The Perry administration is intent on spending taxpayers money on the railroads upgrading their privately owned and controlled infrastructure at taxpayer's expense. There are some private public partnerships with rail which make sense, especially commuter rail. However, read to the end of this memorandum and you'll see exactly how little committment BSNF is making to the citizens of Texas. They are here holding their hands out for our bucks but unwilling to invest financially in this state.
From Governor Perry's Website
BNSF Memorandum of Understanding
MEMORANDUM OF UNDERSTANDING BETWEEN THE STATE OF TEXAS ACTING THROUGH THE TEXAS DEPARTMENT OF TRANSPORTATION AND THE BNSF RAILWAY COMPANY FOR A COOPERATIVE PARTNERSHIP TO ADDRESS FREIGHT RAILROAD TRANSPORTATION ISSUES IN THE STATE OF TEXAS
WHEREAS, the Governor of Texas has proposed the development of a multimodal
WHEREAS, in accordance with House Bill Number 3588, 78th Texas Legislature, the Texas Department of Transportation (TxDOT) was authorized to proceed with the development of the Trans-Texas Corridor facilities; and
WHEREAS, in accordance with House Bill Number 3588, 78th Texas Legislature, TxDOT has been authorized to acquire, finance, construct, maintain, and lease operations on state owned rail facilities in order to improve the safety and efficiency of Texas transportation systems; and
WHEREAS, in certain areas of the state, the growth of freight movements in and through the state of Texas is projected to increase in volumes that will eventually exceed the capacity of existing transportation systems in the state; and
WHEREAS, the state recognizes the essential need to promote and improve the efficiency of the multiple modes of transportation within the state, in order to facilitate the efficient movement of freight goods in and through the state of Texas; and
WHEREAS, the BNSF Railway Company (BNSF) operates and performs freight rail transportation services within the state of Texas, and recognizes the important role played by TxDOT in rail transportation planning and will participate in studies to advance statewide transportation interests; and
WHEREAS, the BNSF in its cooperation with the state herein will be guided by its own internal principles as outlined in the policy document entitled "Public Private Partnerships," (Exhibit A, attached), which contains an overview as to how BNSF will consider and participate in projects such as the Trans-Texas Corridor, beneficial freight rail relocations or other rail infrastructure projects and the state of Texas is willing to work with BNSF under the guidelines in Exhibit A for projects of this nature; and
WHEREAS, the state of Texas has seen a need to improve the Texas transportation system, and the potential to include the possibility of relocating some portions of freight rail services to alternative alignments that would benefit multiple modes of transportation; and
WHEREAS, improvements in the statewide freight rail system will offer opportunities to maximize the safety of all Texans while providing increased capacity for freight; and
WHEREAS, the BNSF and the state of Texas have agreed that improvements to the Texas freight rail system will benefit the state by enabling increased freight rail efficiencies and improving services to freight customers, and encouraging additional economic development within the state;
WHEREAS, the State of Texas understands and appreciates that BNSF operates in a competitive business environment and BNSF understands and appreciates that the State of Texas intends to enter into similar Memorandums of Understanding with other transportation providers, including BNSF's competitors; and
WHEREAS, the State of Texas and BNSF agree that to the extent that any other Memoranda are executed by the State of Texas with any of BNSF's competitors, and to the extent that such Memoranda contain substantive terms that effect the competitive environment BNSF operates in, that the same or functionally similar terms will also be offered to BNSF.
NOW THEREFORE, we declare to direct our respective planning and development personnel to work in a cooperative manner to identify potential rail projects which will facilitate the safe and reliable movement of goods and people within the state of Texas, and which will benefit the transportation system of Texas and the people of the state.
By: ________________________
RICK PERRY
Governor of Texas
Date: _________________________
By: ________________________
Matthew Rose
Chairman, President and CEO
BNSF Railway Company
Date: _________________________
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Exhibit A
Public Private Partnerships Brochure
BNSF Railway Company (BNSF) will consider public-private partnerships in cases that benefit the public and ensure the interests of BNSF customers, investors and employees are protected. BNSF has successfully accomplished a number of public-private partnerships, including a partnership with several California state entities resulting in the Alameda Corridor and a partnership with various entities in Missouri and Kansas resulting in fly-over projects in Kansas City.
What are public-private partnerships?
Public-private partnerships combine the business interests of companies with the diverse goals of the local, state and federal entities who are working in the interest of the public. Cooperation between the private and public sectors may, in many cases, allow both sides to achieve their respective goals better, faster, and at lower costs.
How does BNSF approach public-private partnerships?
Public-private partnerships must be voluntary on both sides. Decisions on behalf of the public must protect the public interest and investment. BNSF's decision on whether to participate must protect our assets and the interests of our customers, shareholders and employees.
Coordinated state and federal transportation planning is necessary to ensure prudent public investments are made in the national rail network. BNSF works with local, state, federal agencies and public officials to provide whatever relevant information is needed to achieve public goals.
What factors does BNSF consider when evaluating a potential public-private partnership?
Public-private partnerships require a fact-based planning approach that:
Describes project scope;
Assesses impact on current freight traffic levels and future traffic growth;
Provides a cost-benefit analyses on an after-tax risk-adjusted basis; and
Identifies public funding sources, timing, processes and probability of obtaining funding to meet the public's timeliness objectives and achieve the public's goals.
BNSF's preliminary interest in exploring the possibilities of a public-private partnership should not be construed as a real or implied commitment by BNSF to support a project or participate either operationally or financially. BNSF's official support or concurrence of a project's benefit will follow the fact-based planning process outlined above, completion of a Memorandum of Understanding (MOU) between the parties, and BNSF's issuance of a formal statement of benefit and support.
What factors may lead BNSF to reject a potential public-private partnership?
Any public project cannot negatively affect BNSF's freight customers or BNSF's ability to provide them with consistent service, now or in the future.
Will BNSF consider participating financially in a potential public-private partnership?
BNSF recognizes public funding for rail projects should be commensurate with public benefits. BNSF's contributions to public-private partnerships will be commensurate with benefits derived by BNSF in comparison with other freight transportation projects competing for BNSF capital dollars.
Even though a project may produce some benefits for BNSF, it may not rank sufficiently high enough compared to other capital projects, or meet BNSF's internal capital investment or timeframe thresholds. When this occurs, BNSF would still support a project but would not provide financial participation.
READ GOVERNOR PERRY'S MEMORANDUM OF UNDERSTANDING WITH UNION PACIFIC RAIL ROAD.
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