2017 VIRGINIA STATE RAIL PLAN Executive Summary Virginia’s rail network is a valuable asset that grows the economy, relieves congestion, saves lives, improves air quality and saves taxpayer money. Continued investment in rail infrastructure will ensure the mission and vision of the Commonwealth’s transportation network is achieved. CONTENTS 01 BENEFITS OF RAIL IN VIRGINIA 07 FUTURE OF RAIL IN VIRGINIA 09 VIRGINIA’S VISION FOR THE FUTURE 10 GOALS AND OBJECTIVES 14 PRIORITY IMPROVEMENTS AND INVESTMENTS BENEFITS OF RAIL IN VIRGINIA
VIRGINIA’S RAIL SYSTEMS Virginia’s rail network is have leveraged private and of rail service-related spending a valuable asset for the federal funds to improve in Virginia emanate from Commonwealth. It provides freight and passenger rail firms providing freight and an efficient means of moving transportation and support the passenger transport services, freight and passengers both overall transportation system. industries using such services within and through the Rail economic impacts to to trade goods (shippers/ state. The Commonwealth Virginia are estimated using receivers), and expenditures recognizes the privately multipliers from the IMPLAN® from visitors who reach Virginia owned rail network as part of a economic model with input via rail. Of these activities, multimodal system with public data and assumptions from freight-users generate the benefits and growing economic freight movement data, most significant impact. impacts. Since the 2000s, passenger rail operations, and significant state investments visitor characteristics. Impacts
$73 billion of output. 8.8% of Virginia’s total output
$19.8 billion earned by employees. 6.4% of the state’s total income
Over $30 billion of added value. 6.0% of the state’s Gross State Product (GSP)
341,519 jobs, 6.7% of the 5.1 million jobs statewide
$1.9 billion of tax revenue
Output – In terms of total revenue, consists of payments received by to 341,519 jobs, which represent the rail industry generated about self-employed individuals and 6.7 percent of the 5.1 million jobs $72.9 billion in output, which is 8.8 unincorporated business owners. statewide. percent of Virginia’s total output. Value Added – The combined value Tax Revenue – Federal, state Income – $19.8 billion earned by added impact of rail services is over and local tax revenues generated by these total employees represent $30 billion and represents 6.0 percent the rail industry totaled $1.9 billion. 6.4 percent of Virginia’s total labor of the state’s Gross State Product income. Labor income includes (GSP). employee compensation and proprietary income. Employee Employment – Economic impacts compensation, in turn, consists of of rail extend beyond the 6,762 wage and salary payments as well as directly employed in the provision benefits (health, retirement, etc.) and of rail transport (both passenger employer paid payroll taxes (employer and freight). When the freight and side of social security, unemployment visitor impact activities and multiplier taxes, etc.). Proprietary income impacts are included, rail-related employment in Virginia amounts
1 Investment in the rail network also has a direct benefit to Virginia’s highway system. By diverting freight and passenger traffic from road to rail, Virginia’s rail network helps by growing the economy, relieving congestion, saving lives, improving air quality, saving money, and complementing the Virginia highway network while reducing capital and maintenance expenditures.
RELIEVE CONGESTION $312M ANNUAL IN CONGESTION SAVINGS $123M ANNUAL PAVEMENT MAINTENANCE SAVINGS (6% OF VDOT MAINTENANCE BUDGET)
8 = 240 100 = 340 PASSENGER PASSENGER FREIGHT SEMI-TRAILER RAILCARS VEHICLES RAILCARS TRUCKS
$73 billion of output. 8.8% of Virginia’s total output TRAVEL SAFE 18 LIVES SAVED AND 3,000 CRASHES AVOIDED EACH YEAR
Shipping by rail avoids Passenger travel by rail avoids about about 1.7 billion miles 271 million miles of personal of truck travel in Virginia Over $30 billion of added value. 6.0% of the state’s Gross State Product (GSP) CO2 driving in Virginia
BREATHE EASIER 3M TONS OF CO2 EMISSIONS AVOIDED (6.4% OF TOTAL IN VIRGINIA PER YEAR) $1.9 billion of tax revenue
On average, railroads Moving freight by rail instead The total estimated level are four times more fuel of truck generates 75% less of rail service in Virginia in efficient than trucks greenhouse gas emissions 2015 was about 25 billion ton-miles
SAVE MONEY RAIL SERVICES DRIVE 6% OF VIRGINIA’S TOTAL ECONOMY. MORE THAN 6,000 JOBS CREATED DIRECTLY BY RAIL NETWORK
$2.2 BILLION about 9 cents per FREIGHT RAIL in cost avoidance ton-mile of rail use
$190 MILLION about 46 cents per PASSENGER RAIL in cost avoidance passenger-mile of rail use
2 Virginia’s Rail Systems, continued
Virginia’s rail network is regions along the eastern facility in Front Royal – a critical link in a larger seaboard. This corridor and carries several Amtrak rail system within the also carries the majority of services into the Northeast. eastern United States; it Virginia’s Amtrak passenger • Norfolk Southern’s Heartland connects the state’s ports, services, and serves as the Corridor links Virginia’s Port businesses, and communities gateway to Washington, D.C. to Midwest markets, carrying to other major population for Virginia Railway Express intermodal containers from centers, customers, and commuter trains. the docks in Hampton Roads manufacturing regions • CSX’s National Gateway also to consumers in Chicago. throughout the nation uses the I-95 Corridor route • Amtrak services are shown and the world. Corridors through Virginia. This key rail within the Commonwealth on the map as light blue artery diverges from the I-95 shading along the privately have unique characteristics Corridor in Washington, D.C. that provide alternative owned freight corridors. to link the Port of Virginia Amtrak services operate over transportation options and and other mid-Atlantic ports diverse public benefits to the privately-owned railroads with cities and markets in the in Virginia. Virginia regional economy. Many of Virginia’s U.S. Midwest. freight corridors also carry service provides one-seat passenger trains. All of the • Norfolk Southern’s Crescent rides from Virginia’s major freight corridors are privately- Corridor runs from north cities to Washington, D.C. owned and serve the Port of to south, serving consumer and the Northeast Corridor, Virginia in Hampton Roads in markets and manufacturing while Amtrak long-distance some capacity. regions between New trains carry passengers Orleans, Memphis, and the through Virginia between the • CSX Transportation’s I-95 Northeast. In Virginia, the Northeast, Southeast, and Corridor spans the entire Crescent Corridor serves Midwest. Eastern U.S., linking cities, the Virginia Inland Port – an ports, and manufacturing intermodal container transfer
3 VIRGINIA IS A CRITICAL LINK IN THE NATIONAL RAIL NETWORK
4 PASSENGER ROUTES
Passenger trips to, from, and existing rail bottlenecks to from Washington, D.C. to within Virginia are growing better connect the entire Lynchburg and Roanoke. and highways in Virginia Southeast region with Passenger volumes on Virginia are increasingly congested. Amtrak’s Northeast Corridor. regional service totaled over Passenger rail service Since 2013 Virginia has 830,000 riders in FY2016. provides an alternative to provided dedicated funding When combined with long congested highways, and the to support and expand distance service, passenger Commonwealth therefore intercity passenger rail volumes exceeded 2.5 million invests in Amtrak intercity operations across the state. riders. Virginia also supports passenger routes, as well Virginia’s busiest passenger commuter rail operations as Virginia Railway Express rail routes parallel the provided by Virginia Railway commuter service to improve heavily traveled I-95 corridor, Express, which serves the mobility and meet the growing where a growing number heavily congested I-95 demand for travel. Projects of Virginia regional service Corridor from Fredericksburg and plans underway in CSXT’s trains serve Richmond, to Washington, D.C. as well RF&P subdivision and the Long Newport News, and Norfolk. as the I-66 Corridor between Bridge across the Potomac to Additional Virginia regional Manassas and Washington, Washington, D.C. will alleviate services extend southwest D.C.
5 FREIGHT ROUTES
As the economy grows, so intermodal rail corridors that goods, 120,000 carloads of do the freight demands on connect Virginia to the nation, chemical products, 103,000 Virginia’s highways. The providing a cost-effective way carloads of food products, and Commonwealth recognizes the to bring needed raw materials 85,000 carloads of pulp and public benefits and economic and products to our ports, paper products, keeping more impact of investments manufacturers, and consumers, than 5.5 million trucks off the in a multimodal freight and to carry Virginia-made Commonwealth’s highways. transportation system. The products and materials to Savings in pavement freight rail network has a destinations throughout the maintenance costs alone are unique role supporting the Port nation. In 2012, Virginia’s rail estimated to be over $123 of Virginia’s target markets network carried more than million per year, almost 6% of in the Midwest. Both CSX 800,000 carloads of coal, VDOT’s annual maintenance and Norfolk Southern have 534,000 carloads of mixed budget.
6 FUTURE OF RAIL IN VIRGINIA
FUTURE OF RAIL Virginia’s passenger and freight in coal traffic. Population drive advancements in the rail rail networks are affected by growth, an aging population, industry. The Commonwealth many external factors that and increasing highway addresses these drivers by drive demand for services. congestion along the investing in the rail network as Freight rail corridors serving “urban crescent” between part of a multimodal approach the Port of Virginia and the Washington and Hampton to meet the growing demand main north-south freight Roads is helping drive for freight and passenger routes are experiencing demand for environmentally transportation service and growth in intermodal traffic, friendly and safe alternatives support the economic changes while changes in domestic to automobile travel. and travel preferences of energy production and use Innovation and ever-evolving Virginians. are reflected in a decrease technologies will continue to
RAIL INDUSTRY DRIVERS
Growth in Changes in Congestion Environmental Technology Intermodal Energy Production: Traffic Oil, Gas and Coal
Changes in Amtrak Demographic Aging Northeast Changes Infrastructure Rail Governance Framework Corridor
7 FREIGHT
Expected Evolution of Major Freight Freight tonnage is Port of Virginia Markets expected to grow by 50% Shipments Growth in intermodal traffic in Virginia by 2040 TEUs anticipated to more will impact operational Movement by rail will increase by than triple from 2.1 M in approach to major freight 14%; additional rail investment 2012 to 7.2 M in 2040. corridors. Intermodal can enhance rail’s modal share Capacity to move 45% by movement relies on tight and keep additional freight from rail in 2040, up from timetables and high demand congested roadways. 35% today. for on-time performance.
NETWORK SIGNIFICANCE
The Washington, D.C. Vehicle use per road-mile Economic Growth metropolitan area has has been increasing Virginia’s rail network is a key the nation’s highest rate for decades. link between two mega-regions, of congestion. Since the mid-1960s Virginia has the Northeast mega-region and The Hampton Roads area also experienced a decline in relative the Piedmont Atlantic mega- experiences high levels capacity as both population and region to the south. Most of the of congestion. state gross domestic product (GSP) nation’s population growth and [Measuring Traffic Congestion in Virginia have steadily risen. economic expansion is occurring - Virginia Performs, Virginia.Gov] [Measuring Traffic Congestion in Virginia in ten emerging mega-regions. - Virginia Performs, Virginia.Gov] America2050 www.america2050.org
PASSENGER
Population concentrated Population is growing Increasing demand for in the urban crescent older – 1 in 8 Virginians public transportation Since 2010, the share of Virginia’s is 65 or older, Urban environments conducive to total population growth in the and the largest concentration of public transportation and changing urban crescent rose to 93 percent, Virginia’s aging population lives demographics create more reliance up from 81 percent between in the urban crescent. on multi-modal options. 2000 and 2006. Much of this [DC2RVA Purpose and Need] population growth is young professionals/Millennials.
8 VIRGINIA’S VISION FOR THE FUTURE
VTrans Vision Good for usiness, good for communities, and good to go. Goals State Rail Plan Vision Virginia’s rail networ is a valua le asset t at grows t e economy, relieves congestion, saves lives, im roves air uality, and saves money. ontinued investment in rail infrastructure will ensure t e mission Objectives and vision of t e ommonwealt ’s trans ortation networ is ac ieved.
Goals and o ectives lin visions to rioriti e investments in rail.
Virginia’s Statewide attracts a 21st century effective manner. DRPT is also Transportation Plan workforce, and promotes responsible for administering (Vtrans2040) provides a healthy communities where funds for rail investments and planning framework for Virginians of all ages and public transportation agency all transportation modes abilities can thrive. formula funds. in the state, including rail The Department of Rail The Virginia State Rail Plan and public transit. Virginia’s and Public Transportation recognizes Virginia’s vision and vision for its multimodal (DRPT) serves as Virginia’s DRPT’s mission and provides transportation system, lead agency for rail and a framework for achieving described in Vtrans2040, is to public transportation, with both of these desired future be “Good for Business, Good the mission to facilitate and outcomes through investments for Communities, and Good improve the mobility of in Virginia’s rail network as part to Go”. Virginians will benefit the citizens of Virginia and of a multimodal transportation from a sustainable and reliable to promote the efficient system supporting economic transportation system that transport of goods and people growth. advances Virginia businesses, in a safe, reliable, and cost-
9 GOALS AND OBJECTIVES
RAIL PLAN GOALS AND OBJECTIVES The Virginia Rail Plan goals are The objectives show how Plan goals and objectives listed in blue and reflect the DRPT can advance freight are tools to evaluate and Vtrans2040 Guiding Principles. and passenger rail through prioritize short-term and Corresponding objectives for planning efforts and funding long-term planning efforts each goal are shown in tan on programs under DRPT’s and investments. the right. purview. Together the Rail
OBJECTIVES:
Leverage previous investments by Target growing markets and make supporting existing passenger services efficient use of the Rail Industrial Access Program funds • Enhance reliability for existing services
• Prioritize improvements to existing Leverage public-private partnerships GOAL: service corridors over service by prioritizing pro ects with expansion capital pro ects Optimize matching funds Return on Investments Target investment where traffic, Prioritize capacity investments that employment, population, or meet the needs of both the public demand is expected to grow and private sectors through m lement t e enhanced data sharing rig t solution at t e rig t rice Determine on a corridor-basis when rail is the most efficient mode to move people and goods
OBJECTIVES:
Expand programs that support Invest in materials and industry shortline railroads in maintaining practices that support a resilient FRA Class 2 track safety standards rail network GOAL: Ensure Safety, Security, and Resiliency