SHORT LINES AND ECONOMIC DEVELOPMENT by pptfiles

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									      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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