North Carolina Railroad Company annual report

              2009 Annual Report
building a better railroad
Work goes on into the night as crews work to finish the Elon University
pedestrian underpass by mid-May, 2010.
Photo: Neil Bromilow
Message from the Chairman . . . . . . . . . . . . . . . . . . 2
Properties and Economic
Development Report . . . . . . . . . . . . . . . . . . . . . . . . 3
Major Capital Improvement Projects . . . . . . . . . . 4–7
Capital Improvement Project Map . . . . . . . . . . . . 8–9
Commuter Rail Ridership Study . . . . . . . . . . . . . . . 10
NCRR Building Ties . . . . . . . . . . . . . . . . . . . . . . 11–13
NCRR Board of Directors . . . . . . . . . . . . . . . . . . . . 14
NCRR Management Team . . . . . . . . . . . . . . . . . . . . 15
Financial Statements and
Independent Auditor’s Report . . . . . . . . . . . . . 16–31
table of contents
An Amtrak passenger train pulls into the Burlington station, home of Whistlestop, an exhibit about
the North Carolina Railroad and its role in the state’s development.
The Mission of the North Carolina Railroad
To maximize the value of the North Carolina Railroad Company’s
properties for the people of North Carolina through partnerships
that drive economic growth, enhance freight and passenger service,
improve safety and respect the natural environment.
2 north carolina railroad 2009 annual report
Today, we’re
shifting our
focus to projects
that will help us
maximize the
way the railroad
is used for both
passenger and
freight service.
Now as never before, rail
matters to North Carolina.
As a passenger transporta-tion
system, an effective
method of transporting
freight, an engine for
economic development, a
dependable source for job
creation and as a way to
lighten the carbon footprint
on our state’s fragile ecosys-tem,
rail is undergoing a
renaissance. It is our mission
here at the North Carolina
Railroad to make sure that
we leverage the use of this
317-mile, 200-foot-wide
railroad in ways that in-crease
its value for the
people of the state.
To do that requires a vision
generated by strategic
thinking that will guide us
as we shift from a decade-long
tradition of choosing
capital improvement
projects to repair the
railroad. Today, we’re
shifting our focus to proj-ects
that will help us maxi-mize
the way the railroad is
used for both passenger
and freight service. As we
move to address the de-mands
of the new economy,
these projects will allow
more trains to operate on
the railroad at higher
speeds and with a greater
degree of safety. For
example, in a nation of
aging infrastructure, NCRR
has replaced, renovated or
refurbished 17 bridges in
the last five years, mostly in
the eastern part of the
state. By looking ahead and
fixing these bridges, North
Carolina was able to attract
businesses to the eastern
part of the state that will
use the railroad to haul
large freight cars to the
port at Morehead City. Rail
was a factor in siting eleven
new businesses in North
Carolina in 2009, creating
thousands of jobs.
Because the railroad has the
potential for so many uses,
we must work closely with
our public and private
sector partners. North
Carolina was awarded $545
million in American Recov-ery
and Reinvestment Act
funds (ARRA), about $315
million of which will be
spent by the North Carolina
Department of Transporta-tion’s
(NCDOT) Rail Division
on NCRR projects. These
include projects such as
double tracking the railroad
in places where it’s a single
track so more trains can use
it, and to straighten curves
so trains can go faster.
Norfolk Southern is our
freight operating partner;
the operating agreement
with them is the source of
our capital improvement
funding. This allows us to
improve the railroad at no
cost to the state. Norfolk
Southern, while operating
in these challenging
economic times, sees its
future in efficiently de-signed,
strategically placed
corridors such as the
Crescent corridor, of which
NCRR is a part.
Another important opportu-nity
for partnership involves
safety. We will continue to
work closely with Operation
Lifesaver—a rail-sponsored
safety organization—as well
as with Norfolk Southern,
NCDOT’s Rail Division and
communities statewide to
educate people about using
caution at all crossings, and
to always expect a train.
NCRR looks forward to
building a better railroad to
help our state attract new
businesses and rail-served
industries, and to improve
transportation as we move
ahead into 2010. We will be
readying the railroad for
even more uses in today’s
high speed world.
john atkins
Chairman of the NCRR
Board of Directors
friends of
the north
carolina
railroad
company,
north carolina railroad 2009 annual report 33
economic
development
and properties
Economic Development
NCRR took a proactive approach to
economic development this year, fueled by
its role in the state’s successful attraction of
Spirit AeroSystems, Sanderson Farms and
Golden State Foods, and the substantial
number of jobs they are bringing to North
Carolina. NCRR works closely with the
Department of Commerce to locate,
preserve and promote railroad industrial
sites which are rapidly disappearing due to
the state’s steady growth.
The company is an active participant in the
North Carolina Economic Developers
Association, and maintains contact with
economic developers statewide. At its
forum on rail-related issues this year, NCRR
is sponsoring an event to highlight the
state’s best industrial rail-served sites and
to focus economic developers’ attention on
these sites.
Working closely with Norfolk Southern,
NCRR is encouraging the military bases in
eastern North Carolina to increase their use
of rail services. This year, Camp Lejeune is
transporting additional military equipment
One train
transporting
primarily jeeps,
tanks and
other vehicles
had 80 rail cars
carrying
over 275
military vehicles.
Had this move
traveled via
highway,
it would have
used 250 trucks.
Richard Wiley, Senior Consultant for Economic
Development, stresses the importance of preserving
the state’s rapidly disappearing industrial rail sites.
NCRR is encouraging military bases in eastern North Carolina to increase their use of
rail services.
by rail. For example, one train transporting
primarily jeeps, tanks and other vehicles had
80 rail cars carrying over 275 military
vehicles. Had this move traveled via
highway, it would have used 250 trucks.
Properties
A parcel of land was purchased near Pine
Level to allow for the construction of a
roadway to provide alternative access to a
small church and several houses as part of
a project to remove a private roadway that
crosses NCRR tracks.
4 north carolina railroad 2009 annual report
NCRR, NCDOT and Norfolk Southern constructed nine miles
of double track between Greensboro and High Point.
Grade Separation, Sugar Creek Rd.
Grade separation of main freight/pass. line at Sugar Creek Rd.
under study. Joint safety project with NCDOT.
Benefit: Improve safety-freight/pass
Total cost: $34,000,000 NCRR cost/share: $10,000,000
Charlotte
Construct Three Pedestrian Underpasses
Construct pedestrian underpasses in 3 selected pilot locations
in connection with grade crossing closures or high volume
pedestrian locations. One joint project with Elon University
will be completed in 2010.
Benefit: Improve safety
Total cost: $6,000,000 NCRR cost/share: $3,000,000
Raleigh–Charlotte
Commuter Rail Shared Corridor Track Expansion Study
Determine the infrastructure requirements and costs for
potential future commuter rail within the NCRR corridor
(Goldsboro to Burlington; Burlignton to Greensboro). Conduct
market/ridership analysis.
Benefit: Study
Total cost: $1,450,000
NCRR Corridor
Rail/Truck Loading & Spur Track
Rail/truck loading ramp and spur track, Kinston to serve
Global Transpark and other users. Project includes site work,
road access, and staging area for transfer point.
Benefit: Economic development
Total cost: $900,000
Kinston
Survey/Monumentation Project
Establish permanent rail corridor monumentation for corridor
management and engineering/planning purposes. Incorporate
geodetic monuments in statewide survey grid.
Benefit: Corridor management
Total cost: $2,000,000
NCRR Corridor
Rail work at the I-85 Bridge – Yadkin River
This project will widen portions of I-85 to eight lanes, replace
six existing bridges, and replace two existing railroad grade
separations near the Yadkin River in Rowan and Davidson
Counties.
Benefit: Improve safety and speed (rail work only)
Total cost: $4,500,000** NCRR cost/share: $3,000,000
**Received $1.5 million in ARRA funding
Davidson and Rowan Counties
Committed Projects
major
capital
improvements
NCRR and Elon University partnered to construct a
pedestrian underpass to improve safety.
north carolina railroad 2009 annual report 55
Grade Crossing Improvements
Improve grade crossing protection on unsignalized or partially
signalized grade crossings between CSX Junction at Selma
and Morehead City (115 miles). Joint project with NCDOT and
Norfolk Southern.
Benefit: Improve safety and speed
Total cost: $7,641,750 NCRR cost/share: $2,227,200
Selma – Morehead City
Double Track, 12.1 Miles
This work is to improve capacity by adding a second track and
signals to reduce delays associated with meeting and passing
trains between Concord and Charlotte (Haydock-Junker).
Benefit: Improve capacity (Main Line)
Total cost: $95,116,212 (NCDOT high speed rail)
NCRR cost/share: $13,000,000
N. Charlotte – Concord
Double Track, 10 Miles
This work is to improve capacity by extending second track
and signals to reduce delays associated with meeting and
passing trains (N. Kannapolis-Reid).
Benefit: Improve capacity (Main Line)
Total cost: $92,593,479 (NCDOT high speed rail)
NCRR cost/share: $10,000,000
Kannapolis – Salisbury
EC Line Bridge Replacements
Replace single track trestle over creeks in Lenoir and Craven
Counties to address settling piers and weight requirements.
Joint project with Norfolk Southern.
Benefit: Improve safety and speed
Total cost: $3,000,000 NCRR cost/share: $1,500,000
Craven and Lenoir Counties
Funded by American Recovery
and Reinvestment Act grant
Continuous welded rail being laid in New Bern.
Curve Realignment
Straighten curve in downtown Kinston to increase speed to
25 mph.
Benefit: Improve safety and speed
Total cost: $3,300,000
Bridges EC-27.8 and EC-27.9
Rebuild wooden trestle bridges over the Neuse River.
Benefit: Improve safety and speed
Total cost: $8,000,000 NCRR cost/share: $4,000,000
Kinston
Double Track, 4.2 Miles
This work is to improve capacity by extending second track
and signals to reduce delays associated with meeting and
passing trains (Bowers-Lake).
Benefit: Improve capacity (Main Line)
Total cost: $47,545,437 (NCDOT high speed rail)
NCRR cost/share: $4,000,000
Thomasville – Lexington
6 north carolina railroad 2009 annual report
Construct Three Segments of Passing Tracks
and CTC & Communications
Improve capacity by adding 3 passing tracks totalling approx.
8 miles between Raleigh and Goldsboro to improve passenger
and freight train performance and service. Add centralized
traffic control 31 miles; raise to same standard as Raleigh–
Charlotte to improve speed performance and reliability, and
accommodate growth of freight and passenger service. Install
Cabarrus Street Interlocking and revise track layout to increase
speed to and from yard. Improve Boylan Storage Track.
Benefit: Capacity improvement, Electronic traffic control
Total cost: $22,600,000
Completed 2008 (Boylan Storage Track in 2009)
Raleigh – Goldsboro
Double Track, 9 Miles
Improve capacity by adding a 2nd track (Cox-Hoskins) to
reduce delays associated with meeting and passing trains.
DOT studies have identified this portion of railroad as one of
the most congested.
Benefit: Improve capacity and efficiency
Total cost: $21,000,000 NCRR cost/share: $4,000,000
Completed 2009
High Point – Greensboro
Upgrade track condition between Raleigh and Selma
Increase passenger speed to 59 mph for approx. 30 miles;
upgrade crossing circuits
Benefit: 35 minute passenger trains
Total cost: $2,400,000 NCRR cost/share: $1,750,000
Completed 2002
Raleigh – Selma
Extend Siding 1+ Mile
This work is to extend passing siding and straighten curve
west of Durham for approximately 1-mile segment.
Benefit: 35 minutes passenger trains
Total cost: $3,558,000 NCRR cost/share: $75,000
Completed 2003
Durham (Funston)
Replace NC 54 Railroad Bridge-RTP
Replace existing single track RR bridge in RTP with double
track bridge and accommodate regional transit operations;
improve traffic flow and eliminate substandard clearance.
Benefit: Improve rail capacity and ease vehicle congestion
Total cost: $5,500,000
Completed 2006
Durham, Research Triangle Park
Acquire Property to Straighten Curve at Hopson Road**
Acquire acreage for future straightening of curve in Durham
Co. in RTP for adding passing siding and improving curvature
to allow higher speeds for freight and passenger trains
Benefit: Improve capacity and speed.
NCRR cost/share: $2,000,000
Completed 2006
**Bridge, curve straightening and 2-mile siding will be completed as part of
NCDOT’s ARRA High Speed Rail grant
Durham County, Research Triangle Park
Completed Projects
NCRR added a team track in Kinston to serve Global
Trans Park.
Super gangs work to install welded rail in New Bern.
major
capital
improvements
north carolina railroad 2009 annual report 77
Double track adds capacity to the railroad, improving efficiency for freight and passenger trains.
Feasibility Study: Main Line Relocation
Evaluate feasibility of relocating the main line off of Hwy. 70 in
Carteret Co. between Cherry Point MCAS and the Morehead
City State Port Terminal to improve service and safety to/from
the Morehead City Port; elim. traffic crossings and hazards, and
promote industrial development. Feasibility recommendations
to include participants, finance sources and alternatives.
Benefit: Main line
Total cost: $500,000
Completed 2007
Havelock/Morehead City
Replace Restricted Bridge: MP H-95.2
Replace bridge structure on main line to eliminate speed
restriction and improve clearance on Hwy. 70 Bus.
Benefit: Improve safety and speed
Total cost: $1,000,000
Completed 2008
Clayton
Repair/Renovate Neuse R. Bridge (Johnston County), Hwy
87 Bridge (Alamance County)
Bridges have clearance and track restrictions.
Benefit: Improve clearance/loading
Total cost: $500,000
Completed 2009
Johnston and Alamance Counties
Replace Bridge Trestle at Batchelder Creek
Replace single track wooden trestle over Batchelder Creek in
Craven County.
Benefit: Improve capacity and safety
Total cost: $450,000
Completed 2006
Craven County
Repair/Replace Neuse River Bridge; Improve Rail
Increase load of bridge to permit 286,000 lb standard
railcars as other segments of NCRR and allow port traffic;
replace jointed rail with continuous welded rail (remaining
14 mile segment).
Benefit: Improve reliability
Total cost: $7,100,000
Completed 2004
Kinston
Replace Jointed Rail
Replace jointed rail with continuous welded rail (17-mile
segment) same as Project I-(B)1.
Benefit: Increase load rating; Replace rail
Total cost: $4,950,000
Completed 2005
Kinston
ALEXANDER
ALLEGHANY
ANSON
ASHE
AVERY
BUNCOMBE
BURKE
CABARRUS
CALDWELL
CATAWBA
CHEROKEE
CLAY
CLEVELAND
DAVIDSON
DAVIE
FORSYTH
GASTON
GRAHAM
GUILFORD
HAYWOOD
HENDERSON
IREDELL
JACKSON
LINCOLN
MCDOWELL
MACON
MADISON
MECKLENBURG
MITCHELL
MONTGOMERY
POLK
ROCKINGHAM
ROWAN
RUTHERFORD
STANLY
SURRY STOKES
SWAIN
TRANSYLVANIA
UNION
WATAUGA
WILKES
YADKIN
YANCEY
Four Double Track Projects
Double track over 35 miles in
four different segments on high
volume main line
Funding Partners: NCDOT
and Norfolk Southern
Sugar Creek Road Bridge
Preliminary design to discern
cost of separating road from
rail on the corridor’s busiest
crossing
Funding Partners: To be
determined
Elon University Pedestrian
Overpass: Provide safe means
for pedestrians to cross track on
college campus with heavy foot
traffic.
Funding Partner: Elon Univer-sity
Bridge and Crossing Improvements
Improvement Name and Status
Batchelor Creek Bridge Trestle
Bridge Replacement at e-019.5
Bridge Replacement at e-020.7
Clayton Restricted Bridge
Grade Crossing Improvement Program
Hopson Road Alignment Bridge and Curve (Future)
NC Hwy 54 Bridge
NC Hwy 87 Bridge
Neuse River Bridge - Kinston
Neuse River Bridge - Wilson’s Mills
Pedestrian Underpass - Elon University
Sugar Creek Rd. Bridge / Grade Separation (Future)
Track Improvements
Improvements Name and Status
Charlotte to Concord (Future)
Cox to Hoskins Double Track
East Durham New Main Track
Goldsboro to Morehead City Replace Rail (Future)
Kannapolis to Salisbury (Future)
Kinston to New Bern Replace Rail
Lexington to Thomasville (Future)
Raleigh to Goldsboro Siding and Signals
8 north carolina railroad 2009 annual report
capital
improvement
projects
ALAMANCE
BEAUFORT
BERTIE
BLADEN
BRUNSWICK
CAMDEN
CARTERET
CASWELL
CHATHAM
CHOWAN
COLUMBUS
CRAVEN
CUMBERLAND
CURRITUCK
DARE
DUPLIN
DURHAM
EDGECOMBE
FRANKLIN
GATES
GRANVILLE
GREENE
GUILFORD
HALIFAX
HARNETT
HERTFORD
HOKE
HYDE
JOHNSTON
JONES
LEE
LENOIR
MARTIN
MONTGOMERY
MOORE
NASH
NEW HANOVER
NORTHAMPTON
ONSLOW
ORANGE
PAMLICO
PASQUOTANK
PENDER
PERQUIMANS
PERSON
PITT
RANDOLPH
RICHMOND
ROBESON
ROCKINGHAM
SAMPSON
SCOTLAND
TYRRELL
VANCE
WAKE
WARREN
WASHINGTON
WAYNE
WILSON
Neuse River Bridge
A new bridge in Kinston that can
handle today’s bigger, heavier
trains replaces a 100-year old
hurricane damaged structure.
Welded Rail
Outdated, lightweight 90-lb. rail
is replaced by seamless, heavier
gauge welded rail to improve
speed and safety between
Goldsboro and Morehead City.
Clayton Bridge
Replaced oldest bridge on the
railroad with a new span allowing
freight and passenger trains to
increase speeds.
Highway 54 Bridge
New railroad bridge has double
track capacity and opens up a
vehicular bottleneck in Research
Triangle Park
Siding and Signals
Increases track capacity and allows trains to
increase speed and pass between Raleigh and
Selms, improving on time performance.
north carolina railroad 2009 annual report 99
10 north carolina railroad 2009 annual report
Steer Davies
Gleave will
prepare
ridership models
and revenues
forecasts for
four potential
commuter train
routes in the
seven-county
area for 2012,
2017 and 2022.
commuter rail
ridership study
NCRR retained Steer Davies Gleave of Boston
to study what the potential ridership and
revenue market for would be for commuter
rail service within its 140-mile rail corridor
between Greensboro and Goldsboro.
The eight-month study is expected to
be complete in early May, 2010. It is a
follow-up to a 2008 NCRR engineering
study that concluded with significant
improvements commuter trains and freight
trains could co-exist in the Goldsboro-
Greensboro corridor. Commuter trains
would run primarily in the morning and
late afternoon, which is in contrast to light
rail that operates throughout the day.
Steer Davies Gleave will prepare rider-ship
models and revenues forecasts for
four potential commuter train routes in
the seven-county area for 2012, 2017
and 2022. Those routes could be:
■ Goldsboro to Raleigh through Selma,
Clayton and Garner
■ Raleigh to Burlington through Cary,
Research Triangle Park, Durham, and
Hillsborough
■ Greensboro to Raleigh through
Gibsonville, Elon and Burlington
■ Chapel Hill/Carrboro connections to
Raleigh and Greensboro
The study area also includes 18 state and
private universities within two-mile ac-cess
to the rail line, including NC State,
Shaw, UNC-Chapel Hill, Duke, NC Central,
UNC-Greensboro, Elon and NC A&T.
The studies are part of NCRR’s capital
investment planning for 2030.
“From its early beginning our company has
looked over the horizon to determine how
this important asset can be used to benefit
economic development and transportation
in North Carolina,” said Scott Saylor, NCRR
president. “We look forward to working
with communities to explore the potential
use of the rail line for the public and busi-ness
over the next couple of decades.”
The study will include:
■ A travel survey of citizens and major
businesses in the market areas.
■ Development of a travel forecasting
model (modified Triangle Regional Model
and Piedmont Triad Regional Model) and
use of other forecasting tools.
■ Estimate of ranges of projected fares to
provide a basis for fare box revenue.
■ Evaluation of land use patterns and their
effects upon ridership demand.
■ Examination of bus routes for feeder and
distributor services.
The study costs approximately $300,000
and NCRR is funding it from its own
revenues, derived from its operating
agreement with Norfolk Southern. Study
results will be shared with the public
and local and regional planning officials.
Results and a summary of the study
will be available at www.ncrr.com.
The Shared Corridor Capacity Study, completed
in 2009, considered 4 different routes over 140
miles between Greensboro and Goldsboro.
north carolina railroad 2009 annual report 1111
ncrr
building ties
In 2009, NCRR launched an effort to
better get to know the communities,
municipalities and people along the cor-ridor.
Because the railroad passes through
the middle of the state and touches
many lives and businesses, the company
wants to know its neighbors. By getting
involved, working with communities and
keeping them informed, NCRR wants to
build not only a better railroad, but also
better partnerships throughout the state.
Here are some of the year’s efforts.
Open House: Kinston
Track Improvements
Improvements to enhance safety,
speed and economic development on
the North Carolina Railroad were dis-cussed
at an Open House in September
2009, in Kinston. The event was jointly
hosted by Pride of Kinston and NCRR.
Norfolk Southern Railway, freight op-erator
on NCRR, also participated.
The event kicked off a nine-month project
to realign the tracks between Mitchell and
North Independence Streets in downtown
Kinston, which began in mid-September.
The realignment will permit increased
train speed from the current 10-mph to
25-mph, enabling trains to clear in-town
crossings more quickly.
Faster trains reduce traf-fic
delays at crossings.
Further, the recent removal
of the old freight depot plus
the downtown track realign-ment
will allow today’s larger rail cars, such
as those used by Spirit AeroSystems and
Camp Lejeune, to pass through, further
opening up eastern North Carolina for
rail-served industries and the military.
Also underway was construction of
a transload track to serve the Global
TransPark, creating a siding and truck/rail
loading ramp for Spirit and other future
users. The cost to NCRR for both projects,
funded out of NCRR freight revenues,
is approximately $3.5 million. Under a
separate project, the North Carolina
Department of Transportation is con-structing
a six-mile rail line to directly
connect the Global TransPark to NCRR.
The open house event began with
brief comments from Kinston Mayor
O.A. (Buddy) Ritch and several busi-ness
and civic leaders. During the Open
House representatives from NCRR,
Pride of Kinston and Norfolk Southern
were available to answer questions.
NCRR has invested more than $60 million
east of Raleigh since the start of its capital
improvement program in 2001, including
about $17.6 million in Lenoir County.
Because the
railroad passes
through the
middle of
the state and
touches many
lives and
businesses,
the company
wants to know
its neighbors.
The NCRR hy-rail vehicle affords
an engineer’s view of the railroad.
Left to right: John Brantley, RDU,
Jeff Merritt, Triangle Transit, Joe
Milazzo, Regional Transportation
Alliance, Scott Saylor, NCRR, Rick
Weddle, Research Triangle
Foundation, David King, Triangle
Transit.
12 north carolina railroad 2009 annual report
Projects Include:
■ Neuse River bridge
■ Welded rail
■ Transload track in GTP
■ Replace bridge trestle in
Craven County (Batchel-der
Creek)
■ Eastern grade crossing
project
■ Curve straightening in
Kinston
In attendance were Mayor
O.A.”Buddy” Ritch, Scott
Stevens, Kinston City
Manager, members of the
Kinston City Council, Adrian
King, Executive Director,
Pride of Kinston, Mark
Pope, Executive Director,
Lenoir County Economic
Development, Rick Davis,
Spirit AeroSystems, Dominik
Browne, General Manager
for Norfolk Southern’s Busi-ness
Units and NCRR Board
members Bob Griffin, Dave
Woodard and Fred Ruffin,
and former members P.C.
Barwick and Pou Rochelle.
Forums: Progress In
Motion: 2030 and 2010:
Rail and the New Economy
The role that North Caroli-na’s
freight and passenger
train service could play in
the state’s transportation
future was the focus of
Progress in Motion: 2030, a
March 19 forum in Raleigh,
held at the McKimmon Cen-ter
and hosted by NCRR.
Experts from the freight,
passenger and transit
sectors shared their insights
and answered questions
about costs, benefits,
environmental challenges
and potential partnerships.
The morning session dealt
with freight rail service
and the rail industry as
an economic engine. The
afternoon session focused
on passenger service and
transit driven investment.
“Progress in Motion: 2030”
speakers included North
Carolina Secretary of
Transportation Eugene A.
Conti, Jr., former Governor
James B. Hunt, former Nor-folk
Southern Senior Vice
President for Strategic Plan-ning
James McClellan, and
officials with mass transit
organizations in Charlotte,
the Triad and Triangle, and
Norfolk Southern, CSX and
Amtrak. Also participating
were business leaders,
economic developers and
local government represen-tatives.
NCRR hosted the
forum as part of its 2030
long range planning effort.
2010: Rail and the New
Economy is a forum for
those interested in how
railroads contribute to
North Carolina’s trans-portation
system and
enhance its economic and
environmental efforts.
The goal of the forum is
to foster discussion, ideas
and information among
those with an interest in
rail in order to enhance
the state’s rail assets.
This year, the forum will be
preceded by special events,
networking, discussions
and presentations at the
Depot, a restored former
NCRR freight rail warehouse
in downtown Raleigh.
Experts representing
some of the industry’s best
thinking from our state and
beyond have been invited
to present their thoughts
on passenger, freight,
transit and rail-related
economic development.
The forum was held May
10th and 11th, 2010.
More information can be
found at www.ncrr.com.
Special Events
By attending a variety of
trade shows, conventions
and public information
meetings the company
hopes to keep its fingers
The goal of
the forum is
to foster
discussion, ideas
and information
among those
with an interest
in rail in order
to enhance the
state’s rail assets.
Catherine Campbell, NCRR, and Kristen Nunnally, Norfolk Southern,
at a military vehicle load out with soldiers from Camp Lejeune.
north carolina railroad 2009 annual report 1133
on the pulse of issues that
are important to today’s
business and government
communities. These events
are important to the telling
of the NCRR story, and for
listening to the stories
of the communities
through which the rail-road
passes. Outreach at
events and to organiza-tions
in 2009 include:
■ NC Chapter of American
Planning Association
■ NC League of
Municipalities
■ Selma Railroad Days
■ NC Main Street
■ NC Society of Surveyors
■ NCDOT Rail Division
public meetings
■ NCRR Corridor
Management Information
public meetings
■ NC Economic Developers
Association
■ Regional Transportation
Alliance
Safety
NCRR continues to raise
awareness of safety issues
by participating in Opera-tion
Lifesaver’s safety train
program. We invite public
officials, surveyors, plan-ners,
law enforcement
personnel and others to
ride a special train outfit-ted
with video cameras so
passengers can see exactly
what the engineer sees.
Riders see trespassers and
people trying to beat the
train at crossings. They can
see how some encroach-ments
can be dangerous
in the corridor as well.
We also work with Opera-tion
Lifesaver on crossing
blitzes. These are held at
rail crossings that have
recently been modified in
some way, or where there
has been a train-vehicle col-lision.
Supervised by local
law enforcement officers,
volunteers approach drivers
at designated crossings and
distribute safety information
and answer any questions
that the drivers might have
about reworked crossings.
The goal is to heighten
awareness of the dangers
near or on the tracks, and
to remind people to always
expect a train or trains.
NC One Call
NCRR participates in the
“Call Before You Dig”
program as a way to learn of
activity on the corridor.
Currently, NCRR participates
in the Wake County pro-gram
and recently added
the Johnston County
program. The program is
beneficial because it alerts
NCRR to imminent activity
that may require an agree-ment
or corridor safety plan.
Since the program began
on July 1, 2009:
■ 608 requests handled
■ 94 contacts made
■ 4 requests resulting in
new agreements,
agreement modification,
or encroachment removal
Geographic Information
Systems (GIS) Data Sharing
NCRR enters into data
sharing agreements with
local governments to
ensure their data accurately
reflects the NCRR corridor
enabling better decisions
regarding planning, zon-ing
and inspections.
These events
are important
to the telling
of the
NCRR story,
and for
listening to
the stories
of the
communities
through which
the railroad
passes.
A Norfolk Southern Operation Lifesaver locomotive pulls
cargo though the countryside.
14 north carolina railroad 2009 annual report
north carolina railroad company
officers and directors
chairman
John L. Atkins, III
Research Triangle Park
President and Chairman
and Chief Executive Officer,
O’Brien/Atkins Associates
vice chairman
Christie S. Cameron
Raleigh
Clerk of the North
Carolina Supreme Court
secretary treasurer
David T. Woodard
Raleigh
General Agent for Union
Central Financial
directors
This year, NCRR has shifted focus
from primarily preserving and
protecting the corridor for future
use to engaging key partners to
utilize the corridor more actively
to benefit the economy, create
jobs and improve transporta-tion
in the state. To achieve
this goal, the Board committee
structure was reorganized into
the following four groups:
Audit, Budget and Personnel
This committee is responsible for
oversight of the annual audit, in-cluding
financial reporting and tax
planning, and recommending cash
management policies, personnel
policies and budget matters. It
also recommends ethics policies
for directors and management. It
is chaired by Murray Greason, with
Marion Cowell, Sam Hunt, and
Gene Upchurch serving as mem-bers
and Dave Woodard, John At-kins
and Scott Saylor as Ex officio.
Corridor Management Policy
This committee is responsible for
developing corridor management
policy and directives regard-ing
right of way management.
Planning falls under the purview
of this committee, chaired by
Dennis Rash, with members Bob
Bleecker, Bob Griffin, John Pike
and Fred Ruffin, and John Atkins
and Scott Saylor as Ex officio.
Economic Development
This committee looks for ways to
help bring rail-served industries
to North Carolina, thereby help-ing
to create jobs and promote
economic growth. It develops
project planning and focus,
including policy recommenda-tions
for new partnerships, and
recommend guidelines for new
industry site direction and devel-opment.
It also oversees Public
Affairs policy and direction. It is
chaired by Gene Upchurch, with
members Bob Bleecker, Christie
Cameron, Bill Kincheloe, John
Pike, Fred Ruffin and John Atkins
and Scott Saylor as Ex officio.
Strategic Planning and Policy
Taking the long view, this com-mittee
is responsible for future
planning and use of the corridor,
long range strategic planning
and capital budgeting, and
serves as the Norfolk Southern
Policy and Planning committee
liaison. It is also responsible for
the development of the Capital
Program and capital investments,
including track, bridge and other
improvements, based upon the
Board’s strategic objectives. This
committee is chaired by Christie
Cameron, with Marion Cowell,
Murray Greason. Bob Griffin,
Sam Hunt, Bill Kincheloe, Dennis
Rash and Dave Woodard serv-ing
and John Atkins and Scott
Saylor serving as Ex officio.
Robert F. Bleecker
Red Springs, Dunn, Fayetteville
President of Bleecker Automotive
Group Buick, GMC, Chevrolet, Chrysler,
Dodge, Jeep, Electric Vehicles
Marion A. Cowell
Charlotte
Attorney, Of Counsel, Kilpatrick Stockton
Murray C. Greason, Jr.
Winston Salem
Womble Carlyle Sandridge & Rice
Robert W. Griffin
Kinston
Principal in the law firm of
Griffin and Griffin, Attorneys
Sam Hunt
Burlington
Owner, Hunt Electric Supply and
Atlas Lighting Products, Inc.
William H. Kincheloe
Rocky Mount
President, Wildwood Lamps and Accents
John M. Pike
Goldsboro
Director of Operations, Goldsboro
Milling Corporation
J. Dennis Rash
Charlotte
Executive in Residence and Visiting Professor
of Transportation Studies, UNC-Charlotte
Frederick Kenneth Ruffin
Durham
Owner, Ruffin Realty and Insurance, Inc.
(retired)
US Air Force (retired)
P. Eugene Upchurch III
Raleigh
Vice President-External Relations,
Progress Energy
north carolina railroad 2009 annual report 1155
north carolina railroad company
management team
Scott M. Saylor, President
Kat Christian, Public Affairs Director
Catherine Campbell, Planning and
Research Assistant
Dan Halloran, Vice President and
Chief Financial Officer
Nancy Pickett, Office Manager
Hilary Perez, Archivist
Glenn E. Hartsoe, P.E., Consulting Engineer
Richard L. Wiley, Senior Consultant—
Economic Development
Charles E. Burnell, Vice President, Real Estate
William C. Miller, Property Manager
Justin Madigan, Assistant Corridor
Manager and Information Technology
John L. Spencer, Real Estate Representative
Cathy J. Deeley, Real Estate Representative
Kristian D. Forslin, GIS Coordinator
16 north carolina railroad 2009 annual report
contents
Independent Auditor’s Report
Financial Statements
Consolidated balance sheets . . . . . . . . . . . . . . . . . . . 18–19
Consolidated statements of income . . . . . . . . . . . . . . . . . 20
Consolidated statements of stockholder’s equity . . . . . . 21
Consolidated statements of cash flows . . . . . . . . . . . 22–23
Notes to consolidated financial statements . . . . . . . . 24–31
consolidated financial report
december 31, 2009 and 2008
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2809 Highwoods Blvd., Suite 100
Raleigh, North Carolina 27604
919 954-7601
www.ncrr.com
building a better railroad