NEWS

OHIO RAIL DEVELOPMENT COMMISSION
50 W. Broad Street, Columbus, Ohio 43215
(614) 644-0306 (t) / (614) 728-4520 (f)

FOR IMMEDIATE RELEASE Contact: James E. Seney

COLUMBUS – The Ohio Rail Development Commission (ORDC) today approved a loan of up to $2.1 million to the Columbiana County Port Authority to rehabilitate 29.8 miles of track between Youngstown and the Pennsylvania state line.

The segment of track had been used by the former Youngstown & Southern Railroad until it was taken out of service in November 1996. The Central Columbiana & Pennsylvania Railway has operated on the line since March 2001 under a contract with the port authority.

James E. Seney, Executive Director of the ORDC, said the track improvements are needed to handle the increase in carloads the Central Columbiana and Pennsylvania has experienced.

"We have run into a problem that most short lines in the state would like to have," Seney said. "The car loadings along the line have developed faster than the railroad could make track repairs."

"A line that handled 300 or 400 carloads a year when it was prematurely shut down in 1996 will soon have 7,000 carloads a year. ORDC’s loan will get the track in shape to handle the increased traffic."

Seney said the Central Columbiana and Pennsylvania hauls about 2,750 carloads a year from nine customers, with the majority of traffic coming from construction and demolition landfills.

"Although the new construction and demolition traffic will make the line viable, ORDC’s real interest is in what the line will mean for present and future economic development,’ Seney said. "We see rail as a tool to help businesses along the line keep their transportation costs down so they can better compete. The availability of rail transportation is a major factor in determining where businesses grow and prosper so that they can provide well-paying jobs for the area."

The railroad’s customers include Allied Erecting, Banner Supply, Wester Supply, Boardman Block and Concrete, 84 Lumber, Donahue Rail Car, and Darlington Brick. There are several vacant factory buildings and industrial development sites along the line.

The ORDC earlier provided the port authority with $2 million to replace 8,000 ties and to upgrade crossing warning signals and surfaces.

Seney said the loan will be repaid by the railroad with its profits.

"We believe this is very worthwhile project," said James E. Betts, Chairman of the ORDC.