Broadway Second Main Track Project
Port of Houston Authority
1/12/2015 5:31:24 PM
Project Narrative
The primary goals of this project are to reduce increase rail capacity, decrease railroad and private vehicle delays, lower GHG emissions and noise pollution, and increase the throughput of freight shipments to and from marine terminals and the petrochemical complex located at the Port of Houston (POH), one of the largest and most strategically important deepwater ports in the nation. The existing single-track configuration, originally designed to accommodate 18 trains per day, is already beyond capacity at current demand levels and future forecasts show the demand growing to 32 trains per day by 2034. This insufficient capacity creates a “bottleneck” that causes several hours of railroad train delay per day. These delays increase the cost of transportation, thereby undermining the region’s economic competitiveness, and negatively impacts local air quality. Left unaddressed the situation will only worsen in the future and further impact the Region’s ability to be in attainment with emissions targets and could lead to a negative economic impact for the region due to lost rail traffic.
Freight tonnage handled by the POH is expected to almost double between now and 2040 with the expansion of the Panama Canal and the growth in shale developments in North America. This project is vital to serve the south side of the Houston Ship Channel (HSC) and will ensure that goods are moved economically, efficiently and in an environmentally responsible manner. It also ensures that the POH will remain competitive against other US Ports. Finally, not only will this project meet all of the primary goals but it does so at a benefit cost ratio between 1.69 and 2.95, depending on the discount rate chosen.
PHA seeks TIP funding to convert a 1,478-foot segment of single-track railway to double-track railway to alleviate railroad congestion near the HSC. To accomplish this PHA, with the assistance of PTRA, will need to shift and construct 3,478 feet of track and replace the railroad bridge at Broadway Street on the PHA-owned segment of railway between the railroad junctions known as GH&H Junction and Manchester Junction. The single-track railway segment handles freight railroad traffic moving between port and industrial facilities on the south side of the HSC and the major switching terminals and western rail connections of the Class I railroads. The single-track railway segment and the bridge need to be replaced and supplemented with a second track to accommodate additional freight traffic and reduce railroad delays. The project will be accomplished on the existing right of way with little impact to the traveling public.
The current single-track configuration on the Broadway Street Bridge is designed to accommodate 18 trains per day with no delay. Current utilization of the single-track segment, based on data collected by PTRA, is 21 trains per day and this number is expected to grow. These trains, on average, handle over 1,000 rail cars per day. The overutilization of the track is creating congestion in the corridor, which increases the cost of transportation by introducing delay into the rail and road networks and lowers the local air quality by increasing harmful emissions. This section of the report describes the baseline, or no-investment scenario, for the single-track railroad segment bridge.
Data collected by the PTRA indicates that the existing single-track configuration creates 2.5 hours of delay per day for railroads operating on the segment. As freight shipments on the alignment are forecast to grow, delays are expected to become worse in the baseline scenario if no action is taken. Figure 2, within the attached application, displays baseline daily train traffic and delay estimates from 2015 to 2044. Note that in 2018, the rail alignment becomes completely constrained and accommodates 24 trains with 4.75 hours delay per day. Once the alignment becomes further constrained, freight moving into and out of the Port will need to move by other means, including truck and other modes of transportation. Thus, increasing the negative impact to the environment through higher emissions.
When compared to the status quo, replacing the Broadway Street Bridge and adding a second track will yield significant economic benefits for the railroads, the Port, and the greater Houston region. Reductions in railroad delay will lower the cost of transportation and reduce pollutants that harm local air quality. Moreover, by increasing the capacity of the rail alignment, shippers will be able to ship more freight via train, which is a cleaner form of transportation compared with trucks.
None - no-investment scenario (baseline).
Staged construction will be utilized as noted within the attachment.
Categorical Exclusion (CE)
(c)(18) Track and railbed maintenance and improvements when carried out within the existing ROW
Yes
In process of obtaining City of Houston permit in 2015.
06/03/2014
No
Yes
In process of obtaining approval in 2015.
No
The Port of Houston Authority engaged the public during two events in 2014. The first was the 2015-2018 Transportation Improvement Program public comment event in April 2014. The second was held at the Hartman Community Center which was held in May 2014 and was attended by City Councilman Robert Gallegos. Neither event raised any concerns over the completion of the project.
Technical Feasibility
The need for increased rail capacity to serve the south side of the HSC is critical. The conversion of the single track to double track will allow the POH and the industrial facilities on the south side of the HSC to capitalize on the anticipated increased economic activity within the region. Specifically, the project will ensure that goods are moved economically, efficiently, and in an environmentally sound manner. Additionally, these improvements will allow the Port of Houston to accommodate the anticipated growth of commodities that will travel through the region due to the forthcoming Panama Canal expansion and the impact of further shale development.
Financial Feasibility
The total cost of this project is $21.3 million. PHA respectfully requests TIP funding in the amount of $10.65 million to support the construction of the conversion of single track to double track at Broadway Street located in Houston, Texas. PHA will provide $10.65 million in matching funds ($10.55 million for construction and $0.1 million in annual maintenance expenditures over 30 years), which will be funded through a contribution from PTRA. No other additional sources of funds will be used to develop the project.
Project Schedule
The project has been designed and is ready to be obligated in fourth quarter of 2015.
Assessment of Project Risks and Mitigation Strategies
Risks are minimal considering the benefits of the project. In particular, the double track conversion will utilize the same construction methodologies as were used for previously converted sections, which dramatically reduces potential delays in schedule and cost.
The Broadway Second Main Track Project will increase safety by facilitating the shift of freight shipments from highways to rail. History shows that rail transportation is safer than truck transportation. In fact, trucks transporting hazardous material have nearly 16 times more hazmat releases than railroads. This is a particular concern in the Houston area as industries along the HSC produce numerous petrochemical products and hazardous materials.
The shift from truck to rail transportation enabled by the project will also reduce highway collisions, injuries, and fatalities. The South Texas area has seen increases in truck related crashes since 2006. Based on data from the Fatality Analysis Reporting System, Texas is one of the highest five states in the country in truck related accidents and fatalities. Furthermore, when compared to truck related accidents, improvements to track safety and crossing protection are expected to reduce rail accidents despite the increase in rail freight tons carried. Specifically, eliminating road crossings being blocked by delays caused by the single track will significantly decrease the probability of at grade crossing accidents.
The project will enhance environmental safety by increasing the efficiency of rail and truck transportation near the Port, reducing diesel fuel consumption by both rail and truck transportation providers, and reducing greenhouse gas and other emissions in the area.
Congestion
Adding a second track will reduce congestion and delay for the railroads, allowing them to run trains in a more energy efficient manner. Moreover, additional capacity should shift some freight transportation from truck to rail and prevent future diversions from rail to truck. Rail is a more efficient form of transportation that reduces emissions by 30 to 80 percent when compared to trucks.
Furthermore, additional railroad capacity enabled by the second track will reduce congestion and delay on area roads for providers of truck transportation. This will allow trucks carrying freight – as well as other motorists – to operate their vehicles at a more consistent speed, one that promotes the efficient consumption of diesel fuel and gasoline. Reductions in fuel consumption by area vehicles will reduce the amount of harmful greenhouse gas emissions in the air and improve local air quality.
Baseline
The current single-track configuration on the Broadway Street Bridge is designed to accommodate 18 trains per day with no delay. Current utilization of the single-track segment, based on data collected by PTRA, is 21 trains per day and this number is expected to grow. These trains, on average, handle over 1,000 rail cars per day. The overutilization of the track is creating congestion in the corridor, which increases the cost of transportation by introducing delay into the network and lowers the local air quality by increasing harmful emissions. This section of the report describes the baseline, or no-investment scenario, for the single-track railroad segment bridge.
Data collected by the PTRA indicates that the existing single-track configuration creates 2.5 hours of delay per day for railroads operating on the segment. As freight shipments on the alignment are forecast to nearly double, delays are expected to become worse in the baseline scenario if no action is taken. Figure 2, within the attachment, displays baseline daily train traffic and delay estimates from 2015 to 2044. Note that in 2018, the rail alignment becomes completely constrained and accommodates 24 trains with 4.75 hours delay per day. As the alignment becomes further constrained, freight moving into and out of the Port will need to move by other means, including truck and other modes of transportation.
According to PTRA, the average cost of delay for railroads operating on the corridor is estimated to be $1,000 per hour. This cost includes expenditures associated with fuel, crew, and maintenance. In the absence of a second track, the baseline cost of delay is expected to reach between $21.5 and $33.4 M over a 30 year period. See Table 6 within the attachment.
Delays created by the “bottleneck” at the single-track segment prevent freight trains from operating in an optimal manner, resulting in increased fuel consumption and increased emissions. Emissions from diesel locomotive engines include particulate matter, volatile organic compounds, nitrogen oxide, sulfur dioxide, and carbon dioxide. Table 7, within the attachment, presents the cost of baseline emissions over a 30 year period.
As shown in the figures above, the “bottleneck” created by the single-track rail configuration imposes significant costs on Port of Houston stakeholders. Investment to replace the bridge and bring a second track to the alignment will yield significant benefits.
Benefits
When compared to the status quo, replacing the Broadway Street Bridge and adding a second track will yield significant economic benefits for the railroads, the Port, and the greater Houston region. Reductions in railroad delay will lower the cost of transportation and reduce pollutants that harm local air quality. Moreover, by increasing the capacity of the rail alignment, shippers will be able to ship more freight via train, which is a cleaner form of transportation compared with trucks. Table 8, within the attachment, provides an overview of the benefits of the investment.
Reduction in Train Delay
The construction of the new bridge and second track, which will accommodate up to 40 trains per day, will eliminate delay on the Broadway Street Bridge. If construction begins in 2015, then the alignment will become operational in 2016 and the cost of delay described in the baseline will be reduced to zero. This cost savings, which will provide significant value to stakeholders of the Port, is shown in Table 9 within the attachment.
When compared to the baseline, delays with the bridge and second track investment are reduced dramatically, reducing transportation costs for rail operators on the alignment.
Reduction in Diesel Locomotive Emissions
Reductions in delay on the track will lead to reductions in emissions as trains consume less fuel. As trains spend less time idling due to the addition of the second track, locomotives will emit less particulate matter, volatile organic compounds, nitrogen oxides, sulfur dioxide, and carbon dioxide. These pollutants impose a cost on society. To monetize the value of reducing these emissions, the PHA relied on research conducted by the National Highway Traffic Safety Administration (NHTSA). Table 10, within the attachment, compares emission on the alignment from diesel locomotives under the baseline and investment scenario.
Reduction in Emissions from Substitution of Train Shipments for Truck Shipments
The new double track will also allow shippers that utilize the POH to send more freight via rail. The substitution of rail transportation for truck transportation, in particular, will generate additional reductions in emissions as trains are more energy efficient than trucks on average. Based on PTRA data, the PHA estimates that 24 percent of the new freight train traffic enabled by the new alignment could have been shipped via truck without the investment. Moving that freight volume from trucks to trains will reduce emissions in the Houston area and improve local air quality.
The initial capital investment is estimated to be approximately $21.2 million while incremental recurring operating and maintenance expenses associated with the second track are expected to be approximately $0.1 million over 30 years, which will be funded through a contribution from PTRA. PTRA maintains 154 miles of railroad track and 20 bridges along the HSC and is a vital link in the supply chain that transports goods between cargo ships operating to and from international ports and U.S. origins and destinations.
Benefits
When compared to the status quo, replacing the Broadway Street Bridge and adding a second track will yield significant economic benefits for the railroads, the Port, and the greater Houston region. Reductions in railroad delay will lower the cost of transportation and reduce pollutants that harm local air quality. Moreover, by increasing the capacity of the rail alignment, shippers will be able to ship more freight via train, which is a cleaner form of transportation compared with trucks. Table 8, within the attachment, provides an overview of the benefits of the investment.
a) Reduction in Train Delay
The construction of the new bridge and second track, which will accommodate up to 40 trains per day, will eliminate delay on the Broadway Street Bridge. If construction begins in 2015, then the alignment will become operational in 2016 and the cost of delay described in the baseline will be reduced to zero. This cost savings, which will provide significant value to stakeholders of the Port, is shown in Table 9 within the attachment. When compared to the baseline, delays with the bridge and second track investment are reduced dramatically, reducing transportation costs for rail operators on the alignment.
b) Reduction in Diesel Locomotive Emissions
Reductions in delay on the track will lead to reductions in emissions as trains consume less fuel. As trains spend less time idling due to the addition of the second track, locomotives will emit less particulate matter, volatile organic compounds, nitrogen oxides, sulfur dioxide, and carbon dioxide. These pollutants impose a cost on society. To monetize the value of reducing these emissions, the PHA relied on research conducted by the National Highway Traffic Safety Administration (NHTSA). Table 10, within the attachment, compares emission on the alignment from diesel locomotives under the baseline and investment scenario.
c) Reduction in Emissions from Substitution of Train Shipments for Truck Shipments
The new double track will also allow shippers that utilize the POH to send more freight via rail. The substitution of rail transportation for truck transportation, in particular, will generate additional reductions in emissions as trains are more energy efficient than trucks on average. Based on PTRA data, the PHA estimates that 24 percent of the new freight train traffic enabled by the new alignment could have been shipped via truck without the investment. Moving that freight volume from trucks to trains will reduce emissions in the Houston area and improve local air quality.
d) Total Benefits
Combining the three types of benefits described above results in total benefits between $36.1 and $63.0 million over 30 years. Table 11, within the attachment, displays total monetized benefits over the period of analysis.
In addition to the monetized benefits displayed in Table 11, within the attachment, the project will produce ancillary benefits important to the economy of the region.
First and foremost, by expanding capacity and increasing the competitiveness of the POH, the Broadway Second Main Track Project is expected to generate jobs. As noted elsewhere in the report, the existing alignment accommodates over 1,000 rail cars per day; the cars include plastic pellet hoppers, tank cars, intermodal cars, coal hoppers, and others. Adding a second main line is projected to add capacity sufficient to handle the anticipated increase rail traffic throughput of 50 percent over the next 30 years. This yields an increase of 246,375 cars per year, which is expected to increase manufacturing and transportation jobs.
Another ancillary benefit would be the reduction of emissions generated by private vehicles idling as a result of trains blocking grade crossings due to congestion. While this hasn't been quantified, it may be material in the foreseeable future.
Additionally, construction of the project will generate jobs. In 2011, the Council of Economic Advisors estimated that every $76,923 in transportation infrastructure spending would equate to one job a year. The project, therefore, should yield significant employment benefits during construction.
Quality of Life
The Broadway Second Main Track Project will increase transportation options for firms doing business at the Port of Houston and reduce total transportation costs for users of the region’s highways. By reducing railroad congestion and increasing capacity, the project should allow firms to ship more freight via railroad, thereby reducing congestion on area roadways. A reduction in congestion on area roadways will lower the total cost of transportation for drivers by decreasing fuel consumption and travel times. These effects should have a positive impact on the quality of life of residents living near the POH.
The Broadway Second Main Track Project also satisfies several of the “Livability Principles” developed by the U.S. DOT in conjunction with the U.S. Department of Housing and Urban Development and the Environmental Protection Agency. While the “Livability Principles” are more applicable to highway and transit projects primarily impacting passenger travel, the Broadway Second Main Track Project does touch on some of these principles. Table 4, within the attachment, displays how the project addresses each livability principle.
Environmental Sustainability
The project will enhance environmental sustainability by increasing the efficiency of rail and truck transportation near the Port, reducing diesel fuel consumption by both rail and truck transportation providers, and reducing greenhouse gas and other emissions in the area.
Adding a second track will reduce congestion and delay for the railroads, allowing them to run trains in a more energy efficient manner. Moreover, additional capacity should shift some freight transportation from truck to rail and prevent future diversions from rail to truck. Rail is a more efficient form of transportation that reduces emissions by 30 to 80 percent when compared to trucks.
Furthermore, additional railroad capacity enabled by the second track will reduce congestion and delay on area roads for providers of truck transportation. This will allow trucks carrying freight – as well as other motorists – to operate their vehicles at a more consistent speed, one that promotes the efficient consumption of diesel fuel and gasoline. Reductions in fuel consumption by area vehicles will reduce the amount of harmful greenhouse gas emissions in the air and improve local air quality.
Disciplinary Integration
The Broadway Second Main Track project will be delivered by a collaborative partnership between the PHA and the PTRA. Over the last 15 years, diligent efforts by the PHA and others have added over 18 miles of second main track along the HSC. These projects were completed after robust planning processes and improved energy efficiency and the environment. The Broadway Second Main Track Project aims to alleviate the final portion of congestion along the south side of the HSC. The new track will provide for effective and efficient rail transportation, reduce locomotive fleet fuel consumption, reduce train delays, and ultimately reduce emissions and improve local air quality.
National Environmental Policy Act
PHA is dedicated to ensuring that business and the environment co-exist successfully. In 2002, PHA became the first U.S. port authority to attain and subsequently be recertified to the international standard for environmental management systems, known as ISO 14001. PHA’s Environmental Management System is the cornerstone of our business decisions in the protection and preservation of the natural environment. The system is continually expanding to integrate additional port operations.
This project is part of the ongoing efforts over the last 15 years to convert all single track on the south side of the HSC to double track for effective transportation. Designs for the project have been prepared and a Categorical Exclusion (CE) was filed with the Federal Railroad Administration (FRA) to progress this project. The project does not individually or cumulatively have a significant effect on the human environment; the project will not require an environmental assessment or an environmental impact statement. The CE is expected to be approved allowing PHA to obligate funds.
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