nymtc regional freight plan - New York Metropolitan Transportation ...

A Freight Plan for the NYMTC Region
good repair. Further, shortline railroads have limited capital funding for projects that
directly affect them, such as providing structures that can handle 286,000 pound per axle
freight cars. See Section 2.0 for more information on the undercapitalization of railroads.
New York State formerly provided rail freight funding through its Local Rail Assistance
Program. This program still exists legislatively but currently is unfunded. Recently, New
York State, in conjunction with the PANYNJ, provided a total of $40 million dedicated to
the improvement of rail freight. This money will be used for projects related to state of
good repair and system enhancement (such as TOFC clearance on the Hudson Line).
However, the funding is a single application and may not be repeated, and will not result
in major capacity expansion.
A key component in freight is storage and distribution facilities. The need for additional
warehousing and distribution facilities is normally fulfilled by the private sector based on
the needs of operators of these types of facilities. Where the cost of warehousing and distribution
proves too onerous for the private sector, the public sector can provide tax
incentives or zoning opportunities.
• 7.3 Summary of Funding Sources
Many of the highway actions described in this report have straightforward funding
options. Most of these actions would improve both freight and passenger transportation,
and hence do not need to be justified as one or the other. The Federal Highway
Administration distributes Highway Trust Fund revenue from the Federal gas tax to states
on a formula basis, and states in turn distribute these funds among urban and rural areas.
The Federal government will typically fund up to 80 percent of the cost of eligible projects.
Future funding amounts will depend on any potential changes in the formula allocation
which may emerge from the reauthorization of the TEA-21 legislation in 2004, as well as
overall authorization levels.
In comparison, freight rail and marine actions receive little Federal funding. There is no
Federal rail freight equivalent to the Federal Transit Administration’s New Starts discretionary
funding program or Federal Highway programs. The Federal short line funding
source, the Federal Railroad Administration (FRA) Local Rail Freight Assistance Program,
was last funded in 1995 and its authorization expired in 1994. Most rail freight operations
in the United States are owned and operated by private, for-profit corporations, complicating
the task of public participation in rail freight projects. The best hope for funding
such projects is the development of a new dedicated Federal funding program specifically
for this purpose under TEA-21 reauthorization or the Congressional earmarking of funds
for specific projects under existing categories.
The two major legislative initiatives currently under consideration are the Congressional
initiative known as the Transportation Equity Act Legacy for Users (TEALU) and the
Administration’s proposed Safe, Accountable, Flexible, and Efficient Transportation
Cambridge Systematics, Inc. 7-4