Freight Rail Day 2011

“Freight Rail: Working for Wisconsin”

A CASE STUDY

Ken LuchtWisconsin & SouthernRailroad 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

TRANSLOADING

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

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

WORK SCOPE

7 Private Companies

3 Communities

1 County

Chambers & Sheboygan County EDC

2 Railroad Companies

State of Wisconsin

Locally-Elected Officials

STAKEHOLDER GROUP

Shared amongst various stakeholders

Fair & Equitable

Return on Investment

State would play key role

FINANCIAL PLAN

In 2009 State awarded a $12 Million Grant

Stakeholder Group to secure Local Match

TO DATE:

Secured: 93% of Total Project Costs

80% Preservation Grant

8% Private Sector Sources

5% Municipal Sources

Unsecured: 7% of Total Project Costs

FINANCIAL COMMITMENTS

• $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

PROJECT BENEFITS

COMMUNITY INVOLVEMENT

Ken LuchtCommunity Development Mgr Wisconsin & Southern Railroad Co. www.wsorrailroad.com

THANK YOU