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OHIO RAIL

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FOR IMMEDIATE RELEASE                                            Contact: Stu Nicholson

Date: September 29, 2004                                                                             (614)644-0513 

 

 

Panhandle Line Sale Postponed Indefinitely

Commissioners Also Agree to Sponsor Study for New Intermodal Rail Yard & Major Track Improvements

 

(Columbus) – The state-owned railroad line known as “The Panhandle Line” will remain so for the foreseeable future.  In an 8 to 0 vote, with one member absent, ORDC Commissioners decided to postpone the proposed sale of the rail line, which has been owned by the State of Ohio since 1992.  It was purchased at the urging of local communities and businesses in order to save the rail line from what amounted to a piecemeal abandonment by then-owner Conrail. The line is now operated under a lease agreement with the Coshocton-based Ohio Central Railroad.

 

Several commissioners expressed concern that the timing of a sale may not be good at a time when funding for rail infrastructure at the federal level is unresolved.  Commissioner Tom McOwen cited the attention now being drawn to the nation’s need for better railroads in the wake of the recent Gulf hurricanes and big increases in oil and gasoline prices.  “This has drawn attention to the value of our rail infrastructure and the fuel efficiency of moving more freight and people by rail like no other time in our history. We have to be careful how we go about doing anything that has to do with our rail infrastructure.”

 

“This subject has pre-occupied the Commission and its staff for some time”, said Commission Chairman James Betts, who asked for and received the motion to “postpone indefinitely” the proposal to sell the rail line.  In doing so, Betts said this decision does not eliminate the future possibility of selling the line and recognized that staff time in preparing a sale proposal has not been wasted.

 

“We now know better the value of what we have in the Panhandle Line should this Commission decide at some future point to reconsider a sale,” said ORDC Executive Director Jim Seney. 

 

 

 

“The hard work of the ORDC staff will still be useful if that day comes.”  Seney pointed out that the line has not only shown a good return in terms of growth of business and freight traffic, but holds significant value for the future as a right of way as well for fiber-optics and broadband Internet services.  ORDC is also interested in the line for possible future passenger rail service that could help create a Pittsburgh-Columbus-Lima-Fort Wayne-Chicago route under its Ohio Hub regional rail plan.

 

In other business, Commissioners approved a motion for ORDC to act as the public sponsor for an application by the CSX Railroad for a series of major track projects, making possible a second major rail intermodal yard near Columbus.  These projects include:

 

·        Construction of a 3.3-mile bypass around the CSX Parson Avenue Yard in South Columbus

·        Track improvements at Marion, Ridgeway and Hoover, Ohio to improve rail traffic flow in and out of the Columbus and Central Ohio areas.

 

ORDC staff told Commissioners it was necessary for ORDC to step up in support of these projects, because the Transportation Review and Advisory Council (TRAC) requires a public body to act as a sponsor.   In order to do so, the project planning must also define how the public would benefit from such a project.

 

CSX has applied to the Ohio Department of Transportation’s TRAC for partial funding of a $36 million dollar series of projects, which could result in several public benefits:

 

·        Allow construction of a new CSX intermodal yard, which could help reduce both highway and rail traffic congestion.

·        Allow CSX to vacate service on its North Corridor rail line, which is wanted by the Central Ohio Transit Authority (COTA) as a right-of-way for a proposed light-rail commuter line.

·        Help eliminate some key railroad “bottlenecks” in Central Ohio and improve conditions for ORDC’s proposed Ohio Hub Plan for intercity passenger rail service and expanded freight capacity.

·        Enable the growth of economic development and job creation.

 

“These are all possible benefits that must be studied and identified in detail,” said ORDC Executive Director Jim Seney.  Citing a need to bring some balance into how transportation infrastructure projects are developed and funded, Commissioner Tom McOwen said, “We as a nation have already been subsidizing highways and aviation projects, which compete with railroads.  This would be a positive step toward changing that picture.”

 

(The Ohio Rail Development Commission is an independent agency operating within the Ohio Department of Transportation.  ORDC is responsible for economic development through the improvement and expansion of passenger and freight rail service, railroad grade crossing safety and rail travel & tourism issues. For more information about what ORDC does for Ohio, visit our website at http://www.dot.state.oh.us/ohiorail/ )