appendix a – bnsf guidance principles...route 10 when service starts nov. 16, 2009 new mexico...

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DRAFT Southeast King County Commuter Rail Feasibility Study A-1 Appendix A – BNSF Guidance Principles

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Page 1: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

DRAFT Southeast King County Commuter Rail Feasibility Study A-1

Appendix A – BNSF Guidance Principles

Page 2: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

DRAFT Southeast King County Commuter Rail Feasibility Study A-2

Page 3: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

1

Railway AgeOctober 19, 2009

Matthew K. RoseChairman, President and CEO

Passenger Trains on Freight Railroads

Page 4: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

OneRail Coalition

Page 5: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

Overview

BNSF history with passenger rail

Commission Report: Freight and passenger findings

High Speed Rail Initiative

Page 6: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

Amtrak Contractual On-Time Performance, BNSF Volume

94%

88%88%86%

88%

91%91%93%

6.3

10.010.310.610.0

9.58.68.2

70%

75%

80%

85%

90%

95%

100%

2002 2003 2004 2005 2006 2007 2008 2009Jan-Sep

4

8

12

16Percent On Time BNSF Units (Millions)

Page 7: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

BNSF, Amtrak and the States

California3rd main line between Fullerton and Los AngelesContinued growth between San Diego and Los Angeles, Amtrak’s second busiest corridor in the United StatesCapacity improvements on San Joaquin Valley corridor to enhance Amtrak reliability

Pacific Northwest (OR/WA) Increasing capacity and separating passenger and freight operations at critical chokepoints to improve reliability and accommodate future passenger growth

Illinois Third main rail line in Galesburg to accommodate expanded Amtrak service

Page 8: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

Commuter Rail/BNSF Contractual On-Time Performance

98.5%98.7%

93.2%

98.9%

97.8%

94.5%

97.9%

95.8%

99.3%

95.4

97.4

95.1 95.1

96.7

95.5

94.5

97.6

95.8

94.694.7

95.7

95.3 95.4

93.8

90%

92%

94%

96%

98%

100%

Seattle Sound TransitLos Angeles MetrolinkChicago Metra

2009 Jan-Sep 2008 2007 2006 2005 2004 2003 2002

% On-Time

Goal 96.0%

Page 9: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

BNSF-Commuter Partnership

Sound Transit Removes the equivalent of one lane of highway traffic off of theI-5 between Seattle and Tacoma

Chicago MetraMoves the equivalent of four lanes of in-bound or out-bound rush-hour traffic during rush hour (50,000 passengers)

Los Angeles MetrolinkSignificantly improved on-time performance and grown from 6 to 44 trains a day, adding more than 20,000 daily seats to accommodate ridership growth

Minneapolis NorthstarWill add daily rush hour service and reduce congestion on State Route 10 when service starts Nov. 16, 2009

New Mexico RailrunnerPulls 200,000 VMTs off the local highways each day

Page 10: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

BNSF Passenger Rail Principles

Ensure that current and future passenger use of freight capacity is replaced and fully paid for.Ensure that all passenger rail access to freight rail assets is achieved through an arm’s length, bilateral negotiation between the public entity seeking to provide service and the private freight rail carrier. Ensure that passenger rail use contribute fully allocated costs for use of freight lines. Ensure adequate commuter rail/ICPR capital and operating fundingis available to provide envisioned service. Provide separate right of way for high speed passenger rail in corridors which meet volume/frequency/speed targets.

Page 11: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

9

Outlook: Growth and Challenges

2030 Growth Projections

Source: Global Insight, AASHTO, FHWA

• No national freight policy• No Capacity growth• Congestion- all modes• Increasing fuel costs• Lengthening supply chains• Increased environmental requirements

Challenges

Population to grow to 364 millionVMT to grow by 150 percentFreight rail to increase by 92 percent

Page 12: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

US highway and rail networks: System miles and volumes

5060708090

100110120130140150160170180190200210

1980 1985 1990 1995 2000 2005Highway - VMT Highway - Lane-miles Rail - RTM Rail - Track-miles

Source: National Rail Freight Infrastructure Capacity and Investment Study September 2007 and AAR

Page 13: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

11

Rail’s Environmental Value

One BNSF intermodal train removes more than 280 long-haul trucks from our nation’s highways

Intercity passenger trains produce 60% less C02 emissions per passenger mile than autos and 50% less than airlines

11

*Based on a 1,500 mile truck haul

Grain

Indust.Products

Intermodal

5.5x

4.3x

2.3x

Fuel Efficiency vs. Truck*

Reduced Congestion Fuel Efficiency Fewer Emissions

11.5 million containers and trailers moved by rail reduces GHG emissions by 17.2 million metric tons vs. highway

One bi-level commuter railcar can take as many as 120 cars off the road

Passenger rail uses 21% less energy per passenger mile than autos and 17% less than airlinesPassenger rail uses 17% less energy per passenger mile than airlines

Page 14: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

Commission findings on passenger rail

Federal passenger rail funding

Future is in shorter haul corridors

Expanding passenger rail cannot be achieved at the expense of freight rail operations

Separation of freight and passenger rights of way in dense corridors

Access by passenger providers to freight rail networks must be negotiated at an arm’s length

Fair assignment of cost based on passenger services

Host railroads must be adequately protected through indemnification and insurance for all risk

Page 15: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

Commission findings on freight rail

“Rational regulation” is necessary Economic regulationSafety regulationPermitting and construction

An investment tax credit for rail network expansion

Freight rail eligibility for projects of national significance

Modal Equity

Page 16: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

Commission findings on freight rail

“Rational regulation” is necessary Economic regulationSafety regulationPermitting and construction

An investment tax credit for rail network expansion

Freight rail eligibility for projects of national significance

Modal Equity

Page 17: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Engineering Expansion Mechanical Other Locomotive

Capital CommitmentsCapital Commitments with ROIC

$ Millions

$2,258

$2,520$2,265

$1,763$1,608 $1,505

$1,726

$1,988$2,179

$ Millions

ROIC

6.2% 6.2%

7.6%

9.6%9.5% 9.7% 9.4%

7.2%

8.8% $2,670 $2,593

10.8%10.0%

$2,850

2002-2007: ROIC is restated to reflect the change in methodology for discounting operating leases.

10.7%

Page 18: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

High Speed Rail- What is Success?

125-220 mph90-125 mph79-90 mph

Invest at levels that will make rail better than the best alternative

Page 19: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

High Speed Rail- What is Success?

125-220 mph90-125 mph79-90 mph

Invest at levels that will make rail better than the best alternative

Page 20: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles

High Speed Rail- What is Success?

125-220 mph90-125 mph79-90 mph

Invest at levels that will make rail better than the best alternative

Page 21: Appendix A – BNSF Guidance Principles...Route 10 when service starts Nov. 16, 2009 New Mexico Railrunner zPulls 200,000 VMTs off the local highways each day BNSF Passenger Rail Principles