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Railroads going "green"
Seldom does a newspaper not include something related to the
environment. Global warming, greenhouse gases, air and water
quality, and biofuels are getting a lot of press coverage as
awareness and concern grow about the impact of our past and
future actions. Recently, I acquired a new vehicle, and I
opted for a hybrid. Somehow it feels good to know that in a
very small way I am trying to do my part.
Railroads are also doing their part. No longer do you see
coal-fired locomotives belching clouds of oily, soot-filled
black smoke. Railroads have come a very long way and today
are among the most environmentally sound methods of freight
transport. This edition of the newsletter will examine some
of the "green" accomplishments and developments in the rail
industry, as well as other activities in the rail realm in
Iowa.
On a completely different note, I know many of you have
visited our booth in the Varied Industries Building at the
Iowa State Fair over the last few years. I want to thank you
for stopping to visit and supporting rail transportation.
This year the office staff will be taking a break from the
fair and will not be sponsoring a booth.
Peggy Baer, director
of the Office of Rail Transportation
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Miserly on fuel
 Freight railroad fuel efficiency has risen 76 percent since
1980. In 2005, railroads could move a ton of freight nearly
414 miles, on average, per gallon of diesel fuel. That‘s up
from 235 miles in 1980 and 332 miles in 1990. To put that in
perspective, passenger vehicles today would average
more than 35 miles per gallon, if fuel efficiency had
improved at the same rate as railroads.
With railroads consuming close to 3 billion gallons of
diesel fuel annually, even small improvements pay off
substantially. Microprocessors on newer locomotives
continually monitor locomotive functions and adjust
performance for optimal efficiency. Changes in practice and
auto-off mechanisms reduce unnecessary idling. Iowa
Interstate Railroad estimates their fleet of locomotives
equipped with Smart Start devices have resulted in a 3 to 5
percent fuel savings through reduced idling. Hybrid
locomotives (much like hybrid automobiles) and locomotives
fueled by liquefied natural gas are now available. Engineers
are trained to operate locomotives in the most
fuel-efficient manner, and some railroads have instituted
incentive programs for efficiency. (See article in the
March 2006 issue on the Union Pacific Railroad’s incentive program.) |
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Keeping our air clean
Although Iowans enjoy great air quality in comparison to
many others, we want to continue to enjoy that advantage.
Of the various modes of travel, on an emissions per ton-mile
basis, rail beats water, truck and aviation in the level of
nitrous oxides, volatile organic compounds, carbon monoxide,
and carbon dioxide. Only in particulate matter does rail
rank second, behind aviation, in a study by the consultant
firm Envirotrans.
When it comes to global warming, the amount of greenhouse
gas (GHG) emissions is of particular concern. Carbon dioxide
accounts for approximately 85 percent of the total GHG
emissions released by human activity. The amount of carbon
dioxide released is directly related to the energy
efficiency of the transportation mode, so rail again comes
out on top, accounting for just 2 percent of the total U.S.
GHG emissions from transportation and mobile sources, and
well under 1 percent of total GHG.
Large intermodal facilities and seaports face a real
challenge in dealing with air quality and emissions. On the
one hand, shipping containers by rail is very positive for
the environment. However, in the immediate vicinity of
intermodal facilities where trucks pick up containers
shipped by rail or where cargo is transferred from ship to
rail or truck, air quality can suffer, largely due to the
number of locomotives and trucks in very close proximity.
Many of the fuel efficiency and emissions control
advancements and experimental technologies are being tested
in these environments to ease air quality concerns.
The Environmental Protection Agency recently proposed
regulations that will reduce particulate emissions and
nitrogen oxides from all diesel engines by 90 percent by
2017. With suppliers, railroads and government cooperating
in aggressive research programs, you can expect that rail
fuel and emission reductions will continue to improve.
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How ethanol has changed transportation in Iowa
 No discussion of environmental issues is complete without
looking at the ethanol industry in Iowa. The ethanol boom is
not only creating new markets for corn, it is changing the
way the commodity is being shipped, both within the state
and to regional, national and foreign markets.
Before the ethanol boom, corn shipment was relatively
straightforward – what could be used locally was shipped by
truck to processors or feeding operations. The rest was
trucked to the local elevator where it was shipped to more
distant national or international markets in the most cost
effective way – by truck, rail, barge or a combination of
modes.
With the ethanol boom, more farmers are trucking their corn
to biofuel processing plants. Once processed, a bushel of
corn produces 2.7 gallons of ethanol and 17 pounds of a
high-protein feed, often referred to as dried distiller’s
grain or DDG for short. Because ethanol absorbs water and
impurities that reside in fuel pipelines, ethanol cannot
travel via pipeline and must be transported by rail tanker
car or tanker truck. The high-protein feed is trucked to
local livestock operations, but production is often higher
than can be used locally; so, DDGs are also shipped to
livestock operations farther west in rail hopper cars.
The rapid growth of the ethanol industry in Iowa has
transformed the transport of corn and corn products in just
a few years:
·
Fewer hopper cars and unit trains of corn are shipped by rail.
·
More corn is trucked to local facilities.
·
As production increases, the shipment of ethanol and DDGs by rail will
continue to increase, more than making up for any loss of
corn shipments.
·
Local truck and train traffic can increase dramatically when an ethanol
plant locates in an area.
·
Ethanol and DDGs are shipped to different destinations than corn.
·
Unloading facilities at destinations are often inadequate to handle the
increase in ethanol shipments.
·
Rail tanker cars are in short supply as manufacturers struggle with
backlogs of orders
Craig O’Riley from the Iowa DOT’s Office of Systems
Planning has been monitoring the changes in rail shipments
of corn and the way these changes have affected railroad
companies. "In the next few years, with the projected
increase in the rate of production of ethanol, it is
expected that Iowa may become an importer of corn, rather
than an exporter."
O’Riley estimates that 160 daily incoming truckloads of corn
will be required at an ethanol plant producing 100 million
gallons annually. From that same size facility, one-third of
the ethanol and ethanol by-product will be shipped from the
production facility by truck. The remaining
two-thirds will be shipped by rail.
O’Riley used an Iowa State University study prepared in
November 2006 to calculate that 6,500 rail cars of ethanol
and ethanol by-product will be shipped annually, along with
8,800 semitrucks outbound from a typical 100 million gallon
production facility each year. "That could mean a large
increase in truck traffic near ethanol facilities," said
O’Riley.
With changes of this magnitude there is a cost. Ethanol
plants must build extensive rail infrastructure to store and
load rail cars, which can cost up to $2 million per mile to
install.
Railroads are investing millions in infrastructure
improvements to accommodate heavier rail traffic, adding
switches, additional track, enlarging yards, etc., to
efficiently handle growing ethanol shipments. As one
example, the Union Pacific is
investing $61.1 million in track improvements in Iowa and
Minnesota, and another estimated $15 million in Nebraska, to
support the growing ethanol business.
Shortline railroads and branch lines may require upgrades in
track and bridges to accommodate heavier cars and increased
traffic. Iowa Northern Railway is one such railroad that has
planned investments of $55 million over the next six years
for these type of improvements. Traffic patterns in the
vicinity of ethanol plants change, which may also
necessitate upgrading the highway-railroad crossings.
Increased truck traffic to ethanol plants may result in the
need to add capacity and improve infrastructure on the
state’s roads system, such as adding lanes, traffic lights
or turn lanes.
When the expected production of ethanol using plant fiber
(corn stalks, switch grass, wood chips, and other cellulose
fibers) becomes less expensive than corn, expect other yet
unforeseen changes in the transportation system. Whatever
the future brings, Iowa's ethanol industry will continue to
evolve and spark lively conversation in the months and years
to come.
For a map of current and planned ethanol facilities in Iowa
and their relationship to Iowa’s rail system, visit
our web site at
www.iowarail.com. |
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Biofuels
distribution development
As a testament to the significant transportation system
changes brought about by the biofuels industry, the
Manly Terminal, LLC will soon open its doors in northern Iowa. Located in Manly, this
first-of-its-kind, truck-to-rail biofuels distribution and
trading terminal will provide biofuels producers additional
transport and marketing options. Biofuels producers will be
able to truck their product to the terminal, located just
seven miles from I-35, where it can be stored or shipped out
by rail for distribution. The terminal is located on the
Iowa Northern Railway Co. and connects to the
Union Pacific Railroad,
BNSF Railway
and
CN,
providing a unique opportunity to ship product readily
throughout North America. By consolidating the products from
several producers, the fuels can be shipped on economical
75- to 100-car unit trains. Lee Kiewiet, president of Manly
Terminal, said, "It’s an excellent location within the mecca
of ethanol production in the Midwest. It gives anyone that
has product delivered into Manly Terminal the ability to
deliver it anywhere in the United States without having to
pay several switching fees." The 100-acre reload facility
will open later this spring, with eventual plans to include
20 million gallons of liquid storage. |
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Moving Iowa Forward
conference
(reprinted from INSIDE, the Iowa DOT’s in-house newsletter)
Combining forces to address the issues facing Iowa’s
transportation systems, the Iowa departments of
Transportation and Economic Development brought more than
200 stakeholders together Jan. 18 for a one-day session
focused on what can be done to enhance transportation
systems and economic development.
Keynote presenter John B. Ficker, president of the
National
Industrial Transportation League in Washington, D.C.,
highlighted the critical link between transportation and
economic development. He also delved into the complicated
relationships of carriers and shippers, and stressed the
point that many companies are now both buyers and sellers of
transportation solutions. Ficker talked about the critical
capacity needs facing our country and how Congress is laying
the groundwork to address this issue in the next
reauthorization bill set for 2009.
 Ficker noted driver shortages for trucking companies,
increasing fuel costs, highway system congestion, proposed
driver hours-of-service changes, and the move by some states
to "sell" their infrastructure to private companies as
critical needs to be addressed by the transportation
industry. He quoted an American Association of State Highway
and Transportation Officials’ report as saying the volume on
the nation’s roads is expected to double by 2035. Ficker
continued, "If this is even half-correct, it will be
difficult to keep up."
When discussing the sale of existing infrastructure being
done in some states, Ficker warned of possible damage to the
system as a whole, "The sale of infrastructure threatens to
chop up the network. The transportation system in this
country is a network."
Included in this network, says Ficker, is the rail system.
He stated that increasing capacity of this system is also a
key ingredient to economic stability and growth. Ficker
touched on issues with fuel, intermodal services, the role
of shortlines in the system, capital needs, tax credit
legislation, and the need for a 21st century rail industry
shipper/carrier relationship model as needs facing this
transportation mode.
For all transportation professionals, security has come to
the forefront in recent years. Ficker pointed out that in
Congress, every senator and all but four congressmen are
involved in some committee or subcommittee related to
homeland security. Ficker called on the conference attendees
to suggest a balance between the needs of the transportation
systems and security of the country when communicating with
legislators.
Ficker also urged attendees to work at increasing the level
of urgency placed on solutions to transportation issues. He
said, "This is a crisis-oriented country. Things are dealt
with when the crisis hits." He pointed to leaders such as
Lincoln (in establishing the transcontinental railroad) and
Eisenhower (in planning the interstate system) whose
leadership grew out of a sense of urgency that doesn’t exist
in today’s climate.
For solutions, Ficker pointed to four elements as critical
to the success of this nation’s transportation system:
technology; processes; productivity; and funding. He
elaborated on the productivity element, "Rail and truck are
no longer competitors. The system must work together." He
reiterated the need for public/private collaboration and
participation by both transportation and economic
development factions.
Later in the day, Pete Rickershauser from the BNSF Railway
echoed Ficker’s message of cooperation when he said that
supply chains are shifting to intermodal transportation
where rail is "moving more stuff than ever before, causing a
capacity crisis."
The remainder of the day was filled with information delving
into the details of personnel shortages in the trucking
industry, containerized freight transportation, intermodal
shipping, infrastructure innovations, and technologies to
move the transportation industry forward.
The day was closed with a message from Nancy Richardson,
Iowa DOT director, who emphasized the need for increased
funding for Iowa’s transportation systems, "Both the motor
carrier and rail industries, along with the Iowa DOT,
understand the need to work together for healthy road and
rail systems in our state to effectively and efficiently
move the amount of freight necessary to continue and grow
our economy. The Iowa DOT is working to increase funding for
both the highway and rail systems through programs
introduced this year. Local support of these programs, and
communications between local business owners and economic
development groups, will play a major role in achieving the
funding goals of these initiatives. Conferences such as this
are a great way to get the information to the people who can
use it to further the cause of economic development in the
state."
PowerPointŪ presentations
from many of the speakers at the conference are available
from a link on our Web site. |
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Transportation
funding and growth
Transportation funding and growth
Customer demand for connections to Iowa’s rail system has
grown with the rise in fuel costs and the burgeoning
biofuels industry. The
Iowa Rail Finance Authority
(an independent board appointed by the governor) administers
the
Railroad Revolving Loan and Grant Program
to assist business and industry in developing those
critical, but high-cost connections. The
Iowa General Assembly recently passed House File 911, a bill
that includes a $2 million appropriation for the Railroad
Revolving Loan and Grant Fund. The legislation is currently
awaiting the governor’s signature. We thank you for your
support of the Rail Revolving Loan and Grant Program and the
Access Rail funding initiative. If the bill is signed,
applications will be accepted later this summer to award
approximately $2.5 million in grants and loans to provide
access to and strengthen the rail transportation system in
Iowa.
At the federal level, legislation was introduced in the
House and Senate to extend the Railroad Maintenance Tax
Credit. The tax credit, originally passed in 2004, allows
Iowa’s smaller Class 2 and 3 railroads to claim a tax credit
for rail maintenance and upgrades. The credits encourage
investments in track improvements to carry heavier rail
cars, increase service to customers and improve safety. The
proposed legislation extends the credits through 2010.
Other recently introduced federal legislation would
encourage private investment for rail expansion by offering
a tax credit for investments that increase the capacity of
the nation's rail transportation system. Rail infrastructure
or equipment investments by any company or railroad would be
eligible. Potentially eligible investments would include new
track or sidings, new or expanded yards or intermodal
facilities, equipment, or other improvements that expand the
volume of freight that can be transported.
Highway preservation and construction and the current
funding situation are also in the spotlight. An Iowa DOT
report to the Iowa General Assembly, "Study
of Iowa’s Current Road Use Tax Funds (RUTF) and Future Road
Maintenance and Construction Needs,"
was issued in December 2006. It was prepared in consultation
with city and county officials. The study points out the
challenges facing Iowa’s funding for roadways which, if left
unaddressed, will continue to delay critical maintenance and
preservation efforts and defer investments aimed at adding
capacity to our roads system.
In reaction to the study’s findings, as well as a call from
individuals and agencies throughout the state for more road
funding, the Iowa General Assembly passed
House File
932. If enacted, the legislation creates the “Transportation
Investment Moves the Economy in the 21st Century
(TIME-21) Fund:, provides for funding to come from
any moneys appropriated by the General Assembly and any
revenues credited by law to the TIME-21 Fund, distributes
any funding via a 60 percent Primary Road Fund/20 percent
Secondary Road Fund/20 percent Street Construction Fund
formula, directs funding toward specific investment areas,
calls for continued development and issuance of needs and
revenue studies and reports, and establishes an eight-member
legislative interim committee to develop a financing
proposal for next session.
More
information on TIME-21. |
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Inaugural
Special passenger train
Iowa Interstate Railroad Ltd.,
BNSF Railway Co.
and
Iowa Association of Railroad Passengers
cooperated to offer free passenger train service between Des
Moines and Iowa City for Governor Chet Culver’s inaugural
gala at Hancher Auditorium, featuring entertainer Al Green.
The Inaugural Special, offering a unique and
energy-efficient transportation option to those attending
the event, left downtown Des Moines after lunch on Jan. 11,
and picked up passengers in Newton, Grinnell and Marengo on
the way to Iowa City, and returned along the same route at
the close of the gala.
The passenger cars were donated by the BNSF Railway and
Iowa Interstate Railroad. Locomotive power and crews were
donated by the Iowa Interstate Railroad, with members of the
Iowa Association of Railroad Passengers on board the
passenger cars to assist riders, answer questions and assure
a safe trip.
"The Iowa Interstate Railroad is the successful result of
over 20 years of private-public cooperation," said Dennis
Miller, CEO of the railroad. "Iowa Interstate Railroad owes
its existence to the State of Iowa and Iowa Railway Finance
Authority, which provided the financing to help create the
railroad. We appreciate the support of Iowa’s citizens.
Putting together the Inaugural Special and offering free
train travel to those attending the Culver-Judge inaugural
events in
Iowa City is an expression of our appreciation to Iowans for
their support of our operations over the years." |
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