Good afternoon or good morning to those of you to the West. Welcome to the Talking Freight Seminar Series. My name is Jennifer Symoun and I will moderate today's seminar. Today's topic is Promoting Economic Revitalization Through Enhancing Freight Transportation. Please be advised that today's seminar is being recorded.
Before I go any further, I do want to let those of you who are calling into the teleconference for the audio know that you need to mute your computer speakers or else you will be hearing your audio over the computer as well. Today we'll have three presenters, Janet Kavinoky of the U.S. Chamber of Commerce, David Holt of Conexus Indiana, and Eric Madden of the Pennsylvania DOT.
Janet Kavinoky is the U.S. Chamber of Commerce's senior lobbyist and policy director on all transportation issues and leads the Chamber's "Let's Rebuild America" initiative advocating the need to modernize and expand our nation's transportation, energy, telecommunications, and water infrastructure. In this role, Janet oversees the development of the initiative's goals and strategies and is frequently a featured speaker at infrastructure events all around the country, drawing needed attention to our nation's infrastructure challenges.
Janet is also the Executive Director of the Americans for Transportation Mobility (ATM) coalition, a national business-labor-construction industry coalition seeking maximum Federal investment in transportation systems.
David Holt is vice president of operations and business development for Conexus Indiana.
He is responsible for budgeting, business development and engagement activities, development of a statewide strategic plan for Indiana's logistics industry, and internal office operations.
David has years of business advocacy experience, most recently for the Indiana Chamber of Commerce where he advocated on different public policy issues affecting business, with an expertise in education, health and job training policy. David also is an expert on Federal policy issues and advocated for the business community in Washington, D.C., where he focused on all policy issues.
Eric Madden was appointed Deputy Secretary of Aviation and Rail Freight for the Pennsylvania Department of Transportation in March 2008. As Deputy Secretary, he oversees the administration of financial assistance grants, and technical assistance
totaling over $75 million annually to 134 public-use aviation facilities for airport improvement projects, planning assistance, environmental guidance, licensing and inspection, and aviation awareness initiatives and
over 65 Class 1, regional and short-line railroad operators for maintenance and construction of track projects, rail inspection and awareness initiatives.I'd now like to go over a few logistical details prior to starting the seminar. Today's seminar will last 90 minutes, with 60 minutes allocated for the speakers, and the final 30 minutes for audience Question and Answer.
During the presentation if you think of a question you can fight back into the chat area and send your question to everyone and indicate who your question is for.
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I would like to remind you that this is being recorded and the file with the audio and visual portion of the seminar will be posted to the Talking Freight website within the next week and we encourage you to let others
and in your office that could not attend the presentation to look back the recording speed of the presentation will be available on line during the next week and I will notify everyone of the availability of the PowerPoint and attachment.
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and submit the forms to me after you have filled it out. For those of you, if you are not flying for AICP Credits, still encourage you to fill out the form. We will get started.
This is Promoting Economic Revitalization Through Enhancing Freight Transportation.
Hours presenter will be Janet Kavinoky from the U.S. Chamber of Commerce. If you have questions during the presentation, type into the chat box and we will get to those within the last 30 minutes of the seminar.
I will bring up your presentation and you can get started.
Thank you, very much and appreciate the opportunity to be here with you today. We have a gutless of people from all over the country. As part of this presentation, or overall seminar,
you can expect from me that I will be talking about the general business climate and giving you a sense of the way business members, at least in our experience and that the U.S.
Chamber of Commerce, think about freight. My aims are to impress upon you that infrastructure, maintaining, modernizing and expanding it, is something important on an on going basis not just with a crisis. Also,
realize that freight is something that floats, flies and rolled. We are not just talking about trucks or trains but I will talk about the importance of aviation and the waterway system and something that has become abundantly clear,
to meet in the ticket or, because a been part of my job is focusing on infrastructure. Another piece of it is operations that talking about freight is part of an economic growth
and development strategy is not just about infrastructure but about operations, regulation and processes. Those are the things to keep in mind as I visit with you today. The other thing, my Powerpoint you will not seen them lot of words.
Take good notes and I will be happy to talk with anyone in the Q&A afterwards. Let's start with this image that is very well known to all of us, which is the I-35 bridge collapse in Minneapolis because I took this job in 2006
and this happened about a year later. We have been looking for ways to bring the idea that transportation is good to the economy knowing that the reauthorization bill and the Water Resources Development Act were impending on the horizon.
Many of us Joe, and it is no joke, of course, that what we need in Washington is a crisis to get things moving and what we found out after the bridge collapse is that a crisis sometimes does not get things moving in Washington
and we spent three weeks talking about the importance of our nation's bridge the infrastructure and since then have seen little movement on the national level.
What we did learn out of this exercise when it comes to economic development, economic growth and activity is that the impact of losing a major piece of infrastructure really affected the communities and around it
and what was needed was a quick response and we got that quick response that brought out the best team the state and local and federal governments and private sector to respond to the crisis. What business needs,
what the economy needs out of the people that design, build, operate and maintain infrastructure is being at the best all the time. That is, fundamentally, in all of this, time is money and is something that is said over
and over again and you do not have to get a MBA to know it, but the reality of freight, to be competitive in the global economy and be competitive, deliver returns to shareholders and drive economic growth,
we need to squeeze as much efficiency out of everything as possible. What we have learned in the last year or so,
with regard to freight transportation is that the performance of this system is look map from the perspective of predictability, how can I plan? Where do I know the problems are? Related to that is reliability.
I might be able to plan and project, but what is the problem and improbability I need to add more time into my scheduling so that I can deliver things on time? We feel that more in commercial air travel
and I made it back from a business trip in San Francisco 35 minutes early on that one of our commercial air carriers and an jaded enough to know that when they set record 35 minutes early, I do not know if I was early
or they had planned for. They know they have to plan because of weather, lack of capacity, maintenance issues. It is reliability, predictability
and the question of cost effectiveness of transportation that speaks to a lot of different issues. When it comes to freight, that is how you figure time is money.
It is also really important to understand that the infrastructure is a factored in freight, having infrastructure Team good shape, having it well planned and coordinated.
What we are also finding out in spite of this very clever quote from one of my PR people, that in spite of what we do with cover infrastructure itself, and lot of businesses work around it than working with it
and has given rise to the majestic Industries. It is always a source of frustration as an advocate in Washington for infrastructure when I go to my retail members are manufacturers
and say that I need you to tell me how important infrastructure is to the economy and get the response that I have given up talking about infrastructure and will hone my skills with working around it and figuring what is.
There are bottlenecks that we cannot work around that are costing us the time and money. That is why we need to address those issues. We are very focused on the importance of growing the U.S. economy
and how that connects to the export initiative. It was Tom Donahue the Chamber that call for a doubling of exports before President Obama did. We are very supportive of that initiative,
but there has been little emphasis at the highest levels of the government about how freight and supply chain factor into the success of the export initiative. We are pleased to see the light but things like the Talking Freight.
I use this picture as an illustration that is not about what USDOT is in charge of that is important. In the waterways system that provide low-cost, competitive transportation for bulk commodities, natural resources,
energy resources are as just as a part of our freight system as our rails and roads. Despite of the fact that that is largely controlled out of the Army Corps of Engineers,
I strongly encourage freight planning professionals to incorporate what is happening on our rivers as well as in the Great Lakes, Seaway and coastal ports as part of what you are the thinking about,
even if that is not part of the infrastructure that you have control over. In particular, when talking about doubling exports in this country, that will come in the Agriculture
and natural resources sector where we can be competitive because of low-cost transportation and things that are rolled on, role off cargo
and a another bulk commodities because that is as much on our marine transportation as well as our other transportation. It is important to realize that freight Transportation and the infrastructure is public and private in nature.
We look this quote about the world's largest rail Bob oh and realize it will take help with public and private sectors to remedy and is a constant balance of the imbalance with managing expectation
and looking at what is now made public good and what benefits the public sector versus what is in the interest of business to make investments in. Going forward, because we are managing a mature transportation system
and not adding as much capacity as we have, historically, there will become lot of negotiating between the public and private sectors so that we can get the jobs done. But the talk about the national needs that we see.
In addition to making strategic investments related to be boosting our exports, it is of critical importance that we focus on bottlenecks in the system. Do not think about this one place or another. As soon as you did one,
it might pop up somewhere else speak about is when a systemic approach to transportation is important and why the chamber still believes we need a strong federal role in Highway Transportation.
Back one of our former economists many years ago just wrote a piece for the Washington Times arguing that we should devolve the entire highway program back to the state
and have to defer because that's one of the responsibilities that we are for interstate commerce and needs to have a systemic look our major road networks to do things like addressing bottlenecks. We also have to look at multi modal
and intermodal projects that will be public and private in nature of.
When it comes to the freight Transportation, the border issues are particularly salient and this is where you see that is not just about the infrastructure but about the operations, Homeland Security,
regulatory-related issues where it is not enough to pay attention to-not just the physical infrastructure but the environment in which that happens, as well. Let me talk about who the partners are when it comes to freight.
We put people in three different categories.
We have the carrier is who are directly related to using infrastructure that are most sensitive to regulatory and procedure issues. First and foremost, understanding the businesses, understanding the business models,
how it is that they make money, but because structures are, where the revenue comes from, how to better understand how to plan the freight of the structure and how to price it. The 15 years I have been doing this,
I often find people throwing up their hands and say well why don't the trucking companies accept this or that? It is Good for everyone to spend some time understanding the business is that our carriers are in. The shippers, of course,
are the ones that have to move goods as well as move people and as much as we want to talk about freight Transportation, understand these are shared networks. Different commodities, different products, and bold,
not so bold have characteristics that have the freight transportation system working differently for them.
This country has the opportunity to produce, midstream, manufacture and deliver a lot of different goods and freight Transportation has to be nimble so that it can support all different movement.
Of course, the thirties are the infrastructure owners, operators and people financing.
I encourage many of you to reach out to your shippers and make partners out of them as you think about maintaining, modernizing and expanding the network plans in your locality, state and region.
A lot of time they have practical experience, something you would not normally think about.
But we give you another example. I am on a national--Urban goods movement that talks about a really exciting set of meetings. It is a very good group of people.
We are talking about putting together guidebooks for get people who are not transportation people so at a local level they can understand if you are putting up medians or reconfigure lanes or crossings,
there are practical things to think about that if you have not been in the mind of someone driving a truck or a Railroad, you might think of that 1 foot here does not matter, but it does. Putting together those partnerships is important.
Reach out to your state and local chambers of commerce. If you happen to be in Michigan, the Detroit regional member is an excellent partner with helping plan day for transportation and the U.S.
Chamber is more than happy to try to put you in touch and create forums where people can talk to their state and local chambers. I think what I will do here,
because I will be better at answering specific questions is to turn it back over after I know this. We are very good at dealing with things in crisis and considered it something that Minnesota should be proud of
and all of the partner should be proud of that we went from this to this under a year. We are hoping that by putting more emphasis on the importance of freight and the economy
and the importance of transportation in the economy that we can move Congress your state legislatures to put in please be adequate levels of funding, effective program structures
and the effect of regulations so that we can make improvements on a regular basis doing the best job possible, just like they did in Minnesota's that we can contribute the most to the economic development and growth. Thank you, very much.
Letsrebuildamerica.com as our website.
Thank you. We will move onto the next presenter but will type that Web address into the chat box. I will turn this over to David Holt from Conexus Indiana. As a reminder if you have questions, type and into the chat box.
I will turn it over to you, David.
Thank you, Jennifer and thank you for that presentation, as well, Janet. I appreciate it. Conexus Indiana, people hear that name and say, what is that?
There are three types of not for profit organizations like chambers with Janet who maintain their current level of public policy needs.
There our local economic development organizations speak to what they do is take the assets of the community and try to sell other communities or companies and try to get them to relocate to the particular community. We are the third type.
We look at the asset and we are a state wide entity. We look that the state assets in a particular area is. Our focus on advancing logistics. What we tried to do is [ indiscernible ] that Indiana has
and team up with a plan to take care of the opportunities, and take care of the threats and make sure that we are meeting all of not just the's needs but all of the needs of in the Midwest. How do we do that?
We started this process off by doing roundtables in the major areas of the state of Indiana. We were outside of Chicago, the South Bend area, which is North Central, does out of Michigan and for Wayne which is northwest Indiana.
--And Fort Wayne, which is northwest Indiana. We did the Jefferson area. After the Round Table, it became pretty apparent that we needed to have a statewide agenda for logistics.
As Janet motion, and then lot of the carriers fight amongst themselves. A lot of time they are fighting for [ indiscernible ] and we know by 2035 that the capacity for rail and trucking in Indiana will increase by over 50%
and will increase by 100% in water and 150% for air. There will be enough business going around but we need to figure out how to put that together is because we had a group of CEOs across the state with all of the different sectors,
the advanced manufacturing and all of the service industries that go into logistics and what we wanted to do was three things, enhance the environment for that companies currently in which logistics,
create a more attractive environment to bring them to Indiana from other places and higher-paying jobs which is about increasing the wages for the individuals.
These are some of the groups that we have been involved with. We have a huge sorting this sector and in Indiana with FedEx and a few other major companies. This is a list of all of the CEOs.
I will not go through them all but we have high level people that got involved with this and decided to go around the managers and go to individuals to make decisions on what our strategic ambitions need to be.
Indiana is known as the crossroads of America. The entire economic impact is almost $10,000,000,000,000.3.9% of Indiana's 2008 numbers, we employ about 310,000 people in Indiana team the logistics area.
We have a lot of good numbers and including waterborne transportation and we are 14 or 15 based on the last numbers and is I for a please that is landlocked. These are some advantages that we have. We are in the middle of the country
and we have a trade surplus and do business in every continent in the World. We are back one of the leading exports--The products and scrap middle. Knowing this when we did the regional roundtables,
we wanted to find out what our limitations were. We found that we have the transportation bottleneck. Some of that, as Janet indicated, Chicago is the greatest rail bottleneck and is also got one of the air bottom offs
and that costs Indiana company perhaps millions of dollars by having to go get their product labs insight about Bob oh. We have lack of direct rail service where the trains do not stop here
and we have air facilities that are good facilities that are underutilized and have a lack of efficient connectivity in some area of. in some areas we are pretty good [ indiscernible ] in southern Indiana.
We have a [ indiscernible ] infrastructure and dredging that provides larger ships to maximum capacity. What happens if we need to act on these? Increases the cost and have potential environmental impacts and increase
and efficient freight movement and loss of productivity and decrease safety.
When we got the CEOs together they decided to break things up into four areas. This group decided that the mission was to create a sense of urgency of how important this is and see the opportunities to grow the business is
and attract new ones to the state. To do that, the executive [ indiscernible ], we broke it up into infrastructure. We have the public awareness which is paid and earned media for load of the sector, the public policy package,
the state of Indiana and work-force development working that the human capital needs, to have the best work force we need to attract these employees. One of the strategy is was that we needed to increase the flow of goods to start here,
attorney here and add value, which is what the third-party logistics is, the broad based forum, strengthening the work force and increasing public awareness. How do we do that? We created [ indiscernible ].
50% of all cell phones go through Indiana. Basically, if you have a BlackBerry phone, which I'm sure most of you do and if you have one [ indiscernible ] are going through [ indiscernible ]. I will not go through each of the goal
and will skip through that. Will begin to the power plan later on, you can go through those. This report says that Indiana needs to-By the way, I should not just say Indiana. We've also pulled Cincinnati
and Louisville into this because we did not pull Chicago, because to be honest with you, the issues we have our with Chicago and will not get into those. The five things we identified is we need two
or three large intermodal/multi modal facilities in Indiana. We are looking on three projects right now. One is in Fort Wayne and Avon. We are looking on redesign of our key locks. One goes into the Mississippi River
and if that goes down, not a single large would be able to go into the Mississippi from Ohio which would hurt Illinois, Kentucky, Ohio, West Virginia, anyone that is up river.
The other is the Sioux Lock that allows access to Lake Superior and Heron. If that goes down, no ships would get into Lake Michigan which 40% of all of Indiana's iron ore comes from there. We would have to come from Chicago
and would increase costs to the point that where our firms would not be competitive. We are working right now with all of the airports around the state and regions that I mentioned earlier
and trying to put a plan together to be the bypass around Chicago when they have too many things going in there [ indiscernible ]. We want to be the reliever around that if there is a major problem.
We have all of the major air freight carriers in the state tomorrow to have if a does plan on how to increase that business in the state. The other thing we are working on is the bottleneck Regions. The expressway outside of Chicago,
there is a joint agreement through the Governor's in Chicago and Illinois to start work on the expressway and have made joint agreement--It is a huge bottleneck.
We put together a list of key projects that have statewide and regional implications outside of Indiana that we need to happen. Last but not least on the infrastructure side, we want to identify
and create a plan to improve flash provide infrastructure-like access to Regions/cities with unlimited access based on impact and potential. Jasper, Indiana has two Fortune 500 companies
and do not have major interstate access because the companies grew up in that city and will eventually leave because of not having Interstate connections or we will have to figure out how to give them the interstate connections.
How do we get them a 4-lane highway that intersects to the major interstate? From the public policy side, we are in the process of convening all of the major associations in Indiana, the Chamber of Commerce,
the International warehouse Logistics association and so on and so forth and put together a package that states the needs of the logistics Industry in general
and provide a major emphasis to the governors saying that if we do these five or six things that the industry needs, then we will be one of the most competitive states in the union and will try to get that introduced by 2011 or 2012.
We are also going to put together recommendations on future finances, similar what the U.S. Chamber of Commerce did and take recommendations from them and what other entities have worked on.
In the work force development area weaken been the major Is presidents of logistics and Human Resources for a lot of our major companies and said, what are your skills that your workers need to have? From level 1 to level two,
the lowest level they have to move into the supervisory role to get to the next level that we identify those and are working with all of the [ indiscernible ] in the state of Indiana to, literally, create a curriculum around this.
Eventually, we hope this is a model nation looking the National Association of manufacturers on this and work with some of the other logistic associations--Association of Manufacturers on this and work with some and others on this.
They would be able to get an Industries certification or associates degree without ever leaving the facility. The on-line programs are very innovative and just like being on an a Wii
and learn to do certain aspects of their job in the logistics Industry. Those are the key things out of the report speaks of some other things is that the skills template that we just talk about that they identified,
the import market analysis of where we stand in each category and we did the SWOT analysis with what we do well. We have the public/private partnerships--the Northern Indiana-that money--actually had money to do it infrastructure projects.
That money is going to run through 2012 and held Finnish I-69 and a lot of other projects. We change the daylight savings time to be on Eastern daylight Savings times to be on a mixture between Eastern and Central time to.
The last issue is the current financing for transportation modes. It does all of the formula. It is pretty much every form on the federal and state level of how transportation is funded in Indiana and on a federal level.
Last but not least, we are starting on Phase II of this vision and will include the public five policy and will implement the things that we talk about.
We will recommend ways to improve the financing mechanisms for infrastructure on the federal and state levels.
Last but not least are the long-term goals and tactics. There give them group we work with in the and that is worth about $2.5 billion of that is a private company. Their honor is about 85 years old
and he [ indiscernible ] from 1929 world's Fair. If you saw the picture and look it, it is an interstate system. Guess what, they're back was no interstate system then.
They started thinking to themselves that we need to have an innovative idea of what our system looks like in the future, it just like the person who drew the picture. Should we have dedicated truck roads instead of dedicated truck lanes?
You could have less drug on the road and reinforce them to have more weight and have their own exit off of Interstates and you lower fuel costs because you have your truck on the road.
In the end that is just that one idea being kicked around and we will look that those innovative pictures. The innovative ideas were made by the university and we will make recommendations on what some of those should be. That is,
pretty much, what we did and how we did it and I look forward to everyone's questions we are done. Thank you for having us and I will turn it back over to Jennifer.
I encourage everyone to post any questions that we will get to after the forward-looking statement presentation.
Our final presentation today is going to be given by Eric Madden of the Pennsylvania DOT. You can go ahead when you are ready, Eric.
Thank you, Jennifer.
Good afternoon, everyone's because it is a pleasure to be here to talk about something near and dear to my heart. I am familiar with the rail freight aspect of light but freight is multi modal and will talk about that later.
In terms of rail freight I oversee a and $4 million annual grant program that I provide to railroad companies, businesses, governments to actually improve or build rail structure. I thought it would be interesting if I talk about that
and talk about why we make these investments and what are some of the trends we are seeing? What do some of the trends tell us? We will talk about some of the benefits and close out with two Projects that we are having,
of very large discussions and significant progress to the railroad. The question, why invest in freight? We will go through some of these maps that everyone has seen just to illustrate the purpose of why we are doing best. The peak.
Contestant in 1998 and we will see what is happening in 2020. Everyone has seen projections. We have had a small pickup with the economy. Believe me we will feed a rebound and see that in freight.
If I could just interrupt you, your volume is low, if you could possibly speak up and a little bit.
Is the specter?
Yes. Thank you.
Does a snapshot in Pennsylvania, you look that the domestic freight flow, just looking that the trucks.
If I can pull up the pointer here, this is Pennsylvania in. This is Pittsburgh. Our state capital is in the middle and Philadelphia is here. The major interstates that you see it going as I-80.
It goes straight across the state to the heartland and this is where most of our truck traffic flows, right across the state and you can see a large portion of it goes from I-81 from Maryland through Harrisburg and into New York.
This is what is projected to look like in 2035. This is strictly trucks at this point. We have to look acting as in a very multi modal approach. Is essentially, the trucks carry about 78% of the freight through Pennsylvania.
I think that is the national average. Any investment we make in rail freight is good, but trucks will be the primary mode of freight. The questions of how do we address that, you need to do everything.
You need to make the improvements in the high weight of the structure and through the freight infrastructure, the rail infrastructure and at the ports and airports, as well. The major ones use the art in Chicago
and goodbye the I-95 corridor. Right now, capacity is okay, because we have seen a slight downturn. It will increase as you look that some of the projections,
if you look that the projections in conjunction with the opening of the Panama Canal. Those are major chokepoints that are nationwide that will have an impact on it, how we move goods and move this economy. We are a consumer economy.
We have to get the [ indiscernible ] where they are needed.
What does this mean? This complete the changes the way that DOTs Bank and we need to truly understand Global logistics. It is not as simple as getting something from A to B be corrected on necessarily within your own state.
It is will be on your region and borders. It is understanding that a product that starts in Mfg. in China and to get to the consumers' refrigerators the word in the heartland, how does that happen?
We need to think about how we move the goods and economy. We have to do it in a very multi-modal approach and have to reach out to new partners. We do have the Metropolitan Planning Organization and the DOT, other DOTs,
federal DOT that we have many partnerships with. We have to reach out to the Wal-Marts because they are making decisions that we are trying to catch up to accommodate the moves they are making to get the goods to where they need to be.
One of the best partnerships I have is with the Pennsylvania Motor trucking Association, particularly as I bring the rail community to the trucking industry, yes, they have their issues,
but they also realize they will need each other if they will be successful with moving goods and products across the country. The trucking industry has a shortage issue with their drivers. They do not want to do long halls anymore.
They are partnering with a was the real Robs to be sure connections, the final mile, if you will. There our new consequences that we make at the state level and federal level, as well.
Sometimes the decisions are very well intended from a safety aspect but have very adverse economic consequences.
I will give you an example. There was the issue of driver fatigue in the trucking industry, there has now been-not space any longer, but the hours of Service. It eliminates the amount of time that a trucker can be on the road.
They used to be able to go that night and you see many of them going during the day with everyone else that is putting more congestion. It crunches there times. If you are trying to get a moving product out of the port of New York,
it will take you three hours to get out of New York to get to the point were you can get on an state to get to the heartland. If the decisions do have an impact and we need to realize that. We are a cold weather states
and have a rather significant winter this past winter and to keep our interstates clear,
we have issued an Advisory that we will close the interstate to get them to a certain level where they would be safer for the traveling public which is a great decision and are taking full advantage of our assets,
but what does the trucking industry do? Anyone in Ohio and goes into Pennsylvania, the products they need to get, we tell them to get off of the interstate, where do they go? What do they do? How long will they be off? So,
there are many decisions that we are making that have different consequences on freight and the economy. We need to understand that better and work to let them know what we are thinking, what does this mean? What is the impact?
This is a true rebirth planning. Working at the DOT and I do not know if this happens at other DOTs, our planning is an exercise in Managing a transportation program. You are taking projects and moving them along
and making sure the financing is there and moving them through the [ indiscernible ]. This is an exercise to get us back to the true aspect of planning, looking long range, trying to define where is this? Where is the need?
Where do we need to make the improvements to make the strategic investment now, that will have an immediate impact but much longer range impact to make sure the goods get to where they need to be?
Along the lines this is where we start thinking of freight and even before the Obama administration had started the rail initiative in the Northeast corridor which is from Harrisburg into Philadelphia,
all of the others rail in Pennsylvania is practically owned by the railroad and to do the intercity passenger [ indiscernible ] in conjunction with freight rail service, we thought we might need a plan to see how we were addressing the if.
This is a snapshot of what rail is in Pennsylvania and is a big deal for Pennsylvania. We have over 6,000 miles of rail. 65 real Robs operating in Pennsylvania, which is the most in the country [ indiscernible ] we have the three ports,
one in it third and one in Philadelphia and the trucking industry is the fourth largest employer. So, it is a big deal for us. In terms of the rail, we wanted to think about,
where should we start making the investment to make sure that freight moves and gets to where it needs to be either in or out or through Pennsylvania?
What we decided was that everyone understands the highway system a little bit better and wanted to take the rail system and categorize it. Let me see if I can pick up-there it is.
This is the southern line going across the commonwealth and we had the find this line. This amount. This is the Canadian Pacific wine and these are our corridors of national significance. These are our interstates, is essentially
and carried the vast majority of freight. This is down one of our regional railroads. This is in it third and this is league. That is owned by Indiana National and this is our secondary. You want to consider than the U.S. 40.
You have a short line that is significant in themselves because many of them are the origin and destination of the freight movement.
Many of them do business [ indiscernible ] in the Common wealth and originate on the shoreline and they are a critical part. When we took the National freight systems,
we wanted to look for a specific standard [ indiscernible ] transferring freight through the state would no there is a standard and if you are on the interstate system we will make investment [ indiscernible ] those routes
and they will be double that. We will not be a to point and they will all be [ indiscernible ] compliant and preserve the right of way [ indiscernible ] intermodal and yard capacity to unload that freight
and put it on a truck for the final mile and track the updates so that they can maintain speed to keep the date for moving the. Of the same thing with the secondary lines.
We will not put the majority of investments [ indiscernible ] because most of the double stack are carried by the Class A1 that we directly support for. Lastly is the economic
and business development connections that are the short lines that when we build those into industrial parks or directly into a business, itself, make the connections,
that is the true economic development generator where you make the site that is multi modal in approach but gives that industrial park or business options and this is what is all about. Options create competitiveness.
That is what is truly all about.
It is not just of. If you look that what happened in the [ indiscernible ] investment, the 1.5 federal program, the top three awards the $100 million to unleash the bottlenecks in the Chicago area and the international gateway,
they are the top three money receivers in that program, which is rather unheard of. There has been done great deal of talk that we will make investments in freight, but you saw little of it come to fruition until this program.
Over $300 million go to freight Railroad as one, two and three, there was another small regional railroad that received $12 million, the DOT is starting to put the money where their mouth is and see the change here.
Why do you want to make the investment in freight? Use the $3 return for every dollar you put into the structure. Again, it is a big deal in Pennsylvania. The average salary is $65,000. It is a big deal. Of course,
everyone has heard [ indiscernible ] 457 miles on a gallon of fuel and you have the environmental impact, the emission reduction and from my brother on the highway site, it is a significant impact.
Every time you move something on freight, it is one lets talk on the road. This is not the panacea that well the trucking industry, it is not that by any stretch of the imagination,
but every less impact happening on our highway is absolutely critical.
If makes our highs last longer, makes our dollars stretch further and makes our roads much safer.
I will end with talking about two projects that are happening in Pennsylvania that we are partnering with several other states and the railroad itself and the federal government. The National Gateway,
this is a doubles that clearance project all the way from northwest Ohio going through Pennsylvania, Baltimore and, eventually, down into Wilmington. It is an $840 million project
and we received money from the federal government for phase 1--Pennsylvania and into Maryland and the double stacked [ indiscernible ]. The savings of $35 million logistics',
reduction in emissions of specific to Pennsylvania we will have two intermodal yards. They will create 2,000 jobs. Again, jobs in Pennsylvania pay very well. This is-I will go one slide forward to give you the of lustration.
This is a rather significant [ indiscernible ], 300 miles and many of this is already double stacked but this is to provide several new intermodal yards and two different track improvements to increase the speed,
just to make it competitive and, again, as many shipper, have a choice between taking the crescent or putting it on I-95 or I-81. The benefits of that-we will be taking 700,000 trucks off of the Road in Pennsylvania Because of this.
Think of the fuel fade, 660,000 pounds. The bottom figure of 26,000 jobs will be created over the next 10 years. With that, we will have one new yard in felt Pennsylvania, which is in Franklin County
and upgrade to the Philadelphia yard and our here's Bernard. Big job, big money and big business. -[ Audio/Speaker not clear]. This will parallel [ indiscernible ] which are heavy truck routes. Again,
I am very curious as to any questions that anyone might have. There is a link to the passenger freight rail plan and I thank you everyone for your time and patience and am pleased to be here. I am more than happy to answer any questions. .
Okay. Thank you. Now we have gotten through all of the presentations, we will start the Q&A session with the questions that have been tied accepted into the chat Room.
We have a number of questions-I will start off with the top of the list and go on down. Beepers question is for Janet: How would I get involved with the urban goods moving Group?
Great. It bought me some time to make sure I got all of this information. The person leading that research is on the call with us that is Suzanne out of Ohio.
The urban goods movement is not so much a group as a National cooperative freight research program Project. As part of that project,
as Suzanne's Team will be doing a bogus group to check the findings of the guidebook that is under way and in addition, the idea of the panel overseeing the project was to make sure that there was an robust average program following it.
Suzanne off the a quick e-mail and said it was okay to give you her contact information. I will also type this in, but Suzanne Rose and her phone number is 614-88-9440. That is extension 1242.
Suzanne can involve you in the project or if you have input for her or would like to be a part of the focus groups, she is happy to bring you in. Once that is done and the estimated end date is early 2011,
you will be able to be part of some of the outrage that is intended for that part of that project. I will also type that into the chat.
Thank you. I think she just did type all of that in.
There you go.
Okay. Thank you.
The next question is for batch is directed for all presenters. Are there any regulations, ordinances, etc.
that restrict freight growth or competition by any mode in New York or at the national level? I will let any of the presenters that want to jump in--
This is Eric. We do not have anything like that that is restrictive. If we do have anything, it might as the overarching. It is not mowed specific.
In Indiana, we have one regulation on trucking where we have-We do not allow heavier [ indiscernible ] come into the state compared to some of the states the rounding up.
If the truck is coming from Indiana there are little stocks for they have to transfer the crops over because they have heavier limits.
There 52 issue that we are trying to get fixed in the state but that is that one issue that we have that probably puts us at a competitive disadvantage. Each state is different when it comes to the limits.
I think this is one of the things that we have asked our urban's Goodman study group to look Mac so that we can provide information through that guidebook to state labs and localities of what the implications of different ordinances are.
Things that have been brought up our things lifetime of day movement, restrictions on when deliveries can occur. Do not forget that this is not just about intercity
or Interstate freight but goods movement is something that happens 24-7 and in different forms. Some of the things that I have heard is that Homeland Security regulations can be restrictive, different modes that can move on,
whether real lines need to be relocated-there are impacts across the board. I do not know of a it really good reason or --Really good resource that would lift those things.
The American trucking Association would probably have a very good resource-there might be the effect as idling, would allow them to idle and some have very good truck parking.
There is trying to be a standardization of the weight of a truck. It depends on the permit and the specialized permit.
I believe for ATA, there might be some of that information available.
These are also different from state to state through truck mode.
Okay. Thank you for all of the great information. The next question, how does one fairly plan for [ indiscernible ] local contestant meds of freight with that-But the fact that many economic benefits are regional and not local.
I will open that to any of the presenters.
Than giving them quick philosophical answered.
I am hoping-know that you are not alone in asking of questions because this is that one of the fundamental problems right now would find to get a Service Branch transportation bill passed the Mount Washington.
We have gone from a point in it infrastructure were people understood that we needed to build roads in Montana or Wyoming to get back and out of California or New Jersey. Now that we have a fairly mature system,
and then lot of people are saying, what should I make an Investment year when the benefits are so diffuse? I wish I had a really good answer. We have to grapple with that. There will be investments
and bottlenecks then need to be made that have much more broad benefit but required to local entities to make that decision.
It is a great question and which I had a could answer for you.
We have done something in Indiana.
The governor is working with the Kentucky governor. We have created a Public/Private partnership with Kentucky and created a Commission. It is a regional project that benefits Cincinnati, as well as.
We have created a Special Commission that has of 20s from both states but this group,
together allow for user of these today for the infrastructure bill because the federal government with for a part of it but not finished the completion of the projects.
It is a toll or fee or some other public/private partnership agreement to fund the rest of the project. We are working on the details now but the Legislature's in del Estes approve similar to legislation and moved it
and are working cooperatively on that one project. The same thing with the [ indiscernible ] project that is by Chicago and Gary . There our models al there. For the Jefferson area--versus Louisville, in the end,
the states have to step up and help the local communities make the investments and make things happen.
That is absolutely true. A case in point, what we have outlined in our state rail plan, there are investments happening in certain areas where people will say, why are we making such a big investment in Philadelphia
or Pittsburgh went in the northern area will not benefit that? That is not necessarily true, but there is a plan out there to give the perspective of, this is where we are making the investment and this is why
and even though it is not in your county or region, Thursday, it has a benefit for the better Pennsylvania as a holds.
That is one of the reasons why things can be rather fragmented from the national level. I know that FRA is developing a national rail or freight plan as we speak but just because there has been that more text
and then the national level for with a national plan should look like and where they should go, that would help entice and make investments that are more regional, to make investments that are not necessarily in my region
or state that have an impact. The case in point is there is a Tunnel in Maryland, that is about a mile long and is a single track that is owned by [ indiscernible ] and had caught on fire several years ago
and had a major impact around the Northeast because nothing could get through.
Nothing could get North or South. The question is, do you fix that problem, Maryland does not have the money is because they have not made the commitment to go that far. How can I get Pennsylvania to contribute to that, New York
or North Carolina? It is a hard thing to tackle. We are getting better.
Another example, the Sioux Locke and [ indiscernible ], neither our in NT and above the Sioux Locke is in Michigan and the other which feeds into the Mississippi is, basically, in Illinois. We went to some of our delegation members
and see how they are affected by the River. We are a every agriculture state in. [ indiscernible ] in the fourth and sixth district. Most of that stuff goes through rail down to the water where they put them onto the boat
and ship them down. If that goes down and has to impact on the formers that lived in that district. With the General Assembly in Indiana we asked them to contact the delegation members saying that this is a problem for Indiana
and from that connect [ indiscernible ] Ohio and some of the other states lapsing that this is what we did in Indiana and we encourage you to do the same thing because in the end we are impacted by this
and hopefully that will press the members to say that we need to get these projects started and make them happen now.
Okay. Thank you. We are having some great discussion here and have some great questions. The next one is directed to you, Eric. Are you or any of the other. Aware of funding available to towns, cities
or counties for railroad bridge replacement? These structures are obsolete and the low clearance causes overhead vehicles to take alternate routes.
New structure could enhance the Gateways to several communities encourage travelers to enter the city, rather than avoid it.
I am not familiar with any funding sources to go directly from municipality [ indiscernible ]. Other infrastructures we have things in Pennsylvania for that, particularly on the road bridges.
Railroad bridges are something that we are studying in Pennsylvania. Even though they were built to last 100 years they were built about 120 years ago. They are, actually,
in a position where some of them are becoming structurally deficient and the real rubs are beginning to recognize that. If you are not a Class one or a shoreline,
you do not have the financing to take on a Bridge-it is capital intensive and very expensive. I am not familiar with any programs that are specifically for bridges. Throughout our grant programs, I can assist the real road with that.
David or Janet, are you aware of anything?
This is Janet. I am not other than what might happen on a as stated by state basis because I am not aware of anything at the federal level.
I am not aware of anything on the federal or state level in Indiana. There our options.
We are trying to build an intermodal structure and will do it through the private sector and probably through a bonding process where they paid for get the facilities they use.
You can use them similar mechanism for projects if you can get by off from your governor or state Economic Development [ indiscernible ].
In the end it would not be free money. It would be paid back by the users that use that project.
The next question is for Janet.
Given that federal resources are limited, what freight mode has the most urgent need for investment if the goal is to improve economic competitiveness and why? I urge you mentioned marine transportation because of the export of pulp
and agricultural goods.
It is an very interesting question and will say that I think if a falls choice Tuesday it is one or the other. We have focused for a very long time on the mode piece of this and is now made question of looking geographically
and in terms of the different economic slices of the economy, it is more of a location choice and is a manager of performance. The question is more of, are we going to focus on relieving congestion?
Are we going to look at the last mile intermodal connector, whether it is rail or road or simply an entire port region and figure out how we make that work the best?
There our a lot of people because we do have a real difficult situation in terms of paying for gas the structure and that is the barrier to moving anything in Washington. Want to retreat and say I will look my own mode
and promote that and that will be the best way to go. I read something it said about the need to go back to real transportation planning, real long term, what are the overall needs? What are we trying to deliver?
That has to drive investment and is more of a question of how you measure performance and make the right investment for performance, which in some kids will be about technology and management and not, necessarily,
investing in a particular mode, per say.
I think Janet is right. In Indiana, the reason we got our plan was we did not think that one vote was more important than the other.
We thought they were tied together but half is one thing that the federal government is responsible for are the water ways and have always been. Unfortunately, the back the stimulus package of there was money for roads and even rail.
The one area with no increase and the Army Corps of Engineers was flat find it was the waterway. I am worried about that infrastructure funding spigot is going broke of like the highway trust fund and in the end,
that it's got one of the structures that the Fed's need to take care of that they are not. If any of these go down, it could have devastating consequences.
Amen to that.
Do you have anything to add, Eric?
In the interest of time, I think I am pretty good.
I think this next one is four , Eric, has there been resistance from tracking freight and are they worried about losing business?
No. Like I said, there is always friendly competition between them.
They are in a position where they realize the need some help because they are losing drivers. It is hard to attract drivers and many do not want to go the long haul any more and want to come home night or a good portion of them want to.
Do they-They do not like losing business, of course, particularly now as things are very tight and very competitive. They do not want to lose business but realized with the longer haul and know that there are regulations out there
and they have issues with personnel and there is the issue of traffic and congestion, if they are going to survive, they might need to do things differently. The railroads have to understand that, as well.
To add on to that, most of the truckers that I talk to in Indiana are supportive of intermodal. They make more profit off of their margins by doing short hauls and long hauls
and are trying to get away from the long holes because of the fuel prices. Secondly, and lot of the trucking firms are becoming third party which is to providers where they add value.
Someone will send them something as one of their products and will package it for them and distribute it for them.
Because of that, they need to use intermodal a lot more and scenes like bait are interconnected now with the reels, where before they were [ indiscernible ] and are not so much anymore.
Where I see the industries fighting with each other, the industry groups is when someone tries to say that we need to move to drop off of rail, and, therefore, we do not need to invest in our highs.
Because this is a highly politicized environment here, there are people who want to make that statement that rail is better than trucks and veteran for the environment and, therefore, we should not drive and invest in fives
and take our money and put it in rail. That is taking it a step too are and where you see the industry groups start to vault, because it is not-the case is no matter how much freight you move off I went off and on to reels,
we still need to maintain, modernize and expand the roads, as well as.
We routinely have our members who are trekking and railroads that we are each other's as customers. Trying to keep that out of being politicized helps.
Janet is absolutely correct speed to get into the debate to shift from the one mode and neglect the other is not helpful and does not-it just shifts the problem, does not create a deck for Environment for Economic Development.
The next question is also for MBA, what is the source for state funds for the rail investment?
We have made $40 million program broken up into two separate programs, the $10 million general fund appropriation that comes out of the general fund and a $30 million capital bond that is [ indiscernible ].
The next question that I should have addressed the earlier, but you may not make comments about building roads in Montana or Wyoming?
I typed a quick response. The gist of it is that some point that we started losing sight of the fact that this is a national transportation system and a network. It is now harder, I think,
at least when you were talking about a Federal Highway System, to convince a congressman from South Carolina that there is valued in their dollars going to be Wyoming and this is the whole donor debate. Somehow,
we need to be able to make investments that do have and show broader-based benefits.
This is the heart of a lot of debate and that the state and national level.
The next question is for everyone speak it is a long one. While potential benefits of shifting the freight from trout to rail are impressive, how much do you think the public sector can really influence
and promote the desire to affect a shift when some of the movement is a private sector decision? The fact that they're our a number of dynamics that influence the movement with trout versus rail, local deliveries, operating margins,
Well, from our perspective from Indiana, the discussions we have had, railroads are looking for get public/private partnerships.
These they do not necessarily give them money. What the state labs can do is help facilitate or help working with the real road. In the end is the private sector in the end that will be paying for it, especially on the intermodal
and multi modal fight and will be up to be real rats to make the investments because up until Monday few years ago they never took federal money and have been feeding the public/private partnerships
and that is because they have not invested in airline as much as they should have and some is falling apart. I think it will be important to have the state supportive of the efforts to try to get rail activity but not necessarily unfunded.
This is Eric. You are correct.
If you look up what we have in our rail plan, we do not own any of the infrastructure and they can do whatever they want. We do have a very competitive program and they want public dollars to help them in maintaining their infrastructure,
but if they want the public dollars, these are some of the things we are looking for and what we would like to see. They could take it, were not. The purpose of making the investments, it is not so much of the railroad or trucking,
they are shippers, white it is is the manufacturers and distributors, they make the investment in the highway and rail and airport system to give the distributors and Manufacturers a toys and let them choose. You let them compete,
which ever works best for the manufacturer to get the product to wherever it needs to be, that is what we are doing this because we are not trying to do a change here, we are providing other options for choice
and choice is competition and competition is good.
Thank you. Janet?
I think the ability-we can all talk about it all we want, but fundamentally, it is a business decision, how do I get my product to the right destination in good condition and that the right price for what I am selling it for?
Unless you are really starting to talk about the subsidizing of one mode over the other, you can try to change the cost structure, but fundamentally, we are trying to maintain a free market economy. I think it will be up to the shippers,
and it might be useful in a future webinar to grab some of them, someone from retail, manufacturing, energy and natural resources and pick their brains on how they make the decisions that they do.
Thank you. Our next seminar-it is on a different topic, but the plan is to have some shippers on there. The next question is that one of the speakers talk about changes with the panel and and Panama Canal.
Is there a study that documents this growth and related studies?
I am sure there is but do not know offhand. I would have to look around for it.
I believe there is and Cambridge [ indiscernible ] is putting something together on that.
Have made few people in attendance from Cambridge and if you are aware of it, and the information into the chat box or if anyone is aware of the study.
[ indiscernible ] would have that information, as well and is another company like them is because they gave me that data. I did not know where they got it from.
Thank you. This one is for David. With the Express late agreement, it does it involve [ indiscernible ] over what time frame did you conduct the initial study?
I am not sure what the designation for freight standards are. With the experts we agreement, the agreement between the states, they were assigned-I do not know if they were memorandums of understanding, but both the Legislature's,
adding that the case of the expressway by Chicago, there was a bill signed by the the General Assembly allow for partnerships--That is down by Chicago, the governor signed the agreement with the governor from Kentucky on the one
and created the commission and fine another memorandum of understanding with the state of Illinois on starting the building process for Expressway.
In of sense that one is more of a funding mechanism down in seven Indiana and the commission put together to figure out how we will finance the whole project, the same thing of in
and Illinois except where the Ohio River bridge has already started a lot of their environmental impact studies, they are just finishing up on theirs
and what will happen is we will probably end up putting the commission similar to what they did down on the Ohio River so that the two states and have everyone working together. I hope that explains it, I am not sure if it did.
Just to clarify, the national network [ indiscernible ].
I do not believe fellow. It could have. I would have to check on that whether that is the case or not it with MDOT. In regards to what time frame, if we started in the summer of 2008 and finished February of the 2010.
It was about a year and a half and we had probably six meetings with the Group of CEOs
and about every month we had a Task Force meeting with each of the business leaders who assign their specialists who really knew these tough enough all of those different areas, the structure, public policy, work-force development
and public awareness.
Once we got all of the due diligence done and put it together and brought it back to the CEOs and they confirmed it, and the end of last year, we had some due diligence to do before we put the report out, which we did at the end of March.
I do not see-yeah, we have one more that came in. In what we can regional land-use planning work together with these larger transportation projects?
I will put this out to any of the speakers the one to address it?
It does not work with our regional land use planning.
Janet or David, do you want to add anything?
You have to include-the way we did things in Indiana is we wanted to say what the business leaders throughout the state that are in all of these other different sectors, what they felt we needed
and we shall be specialists from the different organizations, we said, okay, this is what they are saying they need, what are you doing? That helped us to prioritize things and figure out "what made sense to go with and what did not
and our CEOs support did some things that they were supportive of and something of the-for example U.S. 30 is not on the target--bypass around-it is a sure to route. They are putting all of the stop lights in
and we are trying to get that stopped.
Once we put it in there, they looked at it and said, you are right and we need to make sure that that does not happen and they are working with us to make that happen. We worked with them and agreed with them on 99% of the items.
It is the one person that you need to work through.
Thank you. Anybody else--It is the one presents that you need to work through.
We will have to do some digging, but there is regional planning out of there that might be able to provide some-provide some good examples of what is going on.
I do think that you have to get the people who are doing land use, local officials, transportation officials but also, as David said, you need the users of the system all talking on the same page,
which is a love sleeping for need to do is sitting in Washington were my job is to talk about this stuff and it's a completely different thing for all of you to put into action.
Then you have land-use, they, basically, it does change that they built a new terminal. We have the old terminal sitting around for land use and people are trying to decide what they are going to do.
You have the [ indiscernible ] the company you were talking about in Ohio, I think that is the company they hired to do this study and what we are trying to do is figure out, working with the business community
and with the government leaders, we are going to try to decide how that is done and create a plan on how to use it in the future so does not just the mall or something that comes in there.
Hopefully we will be able to come up with a code is the planned. Columbus Emeryville have these networks that look that these kind of things
and they have a couple of models you might want to look Mac decides what is happening here in Indianapolis.
We are about out of time. I think we will go ahead and rap of for the day. I do not see any other questions. We will not do any questions over the phone today, but I do not think there are many people on the phone line and if you work,
hopefully were able to type in your question and if you had them question we did not answer, contact the. S or send it to the lesser of. 12 d for all of the presenters. Had no great discussion and everyone really appreciated it.
I know I learned a lot. The recorded version will be available on the Talking Freight website in the next week, maybe the next two or three bigs and I will finality to e-mail once available. As a reminder if you are a member
and would like to receive certification credits for attending today, make sure you are signed in with your first and last name or if you were with a Group, please make sure your name is in the chat box. There is the evaluation form.
Please, if you could just fill it out and send it back, we want to make sure the seminars are working as well as possible for you. If you could identify and send it back, that would be great. The next seminar is on July 21st
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