Inventory of State and Federal Passenger and Freight Rail Programs (2017) / Chapter Skim
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From page 17... ...
This proje improvem Railroad G the states each prop is faced w 286,000 p infrastruc Figure 5 Pho Project Partners: PROJECT TIGER GR Ken Ten Wes State of K R. J. Corm Total Pro APPA ct used TIGE ents on five roup (RJCR)
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21 Project Background R.J. Corman Railroad Group (RJCR) , headquartered in Nicholasville, Kentucky, operates a family of short line railroads. RJCR acquired most of these railroads following long periods of deferred maintenance by previous operators. Like many short line railroad companies, RJCR is attempting to rebuild a traffic base previously eroded by infrastructure and service shortcomings. While this process was proceeding successfully, RJCR felt that addressing the large backlog of needed repairs using earned revenues would take an unacceptably long time to complete. Delay posed the risk that promising traffic prospects would find permanent alternatives to rail or locate elsewhere before RJCR could upgrade its service. When the TIGER Discretionary Grant program was announced in 2009, RJCR quickly recognized the benefits a TIGER grant could provide and crafted a proposal based on its properties in the Appalachian states of Kentucky, Tennessee, West Virginia, Ohio, and Pennsylvania. Appalachia suffers from both high unemployment and infrastructure constraints that hinder transport capacity. It was believed that improvements to the railroad network could help attract new industry to the rail network. This new business would in turn increase employment, and improve rail service to existing customers, possibly preserving existing jobs. RJCR worked with officials in the aforementioned states to develop an application for $37.20 million in TIGER I funding. The proposal was titled the "Appalachian Regional Short Line Rail Project." The funds were to be used to address infrastructure deficiencies on RJCR lines in these states. Generally, RJCR proposed to contribute a match equal to 20 percent of the TIGER funding. Because of the rail mileage and amount of funding targeted toward RJCR's Kentucky properties, the Kentucky Transportation Cabinet (KYTC)
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In Februa Appalachi scale the allocated the state. contracte managem of grant fu Railroad RJCR Cen RJCR Bar RJCR Me RJCR Ten RJCR We ry 2010, the U an Regional S award to $17 award funds Each state re d with RJCR t ent to the Ke nded work w R tral Kentuck dstown Line mphis Line nessee Term st Virginia Lin .S. Departm hort Line Ra .55 million, d to each of th ceived its po o perform th ntucky Divisi as to be in K .J. Corman R To M y Line 12 20 98 inal 47 e 16 ent of Transp il Project. Ho ropping the e three rema rtion of fund e work propo on of the Fed entucky. ailroads Rece tal iles State 8 KY KY KY, T TN WV ortation (US wever, fundin proposal elem ining states b s via a separa sed. USDOT eral Highway iving Grant F s Wo Cro Cro N Cro Cro Cro anc DOT)
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23 Project Objectives As outlined in the proposal, the project had a number of objectives, with most addressing the then current USDOT strategic goals: State of Good Repair Economic Competitiveness Environmental Sustainability Livability Safety The proposal specifically itemized the following overall project objectives: Improve state of repair on railroads. Improve quality of rail service. Improve intermodal connections. Remove truck traffic from highways, reducing highway deterioration. Improve air quality by lowering truck related emissions. Increase opportunities for employment in region. Benefit suppliers in the region. Improve safety of hazardous materials transportation. Improve rail‐highway grade crossing safety. Reduce fuel consumption. The benefit recipients for objectives supporting these goals vary. RJCR accelerated needed repairs to its railroads to better serve customer needs and attract new customers. These repairs also reduced the company's annual operating costs, particularly in the areas of labor, derailments, and routine maintenance. These objectives ultimately benefited the company's bottom line. Other project benefits accrued to the citizens of the states through which the railroads operate. These would include increased employment, more livable communities due to reduced congestion, improved highway safety, and improved air quality. Businesses were expected to be more competitive due to the transportation improvements resulting from the project. Project Achievements All work items in the project proposal were successfully completed through the joint efforts of RJCR and the state partners. Several routine audits showed that project funds were spent in accordance with the grant statement of work and applicable state and federal requirements. Creation of a rail program at the Kentucky Transportation Cabinet was an unexpected project achievement. Prior to the TIGER I grant, KYTC had little internal expertise in rail transportation. The TIGER grant raised awareness of rail investment for elected officials across Kentucky, including the governor and key legislators, and with senior KYTC management. A second project achievement was the development of rail institutional knowledge. The grant oversight process resulted in the development of a body of rail expertise within KYTC staff in both accounting and disbursement procedures as well as rail inspection processes. Both RJCR and the KYTC consultant
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From page 21... ...
24 providing construction inspection services to the project generously contributed to this education process. The TIGER I grant set the stage for legislative action that provided funding for two grant programs: Kentucky Short Line Railroad Assistance (KSRA) and Kentucky Railroad Crossing Improvement Program. Kentucky also received an $11.56 million TIGER III grant, which the state matched with $1 million, to help replace a critical railroad bridge. The experience provided by the TIGER I grant left KYTC staff well equipped to manage the new programs and the TIGER III grant. The program also brought KYTC personnel into contact with rail program peers in Kentucky and Tennessee. Project Outcome It is too soon to quantify the degree to which all of the project objectives have been met. It takes several years of data, for example, to distinguish true safety trends from normal annual random fluctuation. However, early results show positive outcomes for some objectives. The infrastructure improvements have greatly reduced temporary speed reductions (slow orders)
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From page 22... ...
25 started" culture. The proposal even indicated an expectation that "Each of these projects will be started within 60 days of the grant award…" Some of the minor challenges were that expectations about work flow and process documentation needed to be coordinated more than the parties had traditionally practiced. As well as state processes varied between partners' states. The reality was that the required process did not permit this ambitious plan. It took time for the states to develop their agreements with the USDOT, and additional time was required for the states to implement agreements with RJCR. TIGER was a new program at that time, and both federal and state agencies had to develop procedures to meet their requirements. Ultimately, RJCR had to consider the contracting and project management processes of three different states. This meant different types of agreements, inspection requirements, invoicing, and audits. RJCR also had to develop processes to comply with federal project requirements such as payment of prevailing labor wage rates and "Buy America." RJCR had also hoped that permits would not be required for project work. However, road crossing closures and work involving blue‐water streams did require permits. Road crossing work in at least one instance also triggered Americans with Disabilities Act (ADA) issues. Award of the funds to a private partner, while planned in the grant, required waivers from the state's normal competitive bidding process. Further, RJCR proposed to do the work using force account labor -- a variation from normal state practice on projects. KYTC, for example, ultimately had to obtain a formal Public Interest Finding to permit the contracting process to proceed. This introduced months of delay into the schedule. KYTC had to build the internal expertise needed to oversee its grant activities. This process took time, but ultimately resulted in long‐term capabilities that did not exist prior to the grant. This expertise has allowed KYTC to manage new rail programs enacted by the legislature since the TIGER grant. Innovation What was innovative about the partnership?
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From page 23... ...
26 program management experience resulting from the project, left KYTC staff in an excellent position to take on further rail programs. What measures were used to assess performance? Truck traffic volume diverted from roads.
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