If your company wants to SHIP BY RAIL, but you don't know where to start, here is some information that can help you get on the right track to reach your goals.
Manufacturing, distribution, agricultural, and other sector businesses, are all finding that shipping by rail is consistently more cost effective for hauls over 400 miles. The longer the distance to ship, the more cost effective rail can be. To capitalize on rail development, you must be able to load and / or unload materials at your facility, have access to the railroad network of common carriers, and your end user have the same rail access.
For facilities located on, or adjacent to, a Class 1 railroad (NS, CSX, CN, UP, BNSF, CPKC), or a short line railroad (or one of the hundreds of US based short lines railroads), it may be feasible for you to construct railroad track and connect with the railroad common carrier network.
There are many factors to be considered relating to feasibility, including: existing railroad curvature and grades, railroad shipper capacity, your site conditions and layout, how you will load or unload railcars, what type of railcars to use, etc.
Working with a railway engineer experienced in railroad operations and industrial development is key to creating a safe, successful, efficient operation. Anyone can design a track; however, knowledge of railroad switching operations is vital to safe, efficient operations.
Can't connect to a Class 1 railroad? No Problem. Connecting to a Class 1 railroad can cost several times more than connecting to a short line railroad. Short line railroads can often provide more flexibility in switching for industries and coordinating deliveries and pickups.
Most railroads place the entire cost responsibility of new track construction and the connection(s) to the railroad on the Industry / User.
Some states have robust infrastructure grants or loan programs that provide a portion of the construction cost for new rail construction or expansion projects. States can assist in getting qualifying state or federal loans. Most grant applications and awards consider the number of jobs created, the level of compensation for those jobs, and the investment the industry is making at the facility.
Crouch Engineering has successfully guided hundreds of clients through the grant/loan process. We will work with you and your state grant coordinator to find the appropriate grants or loans for which your project qualifies. From there, we will help you every step up the way to complete a successful application and procure the funds you need.
For facilities not located on or adjacent to a railroad, you can consider using an existing bulk transfer facility, intermodal facility, or team track. Bulk transfer facilities can be stand alone for one customer, or can be shared by multiple users, for various commodities.
Once you have explored and evaluated the need for rail development and determine if your site can be connected, you’re ready to Get Connected.
If you have questions about how to get connected, feel free to reach out to me personally.
Harvey Crouch, PE, President
Find out more about Crouch Engineering's experience in industrial rail development.
Comments