Wisconsin railroad committee holds 'Rail Day' to shed light on freight, passenger issues

On Oct. 21, the Wisconsin Railroad Committee held "Freight Rail Day 2009" in Madison, Wis. The event's title was a bit of a misnomer because presentations were heavy on passenger- and high-speed rail (HSR), and their impacts on freight railroads.

Comprising representatives from BNSF Railway Co., CN, Canadian Pacific, Union Pacific Railroad, the Escanaba & Lake Superior Railroad, Tomahawk Railway, Wisconsin & Southern Railroad Co. (WSOR) and Wisconsin Northern/Progressive Rail Inc., the committee organized the third annual event with an assist from the Wisconsin Department of Transportation (WisDOT).

Attended by about 90 rail industry constituents, this year's "Day" included a Wall Street view of the rail industry from veteran analyst and Progressive Railroading columnist Tony Hatch, a look at the growing demand for passenger- and commuter-rail services on freight-rail tracks, and a report on the state's rail funding initiatives.

The committee tries to organize the event in years when the state's legislature is in session so attendees can visit lawmakers — about two dozen attendees descended on the nearby state capitol building after the formal presentations concluded.

At a Tipping Point

Hatch led off the presentations by reviewing the current state of the "rail renaissance" and describing why the industry is at a "historic tipping point," as he characterized it.

Class Is' operating ratios and service are improving, and they're holding up "reasonably well" during the recession, said Hatch. But there will be opportunities for Class Is in the "new world when we get there" and they won't be able to seize them if their operational performance lags, he said.

"Service is at an all-time high, but can railroads maintain it during the recovery?" Hatch asked.

In addition, "re-regulation" efforts in Washington, D.C., continue to pose a threat to railroads' competitive health, and that threat "is bigger than ever," he said.

No one was "exactly sure what D.C. was cooking up," but an anticipated measure by Rep. Jay Rockefeller (D-W.Va.) promised to be a "balanced bill" for both railroads and shippers, said Hatch.

Next up, WisDOT Administrator-Division of Transportation Investment Management Mark Wolfgram, Environmental Law and Policy Center Deputy Director Kevin Brubaker, and CP Director of Passenger Rail Don Heron described how freight railroads are dealing with growing demands for passenger rail, including a proposed Kenosha-Racine-Milwaukee (KRM) commuter-rail line.

WisDOT is working with Amtrak, UP and CP to expand passenger-rail operations in the state, said Wolfgram.

For example, some of the parties have applied for stimulus funds to extend a platform and add a crossover at Amtrak's General Mitchell International Airport station on the Milwaukee-to-Chicago Hiawatha route.

In addition, the state is seeking $651.8 million to provide service from Amtrak's downtown Milwaukee station to Madison, and $600 million for part of a Midwest HSR line that would run through Wisconsin to Minnesota's Twin Cities.

The non-profit policy center promotes passenger rail — especially HSR — as a way to reduce highway congestion, said Brubaker.

"You can't build your way out of highway congestion, it's too expensive," he said, adding that the president's support has "drastically changed the events" surrounding HSR.

"There's never been a better opportunity than now to realize the nation's vision of high-speed rail," said Brubaker.

CP's Heron agreed that expanding passenger and freight rail in the state is better than expanding freeways.

"With rail you get compact use of land, which is important to urban and rural planning," he said. "Not only the capital investment, but ongoing funding for operations is cheaper than highway building."

Finally, WSOR Community Development Director Ken Lucht described the regional's attempts to work with the state to upgrade its track, such as by installing more continuous-welded rail.

He also reviewed several planned passenger-rail projects that could impact the state and his railroad, including extensions of Metra's service from the Chicago area north into Wisconsin and a South-Central commuter-rail corridor that's under study.

Joining Lucht's panel were Wisconsin Reps. Cory Mason and Jeff Stone, who reviewed the state's rail funding efforts.

The expansion of rail capacity — especially the proposed KRM line — has a "bright future" in Wisconsin because the state actively supports passenger-rail funding, said Mason.

It's important that the KRM corridor doesn't "become a cul-de-sac" in the state's overall transportation picture due to its highway congestion-reducing potential, added Stone.