Freight Rail in Georgia Creating Jobs Moving Georgia

Freight Rail in Georgia Creating Jobs Moving Georgia Forward GRA Website

Safety is Priority #1

Freight Railroads Provide Big Public Benefits

Investing for the Future

Freight Rail in Georgia…by the numbers Ø 25 Freight Railroads Ø 2 Class I Railroads: Norfolk Southern and CSX Ø 23 Class III Railroads: “Short Lines” Ø 4, 700 miles of Main Line Track ØMost in Southeast, 7 th highest overall ØNearly 900 Freight Stations in Georgia, 30% served by Short Lines Ø 189 million tons of freight moved by rail in Georgia Ø 7, 500 Georgians directly employed ØAverage annual railroad wages and benefits are $104, 530

Class I Railroads in Georgia Norfolk Southern § § § § 1, 800 + route miles operated 4, 000+ employees $300, 000 + payroll Major terminals in Atlanta, Austell, Macon, Savannah, Augusta, Columbus, Valdosta, Albany Serves Ports of Savannah and Brunswick Corporate Operating HQ in Midtown Corporate Training Center in Mc. Donough CSX § § 1, 600 + route miles operated § Serves Ports of Savannah and Brunswick § Corporate Training Center in Atlanta 3, 000+ employees $225, 000 + payroll Major terminals in Atlanta, Fairburn, Savannah, Augusta, Waycross

Short Line Railroads in Georgia • • • 23 Short Line Railroads in Georgia • • Provide local rail service to customers that otherwise would not have a rail option State of Georgia owns approximately over 500 route miles, operated under leases Utilize same equipment as Class I’s Comply with same laws and regulations as Class I’s Small businesses operating mostly in rural parts of the State Operate on lighter density lines, at slower speeds, with lower freight volumes, lower revenue, and much smaller system size Many have deferred maintenance to track and bridges that need to be addressed to maintain rail service to the customers and communities on those routes

9 Intermodal Terminals in Georgia ØCSX: 3 ØHulsey Yard and Fairburn Yard, Metro Atlanta ØSavannah Yard ØNS: 3 ØInman Yard and Austell, Metro Atlanta ØDillard Yard, Savannah ØGPA: 2 ØMason ICTF (NS) ØChatham ICTF (CSX) ØCordele Intermodal Services (HOG)

Freight Rail Infrastructure Funding Issues • Establish the State of Georgia as agent for Railroad Rehabilitation & Improvement Financing (RRIF). • Increase state investments in public/private partnerships and state owned facilities.

. Railroad Rehabilitation & Improvement Financing (RRIF) • The RRIF program authorizes FRA Administrator to provide direct loans and loan guarantees up to $35. 0 billion to finance development of railroad infrastructure. • The funding may be used to develop, acquire, or improve intermodal or rail equipment or facilities. • Direct loans can fund up to 100% of a railroad project with repayment periods of up to 35 years at low interest rates.

RRIF (cont. ) • • Eligible borrowers include railroads, state and local governments, government-sponsored authorities and corporations. Because of the burdens of the application process, only $138 million in loans agreements were actually completed in 2012. Stakeholders in the Rail Plan process are proposing to have the state act as the applicant and administer the loans through an eligible department or authority. This is an excellent opportunity for the state to help provide more infrastructure dollars without the need for a tax increase.

State Participation in Freight Railroad Facilities Enhancement • Use state bonding power to provide funds for infrastructure improvement. • Invest in public private partnerships that enhance freight rail service. Examples include: • • • NS projects in Wayne and Wilkinson Counties Invest in necessary maintenance and repair of state owned lines. Examples include • • Heart of Georgia Northeastern GDOT has approximately $25 Million in projects identifies and ready to be included in a bond package.

Conclusion • Freight Rail provides significant economic benefits to the state in a safe and environmentally friendly manner. • Freight Rail invest significant amounts of capital in transportation infrastructure. • There are creative and common sense opportunities for the state to facilitate and provide additional capital to Freight Rail for transportation infrastructure.