The Integral Relationship Between Freight and the Economy

Dan England Chairman, C.R. England

Truck , 68.5%

Rail Carload, 13.5%

Pipeline, 10.3%

Water, 6.4%

Rail Intermodal, 1.2% Air, 0.1%

Distribution of Tonnage by Mode: 2012

Source: U.S. Freight Transportation Forecast to 2024

Growth in Tonnage Total Increase from 2012 to 2024

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2012 2024

Waterborne Rail Carload

Trucking

Rail Intermodal

Air

Pipeline

Source: U.S. Freight Transportation Forecast to 2024

$642.1

$57.1 $41.5 $12.2 $14.7 $28.0

$0

$100

$200

$300

$400

$500

$600

$700

Truck Rail Carload Pipeline Waterborne Rail Intermodal

Air

Revenue by Mode - 2012

Source: U.S. Freight Transportation Forecast to 2024

Billions

Truck 80.8%

Rail Carload 7.2%

Pipeline 5.2%

Water 1.5%

Rail Intermodal 1.8% Air

3.5%

Distribution of Revenue by Mode: 2012 vs 2024

Source: U.S. Freight Transportation Forecast to 2024

Truck 81.1%

Rail Carload 6.7%

Pipeline 4.3%

Water 1.4%

Rail Intermodal 2.5% Air

4.0%

2012 2024

Highway Funding is Severely Inadequate

$70 billion annual investment from all sources $133 billion needed to prevent problems from getting worse $756 billion shortfall by 2020, $3.25 trillion shortfall by 2040

Need to roughly double highway spending to begin to reduce congestion, address pavement and bridge deficiencies

Highway Trust Fund Current and Short-Term Situation

Since 2008 Congress has transferred $41 billion from the general fund to the HTF and an additional $12.6 billion is authorized for 2014 In FY2015 HTF obligations will exceed revenue 2015 shortfall options

Cut funding from $51 billion to $0 (the no action scenario) $14 billion from General Fund Raise fuel taxes by 10 cents per gallon Combination of those options

9

Thank You