STB Directs Four Largest U.S. Railroads to Correct Deficiencies in Service Recovery Plans and to Provide Additional Information

The Surface Transportation Board today issued an order directing BNSF Railway Company (BNSF), CSX Transportation, Inc. (CSX), Norfolk Southern Railway (NSR), and Union Pacific Railroad (UP) to correct deficiencies in their rail service recovery plans filed in response to a Board order issued on May 6, 2022.  The Board had required these four Class I carriers to develop service recovery plans as a result of the severe service deficits presently permeating their rail networks.  The Board is also ordering these carriers to provide additional information on their actions to improve service and communications with their customers as well as additional detailed information to demonstrate their monthly progress in increasing the size of their work forces to levels needed to provide reliable rail service.

The service recovery plans, together with the additional requested information, are crucial components of the Board’s active monitoring of the Nation’s freight rail industry and particularly the Board’s focused efforts to ensure that the large carriers overcome the significant service challenges affecting many rail users and the public.

Read More

FRA awards a CRISI grant to Rankin County in Mississippi

The approval of a $1.5 million Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant from the U.S. Dept. of Transportation and Federal Railroad Administration to help construct a new rail crossing on Highway 18 in Brandon, Mississippi is important to the SRC because it will make the passenger rail line between Meridian Dallas/Fort Worth safer and speedier. The Southern Rail Commission supports this project along with many other parishes and entities who have signed resolutions in support for starting passenger rail along service the I-20 Corridor.

View the resolutions of support here

Read more

Rail barons return: How two freight railroads are trying to derail the infrastructure law’s historic investment in passenger rail

Two freight railroads have been waging a bad-faith effort to kill the incredibly popular, fully funded, multi-state effort to restore long-awaited passenger rail service along the Gulf Coast, in part because the precedent could stall the infrastructure law’s historic investment in the country’s passenger rail network which would give millions more Americans access to regular rail service.

Read More

Amtrak President and CEO Stephen Gardner, and Former CEO Wick Moorman Testify in the Surface Transportation Board Public Hearing on Amtrak’s Petition to Operate Passenger Rail on the Gulf Coast

Amtrak President and CEO, Stephen Gardner, testified today before the Surface Transportation Board in response to comments regarding the company's petition to operate passenger rail on the Gulf Coast. A summary of his testimony is below:

Regarding the RTC modeling by freight railroads that produced the $440 million demand by CSX and NS: Imagine for a moment if one football team got to make up new, special rules for the Super Bowl – and not tell the other team, or even the referees, what they were. Of course, that team would win the game.

That’s exactly what happened here. The rules CSX and NS made up gave only their team eight downs on each possession, allowing them to run up the score in their favor. 
 
Even with all of those flawed and hyperbolic assumptions, the RTC model only showed that our service, if started without any capital investments, would cause average freight train speeds to decrease by just seven tenths of a mile per hour.  That is what CSX and NS claim is “unreasonable impairment” of their freight operations.

Based on that, CSX and NS are now demanding 440 million dollars in publicly funded infrastructure investments before we can run a single train. That is exactly the sort of host railroad “intransigence” and “inordinate capital demands” that Congress intended the STB to “expeditiously” curtail when it enacted 24308(e).

Amtrak and its state partners stand ready to fund reasonable infrastructure improvements along the Gulf Coast Corridor to improve Amtrak service and address legitimate areas of concern.  There is already more than 60 million dollars in federal and state funds committed or secured for that purpose. However, the 440 million dollars CSX and NS are seeking today is orders of magnitude different from any measure of reasonableness.

On shipper concerns:
Shippers along the Gulf Coast, or elsewhere in the United States, have no reason for concern with this restoration of this service. As we addressed in our filing, our short station stop in Mobile will not block traffic to and from the Port.  In fact, the New Orleans-to-Mobile line was able to accommodate three Amtrak trains a day 25 years ago when it had nearly twice as many freight trains as today.

On using the new federal funding to meet the freight railroad ransom demands:
Some have suggested that, given the IIJA funding, Amtrak should simply acquiesce in CSX’s and NS’s unreasonable demands. But Congress did not enact the IIJA to fund the gold-platting of freight railroad lines in order for them to live up to their legal obligations to Amtrak.
 
The STB also heard from Wick Moorman, who was Amtrak President and CEO, after retiring as President and CEO of Norfolk Southern Railway:

In his testimony, Moorman said the original demands of CSX of more than $2 billion for service from New Orleans to Florida were "laughable" and the process to start or expand Amtrak service work when all sides agree on what goes into a rail traffic study and all sides see the results.

The latest "study" was completed by NS and CSX, and after Amtrak, Federal Railroad Administration and SRC were locked out by those railroads.

Moorman also said, while at NS, the Port of Virginia at Norfolk was concerned about new Amtrak service coming to that city. But instead of blocking service, while he ran NS, a plan was developed, improvements were made, and the service has exceeded ridership projections with an upgraded railroad for shippers.

As Amtrak's Gardner stated, “It is not for CSX and NS to determine that Norfolk may have Amtrak service but Mobile and Mississippi should be left behind.”

The full testimony and other highlights from the hearing are in the Amtrak Media Center: Gulf Coast Service.

For more information about President and CEO Stephen Gardner, click here. 

 

Southern Rail Commission Officials Testify in U.S. Surface Transportation Board Public Hearing

The future of Amtrak’s petition to operate passenger rail service between Mobile and New Orleans along the Gulf Coast will be debated this week during public hearings that started today hosted by the United States Surface Transportation Board. The STB, an independent federal agency, is charged with the economic regulation of various modes of surface transportation, primarily freight rail. The STB heard testimony from members of the Southern Rail Commission, elected officials from the Gulf Coast and from other areas, rail associations, and representatives from CSX and Norfolk Southern regarding Amtrak’s petition to operate Gulf Coast passenger service.

Several members and former members of the Southern Rail Commission testified in support of the passenger rail project during the two days of testimonies, which are summarized below.

 

Greg White, Former Chairman of the Southern Rail Commission
Mr. White stressed the 17-year stretch since this project first began and his involvement in the FRA Working Group process, working with officials from Amtrak, the Federal Railroad Administration, and CSX Transportation, a Class I freight railroad system operating in the proposed project area. He mentioned, after years of negotiations to ensure the passenger route would not enter or interfere with the Port of Mobile’s rail yard, new representatives from CSX, stated they would require at $2.3 billion dollar price tag and walked away from further negotiations.

Mr. White noted, “We cannot allow unsupported, unreasonable demands by CSX to overturn long-established law and veto passenger rail that is supported by the people and by leadership of the coastal south!”

Knox Ross, Current Chairman of the SRC, representing the State of Mississippi

Also involved since the inception of the Gulf Coast Working Group, Mr. Ross has firsthand knowledge of the process, conversations and positions by all parties involved in the project. He detailed efforts, since the beginning of the project, to understand the SRC must protect the interests of the traveling public, and the freight shipper as both are integral to the economic success of the region.  He stated the SRC has demonstrated a willingness to compromise, negotiate, and find solutions to the issues that are presented by this service, despite those efforts not being returned.

Mr. Ross said, “It has now been 17 years since Hurricane Katrina devastated our Gulf Coast and took passenger rail service with it.  The SRC has been leading the charge to bring passenger rail back at the behests of our local, state, and federal elected officials and business community for the better part of 10 years. Each of our cities has invested millions of dollars in infrastructure to not only rebuild but improve their downtowns and beachfront areas to create a more attractive, resilient future for our coast.  All of these improvements are centered on a common conveyance to move citizens, visitors, and workers between our coastal communities.  The passenger train, our coast is built for it.”

John Spain, Vice-Chair of the Southern Rail Commission

Mr. Spain discussed his involvement in the project since its inception during the Gulf Coast Working Group and stressed the essence of time in that the Gulf Coast has waited long enough for passenger rail service.  He noted not only will the rail line provide a significant economic impact to the region but it will also serve as a vital evacuation route during frequent storms experienced in coastal communities.

Spain said, "Restoring passenger rail in our region will bring major economic dollars to New Orleans, and the Mississippi and Alabama Gulf Coasts. Not only will passenger rail provide a business and tourist connection, it will also allow for a life safety issue of evacuation relief which is critically important to these regions. Our region continues to get hit by major storms which pose major safety risks for our communities along the coast who cannot evacuate in time. Part of the planning commissions efforts is to recognize that passenger service can provide evacuation to bring out people out of harm’s way."

 

Senator Roger Wicker, Mississippi

Sen. Wicker of Mississippi mentioned, for residents in his state who lost passenger rail as a transportation option during Hurricane Katrina, this pending decision by the STB is not an abstract policy question, it’s about continuing the recovery that started so long ago.

Sen. Wicker mentioned, “I believe the law favors this petition, but regardless of the law, the bipartisan infrastructure bill contains historic levels of funding to benefit both freight and passenger services and operations.”

Amit Bose, Federal Railroad Administrator

Mr. Bose spoke about the impact to the American public when passenger rail services are delayed or unavailable and stressed that for Gulf Coast residents – service is all but denied.

He expressed that the STB’s decision will have far reaching implications beyond the Gulf Coast, as it is pivotal for passenger rail expansion throughout the country. The federal infrastructure bill reaffirms the importance of passenger rail in connecting communities and the need to expand across the U.S. The expansive vision in the bill rests largely on ability to introduce passenger rail service to operate on the freight host railroad tracks. In this case, the host railroads have not met their burden of demonstrating that passenger rail would unreasonably impair their operations.

Bose said, “The public has a right to know what improvements are needed, how much they cost, and what other options were considered. The U.S. Department of Transportation and the FRA are committed to assisting all parties involved to make the requested passenger service a reality.”

 

John Robert Smith, Chairman, Transportation for America, Policy Advisor to the SRC

Mr. Smith, having served in local government for over 20 years and as the Chairman of Amtrak’s Board of Directors, has a wealth of knowledge and experience in multi-modal transportation. He explained his involvement over the last five years to restore passenger rail service to the Gulf Coast states between New Orleans and Mississippi. The SRC worked tirelessly to understand issues presented, and to achieve an agreement allowing both passenger rail and freight service to enjoy a healthy coexistence. However, efforts to delay the progress by CSX cannot go unnoticed.

Smith said, “I take no pleasure in telling you that throughout the effort to restore passenger rail, CSX RR has been neither transparent nor completely honest in dealing with the SRC, Amtrak and the Federal Railroad Administration as you heard from the FRA earlier today. It is time to reconnect our cities of the Gulf Coast with passenger rail and the economic opportunities that it brings. It is time for CSX to seek only the infrastructure improvements needed to facilitate this passenger rail. That is the law, and the American taxpayers deserve nothing less.”

VIEW THE HEARING HERE

Congressman Troy Carter Announces New Funding for Passenger Rail and Transit

Congressman Troy Carter kicked off his “Building a Better Louisiana Infrastructure Tour” by highlighted new funding for rail and transit projects that will benefit in the next year from the billions of federal dollars that Louisiana will receive thanks to the passage of the bipartisan Infrastructure Investment and Jobs Act.

Congressman Carter stated, “Louisiana is set to receive at least $7 billion in new investments in roads, bridges, transit, rail, flood protection, and more from this infrastructure bill. It’s time now to move Louisiana forward with modern day rail that strengthens our community bonds, jump starts our economy, and makes our state more unified.”

LA DOTD Secretary Shawn Willson said, “I am truly excited about the resources made available by the bipartisan bill. There will be billions of dollars available based on the merit of projects and Louisiana stands to benefit from connecting our economies with passenger rail, not just between New Orleans and Baton Rouge, but also connecting New Orleans to Mobile, and Shreveport/Bossier City to Meridian and Dallas.”

SRC Vice President John Spain said, “Last week Canadian Pacific, the future owner of the train track between New Orleans and Baton Rouge said they want to run the train on those tracks. Passenger rail service will provide jobs, serve as a critical evacuation route during times of disaster, and connect north and south Louisiana.”

SRC CHAIRMAN TESTIFIES TO THE U.S. HOUSE SUBCOMMITTEE ON RAILROADS, PIPELINES AND HAZARDOUS MATERIALS

On Dec. 9, 2021, Southern Rail Commission Chairman, Knox Ross testified at the U.S. House Subcommittee on Railroads, Pipelines and Hazardous Materials about the importance and opportunities to leverage the bipartisan Infrastructure and Investment Jobs Act for the purposes of expanding intercity passenger rail. Below is an abstract of his remarks:

“Thank you for allowing me to speak today. This committee and its corresponding Senate Commerce Committee have delivered on the promise and power of passenger rail with an extraordinary investment. I speak for many when I say that I am so pleased to see Amtrak’s mission is now focused on serving the entire nation and that its Board of Directors will be more balanced to include perspectives from all those served by Amtrak with a special focus on the value of long-distance trains and the quality of the on-board experience.

Whether in Montana, Florida, Illinois, Washington, Maine, or my native south, there is a national aspiration for well-run passenger rail service throughout our country. This includes a hunger for establishing more multi-state commissions like the SRC which you authorized and funded in the infrastructure law. Such commissions provide the long-term stability to sustain a vision for passenger rail and ensure its implementation.

Similar to the great work to pass the Bipartisan Infrastructure Law, there has been a bipartisan effort along the Gulf Coast with Democratic and Republican governors, mayors and legislators in support of restoring passenger rail in our region. In addition to the significant financial commitments by our states, local governments have committed nearly one million dollars for station improvements in accessibility all while recovering from natural and man-made disasters.

SRC applied for CRISI funding for capital infrastructure needs and were awarded $33 million by the Trump administration with a local match of $33 million from our respective states. This funding will construct additional infrastructure within freight right-of-way to re-establish service between New Orleans to Mobile.

Likewise, the SRC received $4.36 million in Restoration and Enhancement funding to provide operational support also matched by our state and local partners. The changes to the R&E grant program passed by Congress in the infrastructure bill provide a longer and more manageable guide path to full operations support than previous law. By extending operational support from three years to six years, the bill allows time to make needed adjustments in scheduling, ticketing costs and marketing to build more robust ridership. Having already leveraged existing opportunities and the ability to take advantage of the much greater flexibility in funding levels by the bipartisan infrastructure law, we are on the cusp of realizing our region’s passenger rail dream with service expected to begin in 2022.

In addition to our focus on the Gulf, there is great support to establish passenger rail service from New Orleans to Baton Rouge and Atlanta to Dallas/Fort-Worth by splitting the Crescent long-distance service at Meridian, MS. To accomplish these things, working with local, state, Amtrak and host railroads, we intend to leverage the capital money provided within the Bipartisan Infrastructure Law from CRISI, Local and Regional Project Assistance Program and the Federal State Partnership for Intercity Passenger Rail Grants, and operating support from the Restoration and Enhancement Grants.  The matching funds for operations of multi state commissions provided in the Interstate Rail Commissions Program will allow the SRC to make the necessary investments in engineering, financial analysis, and legal support needed to ensure broad regional transportation solutions.

While existing rail infrastructure could accommodate passenger rail service today, an additional $66 million in infrastructure investments to improve performance was identified by the Gulf Coast Working Group led by the Federal Railroad Administration during the Obama administration. I have provided the report as a supplement to my testimony. As mentioned earlier, these infrastructure costs were subsequently funded by the Trump administration through CRISI funding and matched by State and local governments. This is in stark contrast to the $2 billion CSX wanted to improve infrastructure. Congress accepted the administration's cost assessment in report language.

Collectively, we must be good stewards of the public’s dollars invested in private freight right-of-way. Taxpayers deserve to know that any public money invested in privately owned infrastructure is justified through an honest and transparent process. The information sought from CSX and Norfolk Southern are not truly proprietary or confidential as it was explained to me.

First, the infrastructure and operations information needed to support operations analysis is of little to no inherent commercial value or characteristics, as information concerning things such as train and car load origins and destinations or the type of freight traffic carried by trains has no relevance to the operations analysis and is explicitly excluded from consideration. Second, the fact is that with enough time and effort, essentially all of the relevant information that goes into operations is capable of being independently collected using tools and technologies commonly employed in transportation planning, including commercially available aerial imagery, video data collection, machine vision, aerial LIDAR surveying, and observation from public vantage points.

The relevant information is in no way secret, and thus there is really no potential that its disclosure as part of intercity passenger rail development efforts will itself create a competitive disadvantage. If a host railroad’s competitor really wanted these types of information, they are more than capable of collecting it themselves. Thus far the freight railroads have refused to share information with FRA resulting in the current impasse with CSX and Norfolk Southern. This impasse is now being heard by the Surface Transportation Board. At the end of my testimony is suggested bill language to revise 49 USC 103 to address issues like this one. In contrast to our experience with CSX and Norfolk Southern, the SRC is currently working closely with Canadian Pacific on expanded passenger rail services across the region and have found a willing partner.

As I mentioned earlier, I am a CPA so return on investment is important to me. A study conducted by the Trent Lott Center for Economic Development at the University of Southern Mississippi, found that the investments in restoring passenger rail to the Gulf could yield a 15 to 1 return for Mississippi in economic development and job creation. The Rail Passenger Association has created a model based on the work of the Lott Center and can provide the economic impact of passenger rail to local and regional economies across the country and I specifically support the use of these models as we continue to expand our passenger rail.

Distinguished members, this is not about nostalgia for the SRC, this is about the future of a vibrant region in the south. We have seen what passenger rail will do for people across the country and we believe in its promise of what it will do for our home states.”

Bipartisan Infrastructure Deal Moves Forward

Last night, the U.S. Senate voted to open debate on the most aggressive infrastructure bill in U.S. history. The Southern Rail Commission applauds the Senate for taking an important step in moving forward with this bipartisan bill that will be instrumental in passenger rail investments for not only our region, but for the entire country. This bill’s proposed investment in passenger rail is unprecedented for Amtrak and its affiliated routes.

The SRC anticipates the final action of the Senate to move this bill to the House, and we look forward to celebrating the ultimate passage of this infrastructure package.

Read More about the bill here.