Freight Rail Day 2011
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Freight Rail Day 2011. “ Freight Rail: Working for Wisconsin ” A CASE STUDY. Ken Lucht Wisconsin & Southern Railroad Co. A PUBLIC / PRIVATE PARTNERSHIP Est. 1980 under Stats. 66.1021. PLYMOUTH TO KOHLER RAIL RECONSTRUCTION PROJECT. 11-Mile East West Segment

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Freight rail day 2011

Freight Rail Day 2011

“Freight Rail: Working for Wisconsin”

A CASE STUDY

Ken Lucht

Wisconsin & Southern

Railroad Co.


A public private partnership est 1980 under stats 66 1021

A PUBLIC / PRIVATE PARTNERSHIPEst. 1980 under Stats. 66.1021


Freight rail day 2011

PLYMOUTH TO KOHLER RAIL

RECONSTRUCTION PROJECT

  • 11-Mile East West Segment

  • Originally built in 1859 for passenger service

  • Sheboygan & Mississippi RR

  • “Out of service” for 30 years, never abandoned

  • Railroad corridor still in tact today


Freight rail day 2011

PLYMOUTH TO KOHLER RAIL

RECONSTRUCTION PROJECT

  • In 2006, eastern portion of line was embargoed

  • Impacts felt in private and public sectors

  • Commodities include: Grain, Fertilizer, Lumber, Plastics, Cold Foods

  • In 2008, WisDOT released Economic Report

  • In 2009, State of WI acquired line from UP


Transloading

TRANSLOADING


Freight rail day 2011

  • ECONOMIC IMPACT ANALYSIS

  • Approximately 2,883 Direct Jobs At Stake

  • $137 Million in Personal Income

  • $614 Million in Output (Sales)

  • Study identified over 100 potential rail users within 1 mile

  • Loss of Rail increases transportation costs by $500 K

  • Conclusion: Clear potential for business development

  • if rail line is re-activated in Sheboygan County.


Freight rail day 2011

  • PLANNING & CONSTRUCTION

  • Complete Reconstruction $15 Million

  • Federal / State Government Permitting

    • STB WDNR WSHS WisDOT

  • Local Government Participation

  • Stakeholder Identification

  • Economic Feasibility & Financing


  • Freight rail day 2011

    • WORK SCOPE

    • Brush Cutting / Surveying

    • Dismantle Existing

    • Rebuild to meet 286,000 Lb. Standards

    • 11 miles of Welded Rail

    • 40,000 New Wood Ties

    • Rebuild 17 At-Grade Public Rail Crossings

    • Rebuild 4 Structures

    • Competitive Bid & Prevailing Wage Requirements


    Freight rail day 2011

    • STAKEHOLDER GROUP

    • 7 Private Companies

    • 3 Communities

    • 1 County

    • Chambers & Sheboygan County EDC

    • 2 Railroad Companies

    • State of Wisconsin

    • Locally-Elected Officials


    Freight rail day 2011

    • FINANCIAL PLAN

    • Shared amongst various stakeholders

    • Fair & Equitable

    • Return on Investment

    • State would play key role

    • In 2009 State awarded a $12 Million Grant

    • Stakeholder Group to secure Local Match


    Freight rail day 2011

    • FINANCIAL COMMITMENTS

    TO DATE:

    Secured: 93% of Total Project Costs

    80%Preservation Grant

    8%Private Sector Sources

    5%Municipal Sources

    Unsecured: 7% of Total Project Costs


    Freight rail day 2011

    • PROJECT BENEFITS

    • $5 Million infused into local economy

    • AAR Estimates $15 Million investment will

    • yield $45 Million in economic output

    • Could result in 300 new jobs in region

    • Enhance Local Tax Base

    • Direct access to national and world markets

    • Business Attraction throughout county


    Freight rail day 2011

    • COMMUNITY INVOLVEMENT


    Freight rail day 2011

    THANK YOU

    Ken Lucht

    Community Development Mgr

    Wisconsin & Southern Railroad Co.

    www.wsorrailroad.com


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