RAILROADS OF NEW YORK, INC. SEASONS GREETINGS Norman R. Schneider, RONY Executive Director December 2010 _______________________________________________________________________________ MESSAGE FROM OUTGOING EXECUTIVE DIRECTOR Since October of 2003, I have had the distinct pleasure of serving as the Executive Director of Railroads of New York, Inc. – a then new not for profit statewide organizations that seeks to improve railroad freight within the Empire State. During the more than seven years, I have watched with pride as the organization grew substantially from about 15 members to 57 at the end of 2010. More importantly, RONY is now recognized as the voice of our industry within New York State and a leader nationwide. As I retire from RONY, I would like to take this opportunity to thank all those who have contributed to this success, with special praise to the past RONY Presidents – Bob Grossman, Bruce Lieberman and Steve Fisk, as well as the various members of the Executive Committee who oversee the day-to-day operations of RONY. RONY has been very fortunate in having these individuals contribute considerable time and effort to advancing the growth of RONY and helping to make it a premier organization. Special thanks are given to Mary Jane Franz, who has served as Treasurer of RONY since its inception and David Monte Verde, who continues to lead RONY’s efforts to attract additional industry members. For those of you who have not yet had the privilege of serving on the RONY Board as a voting member or on the Executive Committee, I urge you to consider it in the future. As with any organization, it will only continue to grow with the strong support of its members. RONY is very fortunate to have Plummer and Associates continuing to represent the rail freight industry in the future. Again, thank you for letting me have the privilege of serving as your Executive Director. RONY provides a tremendous product that deserves increased support from federal and state elected officials as rail freight is the most environmentally friendly method of moving goods today. I wish each and every one of you a happy holiday season and a wonderful future. Sincerely, Norm Schneider RONY EIGHT ANNUAL MEETING HELD DURING TRAIN TRIP RONY held its 8th Annual Meeting on December 8th aboard an MA&N train (see photo below) that traveled from Union in Utica to the Booneville area and back through the courtesy of David Monte Verde and Genesee Valley Transportation (GVT) and his staff. It was a memorable trip that combined a successful business meeting with an opportunity for over sixty participants to dialogue while enjoying the scenery and a wonderful lunch buffet sponsored by Bowers and Company and Lincoln Insurance. 1 Among the key actions taken during the business meeting was the election of the 2011 RONY Executive Committee, as follows: President – Stephen Fisk, Canadian Pacific Railway Vice President – Jerry Vest, Genesee and Wyoming, Inc. Secretary – David Monte Verde, Genesee Valley Transportation Treasurer – Mary Jane Franz, Buffalo Southern Railroad Members-At-Large – Michael Fesen, Norfolk Southern Railway, - John McCreavy, SMS Rail Lines, and - Nathan Fenno, New York, Susquehanna and Western Railroad Three Associate Members were also elected to the RONY Board of Directors as voting members for 2011. They are: Robert Badger, Clough Harbour and Associates Carmen Garozzo, Bergmann Associates, and James Bowers, Bowers and Company 2 Congratulations to the above named individuals who will represent Railroads of New York for the coming year. Please provide them with as much support as you can, as 2011 promises to be a difficult year in terms of federal and state finances and polarized governing bodies. Other highlights of the 2010 Annual Meeting were: Welcoming remarks by Assemblywomen Ro Ann Destito, who is the Assembly sponsor of the RONY Trespass legislation; Update from John Rondinaro and Ray Hessinger of NYSDOT on the status of State rail freight grants; Update from Marie Corrado and Susan Andrews of NYSDOT on the State’s High Speed Rail efforts; Upset from Evan Eisenhandler on the New York Operation Lifesaver Program; and Discussion on the truck size and weight issues by Jerry Vest, GWI and Mike Smith of the Finger Lakes Railway. A NEW RONY Committee was established to oversee this issue that is chaired by Mr. Vest and includes Messrs. Smith, McCreavy and Fesen. FUTURE RONY STAFFING The RONY Board has appointed Daniel Plummer as the new RONY Executive Director. Dan has been involved in RONY efforts since it was established and will continue to be supported by Scott Wigger, RONY Legislative Counsel and Marge Wigger, Administrative Director. Plummer and Associates, LLC has recently moved closer to the State Capitol and is now located at 111 Washington Avenue, Suite 602, Albany, NY 12210. The RONY phone and fax numbers remain the same: Ph: (518) 463-2603 Fax: (518) 463-5991, as does the web site - www.railroadsofny.com THE ECONOMIC SIGNIFICANCE OF THE RAIL FREIGHT INDUSTRY The rail freight industry in the U.S. employs over 180,000, generates nearly $265 billion in total annual economic activity and support 1.2 million jobs, according to the Association of American Railroads. In 2008, U.S. freight railroads paid $18 billion in wages and benefits to their employees, more than $8 billion in taxes and billions of dollars on supplies and services. Every $1 of investment in rail infrastructure generates another $3 in economic activity. According to AAR, each $1 billion of investment in rail infrastructure to expand capacity creates an estimated 20,000 jobs. ELECTION RESULTS BRINGS CHANGE TO NEW YORK STATE Like much of the nation, New York political scene has changed with the November, 2010 elections. Democrat Andrew Cuomo easily won in the race for Governor, as current Democratic Governor David Patterson did not seek re-election. While the Democrats maintain a substantial majority in the State Assembly, the State Senate control has switched to a slim majority by the Republican party. Stay tuned as we learn more about who will head up NYSDOT and the Senate Transportation Committee. 3 RONY TESTIFIES AT ASSEMBLY HEARINGS ON TRANSPORT FUNDING RONY Executive Director Norm Schneider and Legislative Counsel Scott Wigger testified at a December 7th public hearing held by the Assembly Transportation Committee in Albany on the current two year transportation funding program. This program was adopted last Spring as part of the State budget and runs through March 31, 2012. Among the key points made to Chair David Gantt and several other members of the Committee during the RONY testimony were the following: Rail freight has been short-changed in both the past five year program and the current two year extension. RONY Legislative Counsel Scott Wigger specifically noted that applications have yet to be sought for rail and port funding that was suppose to have been allocated during the 2009-10 state fiscal year in accordance with a 2005 Memorandum of Understanding between the then Governor and Legislative Leaders. He urged that applications be immediately sought for these funds, which have already been appropriated in the current state budget. Mr. Wigger also noted that the current two year program extension only provided $ 10 million per year for ports and rail – down from the $ 47 million per year provided in the previous program and only sufficient to meet 6% of the identified capital needs for rail freight. He noted that unlike other modes of transportation, the rail freight industry is expected to fund about 60% of these identified needs on its own, where as other modes are providing little if any such funding. Both Messrs. Schneider and Wigger noted that rail freight was the most energy and environmentally friendly way to move goods and that RONY had previously provided to state officials an extensive list of “shovel ready” projects that would address critical infrastructure needs while creating desperately needed jobs. They urged State leaders to adequately address the capital needs of the rail freight industry. PRAISE FROM “RAILROAD WEEK IN REVIEW” Roy Blanchard issues a weekly newsletter that provides information on what is happening in our industry for the northeast called “Railroad Week in Review”. The October 8th edition contained the following high praise for RONY: “Railroads of New York, Inc. (RONY) is the most aggressive and best informed organization of its kind that I know of. The RONY mission is, “To provide a trade association for all freight railroads that operate in the State of New York to advocate for the rights and needs of railroads and their customers, as well as to encourage economic growth within the state of New York.” Not only does it represent best interests of NY’s freight railroads ( CSX, CN, CP, NS, and 30 short lines), but also RONY publishes a (quarterly) newsletter that can run to a dozen pages or more of useful updates and insights.” For those interested in receiving this publication by email, contact Roy at (215) 985-1110, Cell: (215) 913-7740 or via his website: www.rblanchard.com 4 INCREASED TRUCK SIZE AND WEIGHT BAD FOR RAIL FREIGHT By Jerry Vest, new RONY VP and Chair of ASLRRA Truck Size and Weight Committee Almost 20 years ago, federal surface transportation policy changed for the better. Enactment of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) meant the days of Congress simply passing a “highway bill” were over. Since then, Congress has expanded the multimodal focus of surface transportation public policy. An integrated approach allows for better policy decisions through the reauthorization process, with each mode recognized for its own strengths and role in ground transportation. With the most recent surface transportation bill, SAFETEA-LU, up for renewal, discussions include the national limits on truck sizes and weights.