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Session Robert Chaprnka, President Michigan Railroads Association Session: Shipping

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Title: Session Robert Chaprnka, President Michigan Railroads Association Session: Shipping


1
Session Robert Chaprnka, President Michigan
Railroads Association Session Shipping Freight
Infrastructure August 23, 2012 Annual
Meeting Were Not on an Island Anymore August
21 - 24, 2012 Mission Point Resort, Mackinac
Island, Michigan
2
  • Presentation To The Michigan
  • Economic Developers Association
  • Annual Meeting August 23, 2012
  • Mission Point Resort
  • Mackinac Island, MI

3
Michigan Railroads Association
  • Bob Chaprnka, President
  • 26 Freight Railroads in Michigan
  • 4 Class One railroads
  • 2 Regional railroads
  • 20 Short line railroads

4
CN Trains Cross the U.S. Border at Ranier, MN
Port Huron, MI
5
CN Michigan Profile
6
CN Michigan Profile
  • 955 Michigan route miles
  • 1,174 employees in Michigan
  • Local spending - 93 million
  • Annual Michigan capital investments - 38 million
  • Key Facilities in Michigan
  • Autoports - Dearborn, Flat Rock, Hamtramck, Lake
    Orion, Lansing, Woodhaven
  • CargoFlo Terminals - Battle Creek Detroit
  • Consumer Goods Warehouse - Battle Creek
  • Intermodal Terminal - Ferndale
  • Lumber Reload Center - Detroit

7
CSX Connects East Coast with Nation and Globe
8
CSX U.S. Profile
  • 21,000 route miles
  • 1,200 trains/day
  • 5 million carloads
  • 4,500 locomotives
  • 120,000 freight cars
  • Serves 70 ocean, lake river ports
  • 34,000 employees

9
CSX Michigan Operating Facilities

10
CSX Michigan Facts
  • Operates Maintains over 1,200 track miles
  • Maintains 1,650 public/private grade crossings
  • Handled 518,000 freight carloads in 2011
  • Employed nearly 530 in 2011
  • Nearly 43 million employee compensation in 2011
  • Invested over 35 million in network and 948
    million in freight cars rolling assets
  • CSX ships a variety of products in Michigan
    including autos, light trucks, grain, coal
    agricultural products, iron, steel scrap
    intermodal containers

11
Norfolk Southern Corporation
12
Norfolk Southern Corporation
  • U.S. Facts
  • Engaged in transporting raw materials,
    intermediate products finished goods throughout
    the U.S.
  • 20,000 route miles operating in 22 states and DC
  • 30,000 employees
  • 2.4 billion 2012 capital program
  • Michigan Facts
  • 488 Michigan route miles
  • In 2011 Michigan employees totaled 818 with
    payroll of 47.3 million

13
CP Rail System
14
CP Rail Facts
  • Operates in 6 Canadian provinces
  • Operates in 13 U.S. States including Michigan
  • Operates the Detroit River Tunnel giving direct
    access to its Detroit Intermodal Terminal
  • Through trackage rights agreements between
    Detroit and Chicago, CP can service customers to
    its entire network in the U.S. Northeast and
    Midwest and across Canada

15
Michigans Rail Network
16
Nations Rail Network
17
Michigan Railroads
  • 3,634 miles of track
  • 1.1 million freight carloads carried
  • 60.4 million tons carried
  • Railroads carry 33 percent of all intercity ton
    miles of freight

18
Michigan Railroads
  • 3,245 employees
  • Average wages and fringes 103,220

19
Railroads Are Back Bone of the Freight
Transportation Network
  • 75 percent of finished automobiles move by rail
  • 65 percent of coal, producing more than half of
    nations electricity, is moved by rail
  • 30 percent of nations grain harvest moves by
    rail
  • Intermodal is the fastest growing segment of rail
  • U.S. freight railroads are the busiest in the
    world

20
Moving Michigans Economy
Source Association of American Railroads
21
Location of Commodities Shipped by Rail
22
Detroit Intermodal Freight Terminal (DIFT)
  • DIFT project planning began in early 1990s
  • Environmental Impact Study completed in 2010
  • DIFT concept private/public between the
    government and large railroads
  • Next phase of design, real estate acquisition and
    construction can begin as public funding becomes
    available
  • Benefits of DIFT
  • Reduced long-haul traffic on freeways (one
    intermodal train removes 280 long-haul trucks off
    highways)
  • Projected permanent job creation of 4,500 jobs in
    Michigan
  • Increases government revenue of over 1 billion
    by 2030

23
Programs Available at MDOT to Help Finance Rail
Infrastructure Projects
  • Freight Economic Development Program can be
    partially converted to grants (contact Nikkie
    Johnson, MDOT - johnsonn15_at_michigan.gov or (517)
    335-0939
  • Michigan Rail Loan Assistance Program no
    interest loans with 10-year repayment period
    (contact Kris Foondle, MDOT - foondlek_at_michigan.go
    v or (517) 335-3050
  • State Infrastructure Bank Loans contact Deanna
    Finch, MDOT- finchd_at_michigan.gov or (517) 241-4778

24
Michigan State Rail Plan
  • Required in order for Michigan to qualify for
    federal funding for rail projects
  • Guides future developments of freight and
    passenger rail for the next 20 years
  • Developed with extensive public outreach
  • Includes
  • Profile of system
  • Needs identification
  • Benefit analysis potential investments/recommendat
    ions
  • Projects identified/prioritized into 4 funding
    packages (current levels to best)
  • Good package recommended 7.1 billion over 20
    years
  • Plan available online at www.michigan.gov/mirailpl
    an
  • For information contact Larry Karnes, MDOT -
    karnesl_at_michigan.gov
  • (517) 373-9058

25
Rail Infrastructures Role in the Economic
Development of Michigans Northern Lower-Peninsula
  • MDOT Study to identify how rail infrastructure
    can best be utilized
  • Study will
  • Inventory existing rail system
  • Recommend on how rail can serve the regions
    needs
  • Recommend how to reduce transportation costs
  • For information contact Nikkie Johnson, MDOT
    johnsonn15_at_michigan.gov or (517) 335-0939

26
Accelerated Rail Passenger Developments in
Michigan
  • New federal funding of 400 million to advance
    Michigans accelerated rail program
  • Infrastructure projects
  • Implementation of 110 mph rail passenger speed
    between Kalamazoo, MI/Porter, IN
  • State acquisition of 135 track miles between
    Dearborn/Kalamzoo
  • West Detroit Connection-separates passenger and
    freight operations in Detroit providing quicker
    passenger service
  • New or improved passenger stations in
  • Dearborn 28.2 M
  • Troy 8.5 M
  • Jackson 1.0 M
  • Battle Creek 3.6 M
  • Ann Arbor 3.5 M

27
Accelerated Passenger Rail continued
  • Improvements for rail passenger transportation in
    Grand Rapids
  • Michigan to get portion of 268.2 million for new
    locomotives and passenger rail cars
  • Michigan designated as lead state to develop
    Chicago-Detroit/Pontiac high speed corridor to
    receive funding for Environmental Impact
    Statement and Service Development Plan

28
Proposed New Detroit-Windsor Rail Tunnel
  • Continental Rail Gateway proposed to replace
    current 100 year old rail tunnel between Detroit
    Windsor
  • Current tunnel carries 350,000 rail cars annually
    but cannot handle double-stack containers and
    some newer multi-level rail cars
  • Group says it will make Detroit-Windsor area a
    more competitive logistics hub
  • Group is seeking financial assistance from the
    U.S. and Canada

29
The Future Looks Bright For Rail
  • The railroads are moving more and more people and
    goods throughout our state and nation every year.
  • They are doing this in a safe, efficient and
    environmentally friendly way.
  • The future looks bright for rail!
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