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FOR IMMEDIATE RELEASE Date: March 3, 2003 |
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the "State of Freight Railroading Report" |
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COLUMBUS: The Ohio Rail Development Commission (ORDC), the State of Ohio agency charged with preserving and promoting rail freight service in Ohio, presents this "State of Freight Railroading Report" to provide information on: 1) the current importance of rail freight transportation to the state (The Data); and 2) the need for rail capacity improvements to keep pace with the growth in overall transportation (The Analysis) The Data: As the state's old slogan said, Ohio is the "Heart of It All" and in terms of rail freight transportation the facts prove this out. According to the Association of American Railroads (AAR), here is how Ohio ranks nationally in select categories:
The AAR reports that 307,282,526 tons of freight moved on Ohio's railroads in the year 2000. (Later figures are not available.) The leading rail carried commodities originating in Ohio are primary metal products, metallic ores, farm products, nonmetallic minerals, and transportation equipment. The leading rail carried commodities terminating in Ohio are coal, primary metal products, nonmetallic minerals, chemicals, and waste & scrap materials. Freight railroads carry about 40% of all intercity freight ton-miles (tonnage multiplied by miles carried) and 16% of all freight by total tonnage. Ohio's two major railroads, Norfolk Southern and CSX, account for the overwhelming majority of the rail freight handled in Ohio. AAR reports that these two railroads control 4,517 track miles in Ohio. Of the other Ohio railroads, here are the largest: (Mileage figures include miles operated over other carriers via trackage rights as well as miles owned or leased.)
In all, Ohio's small railroads operate on 1,968 miles of Ohio track (including trackage rights over other railroads) which represents 30% of total rail operations in Ohio. Including operations over trackage rights, there are 6,494 miles of freight railroad operations in Ohio. Ohio's rail freight railroads have a major impact on Ohio employment. A recent ORDC survey found that Ohio's railroads employ 9,580 people. The ORDC also found that Ohio railroad suppliers, which provide materials and services to railroads, employ over 10,125 Ohioans, and Ohio railroad contractors employ over 844 Ohioans. |
The Analysis: "Overall, Ohio's railroads are doing just fine." stated James Seney, Executive Director of ORDC. He noted that both NS and CSX were either improving or holding their own in performance measures which both railroads have been reporting weekly, i.e. number freight cars on line, average train speed, average terminal dwell time, and bill of lading timeliness. He added that the problems experienced after NS and CSX acquired and split up Conrail have disappeared. A survey conducted by Progressive Railroading magazine last May showed that 61% of rail shippers have noted the improved rail service. "Without continuing private and public investment though," warned Seney, "Ohio's freight railroad system will not be able to grow enough to keep pace with the increasing demand to move products and materials in and out of Ohio." A recent report by the American Association of State Highway and Transportation Officials entitled "Freight Rail Bottom Line Report" found that overall freight movements in the United States will increase by 67% by the year 2020. The "Bottom Line" reported that freight railroads left to their own devices would continue to be profitable, but would not grow significantly to meet the new transportation demands. The report concluded that a public investment of $4.15 billion annually for twenty years in the rail freight system, a total of $83 billion, would save shippers $401 billion in freight rates because more low cost rail service would be available. In addition, this public investment in rail freight would save highway users $635 billion in lost time, and transportation agencies between $27 and $54 billion in road construction and maintenance costs, because increased rail use would help ease congestion on the entire US transportation system. The report calculated that the $83 billion public investment in rail would be matched by at least $122 billion from the railroads. "It is a question of maximizing the overall capacity of the transportation system in key corridors by using each mode to its best advantage, not a question of modes fighting each other for market share" said Seney. "All modes will need to grow significantly to handle the projected increases in freight traffic." he added. According to the Annual Data Profiles developed by the American Short Line and Regional Railroad Association, small railroads account for about 7.3% of all carloads handled. With Ohio's small railroads operating over 30% of Ohio's trackage, the problems of Ohio's small railroads meeting their capital needs is apparent. The "Bottom Line" report found that nationally there are $9.5 billion in unfunded needs for small railroads. In Ohio, ORDC recently received $6.4 million in funding applications for $700,000 in available grant funding. For More Information Please Contact James E. Seney |
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