A Big Little Railroad

When you hear "short line railroad" you think small.  Licking County's short line railroad actually is pretty big.  Genesee & Wyoming Railroad, which owns the Ohio Central Railroad and Columbus & Ohio River Railroad companies that serve Licking County, has completed its merger with Rail America and the final result is one big, short line.

According to a recent article in Railway Track and Structures, the new G&W has 111 freight railroads, 15,100 miles of track, and 10,000 locomotives.

That sure doesn't sound like a little railroad.

Though big isn't inherently better, in this case I think the powerhouse can translate into better rates and service for our shippers who still depend on interchanging with the Class I railroads.  There may be, increasingly, times when the origin and destination of freight end up being on G&W lines alone. 

I'll keep looking for big things from G&W.

Lincoln Events of February 12

Today marks the 204th anniversary of the birth of Abe Lincoln.

It also marks the 152nd anniversary of the day his inaugural train entered Ohio.

Reports are that the largest crowds met his train in Cincinnati on February 12, 1861. 

He traveled through Licking County on the train's trip between Columbus and Pittsburgh.  He spoke in Newark on February 14, 1861   Local legend has him losing his hat while coming through our town and a silk, stovepipe hat being found soon after that now is kept as a local relic.

That trip was on the Panhandle Rail Line, a rail line still used today to move materials and goods to, from, and through Licking County.

A Rail Line and Personal Milestone

I unearthed this letter from a box of files that were my files back in 1991 to 1994.  Now, they are in the possession of the Ohio Historical Society.

This letter was in a file that, frankly, may be the only file of mine truly worthy of being housed at the Ohio Historical Society.  It's my file on the Panhandle Rail Line acquisition.

A milestone is about to be hit when the Ohio Rail Development Commission makes it's last payment on the bonds (technically Certificates of Participation or COPS) that were issued to buy the line from Conrail back in the 2Q of 1992.

This 160-mile line is still state-owned and, hopefully, will be for at least another 20+ years into the future.

The bond pay-off date milestone is a significant one.

I suppose, in part, because I am still active with the Panhandle in a small way like I was, in a small way, back in 1992, I was asked to provide a quote for possible inclusion in the news release about it.

I'm not sure when (or if) this news release runs, but in case it gets lost in translation, here's what I gave:

“The Panhandle Rail Line is a shining example of one of Ohio’s greatest public-private partnerships.  Public ownership has preserved the lines for industry and promised a more stable future for the communities while private operation has kept the trains running and shippers happy.  Our Port Authority believes in a strong future for manufacturing in Ohio and have invested millions of dollars in preparing rail-served industrial sites along the Panhandle Line in Licking County to take advantage of the unique capabilities.  We’re bullish on the next 20 years being as successful as the past 20, even better, because of the strengths of that public-private partnership.”

There's a personal side to all this too.  My father, John Platt, was the ODOT Assistant Director who led the state's charge on this Panhandle Rail issue back in 1991-1992.  He passed away in 2004.  However, had he still been living, he would have celebrated his 69th birthday today, and he would have celebrated the Panhandle's legacy as well.  Here's to you, Dad!

Get to Know Railroads

"You should really get to know railroads," said Don Schjeldahl, former Austin Consulting Group site selection guru at a first quarter IEDC conference panel on transportation.  He added, "Rail is here to stay."

This statement in and of itself is no earth shattering news.  The rail industry has been touting a rail renaissance in the last few years and the over capacity nature of our highway network bodes well for the future of this truck competitor.

Our Port Authority is a rail believer, having invested millions of dollars in land banking and adding infrastructure to rail-served industrial sites.

What is earth shattering is that it came from a site selector. 

We know our railroad lines and know our rail providers serving Licking County.  A few more site selectors touting the value of rail to manufacturing clients is what we really need.

Understanding the Panhandle Rail Line Issue

The Advocate has a story on the upcoming public meeting of the Ohio Rail Development Commission concerning the proposed long-term lease of the Panhandle Rail Line.

If I could avoid being quoted, I would.  However, few people are tracking this issue.  It's, frankly, hard to track it since it has been like a ten-year drip, drip, drip of policy.

The current 25-year lease proposal, as drafted, is better than anything we've seen out of the ORDC in ten years.  It's not perfect, but it's fairer to the rest of us in the rail business--land owners and developers--who have invested in the current open access rail model. 

Licking County has a stake in this!  The Port Authority has invested seven figures in land purchase and infrastructure development.  The millions invested in the Pataskala Job Ready Site project is another example. Compare that to the state's actual cash investment in the rail line purchase--only $900,000.

A new shipper interested in building along the line can talk to multiple railroads and contract for open access service, negotiating from a position of strength that the lease grants.

That's a big change from past iterations.

A few years back the talk was solely about sale of the line.  During the Taft Administration, sale was the only option on the table.  The line, once appraised at $65 million, was discussed for sale as low as $6 million to the former Ohio Central owner. 

Licking County was particularly vocal, though not alone, in speaking out against sale.  Two versions of a White Paper, in 2002 and 2007, were signed by a cadre of local civic and business leaders.  The Advocate had multiple editorials too.

This wasn't a fight against the railroad at all.  This was a fight for our community.

Had the sale not been stopped, imagine the controversy when the owner sold his lease interest in the line. The owner sold his interest even absent the rail line ownership and still reaped, let's say, much, much more than $6 million. See a story from 2008 about the sale.

The local community officials along the line who rose up and cried foul did the state a huge favor, frankly. 

Today, the long-term lease proposed, if enacted, could actually fund the day-to-day operations of the Rail Commission.

Stay tuned to this issue.  It's looking like a ten-year debate is about to hit closing remarks time.

Plan B for 3C Rail Plan

Now we learn that the Obama Administration wants the money back if the $400 million rail plan dubbed the 3C doesn't proceed.

In January, I wrote about a Plan B for the 3C titled What is 3C Rail Plan B? I Got It.  It's still true today.

Here's the updated short version:

It's a little known fact that Ohio actually owns the rail line from Columbus east to the Ohio River. The state-owned Panhandle Line is familiar to Licking County as it serves Central Ohio's largest manufacturing corridor which is right here in Newark-Heath-Hebron.


It wouldn't be as catchy as the 3C name for the line, but it would be 2CNP--Columbus-Newark-Coshocton-Pittsburgh. The line would restore passenger service to Columbus which currently has none, among other things.

I also suspect this line could be made passenger-rail ready for less than $400 million.

So, if Ohio gets less than what it asked for to do the 3C, maybe the 2CNP could be Plan B.

Panhandle Rail Line: A Crown Jewel Resource

Rail infrastructure and competitive rail access are key components in economic development. 

As the leadership of the State of Ohio explores what to do, long-term, with the state-owned Panhandle Rail Line, we in Licking County watch with much concern.  Retaining a competive rail line with much-needed capital improvements while also retaining competitive access rights gained with state ownership is the biggest balancing act.

Mark Sweeney of McCallum Sweeney was quoted a few years back at an International Economic Development Council conference talking about rail.  His thinking gives me the validation for why economic development-minded folks need to retain competitive, open access along the Panhandle.  He said, “If you have rail, you have a scarce resource. If you have dual rail service sites, you have a crown jewel resource.”

Mark's right.  That's why we continue to advocate to retain competitive, open access.

What is 3C Rail Plan B? I Got It

An announcement is due tommorrow on the potential funding of rail passenger projects around the nation under last year's stimulus.  Ohio leaders await word on the so-called 3C project which would upgrade rail lines between Columbus, Cincinnati, and Cleveland to reintroduce passenger train service there.

Though, presumably, we'll learn the funding for Ohio tomorrow, it makes one wonder what the "Plan B" should be if Ohio doesn't get the full $564 million in funding the 3C project requires.

It's a little known fact that Ohio actually owns the rail line from Columbus east to the Ohio River.  The state-owned Panhandle Line is familiar to Licking County as it serves Central Ohio's largest manufacturing corridor which is right here in Newark-Heath-Hebron.

It wouldn't be as catchy as the 3C name for the line, but it would be 2CNP--Columbus-Newark-Coshocton-Pittsburgh.  The line would restore passenger service to Columbus which currently has none, among other things.

I also suspect this line could be made passenger-rail ready for less than $564 million. 

So, if Ohio gets less than what it asked for to do the 3C, maybe the 2CNP could be Plan B.