooded upland, and agricultural areas. Wooded lowlands are generally black spruce or mixed swamped conifer types and upland areas support aspen, jack pine, white birch and oak. White-tailed deer, snowshoe hare, ruffed grouse, and all other mammals common to this part of northern Wisconsin are present along the right-of-way. Edgar - Marshfield This line passes through a primarily agricultural area adjacent to the 5,673 acre McMillan Marsh'Wildlife Area. Within the corridor the vegetation con sists of, but is not limited to: staghorn sumac, tag alder, willow, black berry, raspberry, gray dogwood, aspen, goats-beard, goldenrod and moth mullein. The corridor provides habitat for cotton-tail rabbits, woodchucks, chipmunks, and songbirds. Conversion of the right-of-way to other uses is predicted, by DNR, to have very little affect on the flora and fauna. Tomahawk - Kings Vegetation along the right-of-way includes various timber species such as white birch, aspen, red oak, jack pine, red pine and white pine. Major swamp timber includes black spruce, tamarack and balsam fir. Ground cover consists of, but is not limited to, sedges, leather leaf, willow and tag alder. Wildlife found along the corridor are snowshoe hare, cottontail rabbit, deer, chipmunk, red and gray squirrel, mink, otter, muskrat, weasel, ruffed grouse, woodcock, barred owl, great horned owl, red tailed hawk, and songbirds. E-10 conversion of the right-of-way to other uses would especially affect· the snowshoe hare, cottontail rabbit, ruffed grouse and songbirds popul~tions. Crivitz - Marinette The land through which this line passes is extremely flat. In certain areas the tracks closely parallel the Peshtigo River and associated wetlands. Land use along the line from Crivitz to Porterfield is primarily agricultural, from Porterfield to Marinette it is primarily wooded with upland hardwoods. Common vegetation along the line includes upland hardwoods (including maple, elm, beech, birch, oak, popple and scattered white pine) common grasses, milkweed, abundant poison ivy, raspberries, choke cherry, queen anne's lace, and other wild flowers. No endangered or uncommon species of fauna or flora were identified. Walworth - Avalon The surrounding land is relatively level with a few scattered wood lots. The primary land use is for agricultural row crops. The line crosses Turtle Creek, Spring Brook Creek, and a branch of the Little Turtle Creek. Vegetation along the line is primarily grass and forbs, with some patches of willow, cherry, box elder and sumac. Grasses are canary grass, blue grass and brome grass. The only possible endangered specie that has been identified in the area is the Massasanga rattlesnake. The general impact on the area's wildlife would be minimal if the line were abandoned and returned to the adjoining landowner. Habitat losses would be limited to some rabbit, pheasant, and non-game species. Green Bay - Iron Mt. The line from Iron Mountain to Amberg is surrounded by hilly upland hardwoods such as oak, maple, birch, popple, elm, white pine and jack pine. The line passes through scenfc areas of the Menominee, the Penebonwon, and the Pike Rivers with large outcrops of rocks, hilly terrain and heavy forests. The land surrounding the corridor from Iron Mountain to Amberg is roughly 60% county forest, 25% privately owned woodlands, 10% private agricultural land, and 5% townships and parks. South of Amberg the surrounding land is generally woodlots or agricultural. The line parallels U.S. Highway 141 for most of this distance, separated by varying widths of private land. Connnon vegetation inhabiting this area consists of upland hardwoods such as oak, maple, elm, beech, birch, popple, jack pine, and white pine. Undercover consists of fern, goldenrod, poison ivy, raspberry, milkweek, queen's anne lace, and common field grasses. Lowland areas have cattails, canary grass, and sedges. E-11 Wildlife include rabbits, hawks, songbirds, and deer. No endangered or uncommon species of fauna or flora were identified. Brokaw - Tomahawk From Brokaw to Merrill the line primarily follows the Wisconsin River Valley; passing through river bottom lands, hilly wooded terrain, and dairy farming country. North of Merrill the line leaves the river bottom land and passes through gently rolling terrain. The bulk of the corridor is covered by trees, shrubs, and native grasses. Wildlife along the line includes white-tail deer, black bear, many small mammals and birds. There was an active osprey nest located north of Irma about 100 feet from the track. The presence of the railroad appears to have little impact on the osprey using this nest. There is no other evidence of rare of endangered plant or animal species within or near the right-of-way. Glenwood City - Downing Junction The topography of the area through which this line passes is rolling with hills covered with hardwoods and level bottom lands primarily utilized for cropland and pasture. Vegetation within the rail corridor consists of native and introduced grasses. The dominant species include reed canary grasses on the lower wet sites and quack grass on the higher dry sites. Forbs are evident with goldenrod being the predominant species. Deciduous trees consist of aspen, willow and elm. Shrubs such as sumac and alder are invading most of the right-of-way due to lack of brush cutting in recent years. There is no record or evidence of rare or endangered plant or animal -species within or near the rail line. Due to the limited habitat within the grade right-of-way, abandonment of the line would have an insignificant impact on the wildlife. · Marshfield - Wisconsin Rapids The surrounding terrain is generally flat to gently rolling. Land use is primarily agricultural with relatively small fields of corn, hay, oats and old fallow fields. There is a good interspersion of wooded areas containing oak, aspen, birch and maple. The right-of-way serves as a large hedgerow providing excellent songbird and small mammal habitat. The environmental impact of abandoning this line would be small, particularly if the habitat along the right-of-way remains intact. There is no record or evidence of rare or endangered plant or animal species within or near the right-of-way. E-12 APPENDIX F RAIL PROJECT PRIORITY RANKING SYSTEM [49 CFR, Section 266.15(c)(4)] Objectives of the Ranking Process Proper management of the state's rail assistance program is based upon two principals. One is that public funds should be used in support of eligible projects only. The second is that public funds should be used in support of the best eligible projects before lesser projects. It is the objective of the selection process to provide a means to select the best eligible projects for funding under the constraints imposed by the funding limits and use restrictions. General Approach to the Ranking Process The approach to project selection may be described as passing through a series of screening criteria. The proposed project that passes through all the criteria with the best rating is the highest priority project for funding. When all projects that have met all criteria are funded, those projects meeting all but the last criterion are considered. This movement down the priority list continues until either the available funding or the list of eligible projects is exhausted. It should be recognized that the source of rail assistance funds is the taxpayer on a statewide basis. Project selection must use criteria which reflect this statewide viewpoint. In doing so, certain impacts specific to a given locality may not be critical enough to the whole state to justify sizeable investment of state funds. A job lost in one town which is gained by a neighboring town is most often not of significant state impact, although it is to the town which loses the employment. While the rest of this appendix deals with selection criteria and process, a purely mechanistic system to project selection is neither possible nor desirable. Many influences outside the Department's control act upon the selection process. The variety of project content, abandonment actions by the railroad and the ICC, action or inaction by local governments and rail service users are just a few. Therefore, the selection process described is followed to the greatest degree possible, but specific circumstances may cause modifications. This description of the selection process is provided as a guide to the preferred approach to be used by the Department in project selection. Overview There are five criteria categories by which projects are evaluated by WisDOT. The first is eligibility. Eligibility is determined according to the state and federal statutes under which the grant program is authorized. The second criterion is service continuation. Projects leading to uninterrupted or minimally interrupted rail service continuation are given a funding advantage F-1 over projects for rail banking. The third criterion is self sufficiency. Projects designed to provide self sufficient rail service over the long run are given a funding advantage over projects which are designed to serve as transition from rail to truck or cannot be expected to ever succeed without a continuing operating subsidy. The fourth is essentiality. Essentiality is defined and applied to Wisconsin rail lines in Chapter IX of this plan and is used here for rating the line on the essentiality criterion. The last criterion is the degree to which benefits from the project exceed the costs of the project. Its use here is to help distinguish among projects meeting the four previous criteria. The results of this process will be a stratification of projects into priority groups with internal group priority established by the benefit/cost analysis. The highest priority group of projects for funding will be eligible projects, which continue rail service that are able to achieve self sufficient status and rank high in essentiality. The second highest priority group will be similar to the first except that they would have a lower essentiality rating. This group of projects will be funded after the first group. The third priority group of projects would be those which would likely not be self-sufficient but would have a high essentiality ranking. The fourth priority group are rail banking projects which rank high in essentiality but for which there are no immediate plans to continue rail service. The fifth priority group of projects are those which are eligible, and continue rail service but are classified low in essentiality and are unlikely to become self sufficient. Figure F-1 graphically depicts this priority ranking system and the following describes the system in more detail. Project Eligibility The eligibility requirements are sot by statute or rule and a project is "scored" in terms of its meeting these requirements. In general a project is eligible for an assistance grant if it: a. meets the requirements of the program's governing statute or rule, b. is the subjec~ of a fully completed application document, and c. is properly supported by any required local matching funds and such support is evidenced by formal action by the local government appropriating the funds. Service Continuation The service continuation criteria is scored on the basis of the applicant's statements in the application. If the applicant intends to continue or restore rail service on the line for which the grant is sought within 180 days of the grant award, service is deemed to be continuous. F-2 FIGURE F-1 WISCONSIN'S RAIL PROJECT PRIORITY RANKING SYSTEM ESTABLISH ELIGIBILITY RAIL SERVICE CONTINUED BELOW 30 •,rj w,' BELOW ABOVE . BELOW 30 30 30 B/C B/C B/C B/C HIGH B/C~ HIGH HIGH HIGH H'H LOW' LOW L!w LOW' L!W PRIORITY PRIORITY PRIORITY PRIORITY PRIORITY GROUPl GROUP2 GROUP3 GROUPS GROUP4 .. !'' ., ·' Self Sufficien_EY This criterion is scored as a yes or no. A yes score results in a higher priority ranking for funding. The determination of a yes or no score is based upon several factors. First, the proforma material submitted as the five year revenue and expense projection as part of a project application. A second source of input is any alternatives analysis studies or other studies completed by planning agencies or the proposed operator of the project, if any. A third source is the evaluation of the project using the rule-of-thumb methodology contained in Appendix A. Essen tiali ty Essentiality has been determined as shown in Chapter IX. Specific economic; national defense, and system performance criteria were used to place all lines in six tiers of essentiality. Those criteria are delineated in Table IX-1 and the resultant classified rail system is shown in Figures IX-7 and IX-8. Points for essentiality will be assigned, for establishing project priorities, on the following basis: Tier 1 line 100 Tier 2 line 95 Tier 3 line 75 Tier 4 line 50 Tier 5 line 25 Tier 6 line 10 Redundant 0 For those lines which_ are partly in one tier and partly in another tier, the essentiality score will be a weighted average of the above scores based on the mileages in each tier. Thus, it is possible that a segment of a line, by itself, may score higher than the line as a whole if the other parts of the line are classified lower than the individual segment. To the greatest degree possible, the essentiality classification takes such things as reroutable traffic and duplicate service into consideration. However, should actual circumstances surrounding a possible abandonment differ from the assumptions made while determining essentiality, adjustments should be made in the essentiality classifications. Furthermore, a judgement will have to be made as to whether or not to use the "continued multiple ownership system" shown in Figure IX-7 of the Rail Plan or the "single ownership system" shown in Figure IX-8. It is recommended that in the case of a bankruptcy/liquidation of an entire railroad or in the case of a major system restructuring that the single ownership system be employed to determine essentiality for the portion of the state affected by the action. · In cases where rail service will be discontinued for some length of time, the postponed benefits of rail service may not justify the costs of rail banking, even though the line may be deemed reasonably essential before service ended. Therefore, in cases of rail banking, the constraint criteria of reuseable rail and quality of title are employed to serve a role somewhat like opportunity costs. F-lt The calculation of points for the constraint criteria is accomplished as· follows: 50% or more of the rail on the line is or exceeds 100 pounds - SO points 50% or more of the rail is a combination of 90-lOo+ pounds - 40 points For each percentage point less than fifty comprised of 90 pound or better rail on the line, the constraint points are reduced by one. This constraint criterion is employed in conjunction with the essentiality points, as a means to quantify the penalty inherent in rail banking a line which does not return to service. As the cost of banking increases, the penalty also increases in that there is no return to the taxpayer on the investment and it may tie up funds better used in another project. The reuseable rail is used inasmuch as it is the key element of salvage value likely to have a significant impact upon the overall salvage value and thus the price paid to bank the line. This constraint criterion supports the concept that because rail banking involves great risk of no return on the public investment in terms of restored rail service, a low cost rail banking project is preferred over a high cost project. This constraining criterion would not be applied to the project if track and bridges were not to be banked. In land banking a line (preserving the corridor without track) the issue of title to the corridor land must be considered. If rail service is not continued, reversionary land interests must be satisfied. Title must be cleared at a cost in addition to that paid to the railroad for the property. Again, the risks of no rail service restoration exists. Therefore, using the condition of title as a measure of additional litigation, negotiation and field costs necessary to bank the corridor, a low cost project is given preference over a higher cost project. The calculation of constraint points is accomplished as follows: One constraint point deduction for each percentage point of land parcels not held in fee title by the railroad on the corridor beginning with 11% up to a maximum of SO points. The deductions begin at 11% because experience shows almost all corridors have some parcels not held in fee. Benefit-Cost The benefit-cost ratio will be utilized to rank the individual projects within each priority category. The required methodology for calculating benefit/cost is contained in Appendix B. F-5 FIGUREG-1 WISCONSIN RAIL PLAN FREIGHT TRANSPORTATION SURVEY i If there are errors in name and address, please correct. L _J _J To Wisconsin Freight Shippers: In February of 1976, the U.S. Congress passed the 1976 Railroad Revitalization and Regulatory Reform Act, which provides rail financial assistance to states. To be.come eligible for these rail financial assistance fonds, the rail act requires each state to collect and analyze sa"cfal, economic, and environmental informa tion related to the state's railroad lines; The first step is to learn as much as we can about the light d_en~ity . rail lines of the state, including current and potential usage by rail shippers. Enclosed is a questionnaire which seeks information about your rail operations and asks for yout estimates of the effects of a change in rail service. Contact Andy Miller ( 608) 266-3662 of the Wisconsin Department of Transportation if you have questions or desire assistance. I understand that many businesses are small, and the questionnaire may seem difficult for them to deal with. However, I am urging all businesses - large and small - to give the questionnaire their immediate attention and to respond as fully as possible. The support of you, the rail shipper, will have a direct bearing on the rail system of the future. I am sure that you will wish to cooperate fully. Cordially yours, ~$~~~- Lowell Jackson, Secretary Wi~consin Department of Transportation According to information provided the Wisconsin Department of Transportation, your company currently is or has been a rail shipper. If you no longer ship by rail and do not plan to resume shipping by rail, check the box below and return the questionnaire without any further completion. D This facility does not ship by rail. T-120 1-79 G-1 Person Responding ______Title ______ Contact Person's Telephone number & area code ______ Parent Company (If this facility is a division or subsidiary, give parent company's name and address). Name ______ Street City or Town ______state ______Zip ______ 1. What was your annual dollar sales volume in 1978? ...... $ 2. What was your annual payroll in 1978? (Includes benefits and payroll taxes) ...... $ 3. How many employees do you have? ______full time, ______part time. ______% 4. What percent of your total sales are your total transportation and distribution costs? 5. Do you have a private rail siding? ...... D Yes D No 6. Do you ship or receive commodities by rail that are too large to ship by any other available means? D Yes D No (If yes, what commodity?) 7. Indicate the number of rail carloads and truckloads that you have received and shipped for the last five years: Received Shipped Year Rail Ou:loads Truckloads Rail Carloads Truckloads 1978 1977 I976 1975 1974 8. Can rail cars be loaded to capacity? ...... D Yes D No 1-f no, to what tonnage can.they be loaded? ...... 9. What are the major products that you ship and receive? Ship: ______ Receive: ______ 1O. What are the reasons for the changes in rail use during the last five years? (Place an X on one or more major reasons and ../ on less important reasons) D Normal business growth D Changes in rail vs. truck service levels D Changes in rail vs. truck rates D Rail car shortages D Opening, closing plant D Other (Specify) ______0 Change in product line Specific comments: (Use last page if needed) ______ G-2 11. Comparing rail and truck rates, which has increased faster over the last five years? D Rail D Truck D Same for both 12. What do you estimate your rail and truck usage to be over the next five years? (If you cannot give approximate numbers indicate the percentage spent between rail and truck.) Received Shipped Year Rail Carloads Truckloads Rail Carloads Truckloads 1979 1980 1981 1982 1983 13. What factors are responsible for the expected changes in rail use? (Place and X on one or more of the major reasons and a../ on less important reasons.) 0 Opening, closing plants 0 Worsening or improvement of rail service D Normal business growth D Worsening or improvement of rail rates D Change in product line D Other (Specify) ------~---- Specific comments: ______~------~------ 14. What are the most serious problems currently preventing greater use of rail services? (Check all those applicable) D Shortages of rail cars D Switching or car spot service unavailable D Rail agent unavailability D Unreliable delivery schedules D Rates higher than truck D Maximum weight limits too low D Lengthy transit times 0 Minimum volumes too large 0 Late delivery penalties greater than truck D Loss or damage to lading 15. Are there particular products and/or shipments which you could definitely shift to rail if there were service or rate changes? (Be as specific as possible about products, origins or destinations, and service/rate needs. Use last page if needed to complete response.) 16. If the rail service that is currently available to you were discontinued, would you close this facility? ...... D Yes 0 No (If the answer is yes, would you); D Relocate on another rail line, 0 Go out of business completely, or 0 Consolidate operations at another facility of the same company (specify where) 17. If rail service is discontinued would you truck to or from another nearby rail terminal? ...... •...... • D Yes D No Name of other location ------'------'------·----- 18. If rail service is discontinued, how much would you anticipate total transportation and distribution costs to increase? $ ______dollar amount, ______%. G-3 19. If rail service were discontinued, indicate the alternative way that your tonnage would be moved. Percent Via Truck to Truck Truck to Discontinue Rail Terminal Entire Distance Waterport Other Shipping Total Shipped % % % % % .100% Received % % % % % 100% 20. If rail service were discontinued, would the number of jobs, your payroll, and/or your sales volume be affected? 0 Yes D No (If so,.indicate below how much.) (Consider possible truck related employees as well as layoffs if business declines.) Within One Year In Five Years Decrease Increase Decrease Increase Number of Jobs Payroll $ $ $ $ Sales Volume $ $ $ $ 21. If necessary to continue or improve rail services, would you be willing and/or able to.: (Check all those applicable) D Ship or receive more of your products by rail D Pay h:igher rail rates D Provide a low or no interest loan to the railroad to make track improvements. ADDITIONAL COMMENTS Please feel free to make any additional comments concerning your past, present, and future use of rail service. Your views will hel.p form a better rail system. An idea from you may spark the development of a means to a better rail service. THANK YOUFOR YOUR COOPERATION (A postage-paid, pre-addressed envelope is enclosed for your convenience.) To allow proper time for analysis and inclusion of your views in rail planning work now underway, please complete and return questionnaire wi.thin ten · days of receipt. If the envelope is misplaced, please mail survey form to Mr. Andrew Miller, Department of Trans portation, P. 0. Box 7913, Madison, WI 53707. G-4 FIGUREG-2 WISCONSIN RAIL PLAN - TELEPHONE SURVEY FORM SHIPPER QUESTIONNAIRE pg. 2 (name of rail line) (n~e of finn) (nearest community or station) Name of firm ______ TELEPHONE: ( name of mi;lnager of firm or traffic manager) (interviewer) B. If rail service to your firm were discontinued, would your firm continue to operate? Yes No SHIPPER QUESTIONNAIRE How much would your employment be increased or decreased? 1. What products does you.,r firm sell?______,--,------c----,------+ employees (major products) Most likely estimate - percent + employees 2. Does your firm sell its products locally ( within 50 mile radiu~)? Yes No High estimate - percent + employees 3. What percentage of ydur products are sold locally? ------Fercent. Low estimate - percent 4. How many rail carloads of f:teight did you receive in 1975?______How much would your payroll be increased or decreased? (number of carloads) \_ THE MORE POSITIVE + dollars·"· THE HIGHER THE What kinds of products? --,---'--____;from where? ______pe;c:cerlt Most likely estimate - ,.ESTIMATE (major products) (Wisc., Midwest, other) + dollars High estimate - ercent dollars . ( T~ MORE NEGATIVE How many truckloads of freight did you receive in 1975? -----~---~,- + THE LOWER THE (number of truckloads) ercent Low estb1ate - ESTIMATE What kinds of products? ;from where?______How much would your sales be increased or decreased? (major products) (Wisc., Midwest; other) + dollars Cl 5. How many rail carloads of freight did you ship ·in 1975? --,------ Most likely estimate - percent (number of carloads) + dollars t/1' High estimate - percent What kinds of products? ______;Where to?__ ...,..---.-,-----~ + dollars (major products) (Wisc., Midwest, other) ¥>w estimate - ______percent How many truckloads of freight did you ship in 1975? --,--,--,---,:---..,..,---,-, How much wou,ld your purchases of local goods and services be changed? (number of -truckloads) + What kinds of products? ______;where to? Most likely estimate - dollars 7 7 7 · (major products) --,,w,.,1~·s-c-_-,.,,M id"'"w_e_s_,t-,-0th-,-e-r ) + High estimate - dollars + 6. ASSUMING RAIL SERVICE IS THE SAME 5 YEARS FROM NOW AS IT IS TODAY, by how Low estimate - dollars much will your use of rail service increase or decline in 5 years? + carloads 9. If your transport costs increase, because of rail abandonment, by what percentage Most likely estimate - ercent would you increase the price ·of your locally sold products? + carloads High estimate - ercent Most likely estimate ______,percent + carloads Low estimate - ercent High estimate. ______p~rcent 7. What was your average annual employment in 1975? employees ·I.ow estimate ______percent (specific or approximate) 10. How would your firm handle freight currently mc,ving by rail? Check where appropriate: What percen-tage of your work force is strictly seasonal? ______percent Truck to mr from a nearby rail line __? Truck to or from a nearby port __? What was your annual payroll in 1975? ______dollars Ship by truck only __? Discontinue product line __? What ~ere your annual sales in 1975? ______dollars 11. Would any additional investments be required if you shipped entirely by truck? Yes No APPENDIX H FRA COMMENTS ON THE DECEMBER, 1979 WISCONSIN RAIL PLAN [49 CFR, Section 266.15(d)(2)(i)] Introduction The following pages contain a complete copy of FRA comments on the December, 1979 rail plan update submitted to USDOT on December 10, 1979. WisDOT's response is shown in italics after each comment. FRA Comment For each line, the State conducted an analysis of the distribution of costs and benefits for alternatives relevant to that line. The State then added these elements together to compute ratios. Since the categories of benefits developed by the State are not addable, the ratios computed have little meaning, If the State has relied on these ratios for making program decisions, then it may find that its goals and objectives are not being met in the manner expected. WisDOT Reply A revised benefit/cost methodology has been developed which corrects the above problems. The new method.Dlogy is presented in Appendix B. FRA Comment We note that the State intends to adopt the FRA guidelines as its benefit/cost methodology. Therefore, we would expect strict adherence to those guidelines when performing the actual benefit/cost analysis·· for each project. WisDOT Reply WisDOT no longer wishes to ad.Dpt the FRA guidelines. Instead it has developed its own method.Dlogy, which is based on the FRA guidelines. All of the branchline analyses contained in this plan have used the new method.Dlogy. FRA Comment Please recognize that a benefit/cost analysis submitted on a case-by case basis amounts to an amendment to the state rail plan update, and consequently is subject to the regulations regarding public participa tion. This includes, but is not limited to, providing an opportunity for a public hearing, and a state clearinghouse A-95 review on each project submitted as an· amendment prior to submittal to FRA. WisDOT Reply Upon FRA approval of the new benefit/cost methodology, submittal of benefit/cost analyses on a case-by-case basis will no longer be necessary. H-1 APPENDIX I RAIL ABANDONMENT AND FINANCIAL ASSISTANCE PROCEDURES UNDER THE INTERSTATE COMMERCE ACT AND ICC REGULATIONS The rail abandonment process, which was significantly damaged by the Staggers Rail Act, is complicated and follows a strict time schedule, If rail users and community members wish to become involved i~ the process, they must know what is going on, when to take the next step, and what should be done in the meantime. This Appendix is intended to present a summary of the process, More detailed information should be obtained from the federal regulations them selves, namely 49 C,F,R. Part 1121, "Abandonment of Railroad Lines and Discon tinuance of Service," The steps in the process are described below and shown in graphic form in Figure I-1, System Diagram Map The initial step in the abandonment process, according to Interstate Commerce Commission (ICC) regulations, is the submittal by each railroad of a system diagram map along with a description of lines having abandonment potential to the Interstate Commerce Commission, the governor, the state regulc:1-tory commission and the "designated state agency" in each state as well as the publication of such information.in newspapers of the affected areas, (In Wisconsin these latter two are the Transportation Commission and the Department of Transportation respectively,) The purpose of that notice is to inform affected persons and groups of the status of lines in their areas, The following categories of lines must be included: Category 1, All lines or portions of lines which the carrier anticipates will be the subject of an abandonment or discontinuance appli cation to be filed within the three-year period following the date upon which the diagram is filed with the Commission; Category 2, All lines or portions of lines potentially subject to abandon ment which the carrier has under study and believes may be the subject o~ a future abandonment application because of either anticipated operating losses or excessive rehabilitation costs, as compared to potential revenues, Category 3, All lines or portions of lines for which an abandonment or dis continuance application is pending before the Commission on the date upon which the diagram is filed with the Commission; Category 4, All lines or portions of lines which are operated under the rail service continuation provisions of section la (6) (a) of the Interstate Commerce Act, section 304 (c) (2) of the Regional Rail Reorganization Act of 1973, as amended, or of section 803 of the Rail Revitalization And Regulatory Reform Act of .1976·on the date upon which the diagram is filed with the Commission; and Category 5. All other lines or portions of lines which the carrier owns and/or operates, directly or indirectly, I-1 The ICC will not accept an application for abandonment from a railroad unless the line has been officially listed in Category 1 for four months prior to the filing of the abandonment application, Notice of Intent Prior to actually filing an abandonment application with the ICC, the railroad is required to serve notice of that forthcoming action to the state, the ICC and significant users of the line, and to publish a notice in each terminal and station on the line and in local newspapers. This is called a "notice of intent to file for abandonment." The carrier is also required to at any subsequent time, provide an estimate of subsidy and minimum purchase price upon request of interested parties. By law, this notice of intent must be sent to the ICC, the governor of the state where the line is located, involved state agencies, and significant shippers between 15 and 30 days before the carrier actually files the application with the rec. The Notice of Intent also must instruct interested parties in how to file comments and petitions with the ICC if they wish to comment upon or oppose the abandonment and request an investigation. The Application and Participation in the Abandonment Process Applications for abandonment or discontinuance of service are filed by the carrier and generally contain a description of the line along with arguments and such evidence as may be required to support its case, The burden is on the railroad applying for abandonment to prove that the present or future public convenience and necessity do not require continuation of the line. Interested persons may become parties to an abandonment proceeding by filing written comments or protests with the rec. Protests must be in the form of a verified statement and be submitted within 30 days of the filing of the applica tion. Protests should and comments may contain the following information: 1. identification of the protestant including name, address, and business; 2. a statement of the protestant's interest in the proceeding, whether he uses the involved service, and if not, inforw..ation with respect to the group or public interest he represents; 3. specific reasons for opposing the abandonment or discontinuance including information with respect to the protestant's reliance on the involved service, with allegations of fact supported by an affidavit of personal knowledge of facts; 4. any rebuttal of information or material submitted by the applicant; and s. request for oral hearing and reasons, if desired. The protest or comments may also include a specific statement of position and summary of evidence with regard to any or all of the following: 1-2 1. intent to offer financial assistance; 2, environmental impact; 3. impact on rural and connnunity development; 4, suitability of the properties for other public purposes; and 5, recommended provisions for protection of the interests of employees. Written co1IDD.ents and protests are used by the Commission in determining whether a formal investigation is needed, In the event an investigation is conducted, the commenting party or protestant may participate in the proceeding as its interests may appear, or in opposition or in support, Those parties filing protests are expected to participate actively in either oral hearings or via the submission of additional material in the form of verified statements, Written comments and protests should be filed with the Commission (Deputy Director, Section of Finance, Room 54171 Interstate Commerce Commission, Washington, D.c. 20403) within 30 days of the filing with the Commission of an abandonment or discontinuance application, An original and two copies of each written comment or protest is required, A copy of each written comment or protest should also be sent to the carrier or its representative, ICC Investigation If no protest is received within the alloted 30 days, the Commission shall within the next 15 days (application date plus 45 days) issue a certificate of abandonment allowing abandonment to occur within 75 days after the application filing date, If a protest is received within the 30 days after the application is :filed, the Commission must within the next 15 days (application date plus 45 days) determine whether an investigation is needed to assist in determining the dis position of the application, If no investigation is deemed necessary, the Commission shall decide within 75 days of the application filing date whether to approve the abandonment or not. If abandonment is approved, the Commission shall within 90 days of the application filing date issue a certificate of abandonment effective within 120 days of application filing, If an investigation is deemed necessary, it must be completed, and an initial decision rendered, within 135 days and 165 days of application filing, respectively. Thirty· days thereafter (filing date plus 195 days) the decision becomes final, unless the Commission decides to hear appeals, If the Commission does hear appeals a final decision must be issued within 255 days of application filing. If a final decision is reached to permit abandonment, the Commission shall within 15 days of that decision issue a certificate of abandonment whose effective date is within 75 days of the final decision, The maximum time limit to the effective date of a permitted.abandonment is 330 days. I-3 Financial Assistance Federal laws and regulations also contain specific procedures relating to offers of financial assistance from shippers and government entities who wish to see service continue on a rail line in the abandonment process. Those procedures are summarized below. Making An Offer - In any proceeding in which the ICC decides to permit abandon ment, the ICC will, concurrently with service of the decision, publish the findings in the Federal Register as notice to persons intending to offer financial assistance for continued rail service. Within 10 days following publication, any person wishing to see service continued may offer to pay the carrier a subsidy or offer to purchase the line. If the offer to subsidize or purchase the line is less than the carrier's estimate, the offerer must explain the basis of the disparity and the manner in which the offer of subsidy or purchase is calculated, Negotiation and Intervention - If, within 15 days of publication of a decision authorizing abandonment, the ICC determines that a financially responsible person(s) has offered financial assistance, and that the offer includes either the acquisition cost or a subsidy which will provide a reasonable return on value and the difference between revenues and avoidable costs, the ICC can postpone issuance of a certificate of abandonment as follows: If the carrier and the offerer enter into an agreement to provide continued rail service, issuance of a certificate can be postponed for as long as the agreement is in effect, If the carrier and a person offering to purchase a line enter into an agreement to provide continued service, the ICC will approve the transaction and dismiss the application for abandonment, If the carrier and a financially responsible person fail to agree on the amount or terms of a subsidy or purchase, either party may within 30 days of the offer date, request that the ICC establish the conditions and amount of compensation, If no agreement is reached within 30 days after the offer is made and neither party requests that the ICC establish the conditions and amount of compensation during that same period, the ICC will issue a certifi cate of abandonment, Whenever the ICC is requested to establish the conditions and amount of compensation, it must: 1) render its decision within 60 days from the date its intervention began; 2) where a subsidy is offered, determine the amount and terms of the subsidy based on the avoidable cost of providing continued rail service plus a reasonable return on the value of the line; and 3) where an offer to purchase is made, determine the price and other terms of the sale, In no case may the ICC set a purchase price below the fair market value of the line. The decision of the ICC is binding on both parties, except that the offerer may withdraw its offer within 10 days after the date the dec.ision is served. In such case the ICC will issue a certificate of abandonment within 20 days, unless other offers of financial assistance are made, Multiple Offers - If the railroad receives more than one offer of financial assistance, it may select the offerer with whom it wishes to do business, (except that, by Wisconsin law, WisDOT has the first right to acquire any abandoned rail lines), The railroad must make its selection known to the ICC and all parties no later than 20 days after the ICC's findings are published in the Federal Register, The negotiating parties then must complete the sale or subsidy I-4 agreement or request the ICC to establish the conditions and amount of comp ensation no later than 40 days after the notice is published in the Federal Register. If no agreement is reached within the 40-day period and the ICC has not been requested to establish the conditions and amount of compensation, any other offerer may request the ICC to establish the conditions and amount of compensation no later than 50 days after publishing in the Federal Register, If no request by any other offerer is made, the ICC shall issue a certificate of abandonment no later than 60 days after notice in the Federal Register. When the Connnission has established the conditions and amount of compensation, and the original offer has been withdrawn, any other offerer may accept the Commission's decision no later than 20 days after the date the decision on the request is served, Conditions - When an abandonment application has been dismissed or postponed by the ICC as a result of an agreement to purchase or subsidize, then the following conditions apply: (1) No purchaser of a line may transfer or discontinue service on the line prior to the end of the second year after consumation of the sale nor may the purchaser transfer the line, except to the carrier from whom it was purchased, prior to the end of the fifth year after consumation of the sale, (2) Any subsidy may be discontinued. by giving at least 60 days notic.e to the applicant and other parties to the proceeding. Unless within the 60-day notice period, another financially responsible party enters into a subsidy agreement at least as beneficial to the carrier as that which was to be discontinued, the ICC will at the carrier's request, issue a certificate of abandonment no later than 10 days after the date the carrier's request is filed and served by the carrier on all parties. Applicability to Wisconsin Laws - It should be noted that WisDOT can only purchase railroad property which has been officially abandoned by the existing carrier. Therefore the ICC procedure of postponing the abandonment certificate while negotiations are in progress presents some complications for Wisconsin, Accord ingly, WisDOT may be faced with no other alternative than to allow the ICC time limits to expire and then to attempt acquisition under existing state laws. WisDOT is also attempting to have the ICC regulations changed, I-5 FIGURE I- 1 RAIL ABANDONMENT PROCEDURES UNDER THE INTERSTATE COMMERCE ACT AND ICC REGULATIONS IF NO PROTEST; APPEALS FROM MUST ISSUE INITIAL DECISION CERTIFICATE CERTIFICATE DUE EFFECTIVE IF COMMISSION ENTERTAINS CERT! Fl CATE EFFECT! VE APPEAL OF INITIAL IF NO PROTESTS DECISION AFTER INVESTIGATION, FINAL DECISION DUE CERTIFICATE EFFECTIVE IFPCN FOUND AND NO INVEST!GATION PROTEST. PERIOD APPEALS DUE IF INVESTIGATION, FROM DECISION NOT INITIAL TO INVESTIGATE DECISION DUE I I I H ~ I O' I I H t H 1 30 45 60 75 90 120 135 165 185 195 255 270 330 APPLICATION FILED 'IF INVESTIGATE, EVIDENCE IFNO CLOSED INVESTIGATION, MUST DECIDE CASE BECOMES Fl NAL CERTIFICATE OF PCN IF NO APPEALS AFTER FINAL ISSUE CERTIFICATE FILED DECISION ON IF PCN FOUND AND APPEAL NO INVESTIGATION IF PROTEST Fl LED, MUST DECIDE WHETHER TO INVESTIGATE IF INVESTIGATION .SUBMISSION OF EVIDENCE APPENDIX J PROGRAM OF PROJECTS [49 CFR 266.15(c)(12)] Introduction Federal regulations require the preparation of a "program of projects" for inclusion in the state rail plan. These projects are to be given a priority ranking for application of federal assistance. The following information describes several potential projects for the forthcoming year. However, probably only a few of these potential projects will actually progress to the point of implementation during 1981. The type of assistance provided may also differ from what is set forth below as the project is developed in detail closer to the time that an application for assistance is prepared. Nevertheless, the following program of projects reflects WisDOT's best estimate as of January, 1981. It must be recognized that the vagaries of railr.oad actions, appeals and postponements, and structuring of local institutional capabilities make such a program very tentative. Also, the costs are only preliminary estimates and are subject to change depending upon still to be attempted negotiations over acquisition price, construction specifications, and the like. This progr!UJl of projects, although a requirement for federal assistance from FRA, could also be considered as a program of projects for the use of any federal or state funds for rail service continuation projects. The possible new projects appear in order of priority as determined in accordance with the procedures outlined in Appendix F. A sunnnary list of the projects appears in Table VIII-5 on page VIII-12. Rail Planning Current rail planning activities will continue in 1981. Funds will be used for such areas as WisDOT salaries and travel for general rail planning, line analyses to be conducted as needed by WisDOT and/or outside contractors, special rail planning studies as needed, and staff salaries for regional planning connnissions performing rail planning. ~otential Projects 1. Ashland Restructuring - this project is a result of the Chicago and North Western's proposed abandonment of its Washburn to Rhinelander line. Several shippers are on C&NW track in the city of Ashland. Service to those shippers can be continued by the Soo Line or Burlington Northern who also serve Ashland, if approximately one mile of track is purchased from the C&NW and operated by one of those railroads. No rehabilitation would be required and none of the acquisition costs would be federally funded. J-1 2. Madison-Richland Center - This 64.7 mile line will likely not be part of a re-organized Milwaukee Road and may be approved for abandonment by the bankruptcy court. If the line is abandoned, $1,1 million in state and local funds may be used for purchase of the land and track and establishment of a shortline. Rehabilitation, amounting to $1.9 million, will be required in which case a request for $1.2 million in federal funds may be made by July, 1981. The benefit-cost ratio for acquisition and rehabilitation to class one speeds is 8.32. The benefit-cost ratio for rehabilitation to class two speeds is 1.35, After acquisition and rehabilitation, the line is expected to be self-sustaining, The operation of this line may be combined with another former Milwaukee Road segment from Lone Rock to Prairie du Chien which may be purchased by WisDOT in early 1981. 3. Wisconsin and Southern - This newly formed railroad (1980) is rehabili tating portions of its 147.2 miles to FRA Class I and Class II standards at a cost of $6.2 million over three years. About $2.1 million ($1,66 million federal) has been approved for the first year, After completion of the first year's work, about $1.44 million in federal funds will be requested by July 1, 1981, with a request for $1.96 million in federal funds planned for 1982. The benefit-cost ratios are 5.68 for the Class I and 6.11 for the Class II rehabilitation. After rehabilitation, the line is expected to be self-sustaining, 4. Weston Spur-Tomahawk - This 41.5 mile line operated by the Milwaukee Road is in need of rehabilitation to Class II standards at a cost of up to $4.0 million. The Milwaukee Road has expressed a need for public assistance on this line in order to continue its operation. The benefit-cost ratio is 1,33 but that cost includes replacing some of the existing rail. If some or all of the present rail could be reused, the cost could be significantly reduced and the benefit-cost ratio increased, The cost would likely be split about one-half state/federal, one-half shippers. 5. Trempealeau Team Track - Service between Medary Junction and Galesville by the Chicago and North Western has ended and a team track alternative service project at Trempealeau at a cost of $77,000 is being considered. A request for $50,000 in federal funds may be made by July 1, 1981, The benefit-cost ratio for this project is 1.31. 6. Green Bay-Iron Mountain - The Escanaba and Lake Superior Railroad is currently operating over this 88,6 mile Milwaukee Road line as an ICC designated temporary operator. The E&LS is seeking to purchase the line, and 1f successful, might request a project for rehabilitation to FRA Class II operating standards at an estimated cost of $2.6 million. Thus, a request for $1. 7 million in federal funds for this project may be made by July 1, 1981, The benefit-cost ratio is 6,82. After completion of the project the operator will be expected to continue service with no further public assistance. J-2 7. Humbird Team Track - With the cessation of service on the Chicago and North Western's Merrillan-Marshfield line which is expected in January 1981, an existing team track at Humbird on the C&NW mainline may be upgraded as a substitute alternative service project at a cost of $40,000. A request for $27,000 in federal funds may be made by March 1, 1981. The benefit-cost ratio for. this project is 3. 75. After completion of the project, the operator will be expected to continue service with no further public assistance. 8. Waxdale-Beloit - This 62.7 mile line operated by the Milwaukee Road is in need of rehabilitation to Class II standards at a cost of $3.54 million. The Milwaukee Road has expressed a need for public assistance for this project in order to continue operation. The benefit-cost ratio of such a project would be 1.63. Costs would likely be split about one-third state/federal, one-third shippers, and one third railroad. 9. Ann Arbor Ferries~ The two Ann Arbor ferries, Viking and Arthur K. Atkinson, are currently operated across Lake Michigan between Frankfort, Michigan and Kewaunee and Manitowoc, Wisconsin by the Michigan Interstate Railway Company with a subsidy from the State of Michigan and Wisconsin. The proposed Wisconsin share of the 1981 operating subsidy is $885,000. Federal funds of $619,500 are already approved. State funds amounting to $265,500 will be used to match the federal funds. Since this is the final year of eligibility for federal funds for this project, a legislative decision whether this project will be continued with state funds alone must be made later during 1981. 10. Janesville-Monroe - This 33.4 mile line is operated by the newJy formed (March 1980) Chicago, Madison and Northern Railway in conjunctton with the Monroe-Mineral Point segment. The initial $2.1 million of a proposed $4. 2 million rehabilitation project to bring the track to FRA Class II standards has been approved by FRA along with some Class I rehabilitation work on the Monroe-Mineral Point segment. Up to $2.1 million of additional federal funds will be requested after completion of the initial phase. The benefit-cost .ratio of the Janesville-Monroe acquisition and rehabilitation is 1.34. After completion of this project, the operator will be expected to continue service with no further public assistance. J-3 11. Reedsburg-Elroy and Hillsboro - If the Reedsburg-Camp Douglas line is abandoried by the Chicago and North Western, the 16.4 miles between Reedsburg and Elroy might be purchased with state and local funds at an estimated cost of $617,000 in order to either establish a new shortline railroad or to extend the existing Hillsboro and Northeastern Railroad. The Hillsboro and Northeastern's only connection to the nationwide rail network is via this line. After acquisition, a rehabilitation project to Class I standards costing $392,000 may generate a request for $250,000 in federal funds in 1981. The benefit-cost ratio for the acquisition and rehabilitation is 2.08. Alternatives which would provide service from Union Center to Camp Douglas and Hillsboro or which would continue the entire line, including Hillsboro, also might materialize depending upon local initiative, proposals of the prospective operator, negotiations with the C&NW and decisions of the ICC. Any request for federal funds under these modifications would remain approximately the same as for the principal proposal discussed above. After acquisition and rehabilitation, any new operator will be expected to continue operation without any further public assistance. 12. Sparta-Viroqua - This 34.7 mile line is operated by the newly formed (March 1980) Chicago, Madison and Northern Railway. A $1.9 million rehabilitation project to upgrade the track to FRA Class I standards has been proposed. A total of $527,000 ($337,000 federal) has been approved for the first phase of work. Additional federal funds of $887,000 may be requested after completion of the initial work. The benefit-cost ratio of the total project is 1.44. After completion of the project, the operator will be expected to continue operation without any further public assistance. 13. Monroe-Mineral Point - This 46. 3 mile line is also operated by the Chicago, Madison and Northern Railway. A $1.87 million rehabilitation project to upgrade the track to FRA Class I standards has been proposed. This project has been combined with the Class II rehabilitation work on the Janesville-Monroe line; and $884,000 in federal funds has been approved for the first phase of work. Additional federal funds of up to $2.1 million might be requested after completion of the initial work. The benefit-cost ratio of the total acquisition and rehabilitation project is 1.31. After completion of the project, the operator will be expected to continue service with no further public assistance. 14. Monico-Eagle River - This 25.7 mile segment is a portion of the Monico to Watersmeet, Michigan line for which an abandonment application has been filed by the Chicago and North Western. If it is approved for abandonment, $326,000 in state and local funds may be used for purchase of the land and track. Rehabilitation to FRA Class I standards costing $514,000 plus an interchange with the Soo Line at Gagen costing $250,000 will also be required. Thus, there could be a request for $490,000 in federal funds by July 1, 1981. The benefit-cost ratio of the project is 1.11 provided the Soo Line can operate the line with existing crews. Operation of the line in any other manner would likely result in a benefit/cost ratio below one. After acquisition, rehabilitation and construction of the interchange, the l~ne is expected to be self-sustaining. J-4 15. Marathon City-Marshfield-Greenwood - The Wisconsin Department of Transportation may purchase the 29.0 miles of Chicago and North Western line between Marshfield and Marathon City for which an abandonment application has been filed. Acquisition costs estimated at $830,000 would be funded by state and local funds. Rehabilitation to FRA Class I standards at a cost of $145,000 may lead. to a request for $93,000 in federal funds by July 1, 1981. In addition, the 22.6 mile Marshfield-Greenwood line of the Soo Line, which is in Category 2 on the System Diagram Map, may soon be abandoned. If that o~curs, state and local funds may be used for the estimated $375,000 · · acquisition cost and the line would become part of the Marshfield-Marathon City operation. Rehabilitation to FRA Class I standards at a cost of $565,000 may lead to a request for $360,000 in federal funds in a future year. The benefit/cos.t: ratio is 1. 02. After completion of acquisition and rehabilitation, . the operator will be expected to continue service with no further public assistance. 16. Madi~on-Freeport - The Wisconsin Department of Transportation has negotiated the purchase of the Illinois Central Gulf line of. 58. 9 miles between Madison, Wisconsin and Freeport, Illinois which will be operated as an addition to the Chicago, Madison and Northe;rn Railway Company. Acquisition cost is $2.9 million and is funded by'. ~tate and local funds. Construction of a new connection at Monroe is e-stimated to cost about $250,000 which will be provided by state and local funds. After completion of the project, the operator will be exp~cted to continue service with no further public assistance. · · 17. Turtle Lake-Cumberland - This 12.5 mile segment is part of,the Chicago and North Western Northline-Spooner line for which an abaridoninent application has been filed. If the line is abandoned, $302,'000 in state and local funds may be used for purchase of the land and track in this segment. Since rehabilitation to FRA Class I standards at a cost of $312,000 will also be required, a request for $200,000 in federal funds may be made by July 1, 1981, The benefit-cost ratio of acquisition and rehabilitation is currently computed at 0.65, but that could change as the result of a more detailed study now underway. After completion of this project, the operator will be expected to continue service with no further public assistance. 1_8. Milton Junction-Waukesha - This 41.0 mile line is a former Milwaukee Road line now operated by the newly formed (1980) Central Wisconsin Railroad. Rehabilitation to FRA Class II standards may be undertaken at a cost of $2.05 million, in which case a request for $1. 3 million in f.ederal funds may be made in 1981. The benefit-cost ratio for acquisit:t.6n and rehabilitation is 0.47. After completion of the project, 'the .'operator will be expected to continue service with no further publ_ic. _assistance. J-5 19. Clintonville-Marion - This 6.8 mile segment is a part of the Chicago and North Western Clintonville-Eland line for which an abandonment application state and local funds may be used for purchase of the land and track to preserve it for possible future restoration of rail service. No use of federal funds is anticipated at this time. The benefit-cost ratio of this project, assuming railbanking for five years with resumption of service in the sixth year as part of a larger railroad, is 0.68. Conclusion The total amount of federal funds represented by the foregoing list of potential projects far exceeds the projected amount of Wisconsin's entitlement. In some cases it can be expected that a shortfall in federal assistance will be compensated for by state and local funds for a given project. In other cases, the shortfall could result in the postponement or deletion of the project. A second consideration is that most of the costs cited are only estimates and are therefore subject to change. Many of them depend upon still to be attempted negotiations over acquisition price, construction specifications, and the like. No one should consider the costs or any statements in this appendix as commitments by the Wisconsin Department of Transportation. J-6