Costs/Benefits
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HDR Study 

 

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The "Costs vs. Benefits" Page

Costs

Total estimated costs (exclusive of land aquisition) are included in the HDR Study Update that was completed in December of 2001.  A complete copy of the HDR Study can be viewed via Adobe Acrobat Reader by clicking on the "HDR Study" button to the left. Detailed cost estimates begin on page 104. The following is a summarized version for the four track option that is most likely to be selected.

 

Segment 1

Segment 2

Segment 3

Total

Track Const.

$     9,899,000

$    70,877,000

$   66,489,000

$  147,265,000

Grade Seperations

$   58,825,000

$  104,494,000

$     7,999,000

$  171,318,000

Totals

 $    68,724,000

$  175,371,000

$  74,488,000

$  318,583,000

Land acquisition including right of way for the BNSF as well as necessary property for the downtown multi-modal depot is estimated at an additional $150 Million that could bring the total cost of Fresno rail consolidation to approximately $500 Million.

Benefits
 
Report 1

Fresno citizens now spending over $33.5 million a year in wasted time at the BNSF and the UP tracks 


Report 2

How the Fresno BNSF rail issue and Rail Consolidation affects you and Fresno  transportation.


Report 3

The big issue facing Fresno and the Central Valley today is air pollution. This report gives you  important  statistics on just how much our air will benefit by rail consolidation.


 Report 4

Written by Dennis Manning, FARRC VP of R&D and a retired CalTrans Engineer, this report details the unbelievable econonmic and employment impact that rail consolidation will have on Fresno. .


 

 

REPORT 1

RAIL CONSOLIDATION WORTH OVER $750 MILLION  IN TIME SAVED
How can we evaluate the benefits of the Fresno Rail Consolidation Project?

A good place to start is with time saved. The one commodity that we all value is our time. Time spent idling at railroad crossings is wasted – lost productivity, lost leisure time, lost business, higher frustration. The Fresno Area Rail Consolidation project would save an estimated 2,238,000 vehicle hours in the first year. That equates to $33,567,000 in dollar savings. The present value1 of $33,567,000 over 30 years is $416,000,000. However, it is nearly certain that road and rail traffic will continue to grow. The chart below depicts the present value at various road traffic growth rates2. With an historical street traffic growth rate of 4.5% the present value of time saved would be $750 million.


Time savings alone will pay for Rail Consolidation.

 

The following benefits would accrue to the people of Fresno, the State, and the Nation for free. 

 

·         Saved lives and property damage

·         Reduced air and noise pollution

·         Free up a 10 mile corridor – possibly for a cycle/pedestrian green belt

·         A more beautiful City

·         A spur to downtown revitalization

·         Increased opportunity for efficient mixed-use neighborhoods

·         Swifter passage through Fresno for both rail lines

 1 - Uses a rate of $15/hr/vehicle
2 - Assumes interest rate of 7%
3 - Rail traffic rate assumed to grow at 50% of road traffic rate

       Data source - “Fresno Regional Monitoring Report” for details click here      

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REPORT 2

FRESNO RAIL CONSOLIDATION AND HOW THE INNER CITY BNSF RAIL
CORRIDOR IS CENTRAL TO THE
FRESNO TRANSPORTATION ISSUE

 

v     The corridor, built in 1896, intersects 31 Fresno major streets. Due to numerous accidents, injuries and deaths, 7 of the streets have been blocked to vehicle traffic but the blockages still leave room for pedestrian crossings.

 

v     As reported recently by an Associated Press news article, maintenance on all railroads has been steadily declining. The increased derailments (reportedly, 11 in 18 months) on this local Fresno stretch of BNSF tracks seems to indicate problems with track, track bed and/or equipment that could be attributed to the same reduced maintenance reported by Associated Press.

 

v     From a 1990-1999 Fresno GOG Traffic Study (actual count), a compilation of vehicle traffic trips on the 31 streets intersecting with the BNSF tracks averaged over 400,000 vehicle trips per day crossing the tracks.

 

v     With a current average of 10 Amtrak and 30 freight trains traveling on the tracks each day, over the 24 hour period, it is estimated that approximately 15% of the 400,000 vehicle trips crossing the tracks each 24 hour period are stopped by a train crossing their paths. The congestion created causes several traffic issues:

1.      Idling engines adding more pollution to already poor air quality

2.      Careless drivers causing accidents, some trying to beat the train and some simply not judging stopping time for cars ahead

3.      The longer trains of today, with long lines of waiting autos, block several streets at a time due to the location of these tracks

 

v     Of a very serious import are the numerous delays to emergency vehicles; ambulance, fire and police.

 

v     Everyone, government, education, business and all Fresno citizens and visitors bear a rising cost created by the present location of the BNSF inner city rail corridor.

 

v     Fresno Rail Consolidation, achieved through a partnership of local, state and federal cooperation and funding, will pay for itself in coming years as the population grows from better planning for alternative means moving people and utilizing the existing, once vacated, corridor for multiple community purposes

 

v     Consolidating the BNSF rail corridor with the UP corridor along highway 99, with each company having its own double track for unrestricted passage providing the necessary under/overpasses to allow uninterrupted travel by trains, vehicles and pedestrians will give Fresno a necessary improvement to better transportation.

 

v     The current engineering update to the 1993 Rail Consolidation Analysis and report will provide the current requirements and estimated costs to accomplish the project.

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REPORT 3

 

RAIL CONSOLIDATION IMPROVES AIR QUALITY

 

The often asked question, “How much Fresno air pollution will be eliminated by rail consolidation?,” can now be answered. Currently, an average of 613,503 vehicles cross over the street level tracks of the BNSF and the UP railroads every day in Fresno. Of those, approximately 15%, or about 90,000 vehicles, are stopped by a train going over those crossings every day.

 

The average wait for those vehicles while a long freight train or a speedy Amtrak train goes by is 4 minutes, from the time one stops to when one starts up again. As we all know, very few drivers shut off their engines while they wait. Those idling engines are pouring tons of pollution into our already “severe non-attainment classification” air status which is bad. Recent, many reports have been making all aware of the bad air problem.

 

The following calculations are an acceptable estimate of the benefit to be realized from Fresno Rail Consolidation, which includes constructing under/overpasses at all major crossings on the consolidated corridor thus eliminating all street level crossings from both rail lines:

 

      Pollutant Types                                       Current Pollutants that will be eliminated

 

VOC = Volatile Hydrocarbons                         123,000     lbs/year  (61.5 tons)

CO = Carbon Monoxide                                  1,657,000  lbs/year  (828.5 tons)

NOX = Nitrous Oxide                                      28,000       lbs/year  (14 tons)

PM10 = Particle Matter (10 microns)               12,800       lbs/year  (6.4 tons)

 

As Fresno and the Central Valley grows, with projections indicating doubling to 900,000 residents possible in Fresno alone in the next 20 years, Fresno Rail Consolidation must take priority and become a reality. Without Rail Consolidation, the figures above would increase causing unlivable conditions.   

 

Sources: Dennis Manning, Vice Chairman, FARRC, (559) 323-1614, dennis@movethetracks.org,

              Fresno County Council of Governments, COG

              Caltrans

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REPORT 4

 

Economic and Employment Impact of Fresno Rail Consolidation



In addition to Fresno’s anticipated expenditure of approximately $150m for rail consolidation, State and Federal matching funds are estimated to be in the range of $300m. (Includes right of way costs). These matching funds are funds that normally would not flow into the Fresno economy. $150m local dollars plus 300m State and Federal dollars represents a sum that will have considerable effect in bolstering Fresno economy and raise employment levels, both during construction and beyond.

 

Taking note of the “multiplier effect”, i.e. an additional dollar spent in the local economy continues to circulate in the economy “multiplying” its effect by approximately threefold. That translates to an economic boost to Fresno of about $1.35b over and above the local spending share. Note: In various economic studies the “multiplier effect” can vary over a range from 2 to 9 depending on the nature of the infused capital and the local economy. For the Alameda Corridor project study 4 was used. To be conservative a multiplier of 3 is used for Fresno.

 

Using the experience of the just completed, much larger but similar in nature “Alameda Corridor” project in Los Angeles, it is possible to approximate impacts here in Fresno. Over the 7-year life of theFresno project 2800 jobs of varying duration will be created. Many will run the entire life of the project. In general these will be high wage jobs. As follows:

 

1,800 Construction trades

300    Professional and technical

700    Manufacturing, service, and transportation industry

 

Again using the “multiplier” it would be expected to generate 8,400 jobs in the greater Fresno area.

 

Not all jobs will remain upon completion; however, it can be anticipated through a local training program, as was done with the “Alameda Corridor”, local low skilled people can be trained and placed in approximately 250 relatively high skill jobs. These skills will remain after completion of the project for a lasting skill improvement in the local work force.

 

These effects on jobs and the economy will begin even before actual construction begins. In the 1-year pre-construction period about $20m will go toward design and environmental work. Benefits begin to flow immediately.

 

It is anticipated that the first phase of construction will be elimination of the 11 UP corridor vehicle crossings such as Ventura Boulevard,Olive Avenue, etc. Traffic will begin freer flow within about 2 years. This will produce an ongoing savings of about $10m per year in lost time, wasted fuel, pollution, lost lives, and the horns will cease to blow in the Union Pacific corridor. Upon completion all traffic conflicts will be eliminated boosting the direct ongoing savings to over $33m per year. Remembering the “multiplier effect” of 3 to 1 dollars added to the economy, the same effect exists when dollars are saved. They can circulate in the same way as an added dollar, culminating in a local ongoing economic impact of about $100m per year. 

 

In summary – For Fresno’s investment of $150m, rail consolidation will boost Fresno’s overall economic activity by $1.35 billion over the life of the project. The effects will begin in early phases. As various phases are completed the impact will grow to an ongoing $100m annually.  2800 high paying jobs will be directly created, and 8,400 total jobs in the local economy. With a job training program 260 low skill workers can be elevated to high skill level.

 

National Economic Impact

 

Although it is difficult to draw a direct comparison, a report was prepared in 1994 for the Alameda Corridor project entitled “The National Economic Significance of the Alameda Corridor”.  According to the report the Alameda Corridor will play a very large role in our global competitiveness. Higher transportation costs impose higher costs at the margin. 25% of all water borne trade in the US passes through the SanPedroHarbor. The value of those goods totals $120 billion per year (1994 dollars). Nationwide 2.5 million jobs are linked to this trade. A non-congested free flowing port is essential to stay competitive.  Using only 5% of possible projected trade increase that would result from construction of the Alameda Corridor it was estimated that it will generate 70,000 new jobs across the nation, and $2.5 billion in additional federal revenues. The actual figures could be 20 times that amount.

 

Fresno Rail Consolidation will account for a significant portion of cargo flowing in and out of the Alameda Corridor. Determining the percentage of  Fresno’s impact is beyond the scope of this paper; however, it is clear that there is a large direct impact of national significance.

 

Critical to National Defense

 

The corridor through Fresno, connecting major defense facilities, is the only north/south corridor for movement of military goods and personal via rail in California. It is thus a critical element for national defense both in peace time and in times of national emergency.

__________

 

Prepared by Dennis Manning, FARRC Vice-Chairman of Research and Development May, 2002.

 


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