I81 Crescent Corridor and Related Projects

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I-81 Crescent Corridor and Related Projects

• SCORT Conference
• Biloxi, Mississippi
• October 16, 2007
• Bill Schafer
• Director Strategic Planning
• Norfolk, Virginia

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Development of Strategic Corridors
Boston
Buffalo
Chicago
New Jersey
Harrisburg
Philadelphia
Columbus
Cincinnati
Kansas City
Norfolk
Charlotte
Memphis
Atlanta
Dallas
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I-81 Crescent Corridor Highlights

• What it is
• Who the partners must be
• How it will work
• Where it will go
• What it will take
• Why public investment makes sense
• Updates
• Meridian Speedway
• Heartland Corridor

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What the Crescent Corridor Is

• Market-based initiative to absorb some truck
  traffic from parallel I-highways
• Regional network of rail intermodal trains
  offering high level of service
• Public-Private Partnership
• A down payment, a first step

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Who the Partners Must Be

• Federal
• Project of national scope, significance and
  priority
• National benefits as well as regional and local
  benefits
• Primary public sponsor in next transportation
  bill
• States
• Help with local projects
• Get the Crescent Corridor on the radar
• Major trucking companies

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How It Will Work

• Network
• About 3000 miles
• Complementary routes
• Parallel to major I-highways
• 28 additional daily trains
• Domestic freight
• Originating and terminating in North America
• Not intended to serve ports
• Premium service
• Higher average speeds
• Higher reliability
• Competitive with single-driver transit times

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Potential

• Long haul intermodal services are largely
  undeveloped (unlike NY-Chicago)
• Significant highway congestion already exists
• Over 1 million divertible truckloads are possible
  after full ramp-up (6 years )
• Motor carriers want high-quality rail services

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Meridian Speedway
I-81 Crescent Corridor
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Population is Concentrated in Mega-Regions
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Population is Concentrated in Mega-Regions
Meridian Speedway
I-81 Crescent Corridor
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I-81 Crescent CorridorRoute Improvements
Chicago
North Jersey
Harrisburg
Columbus
Philadelphia
Manassas
Cincinnati
Lynchburg
Knoxville
Charlotte
Memphis
Atlanta
Primary Route Improvement Areas
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What It Will Take

• Concentrated investment
• Meridian-Atlanta
• Memphis-Roanoke
• Manassas-Harrisburg-North Jersey
• Upgrades
• Better Track Speeds
• More Sidings and Second Main Tracks
• Improved Signaling
• New and Expanded Terminals

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I-81 Crescent Corridor Targeted and Existing
Terminals
Buffalo
Allentown
Chicago
North Jersey
Harrisburg
Philadelphia
Columbus
Cincinnati
Kansas City
Charlotte
Memphis
Atlanta
Dallas
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Why Public Investment Makes Sense

• Safety
• Highway congestion mitigation
• Reduced highway maintenance and expansion
• Smaller environmental footprint
• Fewer emissions
• More efficient land use
• Less fuel consumption
• Lower impact on historic and cultural assets
• Economic development

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I-81 Crescent Corridor Summary

• Market-based initiative
• Public-Private Partnership
• Premium rail intermodal service
• Domestic freight
• Extensive network
• Six year ramp-up
• Credible public benefits

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Other Norfolk Southern Activities
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Development of Strategic Corridors
Boston
Buffalo
Chicago
New Jersey
Harrisburg
Philadelphia
Columbus
Cincinnati
Kansas City
Norfolk
Charlotte
Memphis
Atlanta
Dallas
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Heartland Corridor

• Prompted by growth at Port of Hampton Roads
• International freight
• New Maersk terminal
• Creates new doublestack clearance route
• Via most direct route to Midwest
• Virginia equivalent of Pennsylvania clearance
  project
• Reduces mileage, speeds up service

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Heartland Corridor Route

• Next Day Service to Columbus
• Reduce Transit to Chicago by 1 Day
• Will Shave over 200 Route Miles Off Each
  Container Move to Chicago
• Greater Efficiencies
• High Speed Double Stack

Current DS Route
Secondary DS Route
Current Single Stack Route
Port-Heartland High Speed Doublestack Corridor
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Goal Raise Clearances to Accommodate All Tall
Cars
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Project Scope

• 28 Tunnels
• 30,000 feet to be cleared
• Virginia, West Virginia and Kentucky
• 24 Overhead Obstructions
• Bracing modifications
• Fencing modifications
• Overhead wire relocation
• Miscellaneous signal work
• West Virginia and Ohio

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Tunnels to be Modified
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Estimated Cost 151 Million

• SAFETEA-LU funds 95 million authorized
• Virginia Rail Enhancement Fund grant
• 9.75 Million
• Covers 70 of Virginia project costs not favored
  with federal funds
• Ohio Rail Development Commission grant
• 836,355
• Covers 90 of Ohio project costs
• Norfolk Southern balance (55-60 million)

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Status

• Work begun on first projects bridges
• Tunnel work begins in fall 2007
• 10 hour work windows
• Trains rescheduled or rerouted
• Notching, lowering, relining, realigning or
  daylighting
• Completion - 2010

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Meridian Speedway

• Meridian-Dallas via Kansas City Southern Railway
• NS-KCS haulage agreement since 2000
• Joint venture announced December 2005

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Joint Venture Outline

• KCS contributing Meridian-Shreveport line to
  joint venture
• 320 route miles
• KCS retains 70 interest
• NS contributing 300 million
• NS obtains 30 interest
• 260 million for capacity improvements over four
  years
• Sole provider of intermodal services
• Connection in Shreveport with Union Pacific

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Additional Features

• KCS and NS jointly market Dallas intermodal
  traffic
• KCS operates and maintains line
• Serves local customers
• Provides haulage services for NS
• No public money involved not a PPP

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Business Rationale

• Shortest route LA-Atlanta
• Dallas is important intermodal market
• More capacity needed in corridor
• Significant growth potential higher than average

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Manassas-Front Royal

• First Crescent Corridor project now underway
• 51-mile route segment
• Major choke point

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Manassas-Front Royal Projects
FY 2008 Add 11,000 Sidings
or Double Track Install Traffic Control
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Capacity Expansion

• Five double track or siding projects
• Longer sidings Manassas-Riverton
• Double track in vicinity of Virginia Inland Port
• Traffic control system
• More reliable train operations
• Benefits to VRE Haymarket extension

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Public-Private Partnership

• Commonwealth of Virginia-Norfolk Southern
• 40-45 million from legislature
• Authorized by Commonwealth Transportation Board
  for FY 2008
• Essential for I-81 Crescent Corridor project
• Beneficial to Virginia Inland Port and VRE

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Thank You