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American Short Line and Regional Railroad Association “The Voice of America’s Independent Railroads” Keith T. Borman Presentation to ACACSO May 12, 2005 ASLRRA Mission The ASLRRA represents the interests of the Class II / III Railroad industry before Congress, the FRA, STB, TSA, and the Class I Railroads. Concurrently it serves as a conduit from the railroad organizations of the federal government on regulatory, safety, security and technical matters to the small railroads providing information, clarification and training. As appropriate, the Association testifies, files, comments and represents specific Class II / III Railroad interests before various federal departments and agencies and state governments, as requested. 5/122005 2 Organization Membership is broken down into four Regions: CENTRAL REGION EASTERN REGION Central Region Membership: Eastern Region Membership: 145 Railroads; 92 Associates 126 Railroads; 89 Associates Central Region Board Eastern Region Board Robert Bailey, Regional VP Charles L. Laggan, Regional VP PACIFIC REGION Eugene H. Blabey David C. Eyermann Gordon R. Fuller Kirk D. Hawley Pacific Region Membership: Robert Grossman J. Reilly McCarren 63 Railroads; 33 Associates Bruce A. Lieberman David M. Perkins Gary R. Shields Judy A. Petry Pacific Region Board J. D. Ventrcek Thomas L. Schlosser, Regional VP Ken Doiron Andrew C. Fox Thomas L. Nielsen SOUTHERN REGION Larry Phipps Southern Region Membership: 89 Railroads; 47 Associates Southern Region Board Roger D. Bell, Regional VP Bennett J. Biscan Donald P. Connor Brad K. Lafevers Edward A. Lewis Kenneth A. Pippin 5/122005 3 Membership Two types of membership: Railroad Membership Any railroad located in the continental or territorial United States, Canada, or Mexico, is eligible for full membership. Railroads contribute dues based on annual gross operating revenues, with a minimum of $1,285 and maximum of $6,950 Associate Membership Companies which supply goods or services to the railroad industry, and tourist and excursion railroads, are eligible for a non-voting associate membership. Associate members’ annual dues are calculated at a flat rate of $1,390. 5/122005 4 ASLRRA Committees Safety Training Technical Railroad Police Legal Finance & Administration Legislative Policy 5/122005 5 ASLRRA Member Services Safety/ Regulatory Compliance: Represent Class II / III Railroads with the FRA on All Safety and Regulatory Matters Provide Assistance on Safety and Regulatory Issues Provide Programs to Assist in Compliance with: Drug & Alcohol Program Requirements Engineer Certification Programs Power Brake Rules Roadway Worker Protection Continuous Welded Rail Requirements Internal Control Plan (Accident / Incident reporting requirements) Tank Car Inspection / Safety Track Inspection & Maintenance Qualified Mechanical Inspector 5/122005 6 Class II / III Safety Performance The Safest Year Ever! January – December / 2000-2004 Year Employee Categories* Fatalities Severity Rate Hours Index 1 2 3 2000 41,158,108 1151 53 6 6 13.49 5.88 2001 39,390,893 989 47 2 2 11.55 5.32 2002 37,494,551 779 36 3 3 9.76 4.36 2003 35,121,492 695 35 2 2 9.51 4.17 2004 35,090,088 694 29 1 1 8.37 4.13 *Categories: 1 = Non severe and non life-threatening injuries 2 = More severe; amputations, concussions, loss of sight, hearing, etc. 3 = Fatality 5/122005 7 Class II / III Safety Performance 5/122005 8 ASLRRA Member Services ASLRRA Training Initiatives: National Academy of Railroad Sciences (NARS) New Contract Classrooms, Labs, Yards, Simulators, Rail Equipment Computer-Based Training 110 Instructors / Hotline Available 24/7 College Credit at JCCC Rail Industry Safety Conference (Nov. 2005) Operating & Maintenance Seminar (April 23- 25, 2006) 5/122005 9 ASLRRA Member Services Legislative: Lobby Congress on Behalf of Association Members Monitor Legislation and Testify on Behalf of the Short Line Industry Before Congress and Government Agencies Grassroots Fundraisers Political Action Committee 5/122005 10 ASLRRA Member Services 2004 Legislative Achievements Setting the Conditions for Future Successes: Federal Tax Credit Worth Approximately $501 Million over 3 years Can Take up to $3,500 per Mile Credit Worth 50% of Expenditures 20-Year Carry Forward Deficit Fuel Tax Elimination $15-20 million saved for short lines 5/122005 11 RRIF Loan Program FRA Reorganized to Expedite Process 10 Approved to Date – 6 Since Jan. 2004 Amtrak $100 million Mount Hood Railroad $2.07 million Arkansas & Missouri Railroad $11 million Nashville and Western Railroad $2.3 million Dakota, Minnesota & Eastern Railroad $233 million Stillwater Central Railroad $4.6 million Wheeling & Lake Erie Railway $25 million Great Smoky Mountains Railroad $7.5 million Riverport Railroad $5.5 million The Montreal, Maine & Atlantic Railway $34 million 5/122005 12 ASLRRA Member Services Communications: Website - www.aslrra.org Views & News – Biweekly Newsletter for the Short Line and Regional Railroad Industry Railway Age Magazine Bimonthly Short Line Article 90-Day Board Update Letter Security Alerts / Updates National Data Survey (545 surveys / 93% response in 2003 – Follow-Up is in Progress) Bimonthly Safety Bulletin ASLRRA Facts and Figures Security Alert Cards 5/122005 13 ASLRRA Member Services Meetings: Annual Convention Rotates Among 4 Regions Includes 1 ½ Days of Meeting Sessions and an Annual Exhibition Regional (Eastern, Southern, and Central/Pacific) Operating & Maintenance Sessions Finance & Administration Sessions Railroad Day on Capitol Hill & Legislative Dinner 5/122005 14 ASLRRA Member Services Tariffs: Maintain and Publish Rates for Over 400 Class II / III Railroads Member Publications Available on Association’s Website Traffic: Act as Agent of Railroad Members on Traffic-Related Issues Participate on Behalf of Members on Various Traffic-Related Committees E-Commerce: E-Marketplace: Online Associate Member Directory and Bid- Request Service Online Classifieds Legal Developments and Issues 5/122005 15 ASLRRA Member Services Rail Industry Working Group What it is: Seven Representatives from Class II & III Railroads and Seven Representatives from Class I Railroads Addresses Industry-Wide Issues Operates by Consensus Revised Rail Industry Agreement Original 1998 / Amended 2004 Over 300 Companies Have Subscribed Added Definitions for New Business Exempted From Paper Barriers Empowers RIWG to Make Binding Interpretations of Rail Industry Agreement 5/122005 16 ASLRRA Member Services Rail Industry Working Group (cont’d.) Current Projects New Car Supply Committee Ongoing Formal and Informal R.I.A. Dispute Mediation 95% Resolved Informally Recent Challenge by Western Coal Transportation League STB 575: Filed Renewed Petition for Rulemaking Would Allow Shippers to Contest Paper Barriers at STB ASLRRA Filed a Statement Supporting Current Private Sector Mechanisms and Questioning Need for New Regulatory Intervention RIWG Also Filed a Statement Explaining How it Resolves Disputes 5/122005 17 ASLRRA Member Services Representation on Industry Committees: North American Rail Alliance (NARA) Safety and Operations Management Committee (SOMC) Network Efficiency Management Committee (NEMC) Rail Industry Working Group (RIWG) Rail Safety Advisory Committee (RSAC) Hazardous Materials (BOE) Committee AAR Tax Policy Committee AAR Washington Representatives Committee Non-Accident Release Reduction Task Force Committee Grade Crossing & Trespasser Prevention Committee National Association of Railroad Trial Counsel Executive Committee Open Top Loading Rules Committee Arbitration & Rules Committee Car Repair Billing Committee 5/122005 18 ASLRRA Member Services Representation on Industry Committees (Cont’d.): Railway Technology Working Committee Equipment Assets Management Working Committee Automotive Quality Improvement Executive Committee EDI Working Committee Rate EDI Network Task Force National Grain Car Council Revenue Systems Working Committee Interline Service Management (ISM) Working Committee Interline Revenue Management (IRM) Working Committee Customer Service Standing Committee (CSSC) Technical Services Working Committee Reload Steering Committee Representation at Class I Railroad Annual Meetings and Caucuses / Councils 5/122005 19 Association Evolution Staff Reorganization New Products Facts & Figures Booklet Alert Notification Card Small Railroad Video in Production New Data Survey to Update Database 5/122005 20 To Infinity and Beyond! Ready for Blast-Off: Data Study Update Tax Credit Monitoring New IRS Rules Due This Summer Infrastructure Expenditures – Capturing the Story Through 2008 TEA-21 Fix the RRIF Program Promote NARS Distance Learning “Branding” the Short Lines Increased Recognition of the Small Railroad Industry and its Role in Rail Freight Long Term Campaign 5/122005 21 To Infinity and Beyond! Ready for Blast-Off (Cont’d.): Bulk Fuel Program Communicating More Effectively – Customers, Regulators, Legislators, Financiers, Public Grassroots Fundraising / PAC Contributions Transition Tariffs & Publishing ASLRRA New Committee Development FRA Rules and Inspections Discussions / Coordination Rail Security Coordinating Council (RSCC) New ASLRRA / AAR Structure to Coordinate with Transportation Security Administration (TSA) Service, Costs, Reliability, Availability, Flexibility, Safety 5/122005 22 To Infinity and Beyond! Moving to the Launch Pad: Car Availability Reimbursement of Fuel Surcharge HAZMAT Reporting, Tracking, Handling Security-Related Initiatives – DHS, TSA Regulatory Requirements Reflectorization Quiet Zones Cost of Insurance (Health and Property & Casualty) Aging Workforce (Avg. Age of Railroad Worker is 48) 5/122005 23 To Infinity and Beyond! Moving to the Launch Pad: 286K lb Axle Weight Car Handling Continued Funding for Rail Infrastructure Upgrades (Track, Bridges) to Handle 286K lb Cars • Diesel Emissions Litigation • Asbestos Litigation • Future of FELA • Consistent, Reliable Customer Service • Data Transparency for Customers and Operators • New Database Products – CD, Fact Book, On- Demand for Association Members 5/122005 24 American Short Line and Regional Railroad Association “The Voice of America’s Independent Railroads” 5/122005 25
"ASLRRA 2004 Annual Report"