The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“REHABILITATION, PRESERVATION, AND IMPROVEMENT OF RAILROAD TRACKS” mentioning the U.S. Dept. of Transportation was published in the Senate section on pages S11891-S11893 on Nov. 15, 2001.
The publication is reproduced in full below:
REHABILITATION, PRESERVATION, AND IMPROVEMENT OF RAILROAD TRACKS
Mr. SPECTER. Mr. President, I wish to make one more point before yielding the floor, and that is another amendment which I am considering offering on the stimulus package. That is an amendment which would add $350 million for capital grants to be made by the Secretary of Transportation for the rehabilitation, preservation, and improvement of railroad tracks, including bridges, roadbed, and related track structures to short-line railroads.
Legislation has been pending in the House of Representatives on this subject which has more than 100 sponsors. Legislation is pending in the Senate which has 7 sponsors. This would be a tremendous stimulus because it would immediately put many people to work on the reconstruction of the short-line railroads in the short run, providing very extensive jobs, and in the long run, by improving the infrastructure which would be enormously helpful to the economy of Pennsylvania and similarly to other areas where there are short-line railroads.
At my request, the McFarren Group prepared an extensive analysis of proposed railroad costs to be included in the Federal stimulus package. Because of the shortage of time, Mr. President, I ask unanimous consent that a limited portion of this report be printed: The executive summary and the third page of the summary, together with a summary of factors in support of this amendment and a copy of the amendment itself.
There being no objection, the material was ordered to be printed in the Record, as follows:
Executive Summary
proposed railroad costs to be included in the federal economic stimulus package, October 31, 2001
Background
At the request of Senator Arlen Specter, the Keystone State Railroad Association conducted a survey of member and non-member Pennsylvania railroads to ascertain the degree of infrastructure improvements needed across the Commonwealth's rail system. Respondents were asked to provide information related to project readiness, safety and infrastructure conditions, security and insurance cost estimates, and estimates on the number of jobs that could be created if listed projects were undertaken.Summary of Findings
Pennsylvania railroads responding to this survey indicate more often than 60% of the short line and regional railroad infrastructure is in need of extensive rehabilitation, including more than 170 bridges. Excluding the Bessemer & Lake Erie and Delaware & Hudson railroads, both of which have heavy load infrastructures, the short line and regional railroads are capable of handling the heavier 286,000-pound loads on only 70% of their infrastructure. The funds needed to upgrade these lines and the related bridge infrastructure will exceed many preliminary cost estimates. Many customers are beginning to demand the use of 315,000-pound cars, which will dramatically escalate funding needed for these rail lines even further.
The cost of most extensive bridge repairs can easily exceed
$1 million each for smaller spans. Short line and regional railroads also indicate that more than 300 rail crossings are in need of serious rehabilitation and repair.
Projects that could be undertaken to address Pennsylvania railroad infrastructure needs total some $280 million. Of these projects, construction could be initiated on 44% of them, totaling more than $120 million, in the next six months.
While it may be difficult to quantify, a clear correlation undoubtedly exists between derailments and rail infrastructure conditions. Railroads indicated that more than 350 derailments occurred during the past twelve months resulting in only nine worker injuries. This is a tremendous testament to the railroad industry's excellent safety record. A majority of the derailments occurred at low speeds in yard and switching operations. It is estimated that more than 540,000 carloads of hazardous materials cross Pennsylvania's rail system each year.
In the aftermath of the tragic events of September 11, business and government are taking a much harder look at ways to improve the security of the nation's transportation system. A group of Class I railroads has already met to discuss a series of security measures. Any efforts undertaken by Class I railroads will also need to be addressed by regional and short line railroad systems. The costs of augmenting manpower at critical points along the system can be extremely prohibitive to many small and medium-sized operations.
The September 11 disaster has already escalated insurance costs in most sectors. Several railroads have been warned that their risks and their rates will be re-evaluated. Some railroads may not even qualify for any affordable insurance coverage. It is conceivable that railroads receiving funding for infrastructure projects will be forced to spend an equivalent amount in additional security and insurance costs in coming years. An addendum provides an overview of current insurance conditions, as it relates to the railroad industry.
There is no doubt that investment in the nation's railroad infrastructure is warranted. The American Short Line and Regional Railroad Association (ASLRRA) recently surveyed members nationwide and reported that the nation's short line and regional railroads could invest $1.2 billion in infrastructure upgrades in the next six months if the financial resources were available. KSRRA's findings in Pennsylvania certainly bear this out. The most modest forecasts for the movement of freight by the Federal Highway Administration (FHWA) indicate that increases of up to 70% can be expected in the Northeast over the next ten years. A fraction of this type of growth would severely congest the national transportation network unless investments are made today. Railroads remain the safest and most viable mode for transporting hazardous materials, coal, industrial raw materials and large quantities of goods. It is clear that an investment in an improved rail infrastructure is an investment in the country's economic future.
The funding of railroad infrastructure projects also creates powerful economic stimuli as more than 650 new construction and maintenance jobs could be directly created if the attached projects were funded. This does not include the hundreds of additional jobs that would need to be added by railroad tie manufacturers, steel rail manufacturers, the stone industry and other additional suppliers. Typically, a multiplier of four is applied to measure the overall economic impact. These infrastructure projects would also be of tremendous benefit to the nation's steel industry since new rail would be purchased from domestic steel sources, as required in most government funded projects. Pennsylvania railroads responding to this survey have painted a compelling picture for investment in rail infrastructure.
Attached is a detailed listing of projects that Pennsylvania railroads are prepared to undertake, as well as an addendum pertaining to railroad security.
* * * * *
Any economic stimulus package should include expenditures that will initiate further economic activity and that will produce a long-term economic benefit. Any such stimulus must be timely and result in meaningful product development rather than merely being an additional burden on future government spending patterns.
Many transportation authorities have continually pointed to the dramatic need to invest in our major transportation infrastructure. These improvements in most cases are already part of the strategic transportation plan. The projects, which we have analyzed and produced for your consideration, have already been engineered and prioritized by the respective railroad companies. These projects can be initiated with very short notice and the economic stimulus will be immediate. The additional employment will be needed immediately.
From a national security perspective, railroads are one of the best ways to produce a more secure system for transporting dangerous or hazardous products. By further improving the infrastructure, the overall railroad operating system can become even safer and more difficult to disrupt by any terrorist group. These needed changes and the additional security measures will add substantial costs to industry operations but the changes and improvements are long lasting and a fraction of the cost incurred in other areas.
Transportation is the centerpiece of industrial production and energy generation. Railroads transport more than 60% of coal used by generating facilities and some 70% of motor vehicles from the factory to a regional distribution facility. Some 30,000 miles of the railroad network is part of the strategic national defense corridor system. The regional and short line railroads are the feeders and supporting players in this overall transportation network. The network is only as strong as its weakest link. Therefore, the $280 million of projects for Pennsylvania short line and regional railroads is an absolute priority in any national economic stimulus package.
____
Facts in Support of Proposed Specter-Santorum Amendment
general points
The amendment would provide $350 million in track rehabilitation funds for short line railroads. It would be distributed based on the criteria established in S. 1220, pending legislation that would authorize this expenditure. This legislation was moving quickly through the process prior to September 11th. It was passed unanimously by the House T&I Committee and awaiting floor action. It has strong bipartisan support in the Senate including sponsorship by the Chairman and Ranking Member of the Senate authorizing subcommittee of jurisdiction. It is supported by the Class I railroads and by rail labor.
There are over 500 Class II and III railroads that together operate approximately 50,000 miles of track, or just under one third of America's railroad route mileage, and employing approximately 25,000 people.
The short line industry keeps the less populated areas of the country connected to the national railroad main line network. It does so over track that was very marginal in the Class I system because it never generated enough traffic to justify sufficient investment. With a lower cost structure and more flexible service, short line companies that purchased the track have been able to keep these lines going. However, the revenue is still not high enough to make up for past years of neglect.
Today, two factors have combined to bring this situation to a head. First, the advent of the heavier 286,000-pound cars that are becoming the standard of the Class I industry require substantially higher investment in the track. Second, as the Class I's put a greater premium on speed and precisely scheduled operations, the short line railroads must meet these higher standards or be cut off from the national system.
Transportation is at the heart of industrial production and energy generation. Railroads transport more than 60% of coal used by generating facilities and are a major mover of automobiles, industrial chemicals and mining products. The short line and regional railroads are the feeders and supporting players in this transportation network and the network is only as strong as its weakest link.
points related to the stimulus package and security
Money spent on railroad capital programs can be spent immediately. Replacing rails and ties and rebuilding equipment is an on-going process for railroads. The engineering and planning were done long ago. Unlike highways, railroads control their rights-of-way and the timing of their traffic. To double or triple the number of rails and ties installed requires virtually no lead-time. The short lines national association surveyed its entire membership following September 11th and found that the short line industry could spend over $400 million on infrastructure improvements in the next three months and over $1.2 billion in the next six months. Over 6,000 workers would be directly employed for the three month period and nearly 9,500 workers would be directly employed for the six-month period. These jobs would be in addition to the railroad's in-house work forces and would not include additional workers in the tie and rail supply industry.
A large portion of this investment involves the purchase of rail and in testimony before the Senate Commerce Committee on November 1 the short line association president indicated that the short lines have agreed they will purchase only US made rail with this money.
One of the recommendations being made by security experts in the wake of September 11th is that we find ways to transport hazardous materials around heavily populated areas. The nation's short line railroads offer a ready-made transportation network that bypasses our nation's most heavily populated areas. Today, 20 percent of all short line customers ship hazardous materials.
Keeping America's light density railroad lines connected to the national railroad system is important under any circumstances. Today it is even more important. The events of September 11th have caused major disruptions in all our transportation systems. As we sit here today, the federal government is determining how to best inspect truck cargo and is surveying all of America's railroads to determine the location of critical infrastructure assets such as bridges and tunnels and how and where we move hazardous materials near large population centers. Today, America's entire transportation infrastructure is under duress and we should be concerned that America's entire transportation infrastructure is up to the task.
September 11th has already escalated insurance costs in many sectors. Several railroads have been warned that their risks and their rates will be re-evaluated. Some railroads may not even qualify for affordable insurance coverage. As small railroads are hit with higher and higher insurance costs, they will have less and less to invest in needed rehabilitation.
points related to pennsylvania
Sixty percent of Pennsylvania's short line and regional railroad infrastructure is in need of extensive rehabilitation, including more than 170 bridges. Over 300 rail crossings require significant rehabilitation. Excluding the Bessemer & Lake Erie and Delaware & Hudson railroads, both of which have heavy load infrastructures, almost one third of Pennsylvania's short lines and regionals cannot effectively handle the heavier 286,000-pound cars that are becoming the new standard in the industry.
A recent survey of the state's short lines indicate that infrastructure needs total some $280 million, and over 40% of those projects could be initiated in the immediate future.
More than 540,000 carloads of hazardous materials cross Pennsylvania's rail system each year.
The most modest forecasts for the movement of freight by the Federal Highway Administration indicate that increases of up to 70% can be expected in the Northeast over the next ten years. This growth will severely congest the national transportation network unless investments are made today. Railroads remain the safest and most viable mode for transporting hazardous materials, coal, industrial raw materials and bulk commodities. Investment in rail infrastructure is an investment in the country's economic future.
____
amendment no.--
(Purpose: To provide additional funding for capital grants for rehabilitation, preservation, or improvement of railroad track of class
II and class III railroads)
At the appropriate place, insert the following:
Sec. . There is appropriated to the Department of Transportation for the Federal Railroad Administration for fiscal year 2002, out of any funds in the Treasury not otherwise appropriated, $350,000,000 for capital grants to be made by the Secretary of Transportation for rehabilitation, preservation, or improvement of railroad track (including roadbed, bridges, and related track structures) of class II and class III railroads. Funds appropriated by the preceding sentence shall remain available until expended.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. We are recessing at 2 p.m. Has the Senator completed his statement?
Mr. SPECTER. I have. I thank the Chair and yield the floor.
Mr. REID. Mr. President, I ask unanimous consent that at 4 p.m. Senator Byrd be recognized to speak in morning business.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
