CSX announces "National Gateway" project

[MSchwiebert]

New North Baltimore Intermodal Terminal will be key hub for project.


http://www.csx.com/?fuseaction=media.ne ... il&i=49644

CSX Announces National Gateway to Improve Flow of Freight
Program Launched at Ohio Offices of Pacer International, a CSX Customer
Released: May 01, 2008

Dublin, Ohio - May 1, 2008 - CSX Corporation today launched the National Gateway, a $700 million public-private infrastructure initiative to create a highly efficient freight transportation link between the Mid-Atlantic ports and the Midwest.

When completed, the National Gateway would provide greater capacity for product shipments in and out of the Midwest, reduce truck traffic on already crowded highways, and create thousands of jobs that directly or indirectly support the National Gateway.

CSX has already committed $300 million to the National Gateway, and will work with several states and the federal government to secure additional funding.

The National Gateway incorporates two primary parts. First, CSX would build or expand several high-capacity, job-producing intermodal terminals where product shipments are exchanged between trucks and trains. At the same time, CSX would work together with state and federal government agencies to create double-stack clearances beneath public overpasses along the railroad. Double-stack clearances allow rail carriers to stack intermodal containers atop each other, enabling each train to carry about twice as many cargo boxes. Currently many overpasses only accommodate single-stack trains.

"More and more, the nation is becoming aware of the tremendous safety, economic and environmental benefits that railroads create. Our trains can move a ton of freight 423 miles on a single gallon of fuel, and one train can carry the load of more than 280 trucks," said Michael J. Ward, chairman, president and chief executive officer of CSX. "The National Gateway leverages those benefits to the fullest by combining the resources and expertise of the public and private sectors."

The National Gateway was launched at the offices of Pacer International, a CSX customer, in Dublin, Ohio with Governor Ted Strickland. The governor has pledged to work with state and federal officials to support the initiative, which calls for two new intermodal terminals in Wood County and Columbus at a cost of $130 million to CSX. The terminals will ultimately spur the development of related businesses and thousands of jobs to support them.

"In Ohio, this initiative helps solidify our state's position as a transportation gateway for the country," said the Governor. "This is a major competitive advantage that can greatly benefit the citizens of Ohio, and the state of Ohio is committed to doing its part to help build this sort of needed infrastructure. In doing so, we'll also be setting an example for other states around the nation."

"We are delighted that CSX and Governor Strickland are taking these important steps to ensure the future viability of our transportation system," said Michael E. Uremovich, Chairman and CEO, Pacer International.

The National Gateway will enhance three existing rail corridors that run through Maryland, Virginia, North Carolina, Pennsylvania, Ohio and West Virginia. Those corridors include:

--The I-70/I-76 Corridor between Washington, D.C. and northwest Ohio via Pittsburgh;
--The I-95 Corridor between North Carolina and Baltimore via Washington, D.C.; and
--The Carolina Corridor between Wilmington and Charlotte, North Carolina.

The U.S. Department of Transportation forecasts that by 2020, overall freight tonnage hauled in the United States will have grown by 70% from 1998 levels. The National Gateway infrastructure initiative is designed to address the ever-increasing demands placed on the nation's capacity strained freight network.

A study of the National Gateway project by Cambridge Systematics, a nationally recognized transportation research firm based in Cambridge, MA found that every $1 of public money invested in rail infrastructure improvements will lead to $8 in public benefits. The study noted that by improving the flow of freight and shifting freight transportation from the highway to the railway, the initiative will improve safety, relieve congestion, benefit the environment and reduce highway maintenance costs. For more information,


The link below has additional details including some map reference
www.nationalgateway.org

[AveryRdhouse]

Well... Not to be a stick in the mud ,but I'll bet they pump a few million dollars into the system and then screw it up just like the IRON HIGHWAY.
And I'll bet if you read the fine print, it will say "Grand Rapids not included".

[rob]

yep, you are the stick and that is mud your standing in

rob

[MSchwiebert]

There's different business models between this and the Iron Highway effort. The Iron Highway was an experement attempting to capture business in markets that could not be captured using conventional service. Detroit to Chicago as a stand alone corridor is problematic as the distance is too small. The trailers from western origin points are taken off the train at Chicago anyway and they are simply drayed over to Detroit. CSX at that time (especially with what fuel costs were back in the 1990's) could not penetrate that market and pull down acceptable margins.

Contrast that to what the new CSX initiatve intends to do. It intends to enhance existing corridors through the clearance improvements so that domestic double stacks can be handled. The new yard & terminal at North Baltimore will enable CSX to pre-block trains for Western destinations so they can be handed off complete to UP or BNSF - instead of being broken up in Chicago and rubbered across town. One could have a BNSF block on a train from New York, a train from Boston, a Train from Philadelphia & a Train from Columbus - and North Baltimore will take those blocks from each train and create a new all BNSF train to take them on to Chicago for handoff.

The terminal portion of the facility will enable CSX to access currently underserved markets (Toledo & Detroit for example) as part of a high volume corridor. Spreading the fixed costs across more traffic can make those points profitable where they were not before. For example, a Detroit TOFC block could be added to an existing train that is going to be re-classified at North Baltimore anyway and those trailers can be rubbered up I-75 to destinations in Detroit, and those same drivers can return to North Baltimore with trailers or boxes for loading on to trains for other destinations.

[sd70accsxt700]

With Q150 & 151 now regular between 6000 & 12000 foot every day, sence the move to Syracuse I would say Detroit is not underserved. Of corse, most of the eastern block is single stacked, and this should help. Mabey take it back down to 4000 to 7000 foot range every day. One thing Detroit handles a lot of is equipment moves. 95% of the containers on Q131 & 132 are 53' Pacer Stacktrain. This means that there is a inblance of 53' well cars. Q131 is almost always bigger than the inbound 132, and alot of 53' cars are moved on 150-151. Word on the street is look for the new intermodal train out of Flint soon. Run Flint to GR with GR crews. The bigger intermodal terminal in Flint is still in the planing stages, but my understanding is that the gentalman has aquired a temporary place to load.

[MSchwiebert]

I guess I should have clarified, that with Detroit being a container only terminal that the opportunity exists to dray TOFC to Detroit from Toledo and keep Detroit as a container only facility.

With Q150 & 151 now regular between 6000 & 12000 foot every day, sence the move to Syracuse I would say Detroit is not underserved. Of corse, most of the eastern block is single stacked, and this should help. Mabey take it back down to 4000 to 7000 foot range every day. One thing Detroit handles a lot of is equipment moves. 95% of the containers on Q131 & 132 are 53' Pacer Stacktrain. This means that there is a inblance of 53' well cars. Q131 is almost always bigger than the inbound 132, and alot of 53' cars are moved on 150-151. Word on the street is look for the new intermodal train out of Flint soon. Run Flint to GR with GR crews. The bigger intermodal terminal in Flint is still in the planing stages, but my understanding is that the gentalman has aquired a temporary place to load.

[csxt4617]

Word on the street is look for the new intermodal train out of Flint soon. Run Flint to GR with GR crews. The bigger intermodal terminal in Flint is still in the planing stages, but my understanding is that the gentalman has aquired a temporary place to load.

Only to GR, or all the way to Chicago? I'd love to see a pair of Q100's on the GR sub I tried to catch all the Iron Highways I could when they ran in 96, I figured it was gonna be short lived. (which it was)

[SD80MAC]

Word on the street is look for the new intermodal train out of Flint soon. Run Flint to GR with GR crews. The bigger intermodal terminal in Flint is still in the planing stages, but my understanding is that the gentalman has aquired a temporary place to load.

Only to GR, or all the way to Chicago? I'd love to see a pair of Q100's on the GR sub I tried to catch all the Iron Highways I could when they ran in 96, I figured it was gonna be short lived. (which it was)

Ooooo, new trains possibly in the works? That would liven things up around here a little.