Insight on Business

May 2015

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w w w . i n s i g h t o n b u s i n e s s . c o m M a y 2 0 15 • I NSIGH T | 33 would not matter. e Northwoods Rail Transit Commission, which represents 19 Wisconsin and Michigan counties, is working with the Canadian National Railroad to secure grant funding that would create a fleet of 150 publicly- owned log cars. "Without a replacement fleet, that's all traffic that will get put onto the roads," says Wendy Gehlhoff, director of the Florence County Economic Development Corporation and chairwoman of the rail commission. An initial grant for a 150-car fleet under the U.S. Department of Transportation's TIGER program (Transportation Investment Generating Economic Recovery) was recommended, but not funded. For 2015, the commission and the state of Wisconsin are applying for a Freight Rail Preservation Program grant to fund the construction of 50 new cars. CN has agreed to provide a 20 percent match. If this grant is funded, it will also be used to bolster the group's application in the next round of federal TIGER grants. Construction of the cars themselves may also provide some additional economic development for Northwoods counties, as the Escanaba & Lake Superior Railroad has applied for certification to become a manufacturer of new rail cars. It could build cars both in Escanaba, Mich., and at an expanded facility in Crivitz, producing 50 to 100 cars a year using both facilities. "at we have a company in the region as the likely contractor is a real positive," Gehlhoff says. While the short-term focus has been on upgrading the rail car fleet, the region has also been trying to make the case for restoring service to shut portions of a major east-west line. Parts of the line have been out of service for more than seven years. ough the DOT issued a rail market study for the region in late 2013, Gehlhoff says they have not been able to achieve any traction for restoring service to the entire route. Unlike the case in Sheboygan, there is not an option to bring in a regional operator to provide the service. "ey (CN) do not want to sell the line, but they don't want to bring it into service," Gehlhoff says. "We're trying to convince them there is business there." Opportunities for new business along rail lines has already become a hot topic in Sheboygan County, even though trains won't be running again until this fall. WSOR representatives have already noted sites along the route suitable for industrial and warehouse development. Railroad officials have even discussed options for adding multi- modal capabilities. Multi-modal facilities are based on shipping containers that can be used for truck, rail or ship. Regional companies using multi-modal oen have to truck the containers to the Chicago area before they can load them on the rails. "is could be an opportunity to add that service to all of Northeast Wisconsin," Checolinski says. Fly Local. Be Home Sooner. FLYGRB.COM

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