Port Terminal Railroad Association Prepared for Transportation Sustainability 1
Transportation Sustainability PTRA Roots 2
Houston Ship Channel The amazing story of the Houston Ship Channel began in 1836 when the Allen brothers from New York decided their new town needed a navigable waterway. Many doubted that the 6-foot Buffalo Bayou could become a navigable waterway! Houston s future was assured President Woodrow Wilson officially opened the port to traffic as the World Port of Houston and Buffalo Bayou on November 10, 1914. 3
Bayou Scene, Houston, TX circa 1926 Houston Ship Channel 4
Port Terminal Railroad History The Port Terminal Railroad Association (PTRA), formed in 1924, is the culmination of an original eighteen different railroads that originally serviced the industries along the Houston Ship Channel. Original 18 Railroads Texas & New Orleans RR Co. The Houston, East & West Texas RR Co. Galveston, Harrisburg and San Antonio RR Houston & Texas Central RR Co. International Great Northern RR Co. St. Louis, Brownsville & Mexico RR Co. Beaumont, Sour Lake & Western RR Co. Gulf Colorado & Santa Fe RR Co. Trinity & Brazos Valley RR Co. San Antonio & Aransas Pass RR Co. Missouri-Kansas-Texas RR. Co. of Texas Houston Belt & Terminal RR Co. Galveston Houston Electric Houston and Brazos Valley Columbia Tap Railway LaPorte Houston Northern Railway Galveston, Houston, Henderson Buffalo Bayou Brazos & Colorado
Port Terminal Railroad History Through mergers and acquisitions, the PTRA today is an Association of three (3) Class I railroads: Union Pacific, Burlington Northern Santa Fe, KCS (Mexico) and the Port of Houston Authority. 6
Transportation Sustainability PTRA Today 7
PTRA straddles both sides of the Houston ship channel and proudly: Services 226 customers from 7 serving yards. Maintains 172 miles of track and 20 bridges. Handles approximately 52,000 cars with an average of 975 engine starts per month. Port Terminal Railroad Operations
Houston Rail Complex
Ship Channel I-10 PTRA System Map Market Street Manchester St. Hwy 225 Barbour s Cut 10
2018 PTRA Commodities Handled Other 5% Grain 8% Steel 4% Autos 3% Food 3% Coal 3% Ethanol 1% Chemicals 28% Industrial 11% Coke 12% Plastics 22%
PTRA Customers Base by Commodity ITC Vopak Stolt Albemarle Afton Enterprise Dow 13% Magellan HFOT Hanson Aggreg. Gulf Winds Cimbar Excalibar 13% 24% 18% Alltrans Contanda Beshert Richardson Ipsco New Process Chevron Total Ineos Braskem Oxy 11% 7% C-P/A S. Gulf Port Pkg Frontier KTN Plstic Exp SI Whse 4% C-P/A Glf Strm Watco 6% K.M. 3% Carg HM 1% VW 1%
Transportation Sustainability PTRA Preparation for Growth 13
A Decade *plus of Preparation PTRA Member Lines have invested $138 million in the last 13 years in capital expansion and maintenance. (in millions) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Expansion$ 2.3 $ 6.1 $ 0.9 $ 3.8 $ - $ 0.1 $ 8.0 $ 6.2 $ 6.2 $ 4.4 $ 1.6 $ 2.4 $ 6.0 $ 48.0 Maintenance$ 2.1 $ 2.2 $ 2.8 $ 2.3 $ 2.8 $ 3.8 $ 6.0 $ 4.8 $ 7.2 $ 8.2 $ 6.3 $ 6.9 $ 10.1 $ 65.5 Environmental & Other$ 0.0 $ 0.0 $ 0.1 $ 0.6 $ 0.2 $ 1.2 $ 0.9 $ 1.2 $ 4.0 $ 5.7 $ 4.6 $ 4.4 $ 1.6 $ 24.5 Total$ 4.4 $ 8.3 $ 3.8 $ 6.7 $ 3.0 $ 5.1 $ 14.9 $ 12.2 $ 17.4 $ 18.3 $ 12.5 $ 13.7 $ 17.7 $ 138.0
A Decade *plus of Preparation PTRA Member Lines have invested over $138 million in the last 13 years in capital expansion and maintenance. Capital Expansion Increase Yard Capacity Increase Velocity by Adding Main Running Tracks Increase switching performance by adding switching leads Capital Maintenance Annual Rail Tie Replacement 20-year Locomotive Overhauls Bridge Repair and Maintenance 286K railroad
Transportation Sustainability Adding Velocity and Capacity North Shore Track 63 was added at our North Yard as a running track to handle unit trains destined to facilities on the north side of the ship channel. Unit trains are typically Grain Ethanol Gasoline Fuel oil Wind fan Aggregate 16
Transportation Sustainability Adding Velocity North Shore Double Track all locations on the main running track on the North Side of the Ship Channel 17
Transportation Sustainability Adding Capacity South Shore All tracks on the south end of Manchester Yard were extended upon the completion of the Central Avenue Overpass. Track extensions increased the static capacity of Manchester Yard by 300 cars. 18
Transportation Sustainability Adding Velocity and Capacity South Shore Track 16 was added at our Pasadena Yard as a running track to handle unit trains and empty hopper spot trains destined to facilities on the south side of the ship channel. Unit trains are typically Ethanol Empty Plastic Hoppers 19
Transportation Sustainability Adding Velocity South Shore Double Track the Broadway Bridge to Manchester Junction (estimated completion May 2019). 20
Customers are also adding capacity Two new 500+ railcar storage facilities to handle overflow volumes have been built one on the North Shore and one on the South Shore. A second storage facility is scheduled to commence construction on the South Shore in mid 2019 adding an additional 650 car storage spots. Vopak constructed a Loop Track to handle ethanol traffic. Inter Continental Terminals opened a second location in Pasadena, TX and is currently expanding. Kinder Morgan built Loop Tracks to handle ethanol, coal and coke business. Katoen Natie added an additional 200 spots at its LaPorte, TX facility. 21
Customers are also adding capacity Frontier Logistics added 200 additional spots between its LaPorte, TX and Deer Park facilities. Greensport Terminal has expanded its Operations to handle ethanol, fuel, aggregate and wind fan business. Plastic Express and Modern Polymers (plastic baggers) and Beshert and New Process (steel) opened rail served facilities on PTRA. Jacob Stern opened a 2 nd facility on PTRA. Hansen Mueller renewed its rail operations in 2019 by receiving shuttle trains. Texas Lehigh will open a Cement facility for unit trains in 2 nd quarter 2019. 22
Transportation Sustainability PTRA Safety and Service Performance 23
PTRA Committed to Safety Safety Performance 2014 2015 2016 2017 2018 All Injuries 8 9 8 5 7 Severity Index 65.99 83.84 34.33 44 46.56 Human Factor REI s 17 13 11 10 10 10 9 8 7 6 5 4 3 2 1 0 Total Annual Injury Occurrences All REI s 26 22 20 16 15 9 8 7 8 5 2014 2015 2016 2017 2018 Injuries Linear (Injuries) 24
PTRA Committed to Safety Total Annual REI Occurrences 30 26 25 20 15 22 20 16 15 10 5 0 2014 2015 2016 2017 2018 REI's Linear (REI's) 18 16 14 12 10 8 6 4 2 0 17 Total Annual Human Factor REI s 13 11 10 10 2014 2015 2016 2017 2018 REI's Linear (REI's) 25
PTRA Committed to Service Service Performance 2014 2015 2016 2017 2018 Right Train Right Day 97 97 98 98 98 Gathering 93 94 95 96 96 Distribution 93 93 94 96 96 Train Set 98 99 99 99 99 Right Train Right Day 98.5 98 97.5 98 98 98 97 96.5 96 97 97 2014 2015 2016 2017 2018 RTRD Linear (RTRD) 26
PTRA Committed to Service 97 96 95 94 93 93 Gathering from Customer within Window 96 96 95 94 92 91 2014 2015 2016 2017 2018 Gathering Linear (Gathering) 97 96 Distribution to Customer within Window 96 96 95 94 93 93 93 94 92 91 90 2014 2015 2016 2017 2018 Distribution Linear (Distribution) 27
PTRA Ready for the Future Members are committed to ensure that infrastructure can handle future business growth. PTRA is committed to handling traffic with the highest standards of safety and service. PTRA is prepared for Transportation Sustainability.
Q & A Jeff Norwood General Manager, PTRA Houston Ship Channel 713.393.6507 (office) jnorwood@ptra.com PTRA Suppliers PTRA Human Capital Theresa Rusk Director of Customer Service, PTRA 713.393.6535 (office) trusk@ptra.com PTRA Technology PTRA Customers Port of Houston PTRA Infrastructure Committed to Safety and Service