Report No. K-TRAN: KSU-16-5 ▪ FINAL REPORT▪ August 2017 Class III / Short Line System Inventory to Determine 286,000 lb (129,844 kg) Railcar Operational Status in Kansas Eric J. Fitzsimmons, Ph.D. Stacey Tucker-Kulesza, Ph.D. Lisa Shofstall Kansas State University Transportation Center 1 Report No. 2 Government Accession No. 3 Recipient Catalog No. K-TRAN: KSU-16-5 4 Title and Subtitle 5 Report Date Class III / Short Line System Inventory to Determine 286,000 lb (129,844 kg) August 2017 Railcar Operational Status in Kansas 6 Performing Organization Code 7 Author(s) 7 Performing Organization Report Eric J. Fitzsimmons, Ph.D., Stacey Tucker-Kulesza, Ph.D., Lisa Shofstall No. 9 Performing Organization Name and Address 10 Work Unit No. (TRAIS) Kansas State University Transportation Center Department of Civil Engineering 11 Contract or Grant No. 2109 Fiedler Hall C2069 Manhattan, Kansas 66506 12 Sponsoring Agency Name and Address 13 Type of Report and Period Kansas Department of Transportation Covered Bureau of Research Final Report 2300 SW Van Buren October 2015–December 2016 Topeka, Kansas 66611-1195 14 Sponsoring Agency Code RE-0691-01 15 Supplementary Notes For more information write to address in block 9. The rail industry’s recent shift towards larger and heavier railcars has influenced Class III/short line railroad operation and track maintenance costs. Class III railroads earn less than $38.1 million in annual revenue and generally operate first and last leg shipping for their customers. In Kansas, Class III railroads operate approximately 40 percent of the roughly 2,800 miles (4,500 km) of rail; however, due to the current Class III track condition, they move lighter railcars at lower speeds than Class I railroads. The State of Kansas statutorily allots $5 million to support rail improvement projects, primarily for Class III railroads. Therefore, the objective of this study was to conduct an inventory of Kansas’s Class III rail network to identify the track segments in need of this support that would be most beneficial to the rail system. Representatives of each railroad were contacted and received a survey requesting information regarding the operational and structural status of their systems. The data collected were organized and processed to determine the sections of track that can accommodate the heavier axle load cars that are currently being utilized by Class I railroads. This study identified that Class III railroads shipped just over 155,000 carloads of freight in 2016 and 30 percent of Kansas’s Class III track can currently accommodate heavy axle cars. 17 Key Words 18 Distribution Statement Short Line Railroad, Class III Railroad, Heavy Axle Load No restrictions. This document is available to the public Railcars, Inventory through the National Technical Information Service www.ntis.gov. 19 Security Classification 20 Security Classification 21 No. of pages 22 Price (of this report) (of this page) 107 Unclassified Unclassified Form DOT F 1700.7 (8-72) i This page intentionally left blank. ii Class III / Short Line System Inventory to Determine 286,000 lb (129,844 kg) Railcar Operational Status in Kansas Final Report Prepared by Eric J. Fitzsimmons, Ph.D. Stacey Tucker-Kulesza, Ph.D. Lisa Shofstall Kansas State University Transportation Center A Report on Research Sponsored by THE KANSAS DEPARTMENT OF TRANSPORTATION TOPEKA, KANSAS and KANSAS STATE UNIVERSITY TRANSPORTATION CENTER MANHATTAN, KANSAS August 2017 © Copyright 2017, Kansas Department of Transportation iii PREFACE The Kansas Department of Transportation’s (KDOT) Kansas Transportation Research and New- Developments (K-TRAN) Research Program funded this research project. It is an ongoing, cooperative and comprehensive research program addressing transportation needs of the state of Kansas utilizing academic and research resources from KDOT, Kansas State University and the University of Kansas. Transportation professionals in KDOT and the universities jointly develop the projects included in the research program. NOTICE The authors and the state of Kansas do not endorse products or manufacturers. Trade and manufacturers names appear herein solely because they are considered essential to the object of this report. This information is available in alternative accessible formats. To obtain an alternative format, contact the Office of Public Affairs, Kansas Department of Transportation, 700 SW Harrison, 2nd Floor – West Wing, Topeka, Kansas 66603-3745 or phone (785) 296-3585 (Voice) (TDD). DISCLAIMER The contents of this report reflect the views of the authors who are responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the views or the policies of the state of Kansas. This report does not constitute a standard, specification or regulation. iv Abstract The rail industry’s recent shift towards larger and heavier railcars has influenced Class III/short line railroad operation and track maintenance costs. Class III railroads earn less than $38.1 million in annual revenue and generally operate first and last leg shipping for their customers. In Kansas, Class III railroads operate approximately 40 percent of the roughly 2,800 miles (4,500 km) of rail; however, due to the current Class III track condition, they move lighter railcars at lower speeds than Class I railroads. The State of Kansas statutorily allots $5 million to support rail improvement projects, primarily for Class III railroads. Therefore, the objective of this study was to conduct an inventory of Kansas’s Class III rail network to identify the track segments in need of this support that would be most beneficial to the rail system. Representatives of each railroad were contacted and received a survey requesting information regarding the operational and structural status of their systems. The data collected were organized and processed to determine the sections of track that can accommodate the heavier axle load cars that are currently being utilized by Class I railroads. This study identified that Class III railroads shipped just over 155,000 carloads of freight in 2016 and 30 percent of Kansas’s Class III track can currently accommodate heavy axle cars. v Acknowledgements The authors would like to thank the Kansas Department of Transportation (KDOT) for funding the research through the Kansas Transportation Research and New-Developments (K-TRAN) Program. The authors thank KDOT Project Monitors John Maddox and Eddie Dawson. Finally, we appreciate the help of the Class III/short line railroad representatives for their cooperation and the data they provided. vi Table of Contents Abstract ........................................................................................................................................... v Acknowledgements ........................................................................................................................ vi Table of Contents .......................................................................................................................... vii List of Tables ................................................................................................................................. ix List of Figures ................................................................................................................................. x Chapter 1: Introduction ................................................................................................................... 1 1.1 The Kansas Rail System ....................................................................................................... 1 1.2 History of the Kansas Rail Funding Programs ..................................................................... 3 Chapter 2: Literature Review .......................................................................................................... 5 2.1 Railroad Classifications ........................................................................................................ 5 2.2 Staggers Rail Act and the Influx of Class III Railroads ....................................................... 7 2.3 Economic Effects of Class III Railroads ............................................................................... 7 2.3.1 Employment Effect ........................................................................................................ 7 2.3.2 Abandonment Effects ..................................................................................................... 9 2.3.3 Summary of the Effect of Class III Railroads .............................................................. 11 2.4 Heavy Axle Loads .............................................................................................................. 12 2.4.1 Impact of Heavy Axle Loads on Class III Railroads ................................................... 13 2.5 Financial Support for Class III Railroads ........................................................................... 14 2.5.1 Bank Funding ............................................................................................................... 15 2.5.2 Federal and State Funding ........................................................................................... 15 2.5.3 Class I Funding ............................................................................................................ 18 Chapter 3: Study Method .............................................................................................................