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Freight Rail Day 2011. “ Freight Rail: Working for Wisconsin ” A CASE STUDY. Ken Lucht Wisconsin & Southern Railroad Co. A PUBLIC / PRIVATE PARTNERSHIP Est. 1980 under Stats. 66.1021. PLYMOUTH TO KOHLER RAIL RECONSTRUCTION PROJECT. 11-Mile East West Segment
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Freight Rail Day 2011 “Freight Rail: Working for Wisconsin” A CASE STUDY Ken Lucht Wisconsin & Southern Railroad Co.
A PUBLIC / PRIVATE PARTNERSHIPEst. 1980 under Stats. 66.1021
PLYMOUTH TO KOHLER RAIL RECONSTRUCTION PROJECT • 11-Mile East West Segment • Originally built in 1859 for passenger service • Sheboygan & Mississippi RR • “Out of service” for 30 years, never abandoned • Railroad corridor still in tact today
PLYMOUTH TO KOHLER RAIL RECONSTRUCTION PROJECT • In 2006, eastern portion of line was embargoed • Impacts felt in private and public sectors • Commodities include: Grain, Fertilizer, Lumber, Plastics, Cold Foods • In 2008, WisDOT released Economic Report • In 2009, State of WI acquired line from UP
ECONOMIC IMPACT ANALYSIS • Approximately 2,883 Direct Jobs At Stake • $137 Million in Personal Income • $614 Million in Output (Sales) • Study identified over 100 potential rail users within 1 mile • Loss of Rail increases transportation costs by $500 K • Conclusion: Clear potential for business development • if rail line is re-activated in Sheboygan County.
PLANNING & CONSTRUCTION • Complete Reconstruction $15 Million • Federal / State Government Permitting • STB WDNR WSHS WisDOT • Local Government Participation • Stakeholder Identification • Economic Feasibility & Financing
WORK SCOPE • Brush Cutting / Surveying • Dismantle Existing • Rebuild to meet 286,000 Lb. Standards • 11 miles of Welded Rail • 40,000 New Wood Ties • Rebuild 17 At-Grade Public Rail Crossings • Rebuild 4 Structures • Competitive Bid & Prevailing Wage Requirements
STAKEHOLDER GROUP • 7 Private Companies • 3 Communities • 1 County • Chambers & Sheboygan County EDC • 2 Railroad Companies • State of Wisconsin • Locally-Elected Officials
FINANCIAL PLAN • Shared amongst various stakeholders • Fair & Equitable • Return on Investment • State would play key role • In 2009 State awarded a $12 Million Grant • Stakeholder Group to secure Local Match
FINANCIAL COMMITMENTS TO DATE: Secured: 93% of Total Project Costs 80% Preservation Grant 8% Private Sector Sources 5% Municipal Sources Unsecured: 7% of Total Project Costs
PROJECT BENEFITS • $5 Million infused into local economy • AAR Estimates $15 Million investment will • yield $45 Million in economic output • Could result in 300 new jobs in region • Enhance Local Tax Base • Direct access to national and world markets • Business Attraction throughout county
THANK YOU Ken Lucht Community Development Mgr Wisconsin & Southern Railroad Co. www.wsorrailroad.com