California State Rail Plan 2007-08 to 2017-18

2007-08 – 2017-18 California State Rail Plan• Aggressive Investment – where, with even a higher level of investmentrailroads could capture an even larger share of freight traffic than under theBase Case scenario. Funding at this level would be instrumental inrelieving highway and truck traffic congestion.To give some idea of funding needs for the freight rail system, an outline is givenusing the Base Case scenario. While needs cannot be exactly determined, a generalestimate shows the following costs.• Rail Safety Needs - $13.8 billion – This estimate includes needs foradditional warning systems, highway-rail grade crossing needs, gradeseparations and track relocation.• Class 1 Infrastructure Repair and Maintenance - $4-$5 billion annually, or$80 to $100 billion over 20 years• Class 1 Infrastructure Improvements, above and beyond Repair andMaintenance - $3.5 billion annually or $70 billion over 20 years.• Short Line Improvements - $11.8 billion – This includes funding forimprovements such as upgrading track to handle heavier railcars, safety andspeed improvements and need for deferred maintenance.The total estimated cost for the base case scenario is estimated at $175 to$195 billion over 20 years. According to a more recent AASHTO report,“Transportation--Invest in Our Future” February 2007, the “cost to maintainfreight rail’s current market share,” in 2007 is estimated at $12 billion-$2.75billion annually in public support and $9.25 billion annually in railroad privatecapital investment. These figures are believed to be very conservative.PUBLIC INVESTMENT IN PRIVATE INFRASTRUCTUREPartnerships in rail are appropriate, realistic, and increasingly valuable for both thepublic and private sector. Rail will not stop road congestion, but it can blunt it.Rail is not always a remedy for freight capacity, but in fitting conditions it iscompetitive and effective. Public money is not the entire answer for railroadgrowth, but it is part of the answer in an era when needs and opportunities are ripe.Relatively small public investments in the nation’s freight railroads can beleveraged intorelatively large benefits for the nation’s highway infrastructure,highway users, and freightshippers. When public funds moderate the capitalintensity of railroading, new services become possible at a lower cost.246