PTC Case

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University of Maryland, College Park *

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370

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Industrial Engineering

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Dec 6, 2023

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docx

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1. What is PTC? Positive Train Control systems are built to control the flow of trains to prevent accidents like train derailment, collisions, and out-of-bounds movements. This system is a combination of both hardware and software revisions to ensure that all possible human error is being eliminated. This could include modifications to the train’s locomotive, changes the to the software that controls the railroads, as well necessary equipment along tracks to support the movement of the train. 2. What is the current status of PTC? Cost? Timeline? As of December 29, 2020, the U.S. FRA PTC technology was put into operation across all required 57,536 miles of freight and passenger railroad track. Additionally, it was certified by FRA that all host railway PTC systems comply with the necessary technical requirements. In the initial mandate, it was required that PTC systems be fully implemented by December 31, 2015. It was given a three-year extension and then another two-year extension, with the final deadline being December 31, 2020. It is estimated that in the end, the total cost of PTC’s implementation was just under $2.9 billion. It took twelve years in total for the project to be completed. PTC is now in operation across seven Class I railroads, Amtrak, 28 commuter railroads, five freighting railroads, and numerous other materials and service providers on the railroads. 3. Why was it mandated by Congress? PTC was mandated by Congress under the Rail Safety Improvement Act to eliminate human error from train operations. It was mandated in response to the Chatsworth train crash in 2008, when a passenger train and a freight train collided head-on, killing multiple people. Congress deemed it be necessary for the safety of the nation’s railroads. In its mandate, Congress stated that PTC systems are required to be interoperable. This means that various systems within the PTC system can communicate and operate with one another. 4. What are the main issues related to the implementation of PTC? The first issue with implementation of PTC is simply how much railroad there is the United States. It is estimated that nearly 58,000 miles of railroad are going to have to be modified with PTC systems. Office locations need to be stood up near railroads, software must be specifically built for tacks, and components that track the speed and location of trains need to be installed as well. This technology must be integrated into existing railroad infrastructure and achieve interoperability. The main issue that comes with all of this is just the sheer scale of the
railroad system. Additionally, you have the issue of massive costs. This technology is very expensive, and it could be hard for smaller railroad companies to bear the cost of implementation. There are a lot of moving pieces involved with the implementation of PTC that could cause delays in its completion. 5. Are smaller railroads disproportionally affected by this technology? Smaller railroads have a harder time conforming to the mandate simply because of the cost and risk associated with installing PTCs. To meet regulations, it costs millions of dollars to both set up and maintain interoperable PTCs. These smaller railroads usually end up relying on Class I railroads to implement the technology first. As previously mentioned, even after the PTC systems are fully implanted, there is going to be a massive cost associated with maintaining the systems to requirements. 6. Who will bear the costs of PTC? PTC is going to be partially funded through government subsidies at the state, local, and federal level. This means that to an extent, the taxpayer will be bearing the costs of PTC systems. However, private railroad companies are going to bear billions of dollars in costs associated with implement PTC into their railways. Union Pacific Railroad alone spend $2.9 billion to install the necessary equipment and technology to meet the mandate’s requirements. While the total cost of implementation is very high, that does not consider just how much money it is going to cost to maintain the systems that have now been implemented. This cost is going to fall to the organizations that own and operate the railroads, maintenance will not be supported by funds from governments. 7. Do the benefits of PTC exceed the costs? PTC has the potential to save freight but more importantly, lives. I think that any technology that can prevent catastrophe, especially death, is going to be worth the money invested. While there have been only about 300 deaths across 50 years of railway travel, the ability to eliminate all deaths is worth the money. The projected benefit of the project is anywhere from $4 billion to $20 billion dollars; however, one cannot quantify the cost of a saved life. There is also the opportunity for saved costs and boosted efficiency through the implementation of the technology.
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