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Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors (2010)

Chapter: Chapter 1 - Introduction, Background, and Purpose

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Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
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Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
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Page 2
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Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
×
Page 3
Page 4
Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
×
Page 4
Page 5
Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
×
Page 5
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Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
×
Page 6
Page 7
Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
×
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Page 8
Suggested Citation:"Chapter 1 - Introduction, Background, and Purpose." National Academies of Sciences, Engineering, and Medicine. 2010. Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors. Washington, DC: The National Academies Press. doi: 10.17226/14376.
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1.1 Introduction The past decade has seen substantial growth in the U.S. passenger rail usage. Over the 10 years from 1999 to 2008, trips on commuter rail systems increased by 29 percent and Amtrak inter- city trips grew by 33 percent. New and expanded commuter and corridor-type intercity services have been introduced in several regions. At the same time, rail freight revenue ton-miles grew by 25 percent. Both passenger and freight growth have been driven by increasing fuel prices, high- way and airport congestion, environmental concerns, and an increasing emphasis on multi- modal planning in recent transportation legislation. Although the recession in 2008 and 2009 sharply reduced freight traffic and flattened passenger travel, this growth is likely to continue and accelerate as the economy recovers. Continuing substantial growth in rail passenger service is expected as a result of legislation in late 2008 and early 2009. The Passenger Rail Investment and Improvement Act (PRIIA) of 2008 and the American Recovery and Reinvestment Act (ARRA) of 2009 established new programs and procedures for funding and grant awards for intercity pas- senger rail investments, supported by substantial funding for intercity passenger rail projects. ARRA also provided substantial additional funds for the Federal Transit Administration (FTA) New Starts program, which supports many commuter rail developments, and mode-flexible transportation funds to state departments of transportation (DOTs). Almost all passenger rail initiatives envision implementing new or expanded service on exist- ing freight and passenger rail corridors and track. However, the steady growth of rail traffic, espe- cially freight traffic, has led to localized railroad capacity problems and the potential for more severe capacity constraints in the future. Growth in passenger ridership has resulted in similar capacity constraints on some commuter networks. Many rail freight corridors proposed for new passenger service have not seen passenger service for decades and have been optimized for freight operation. Even proposals for true high-speed rail, such as that developed by the California High Speed Rail Authority, plan to share existing rail corridors for portions of the route. The combination of ongoing growth of existing freight and passenger services and rising demand for new service has created a difficult negotiating environment for passenger rail inter- ests seeking access to existing rail lines, especially those owned by freight railroads. Freight rail- roads are often reluctant to commit capacity to a new passenger service that may be needed for their own services in the future and are finding it difficult to meet the passenger service perfor- mance requirements, such as short journey times and acceptable on-time performance (OTP). A further result of the expansion of passenger rail initiatives is that many more local, state, and regional transportation agencies, their staffs and consultants, and other stakeholders are becom- ing involved in passenger rail matters. Many of these organizations and individuals are unfamil- iar with the railroad industry and the issues that confront officials implementing and operating successful passenger rail services. This Guidebook had been developed to help these officials and 1 C H A P T E R 1 Introduction, Background, and Purpose

stakeholders, whether experienced or not, to overcome the barriers and successfully implement new or expanded passenger rail service on shared passenger and freight corridors. In summary, a Guidebook is needed because of: • Continuing and growing interest in implementing new passenger rail services (both com- muter and intercity) on existing rail corridors, most of which are currently in use for freight service. • Frequent delays and difficult negotiations with host railroads encountered by agencies seek- ing to implement service and maintain service quality and performance. • A lack of readily available information for agencies and staff who are unfamiliar with the rail- road industry. This Guidebook will assist these officials and other stakeholders in navigating the complex processes involved in implementing new or expanded passenger rail services on shared corri- dors. Note that this Guidebook is not a complete guide to implementing and operating a com- muter or intercity passenger rail service, but rather concentrates on establishing mutually acceptable contracts and working relationships where the passenger service shares the corridor with other rail service providers. This Guidebook has been developed under the auspices of NCHRP Project 8-64, “A Guidebook on Improved Principles, Processes, and Methods for Shared-Use Passenger and Freight-Rail Corridors.” As many users will be aware, this Guidebook is being published in a period of rapid change in laws, regulations, and procedures applicable to passenger rail initiatives. PRIIA and ARRA tasked the United States Department of Transportation (U.S.DOT), Federal Railroad Administration (FRA), Surface Transportation Board (STB), and Amtrak with taking a variety of actions relat- ing to passenger rail service—many of which will have a bearing on material presented in this Guidebook, but are yet to be completed. In addition, the Railroad Safety Improvement Act (RSIA), passed in a legislative package with PRIIA, mandated changes in safety regulations that will impact passenger rail developments. Implementation of RSIA requirements is also in progress. In spite of this fluid situation, NCHRP has determined that the interests of stakehold- ers, many of whom are actively involved in ongoing passenger rail projects, are best served by early publication of this Guidebook, indicating where content is likely to be affected by ongoing activities by federal agencies and Amtrak. Consideration is being given to preparation of an addi- tional guidebook volume or supplementary report at a later date, which will update this Guide- book and provide more detail in selected areas. 1.2 Background and Present Situation 1.2.1 Historical Background The present day structure of the U.S. passenger and freight railroad industry and accompany- ing legal and institutional arrangements have evolved over the past 50 years. Existing intercity and commuter rail agencies were established in their present form at different points in time over this period, in response to local and national circumstances in the rail industry. An understand- ing of the history and how it has led to the current situation will help passenger authorities develop realistic plans for new services and conduct effective track-sharing negotiations with other railroad operators whose actions and attitudes have been influenced by this history. A sum- mary is provided in the following paragraphs. More comprehensive descriptions are provided in the appendices. Prior to 1960, the major railroads directly provided freight and all types of passenger services and were required by Interstate Commerce Commission (ICC) regulation to maintain these 2 Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors

services for the public. By the start of the 1960s, growing competition from air and highway modes and regulatory and institutional rigidity led to the rapidly worsening financial condition of the rail industry. This financial condition led to deteriorating service, service abandonments, and bankruptcies. Out of necessity, state and federal agencies were drawn into supporting pas- senger rail services. Initially, public agencies became active in supporting essential commuter rail services in major metropolitan areas, aided by limited funding from the newly established Urban Mass Transit Administration (UMTA, later FTA) after 1965. The trigger for more far-reaching change came in 1970, when the Penn Central Railroad, which dominated rail service in the northeast United States, declared bankruptcy. Penn Central’s dire financial condition, compounded by badly deteriorated physical condition and chaotic operations threatened passenger and freight service over a large area of the United States. All other significant northeastern railroads also fell into bankruptcy at around the same time. Over the next decade, Congress responded with a series of major legislative actions and funding ini- tiatives designed to preserve rail freight service in the Northeast and, ultimately, place it on a self- supporting basis in the private sector. At the same time, this legislation shifted responsibility for passenger service, both intercity and commuter, to the public sector, including transfer of ownership of the principal commuter rail networks and the Northeast Corridor (NEC) to pub- licly funded entities. The purpose of shifting passenger service away from the freight carriers was twofold: (1) to take the financial burden of money-losing passenger carriage off the freight rail- roads and (2) to preserve passenger service. Although the crisis originated in the Northeast, the resulting legislation changed the railroad industry nationwide. In 1970, the Rail Passenger Service Act created Amtrak to operate intercity passenger service. In return for relief from the burden of passenger service, the participating railroads were required to give Amtrak rights of access to their networks and agreed to an avoidable-cost formula for track-use charges. During the restructuring of the bankrupt northeast railroads into Consoli- dated Rail Corporation (Conrail), Amtrak also acquired ownership of most of the NEC between Boston, Massachusetts, and Washington, D.C. In 1976, Conrail was founded as a government-owned freight railroad to take over the assets and services of the bankrupt northeastern freight carriers. Substantial funds were also provided to offset continued operating losses and to overcome deferred maintenance. The Staggers Rail Act of 1980 finally relieved all freight carriers from most, though not all, fed- eral regulation of rail rates and services and simplified the regulatory process associated with rail- road mergers, line sales, and abandonments. Finally the Northeast Rail Service Act (NERSA) of 1981 separated passenger and freight ser- vices in the northeast, allowing Conrail to develop as a purely freight railroad and return to the private sector. State and local agencies in the Northeast became fully responsible for commuter rail services, in most cases by establishing their own commuter rail operations. These measures were successful. After massive downsizing, Conrail prospered and was priva- tized in 1987, and the entire rail freight industry entered a new era of sound financial perfor- mance. The commuter agencies also prospered with new equipment, some new routes, and ridership growth. Outside the Northeast, responsibility for commuter rail services in Chicago and San Francisco were transferred in stages to regional public transportation agencies, which either set up their own operations or contracted for operations and maintenance (O&M) with Amtrak or the freight railroad that formerly operated the service. The commuter rail agreements were purely local in nature and did not include any nation- wide rights of access to rail freight networks for commuter rail services or generally applicable Introduction, Background, and Purpose 3

formulas for cost sharing. The focus of the participants was to preserve existing commuter ser- vices, not to lay the groundwork for future expansion of commuter rail service. After the Staggers Act, NERSA, and the privatization of Conrail, there was no major legislation affecting the railroad industry until late 2008. Now clearly separated into intercity, commuter, and freight railroads, each industry segment was able to focus activities on its own markets. In the years following the Staggers Act, the freight railroads aggressively downsized, merged with each other, closed or sold underutilized lines, dramatically cut costs, and greatly improved their productivity and financial performance. From 1980 to the mid-1990s, there was some growth in rail traffic, mostly because of the growth of massive low-sulfur coal mines in the Pow- der River Basin in Wyoming. Otherwise, railroads focused on squeezing more profit from a roughly static volume of traffic. From the mid-1990s, freight railroads began seeing real traffic growth driven by further increases in coal traffic from the Powder River Basin; rapid growth in intermodal traffic, especially international container traffic entering rail networks at West Coast ports; and a robust economy. Commuter rail services also entered a period of expansion. The long-established systems expe- rienced traffic growth, and several cities and regions were able to implement entirely new com- muter services, aided by New Starts funding from the FTA. Most notably, the Southern California Regional Rail Authority (SCRRA) was established in the Los Angeles area and now operates seven commuter rail routes over 388 route miles. New commuter services were also introduced in the Virginia suburbs of Washington, D.C; Miami/Fort Lauderdale, Florida; Seattle, Washington; Albuquerque, New Mexico; San Diego and San Jose, California; Nashville, Tennessee; and Dallas, Texas. Several other services are in the planning stages. Development of Amtrak intercity services between the early 1990s and 2008 was uneven. In the Northeast, a major project to extend electrification from New Haven, Connecticut, to Boston, Massachusetts, was completed in 1999, followed by the introduction of Acela high-speed train sets in 2000. California has made substantial investments in corridor services, which with the provision of operating support to Amtrak, has resulted in large gains in ridership. Smaller- scale initiatives by state agencies in the Midwest, Pacific Northwest, Maine, and elsewhere have allowed additional trips and service improvements on a smaller scale than that in California. How- ever, outside the state-supported corridors and the NEC, the lack of funding has meant that there has been little service development. More detail about these developments are provided in the appendices, including the legal and institutional structures applicable to the railroad industry and specific case studies of passenger rail developments and development processes. 1.2.2 The Present Situation Multiple commuter and intercity passenger rail initiatives are under development, almost all of which anticipate using existing freight rail corridors and/or tracks. Even proposals for a true high-speed rail network in California envision using existing rail corridors for portions of the route and track-sharing with an existing commuter rail line between San Jose and San Francisco. Beyond the incremental expansion of conventional intercity passenger rail services, many states have banded together to propose improved regional rail passenger service over existing railroad rights-of-way, in many cases including higher-speed operation up to 110 mph. The most exten- sive plans have been developed by a consortium of Midwestern states, and similar efforts are under way in Virginia and the Carolinas, Florida, and California. Concurrent with this passenger rail activity, improved freight rail service quality, expanded international trade, increased costs and congestion in competing modes, and robust demand for 4 Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors

low-sulfur coal for electricity generation, among other factors, have led to significant and contin- uing growth in rail freight traffic. The privately owned freight railroads have been investing heav- ily to meet this demand, but at least before the traffic downturn of 2008–2009, local capacity and other operating problems were emerging, especially around major terminal and interchange areas. Although advocated by some, building new rights-of-way for passenger rail service is not a realistic option in most cases. With few exceptions, anticipated patronage and revenue and avail- able capital funds simply cannot support the investment required. This situation leaves shared use on mixed passenger and freight corridors as the only practical option for most new or expanded passenger rail services, in spite of the challenges of growing passenger service on cor- ridors shared with heavy North American–style freight operations. Past and anticipated future freight traffic growth means that passenger-rail interests face increasingly difficult negotiations and higher costs for access to freight lines for new and expanded service. In addition, the quality of existing services can deteriorate due to rail traffic congestion, and old agreements may have to be renegotiated to ensure adequate service. Even for Amtrak- operated intercity services where Amtrak has a statutory right of access and dispatching prior- ity, good service requires the cooperation of the owning freight railroad and sometimes funding to overcome operating bottlenecks. 1.3 Scope, Purpose, and Content 1.3.1 Scope This Guidebook addresses principles, processes, and methods for the implementation and operation of rail passenger services on rail corridors that are shared by passenger and freight ser- vices and that are part of the General Railroad System of Transportation in the United States. The owner of the corridor is normally known as the host railroad, and other rail services oper- ating over the corridor are known as tenant railroads. Normally the host railroad is also respon- sible for day-to-day operation of the corridor (e.g., dispatching and track maintenance), but, in a number of cases, host railroads have contracted or delegated operating responsibilities to another party. Most railroad corridors in the United States are private facilities, and tenant rail services must negotiate an access agreement with the host railroad that specifies access terms and payments. Multiple sharing scenarios exist; the passenger operation may be either the host or the tenant, and sharing configurations can vary—they may be between a passenger and a freight rail- road, two passenger services, or three services as where freight, Amtrak intercity, and a commuter service operate over the same corridor. Some examples of sharing scenarios include: • Where a freight railroad is host to commuter or Amtrak intercity passenger service, or both, on the same corridor. This arrangement is one of the most common and is the principal focus of this Guidebook. Most of Amtrak corridor and long-distance services outside the Northeast are operated on host freight railroads. • Where a passenger rail agency acquires a corridor for passenger rail service and gives track rights to a freight railroad to allow continuing (usually local) freight service. Arrangements of this type exist on almost all corridors purchased by a public authority for (primarily com- muter) rail passenger service. • Shared intercity and commuter rail operations on infrastructure owned and/or operated by Amtrak or the commuter rail agency. The NEC and connecting lines include examples of both Amtrak and commuter-owned or -operated infrastructure, and situations where Amtrak is responsible for operating infrastructure owned by a commuter rail agency. For example, Amtrak operates the portion of the NEC owned by the Massachusetts Bay Transportation Authority (MBTA) and hosts contractor-operated MBTA commuter services. Introduction, Background, and Purpose 5

• Time-separated shared-track freight and diesel light rail services (i.e., using non-FRA-compliant vehicles), as on New Jersey Transit’s River Line between Trenton and Camden. • Three-way sharing of intercity, commuter, and freight operations on freight railroad tracks, such as on BNSF Railway Company lines around Seattle and on Chicago commuter routes. All the previous examples are of shared corridors that are part of the General Railroad System of Transportation. This term has a specific meaning, referring to the interconnected network of railroads in the United States. Urban rail transit lines that are not connected to the general rail- road network are not included, nor are rail lines within a private facility, such as a manufactur- ing plant. This definition is significant because it is used in the definition of applicability for most FRA safety regulations and for various other statutes, regulations, and government programs applicable to railroads and railroad employees. This Guidebook addresses passenger and freight services on the General Railroad System rather than dedicated high-speed corridors. A shared-use railroad corridor, as defined by the FRA, is a broad term that includes three different sharing arrangements, specifically: • Shared track, where the trains of two or more rail service providers operate over the same tracks. • Shared right-of-way, where two rail services are operated on separate parallel tracks having a track centerline separation less than 30 feet. Separation of 30 feet or less triggers the applica- tion of certain FRA safety regulations. Separation also may be referenced in shared-corridor agreements between railroads, for example, as limiting the kinds of permitted operation or requiring specific safety precautions. • Shared corridors, where track centerline separation is between 30 and 200 feet. Two hundred feet is considered the outer limit of separation where an accident on one line could interfere with operations on the other. Although shared-corridor arrangements are considerably diverse, common and very challeng- ing situations occur when a new or expanded passenger service seeks to operate on the tracks of a busy corridor owned and operated by a major freight railroad, where the freight railroad will be the host for the new service. This Guidebook will focus on this scenario without, however, neglecting other ownership/operation/service mix scenarios. In almost all cases, state, regional, and local governments establish specialist agencies to man- age the funding, development and operation of passenger rail services. These agencies go under a variety of titles, depending on local laws and practices, and in this report are referred to gener- ically as either passenger rail agencies, which could be responsible for any type of passenger rail service, or commuter rail agencies, which are only concerned with commuter service. Specific agencies are referred to by name in this report. 1.3.2 Purpose The purpose of this Guidebook is to provide comprehensive support and guidance for pas- senger rail authorities seeking to initiate, expand, and operate passenger rail services on shared passenger and freight corridors. The primary desired types of guidance identified by the project team and expressed by passenger rail agencies can be categorized in the following areas: • Guidance on how to manage negotiations with the freight railroad to reach mutually accept- able agreement and on how analytical methods play a role in reaching that agreement. This area includes the planning and preparations needed before in-depth negotiations, an under- standing of the legal rights and responsibilities of each party (including the difference between Amtrak intercity service and commuter service), an understanding of the business needs of 6 Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors

the freight railroad partner, and information on how to keep all stakeholders informed with- out betraying confidential information. • Methods to determine requirements for increased capacity and upgrades to track and signal- ing systems, accommodating both the planned passenger service and expected freight traffic, estimating the specific investments required, and determining how such investment could be shared between public and private sources. Related matters are technical regulatory require- ments for track quality and signal system capabilities for passenger service, models used for capacity analysis, and how to allow for future growth of passenger and freight traffic. • Methods to arrive at equitable sharing of ongoing operations, maintenance, and replacement expenditures to ensure that the corridor will provide the required level of service for all users. This area includes cost modeling methods; how to adjust for infrastructure investments made by the passenger agency; and the effects of train speed, axle load, grade, and curvature on costs. • Methods and processes to address further corridor development related to operating experi- ence and increased passenger and freight traffic, including both capital improvements and sharing ongoing O&M costs. Almost all shared rail corridors are works in progress rather than one-time developments. Both parties expect traffic volumes and service quality expectations to change over time, and provisions must be made for agreements to be updated to reflect these changing business conditions. • Principles, methods, and processes for reaching agreement on the ongoing management of passenger rail service quality, including performance criteria, dispatching priorities, OTP, and track quality. 1.3.3 Content This Guidebook identifies what principles, processes, and methods contribute to the success- ful development and operation of passenger rail services on shared-use corridors. It also pro- vides suggestions for improvements that would address deficiencies in present practices and further enhance the success of passenger rail services. The information is provided by subject area, roughly following the sequence of actions needed to implement and sustain a successful passenger rail service. A discussion of relevant legal and institutional factors that will underlie passenger rail service through the implementation process—including those factors regarding access rights, liability, and cost sharing—is available in Appendix B. This Guidebook is laid out in the following chapters: • Chapter 2: Getting Started and Negotiations. This chapter covers the initial steps of defining what kind of service is planned and on what kind of railroad route(s), essential homework that must be done before contacting the railroad and Amtrak (where applicable), and integration with other activities (such as state planning, freight railroad initiatives, funding and grant applications, environmental analyses, etc., where applicable). • Chapter 3: Analysis and Modeling. This chapter describes the key types of analysis needed to support shared-use planning, feasibility studies, and negotiations. The subjects discussed include rail line capacity analysis, estimating capital costs needed to provide sufficient capac- ity and service quality for passenger service, and analysis of ongoing operations and infrastruc- ture costs. Descriptions of the tools and analysis methods available in each of these analysis areas are provided. • Chapter 4: Content of Shared-Use Access and Operating Agreements. This chapter includes types of agreement between all interested parties, including the passenger rail service sponsor, the freight railroad, Amtrak (for intercity and long-distance service), O&M contractors (where applicable), other passenger rail operators using the same corridor, and any other involved Introduction, Background, and Purpose 7

parties. There is also a discussion of terms of agreements (re-negotiation intervals), agree- ments for infrastructure investments, service quality guarantees and incentives, and similar material. • Chapter 5: Ongoing Management of Shared-Use Operations. This chapter provides guidance on service quality monitoring, management and incentive schemes, approaches to periodic updating of shared-track contract details within the framework of an operating agreement, approaches to addressing service quality problems (such as poor OTP), and managing ongoing relationships with all stakeholders having a bearing on service quality. Appendices cover the following subjects: • Appendix A: The U.S. Railroad Industry. This appendix provides a summary of the evolu- tion of the railroad industry, which led to the current industry structure. This is followed by descriptions of the types of passenger and freight railroads, federal agencies concerned with railroads, and the roles of principal railroad industry and professional associations. • Appendix B: U.S. Railroad Legal and Institutional Arrangements. This appendix describes statutes, regulations, and standards applicable to the general railroad system of the United States. These include the rights and duties of Amtrak regarding access to the railroad network, the cost of that access, the criteria that determine whether a rail passenger service is consid- ered intercity or commuter, labor relations, FRA safety regulations, functions of the STB, and related matters. • Appendix C: Railroad Safety Regulations. This appendix provides a detailed description of railroad safety regulations and standards as developed and administered by the FRA and how they may impact passenger rail plant, equipment, and operations. • Appendix D: Case Studies of Passenger Rail Service Developments and Processes. This appendix provides examples of passenger rail developments including descriptions of how existing arrangements evolved, how the present situation differs from that in earlier times, recent examples of successful services, and applications of key processes. 8 Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors

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TRB’s National Cooperative Highway Research Program (NCHRP) Report 657: Guidebook for Implementing Passenger Rail Service on Shared Passenger and Freight Corridors is designed to aid states in developing public–private partnerships with private freight railroads to permit operation of passenger services over shared-use rail corridors.

The guidebook explores improved principles, processes, and methods to support agreements on access, allocation of operation and maintenance costs, capacity allocation, operational issues, future responsibilities for infrastructure improvements, and other fundamental issues.

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