October 23, 2014 MAKE THE MESSAGE PERSONAL You are not just a driver! DEVELOP A CULTURE OF APPRECIATION “People covet the most that which they cannot buy.” THE THREE T’S WHERE ARE WE SPENDING OUR TIME? Metrics Behavioral Safety Management Excellence Regulatory Compliance Incident and Claims Management Begin Your Journey AtDriving the end of the game, to Perfection when it’s all over… BrianYOU. Fielkow 713.676.1111 brian@brianfielkow.com brianfielkow.com Marcia Faschingbauer, President Texas added 1.3 million people from 2010 to 2013, more than any other state according to the U.S. Census Bureau . . . and our state’s population has pushed past 26 million and is projected to reach 40 million by 2050. Houston alone added 34,625 residents during the same timeframe . . . a growth rate that was second only to New York. According to the data released by the U.S. Bureau of Labor Statistics this summer, Texas has gained more than 20,000 oil and gas jobs since July 2013. And we have over 300,000 jobs in the oil and natural gas sector as the oil boom drives job growth for a fourth straight year. The financial burden of shouldering the primary funding for an aging road infrastructure . . . through ever-increasing state roadway taxes and fees. Hours of Service changes have constricted a driver’s ability to stay flexible and . . . Laws governing CSA scores have made any kind of violation OR WARNING a major liability Compounding that problem are the chokepoints at terminals and the ports. Additionally, the new Hours of Service regulations mean that we are operating under very strict time constraints, and that means we have to make every minute count. Carriers have invested heavily in the kind of sophisticated IT systems that can give you the absolute visibility you need to make real time decisions with your carrier partner. Thank you! Harris County International Trade and Transportation Conference Brenda Mainwaring, VP Public Affairs, Union Pacific Railroad 18 When the topic is public infrastructure, how do railroads fit in? Fundamentally different…. • Privately owned • Privately funded • Constituencies: customers, investors and employees But in many ways similar…. • Common carrier obligations • Federally regulated • Integral to communities 19 Do railroads really have an impact? • 64,912 miles of high-density “A” Track – 47,432 miles of “principal arterials, Interstates” (2012) • 161,980 total track miles – 1,314,000 miles “high-type” paved roads/streets (1996) • 1.7 trillion ton-miles hauled by rail – 2.6 trillion (estimated) ton-miles – 1.0 trillion ton-miles – 499 billion ton-miles (domestic) • 574 operating railroads Sources: Rail: Association of American Railroads Other: U.S. Bureau of Transportation Stats (USDOT) 20 U.S. Class I Railroads/ Interstates 21 Texas Railroads/Roads (Source: TTI TAMU ) October 2006 August 1999 22 Harris County Railroads/Roads Source: TxDOT/HTNB study August 2007 Source: GHP Aug 2014 23 Linking Harris County to the Global Market Seattle Eastport Portland Duluth Twin Cities Omaha Chicago Oakland St. Louis Memphis Little Rock LA Dallas Calexico Nogales El Paso Eagle Pass Laredo 24 Pine Bluff Houston Brownsville New Orleans Port access Border crossings An integrated system: Port of Houston to Plano, Baytown to Brownsville… To DFW To Texarkana To NOLA Port of Houston To San Antonio To El Paso To Laredo 25 To Galveston To Brownsville Realities • 8% volume growth vs. 2Q 2013 • Strong growth in Texas origin/destination products – Frac sand +21% – Lumber +17% – Construction (aggregates, etc) +15% – Industrial chemicals +7% • Significant industrial expansion coming online 2016 • Regional population growth • Limited space for infrastructure 26 Responses • Purchasing equipment – 229 locomotives in 2014 • Hiring – 5,000 new employees in 2014 (net +1,000) • Investing in physical plant – $42 Billion capital spend since 2000 – $4.1 Billion capital investment in 2014 – $2.5 Billion capital investment in Texas since 2009, including $700 million for new capacity to grow with customers – $600 million expended in Greater Houston/Harris County 27 $20+ Billion – amount rail industry spends annually on transportation infrastructure $43 Billion – amount US government allocates annually for roadway infrastructure (2009 USDOT) Rail will continue to focus on meeting growing freight demands. Is it possible to leverage limited resources for mutual benefit? 28 Harris County International Trade & Transportation Conference October 23, 2014 The ability to transport goods, and people, efficiently throughout the greater Houston region affects both current and future economic development. . Texas The Big Picture -Statewide Funds Needed -Houston Region’s Needs -Funding Landscape -Post Prop 1 Texas .- To Sustain Current Level of Service • 2030 Committee Report – Over next 25 years – We Need (for same level-of-service) $270B – Have Funding for $100B – Local funds, tolls, etc. $50B – New Funding Required $120B $5B/Year, Every Year Source: Texas Future 2015 Session -Political Climate -The Usual Suspects -Gas Tax -Vehicle Registration -Ending Diversions -Vehicle Sales Tax -Additional Options Local Funding -Funding current needs -Funding a vision -MotionMaps At stake is the lifestyle we want to enjoy in Texas LIVE LEARN WORK PLAY SHOP Source: TTI Business Cost of Congestion Distance traveled to connect with customers in 30 minutes Missed opportunity Missed opportunity With congestion Without congestion Source: TTI Why We Need You -Your Input -Ideas -Support -Your Leaders -Business Leaders -Elected Officials About that amendment . . . . . . It’s a great FIRST STEP Questions? For more information www.TAGhouston.org