SHORT LINES AND ECONOMIC DEVELOPMENT SCORT, PORTLAND MAINE SEPTEMBER 18, 2012 ODOT - $2 BILLION BUDGET, THE BIG DOG ORDC - $22 MILLION BUDGET, THE LITTLE DOG ORDC: Who We Are • Commission: 15 Commissioners / 18 staff • Created: in 1994 under Ohio Revised Code Chapter 4981 • Mission: to plan, promote, and implement the improved movement of goods and people faster and safer on a rail transportation network connecting Ohio to the nation and the world ORDC: What We Do • Direct Freight Rail Project Assistance • Special Freight Projects • Grade Crossing Safety Special Projects: CSX National Gateway ORDC is the lead state in a four-state consortium for the $98 million TIGER Award (Transportation Investment Generating Economic Recovery) North Baltimore (OH) to Chambersburg (PA) double stack clearance project. 20 Clearance projects in Ohio “CSX and the ORDC have forged a very strong relationship in advancing the National Gateway, a project that will create jobs and enhance Ohio’s ability to compete in the global marketplace. We appreciate the leadership demonstrated by ORDC Executive Director Matt Dietrich and his team in moving this critical public-private partnership forward.” -Michael Ward President and CEO, CSX Corporation Grade Crossing Safety By the numbers: • 3,111 of Ohio’s 6,100 public grade crossings are now equipped with modern lights and gates • 101 grade crossings have been closed since the year 2000 • Grade crossing accidents, fatalities and injuries have been reduced to a record 10 -year low Types of Financial Assistance for Freight Rail Infrastructure • Direct Assistance in the Form of Loans and Grants • Funding Sources • General Revenue Funds • State Special Revenue Fund • Administer Other Funds • Gap Financing • “Last Dollar In” • “Bigger, Better, Faster” Direct Freight Rail Assistance Rail Line Rehabilitation: Rail Access for Companies: • Improves track speed, • Assists companies with new safety & reliability rail and rail-related • Preserves rail service to infrastructure (sidings, existing shippers switches, lead tracks) • Opens rail service to new • Helps create and retain Ohio shippers jobs • Work jointly with ODOD, port authorities, railroads and local government Advantages of Short Lines Local Management. Without Long Haul Freight, Must Concentrate on Local Service to Survive & Grow. Generally Lower Cost Structure/Lower Costs to Build New Rail Spurs and Mainline Turnouts. In Many Cases, Multiple Class I Connections Make Short Line a “Switzerland”, i.e. neutral to which Class I Get the Long Haul Allowing Shipper to Shop for Rates. Disadvantages (In Some Cases) of Class I Railroads CLASS I’S HAVE GREAT SITES AND GREAT ECONOMIC DEVELOPMENT PROGRAMS…..but In Some Instances, the Density of Class I Mainlines Present Challenges. In Some Instances, High Density Mainline Traffic Precludes New Local Switching. In Some Instances, Costs of New Spur/Turnout Pushed Higher by Need for Signalized Passing Sidings. Short Line Costs for New Spur/Turnout Generally Lower by Comparison. Mom & Pop No Longer the Norm Mom & Pop Short Lines Still Thrive But Most Short Lines Are Very Sophisticated Operations. Genesee and Wyoming Acquiring RailAmerica for $1.397 BILLION. Most Short Line and Regional Carriers Multi-Million Operations. ORDC Has NOT Heard From Major Companies that They Must Be on Class I Railroads for Years. Most Short Lines Have People/Departments that Concentrate Solely on Marketing and Sales. Short Lines Are “Engines” of Economic Development Major “Fracking”Companies Locating on Ohio Short Line Haliburton: Zanesville, Columbus & Ohio River RR Slumberger: Stasburg, RJ Corman RR. Baker Hughes: Massillon, Wheeling & Lake Erie Ry. Chesapeake Midstream: Cadiz, Columbus & Ohio River RR. El Paso Energy: Uhrichsville, RJ Corman RR. Go Frac: Cambridge, Columbus & Ohio River RR. Recent Ethanol Plants on Ohio Short Lines Andersons: Greenville, RJ Corman RR. Valero/Cargill: : Bloomingburg, Indiana & Ohio Ry. Guardian: Lima, Indiana & Ohio Ry. Ohio’s Two “Super Sites” on Short Line Railroads #1 Large Development Job Ready Site/Site Looked at by Honda, Jeffersonville on the Indiana & Ohio. #2 Large Development Job Ready Site, Van Wert on the Chicago, Ft. Wayne, & Eastern. SHORT LINES: Little Railroads that CAN! SHORT LINES: Little Railroads that CAN! THANK YOU QUESTIONS??
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