Almost All Railroads Are Installing PTC Overlay Systems but Face Challenges in Meeting the 2015 Implementation Deadline

		Railroads Are Generally Implementing PTC as an Overlay System for Feasibility Reasons

Although there are two primary types of PTC systems—overlay and  standalone— that functionally meet the PTC requirements in RSIA,  almost all railroads required to install PTC are installing overlay systems. FRA has reported that in order to implement PTC, railroads must design,  produce, and install more than 20 major components such as data radios  for locomotive communication, locomotive management computers, and  back office servers. In May 2013, AAR reported that by  the end of 2012, railroads had spent about $2.8 billion on PTC  implementation. Despite  the billions railroads have invested, much of the work to implement PTC  remains to be done. For example, AAR reported that as of the end of  2012, about a third of wayside interface units— which are needed to  communicate data—had been installed. In addition, AAR reported that as  of the end of 2012, less than 1 percent of locomotives needing upgrades  had been fully equipped. Most Railroads Report They Will Miss the 2015 PTC Implementation Deadline Due to a Number of Challenges

Most railroads report they will not complete PTC implementation by the  2015 deadline due to numerous interrelated challenges caused by the  breadth and complexity of PTC. Both AAR and FRA have reported that  most railroads will not have PTC fully implemented by the deadline. Of  the four major freight railroads we included in our review, BNSF is the  only railroad expecting to meet the 2015 deadline. Of the three remaining freight  railroads we spoke to, representatives believe they will likely have PTC  fully implemented by 2017 or later. Commuter railroads generally  must wait to equip their locomotives until freight railroads and Amtrak  equip the rail lines that commuter railroads generally operate on. Four of  the seven commuter railroads we included in our review reported that  they will be unable to meet the 2015 PTC implementation deadline. For instance, many of the PTC components had not been developed  before RSIA was enacted, and some continue to be in various stages of  development. To ensure successful integration, railroads  must conduct multiple phases of testing—first in a laboratory  environment, then in the field—before installation across the network. FRA resources. In addition, according the  American Public Transportation Association (APTA), commuter railroads  face competing expenses such as state of good repair upgrades, leaving  them with limited funding to implement PTC. According to APTA,  collectively, PTC implementation will cost commuter railroads a minimum  of $2 billion. Finally, commuter railroads report that obtaining radio  frequency spectrum—essential for PTC communications—can be a  lengthy and difficult process. By attempting to implement PTC by the 2015 deadline while key  components are still in development, railroads may be making choices  that could introduce financial and operational risks to PTC  implementation. FRA officials told us  that if Congress chooses to amend RSIA, additional authority to extend  the deadline on certain rail lines, grant provisional certification of PTC  systems and approve the use of alternative safety technologies in lieu of  PTC would help them to conduct oversight more effectively by providing  FRA flexibility in overseeing PTC. Flexibility in extending the deadline for certain railroads acknowledges  these differences and also may help FRA better manage limited  resources by, for example, preventing a potential review backlog resulting  from final safety plans being submitted at the same time—a concern  raised by freight railroads and FRA. Matters for Congressional Consideration

To help ensure that the Federal Railroad Administration manages its  limited resources and provides flexibility to railroads in implementing PTC,  Congress should consider amending RSIA as requested in the FRA’s  August 2012 PTC Implementation Status Report to Congress, including  granting FRA the authority to: extend the deadline on individual rail lines—when the need to do so  can be demonstrated by the railroad and verified by FRA—to grant  railroads incremental deadlines based on a case-by-case basis; grant provisional certification of PTC systems under controlled  conditions before final system completion; and approve the use of alternative safety technologies in lieu of PTC to  allow railroads to improve safety and meet many of the functions of  PTC through other means. DOT provided technical comments, which we  incorporated as appropriate. Appendix I: Objectives, Scope, and Methodology

This report discusses (1) how railroads are implementing positive train  control (PTC) and the challenges, if any, to meeting the PTC  implementation deadline; and (2) FRA’s estimates of the benefits and  costs of PTC and the extent to which railroads might be able to leverage  PTC technology to achieve business benefits. We also reviewed  PTC development and implementation requirements in the Rail Safety  Improvement Act of 2008 and FRA regulations; FRA’s 2012 report to  Congress on Positive Train Control Implementation Status, Issues, and  Impacts; and prior GAO reports.
Why GAO Did This Study

In the wake of a 2008 commuter train collision that resulted in 25 fatalities, RSIA was enacted. It requires major freight railroads, Amtrak, and commuter railroads to install PTC on many major routes by the end of 2015. PTC implementation, overseen by FRA, is a complex endeavor that touches almost every aspect of train operations on major lines. According to FRA, 37 railroads are required to implement PTC. GAO was asked to examine the status of PTC implementation. This report discusses, among other things, railroads' implementation of PTC to date and the challenges, if any, to meeting the 2015 deadline. GAO interviewed representatives from Amtrak, the four largest freight railroads, and seven commuter railroads, selected to represent a mix of locations, ridership levels, and PTC implementation status. GAO also interviewed PTC experts and suppliers, and reviewed FRA's PTC regulatory impact analyses.

What GAO Found

To install positive train control (PTC)--a communications-based system designed to prevent certain types of train accidents caused by human factors-- almost all railroads are overlaying their existing infrastructure with PTC components; nonetheless, most railroads report they will miss the December 31, 2015, implementation deadline. Both the Association of American Railroads (AAR) and the Federal Railroad Administration (FRA) have reported that most railroads will not have PTC fully implemented by the deadline. Of the four major freight railroads included in GAO's review, only one expects to meet the 2015 deadline. The other three freight railroads report that they expect to have PTC implemented by 2017 or later. Commuter railroads generally must wait until freight railroads and Amtrak equip the rail lines they operate on, and most of the seven commuter railroads included in this review reported that they do not expect to meet the 2015 deadline. To implement PTC systems that meet the requirements of the Rail Safety Improvement Act of 2008 (RSIA), railroads are developing more than 20 major components that are currently in various stages of development, integrating them, and installing them across the rail network. AAR recently reported that by the end of 2012, railroads had spent $2.8 billion on PTC implementation. To implement PTC, AAR estimates that freight railroads will spend approximately $8 billion in total while the American Public Transportation Association (APTA) estimates that commuter railroads will spend a minimum of $2 billion. Much of the work to implement PTC remains to be done. For example, AAR reported that as of the end of 2012, about a third of wayside interface units, which are needed to communicate data, had been installed and that less than 1 percent of locomotives needing upgrades had been fully equipped.
Most railroads report they will not complete PTC implementation by the 2015 deadline due to a number of complex and interrelated challenges. Many PTC components continue to be in various stages of development, and in order to ensure successful integration of these components, railroads must conduct multiple phases of testing before components are installed across the network. Also, some railroads raised concerns regarding FRA's limited staff resources in two areas: verification of field tests and timely certification of PTC systems. Commuter railroads face additional challenges such as obtaining radio frequency spectrum, which is essential for PTC communications. By attempting to implement PTC by the 2015 deadline while key components are still in development, railroads could be introducing financial and operational risks. For example, officials from railroads and FRA said that without adequate testing, PTC systems might be more prone to reliability issues. To mitigate risks, provide flexibility in meeting the PTC deadline, and better manage limited resources, FRA has requested that Congress amend RSIA to provide additional authorities in implementing PTC. Specifically, FRA requested authority to extend the deadline on certain rail lines, grant provisional certification of PTC systems, and approve the use of alternative safety technologies in lieu of PTC. Flexibility in extending the deadline for certain railroads acknowledges differences in railroads' implementation schedules and may also help FRA better manage its limited resources by, for example, preventing a potential review backlog resulting from most of the railroads' submitting final safety plans at the same time--a concern raised by both freight railroads and FRA.

What GAO Recommends

Given the implementation challenges railroads face in meeting the deadline, and to help FRA manage its limited resources, Congress should consider amending RSIA as FRA has requested. Specifically, Congress should consider granting FRA the authority to extend the deadline on certain rail lines on a case-by-case basis, grant provisional certification of PTC systems, and approve the use of alternative safety technologies in lieu of PTC to improve safety. DOT reviewed a draft of this report and provided technical comments, which were incorporated as appropriate.