The Resurgence of Shortline Railroading in Northern
New England
In
the last 20 years vehicle-miles-of-travel by trucks and passenger trucks
grew by 72% while road-lane-miles grew by one percent. (FWHA Data)
The
13 States in the Mid-Atlantic region account for about a quarter of
the nation's population and jobs. Half the trucks on the interstates
and almost all of the rail freight originates or terminates outside
the region. Trucks represent 10-20% of all vehicles on I-95, averaging
more than 10,000 units a day. (Mid-Atlantic Rail Operations Study)
Since
1980 New Hampshire rail mileage has decreased by 15% while total rail
freight tonnage is up 25% just in the last eight years. (New Hampshire
Rail Plan)
Northern
New England has four north-south Interstate highways: I-95 along the
coast of Maine and New Hampshire, I-93 through the middle of New Hampshire,
I-91 along the Connecticut River, and I-89 running diagonally between
Boston and Burlington, VT. So any westbound trucks must go south to
the Mass Turnpike (I-90) at either Boston or Springfield.
Believe me, the congestion can be fierce.
There
are no Class I railroads in northern New England. However, there are
five regional railroads and ten shortlines, all but one created over
the last 20 years as the Class I railroad scene as evolved. The one
New England railroad constant over that period is the Guilford System
(GRS), still operating the former Boston & Maine and Maine Central
Railroads, and the only single line haul railroad reaching from northern
New England to west of the Hudson River.
And
business is booming, says David Fink, Executive Vice President. "Just
look at the volumes on the Chicago-Waterville [Maine] service we run
with NS and our carload business in general." This is good news because
almost every New England shortline or regional has at least one GRS
interchange. Moreover, as highway
congestion increases (the Mid-Atlantic study projects total freight
tonnage could grow by 80% by 2020), the only alternative is a healthy
and dependable rail network. The tools are at hand.
The other four regionals are the St. Lawrence
& Atlantic (SLR, Genesee & Wyoming), the New England Central
(NEC, Rail America), the Montreal Maine & Atlantic (MMA, Rail World)
and the Vermont Railway System (VRS, independent).
The 260-mile long St Lawrence & Atlantic (www.gwrr.com) is the former CN line between Portland
and Montreal. It is unique in that it is the only northern New England
double-stack container service, complemented by domestic trailer service
to both local and international customers. Moreover, the Auburn (ME)
terminal, sitting astride I-95, is augmented by the extensive (1,500
cars per year) transload facility operated by Safe Handling, Inc.
SLR General Manager Charles Hunter says SLR handles
about 28,000 carloads a year plus 40, 000 containers and trailers annually.
The big international container customers ZIM, and APL from Vancouver
and Halifax. Trailer users include Hub Cities and the local paper companies,
all looking for the now-standard 53-foot unit.
To handle all this Hunter currently runs seven crew-starts
a day in the US plus three in Canada. They've standardized on vanilla
GP-40s, getting more miles out of fewer units, driving mean time between
failures (something all shortlines ought to measure though few do) down
to about 1,000 hours.
Track maintenance runs more than $10,000 per mile per
year between capitalized and expensed items, twice the shortline average.
However, says Hunter, there's a lot of worn rail (mostly 100-lb. RE),
especially on curves and bridges, pushing track costs up. It's all stick
rail, too, with no CWR. They're getting some roadway help from Quebec,
though support in Maine is limited to industrial development (more on
that anon).
The Montreal Maine & Atlantic is the newest rail
operator in New England, having purchased the former Iron Road lines
in January, 2003. Predecessor lines include the former CP lines into
Maine and Vermont and the Bangor & Aroostook. MMA operates east
to Brownsville Jct ME from St Jean PQ while the Irving Group's Eastern
Maine and New Brunswick Southern railroads provide haulage to and from
St. John, NB.
The MMA start-up was marred by the sudden closure of
its biggest paper plant, Great Northern in Millinocket. Happily, through
the cooperative of the new mill owners and the Governor of Maine, output
is now on track to be fully restored by mid-2004. Meanwhile, says Marketing
VP Bill Schauer, they're building back the business by calling on former
customers and working with them to regain their
former customers.
The service design plan calls for second-morning
delivery to the CP in Montreal from a 2 PM pull in Presque Isle. That's
500 miles and three trains with the longest dwell just 15 hours. Track
speed is 40 MPH, tops, so they have to hustle. There's also a marketing
agreement with VRS so that MMA customers can reach beyond New England
via NS and CSX. As a result MMA will be shortly be back at the 60,000
annual carloads originally budgeted.
MMA has opted for an all-GE fleet, running
sixteen B-39-8s and fourteen C30-7s, based on prove, availability, and
track record on other RailWorld properties. Track expenditures call
for a run-rate of $6.5 mm a year, both capital end expense. Like SLR,
it's a heavy hit, due mainly to deferred maintenance and worn rail.
The good news is it's mostly 286-compatible 100- and 110-lb rail. And
being frozen six months a year ties last 40 years.
NEC (www.railamerica.com) handles 38,000
cars a year on its 343 total route miles, of which 215 miles are in
Vermont and 20 in New Hampshire. And just as GRS is the east-west link
for northern New England shortlines, so NEC provides the southern gateway
with CSX (former Boston & Albany) at Palmer, MA.
Moreover, NEC is heavily involved in the
rail-truck transfer business with two on-line facilities in Vermont
alone. Jack Dail, VP Marketing, tells me, "Our 200,000 sq. ft White
River Junction facility is less than 150 Interstate miles from three
major metro areas and four major grocery chain DCs. Service frequency
allows daily switching and hi-cube cars work fine."
Track is FRA class 3 or better, with Amtrak's
St Albans-NY service running daily. NEC
interchanges daily with CN at East Alburg VT and five or six
times per week with CSX. A reciprocal agreement with VRS gets NEC to
CP and NS through the "Green Mountain Gateway" between Bellows Falls,
VT and Whitehall, NY.
The Vermont Rail System (www.vermontrailway.com) is an affiliation of four Vermont-based shortlines
-- the Vermont Railway, the Green Mountain Railroad, the Clarendon &
Pittsford Railroad, and the Washington County Railroad. As noted above,
most of the track is owned and maintained by the state of Vermont. VRA
also hosts Amtrak's Ethan Allen Express between Whitehall and Rutland.
VRS handles about 34,000 carloads a year, however its
main claim to fame is its intermodal business. In business for more
than 35 years, Vermont Intermodal has carved a lucrative niche in the
trailer trade, of all places. This makes sense because truckers in
domestic lanes want 53-foot trailers, not the 45s most railroads were
marketing. And the 53-footer is a major part of the Vermont Intermodal
fleet in lanes reaching literally from Maine to Miami.
Further, intermodal growth nation-wide since
1996 has been largely international, up 5.7% per year, while domestic
trailer traffic barely budged at 1.7% per year, partly because truckload
shippers want 53-foot trailers, not a mish-mash of containers. On the
other hand VTR's New England Service, now including a link with MMA's
Presque Isle terminal, is all about simplicity. All you need is a few
acres, a Packer, and a bobtail. States have been known to pitch in with
CMAQ funding to assist in the acquisition of same.
To
my mind northern New England's railroads are unique in their cooperative
spirit. Says Eric Moffett, VP Intermodal for VRS, there's a strong sense
of "we're all in this together" and there is no room for turf wars.
That's why one sees marketing agreements that extend single-line hauls
from Bangor to the deep south and the midwest over as many as four different
carriers.
A
second unique aspect of shortline railroading in Northern New England
takes the form of state support. Maine, New Hampshire and Vermont have,
in the last ten years committed tens of millions of dollars in direct
support of shortline operations. The lessons learned here are lessons
to be learned in every region of the country.
In
Maine, the Office of Freight Transportation's Allan Bartlett says, "DOT
plays a role primarily in the funding and development of transportation
infrastructure. We interviewed
many businesses, large and small, while writing the Integrated Freight
Plan (www.state.me.us/mdot/freight) and we found that business generally wants
rail transportation to be customer focused."
The
state has more than 1,100 miles of track, of which it owns 300 miles.
The core rail service is provided by GRS, the SLR, and the MMA. Working
through what Maine calls its "Three Rail Carrier Strategy,"
MDOT and these carriers develop state rail projects, with the state
evenly splitting the cost of capital improvement projects with them.
There
are in addition two smaller shortline operators - Safe Handling, and
the Belfast & Moosehead Lake - that operate the lines owned by MDOT.
Safe Handling operates the former MEC Brunswick-Augusta "Lower
Road" and the former MEC Rockland Branch. Safe Handling opted not to
renew its lease in September 2003 and both segments are out for bid.
As of early July the B&ML had just been sold and the new owner's
focus appears to be more toward tourism than freight.
Maine also
has its Industrial Rail Access Program that provides a maximum of 50%
of estimated project costs. Recent projects include half a million dollars
each for two paper-related industry track improvements, more than $250,000
for a team track and a food-related industry, and $343,000 to expand
a multi-use rail-truck transfer facility.
Over
in New Hampshire, the State Rail Plan (www.state.nh.us/dot/public.htm)
correctly reminds the reader of the FRA's mandate that each state have
a current Rail Plan to be eligible for federal funding. Of the more
than 400 miles of active railroad in NH the state owns about half spread
among four freight railroad operators. The state also owns another 300
miles now rail-banked for interim trail use. Federal funding has been
a key element of the program.
It
is instructive to note that since 1980 New Hampshire rail mileage is
down by 15% yet total rail freight tonnage is up 25% just in the last
eight years. Of the 8.2 million tons of rail freight handled in 1999,
for example, well over half was forest products and aggregates, high-density
commodities not well-suited to a what is essentially a two-lane highway
network in much of the state. Still,
about a quarter of the tonnage on NH rails either originates or terminates
in-state.
One
of the best friends shortlines have in New Hampshire is Ray Burton,
Executive Councilor for District No. 1. We met back in June in his Haverhill
office, literally on the old Boston, Concord & Montreal right-of-way.
Burton acknowledges that tourism has displaced much of the industry
in the local Woodsville area, however there are rumblings of some rebirth.
And his efforts in keeping rail lines intact is about to pay off.
Just
north of Woodsville is the former Gilman Paper mill that shut down back
in 1999. The plant has been purchased by Dirigo paper of Boston with
plans to reopen early in the fourth quarter of 2003. Initial traffic
estimates range between 800 and 1,500 cars a year, traffic that could
not move rail were it not for New Hampshire's purchase of the serving
rail infrastructure. Whether the mill ever would have been reopened
without rail is doubtful.
New
Hampshire has five locally-based shortline operators (tourist rails
excluded). The New Hampshire Central (NHCR) is the northernmost, handling
chiefly aggregates and - shortly - Dirigo's paper, connecting with the
SLR in Groveton. New Hampshire Northcoast (NHN) is a wholly-owned subsidiary
of Boston Sand & Gravel, operates in the southwest quadrant of NH,
and links up with GRS north of Portland. New England Southern (NEGS)
handles a mixed bag of commodities from anhydrous ammonia fertilizer
to lumber, connecting with Guilford in Manchester.
Finally,
the Claremont-Concord (CCRR) operates a cement transload on state rail property in West
Lebanon, connecting with the NEC at Concord Jct. And the Milford- Bennington
(MBRX) runs several stone trains a day to the B&M connection at
Milford. . Kit Morgan, head of the NH DOT Rail Division, notes that
that the quarry MBRX serves would not be allowed to operate without
rail access, due to local restrictions on heavy trucking.
The
New Hampshire shortlines are fortunate in that the state's financial
support has run the gamut from line purchases to locomotive leases.
Since 1991 the program has generated some $10.6 million in operating
and infrastructure financial aid with slightly more than a third coming
from the feds. However, the
2001 Rail Plan cautions that "there are no longer
any public grant programs dedicated to freight rail" at the state or
fed level. Note the caveat does not include loans or the RRIF program
of the FRA.
Vermont's
Agency of Transportation (www.aot.state.vt.us/rail) owns nearly 400 miles of railroad out
of the nearly 800 total rail miles in the state. About 250 of the state-owned
miles are operated by shortlines with balance rail-banked as trails.
The website says it all, recognizing "the social, economic, and environmental
importance of rail service as a component of the state's transportation
system."
Among
Vermont Railroad operators, The VRS is the largest, running over the
former Rutland connecting Burlington with Bellows Falls, Bennington
and Whitehall NY. VRS also, through its Washington County Railroad (WACR)
subsidiary, operates the former CP and B&M lines north of White
River Jct to the MMA connection
at Newport. The New England Central is next, covering some 215 miles
between the Mass and Quebec borders.
The
SLR cuts the extreme northeast corner of the state and the MMA dips
into Newport from Brookport, PQ, making Vermont the only state touched
by all four of the core regionals. Oddly enough, the only GRS property
left in Vermont is the Twin States Railroad (TSRR), serving the Dirigo
Paper facility, and that's under an operating lease with a Florida-based
shortline operator.
State
financial support is critical. For example, VAOT is helping VRS run
the River Line (WACR) to the tune of $300,000 a year for the next five
years. The Amtrak contract with NECR is several times that counting
both state and federal funds. And VAOT strives to maintain all its owned
lines to FRA class 3 standards at least. The benefit comes in the shortline
and regional railroad marketing alliances forged with regional and national
connections. As a result, rail shippers in Vermont have single-line
hauls to points on GRS, CN, CP, CSX, and NS.
So
the pieces are all there: a growing traffic base, state governments
that believe in railroads, and rail operators who are more serious about
growing the business than protecting their respective turfs. And if
can be done in the hardscrabble climes of northern New England, it can
be done anywhere. What are we waiting for?
Note: This text is what was actually submitted for
publication. The article that actually ran was somewhat shortened due
to space limitations. My apologies to the many who generously allowed
me to quote them but whose names did not appear in the article as printed.
-- RHB