California State Rail Plan 2005-06 to 2015-16

2005-06 – 2015-16 California State Rail Plan
Exacerbating this issue is the “286 problem.” The term refers to the
286,000-pound total weight of a loaded railcar. According to ASLRRA,
286,000-pound equipment is rapidly becoming the norm for commodities that are
the bread-and-butter for many small railroads – grain, lumber, and paper products.
This heavier equipment puts significant strains on track infrastructure. Many short
lines today cannot handle 286,000-pound cars. To do so would require heavier
weight rail, 21 and upgrading costs are significant, as described earlier. 22 For short
lines with thin operating margins (where revenues barely cover operating costs),
upgrades are cost prohibitive.
According to the ASLRRA, these short lines must quickly find funds for massive
capital spending to upgrade track and bridges to handle larger, heavier freight cars
that shippers and larger railroads are bringing on line in record numbers.
The American Association of State Highway and Transportation Officials
(AASHTO) estimated that total ten-year infrastructure needs for American short
lines and regional railroads total between $7.9 and $11.8 billion, of which only
19 to 23 percent can be funded by the railroads themselves. 23 Beyond internal
company sources and private sector financing, sources have included programs put
in place by the Federal government and numerous state governments.
The California Short Line Railroad Association (CSLRRA) asserts that
government support of many short lines is a necessity if these lines are to fulfill
their economic role. 24 This fact is recognized by the Federal government as well
as by 30 other states, which have funding programs for short line railroads.
FUNDING SOURCES FOR SHORT LINES
FEDERAL RAIL PROGRAMS
Local Rail Freight Assistance
The Federal Rail Service Assistance Program was established by the Federal
Railroad Revitalization and Regulatory Reform Act of 1976 (4R Act), and was
amended by the Local Rail Service Assistance (LRSA) Act of 1978, and the
Omnibus Budget Reconciliation Act of 1981. The LRSA program provided
21 Upgrades for 286-pound cars would call for rail in excess of 100 pounds; 112-pound rail would be typical of an
upgrade.
22 In its 1998 286,000# Upgrading Study Report, the Iowa Department of Transportation estimated the cost of
upgrading a typical branch line to a level capable of handling 286,000-pound cars totaled $170,000 per mile. This
figure did not include any costs for bridges.
23 The Ten-Year Needs of Short Line and Regional Railroads, AASHTO Standing Committee on Rail
Transportation, December 1999. This effort surveyed short line and regional railroads regarding their capital
needs. The responses indicated that the railroads have needs totaling about $92,000 per mile for track, excluding
signal and bridge improvements. This figure is significantly less than the $170,000 per mile estimated by the Iowa
Department of Transportation as the cost of upgrading a branch line to handle 286,000 pound cars and the
$137,000 per mile estimated by ASLRRA. At least in part, the difference appears to lie in the fact that not all
railroads responding to the AASHTO survey reported a need to upgrade track for 286,000-pound cars. The
AASHTO needs calculation also included $1.7 billion for equipment, including cars and locomotives.
24 Per conversations with Mr. David Parkinson, former president, CSLRRA, April 4, 2000.
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