California State Rail Plan 2005-06 to 2015-16

Chapter XX – Future Needs
CHAPTER XX
FUTURE NEEDS
In order to examine and address state policy as it relates to freight railroads, it is
important to recognize the costs and revenues associated with providing freight
rail service, including customer service, safety, environmental, community and rail
passenger service impact issues among others.
The two large Class I railroads, UP and BNSF, will continue to dominate the
Western United States for the foreseeable future. The survival of the 27 short line
railroads currently active in California is threatened by an aging infrastructure, and
the inability to keep up with the increased weights now being handled by the Class
I railroads.
Freight rail operations are deeply intertwined with intercity and commuter rail
operations. This complicates policy making significantly, since public benefits are
clearly impacted by any decisions affecting the freight railroads.
While Class I freight railroads receive benefits from infrastructure improvements
designed to make passenger rail operations more efficient, short line railroads have
no funding sources available to them to make the necessary infrastructure
improvements to allow them to continue to serve rural communities.
Class I railroads re-invest in track and rolling stock in ways that sustain and
improve their bottom line. The magnitude of their operations nationwide enables
them to selectively invest on an as-needed basis. Continuous upgrades and
improvements are a necessity if the rail freight system in California is to continue
to run efficiently and safely.
The short line railroads provide a wide range of public benefits including
providing service to California’s agricultural and lumber industries in the more
rural portions of the State. Other real or potential public benefits include
improving highway corridor mobility, the environment and safety by provision of
rail service as an option to trucking.
To what extent are the short line railways providing an economic benefit to
regional and local economies? How can this benefit be measured? Short line
railroads act as feeders to high volume main line rail routes owned by Class I
railroads. In this instance, they are providing a direct benefit to the Class I
railroads. They also provide a benefit to the shippers located along branch lines
providing economical transportation and helping to retain businesses and jobs in
California’s rural regions. In several instances short lines have taken over where
the Class I railroads no longer operate. Class I railroads move high volumes of
freight, eliminating the need for many truck trips.
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