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You may have seen the guest editorial in yesterday morning’s Tampa Tribune opposing SunRail and I would like to take a moment to correct a few mistakes in the article.
CSXT is currently in escrow to sell 61 miles of its A Line corridor (DeLand to Kissimmee) to the State for the Central Florida commuter rail project, commonly known as SunRail. As part of the agreement, CSXT will shift much of its freight to its S Line (which runs through Baldwin, Ocala and Lakeland) and reinvest its entire proceeds from the transaction - $432 million – in Florida infrastructure. Much more will ultimately be invested by CSXT due to match requirements and any S Line cost overruns, which will be borne by CSXT, not the State.
The difference between the $641 million that Mr. Shallcross refers to in his editorial and the CSX number of $432 million is the cost of construction for overpasses in Ocala, Wildwood and some additional small refurbishment projects. They are related to DOT transportation projects and have never been part of the SunRail transaction. The $432 million reinvestment includes:
- $198 million for S Line infrastructure improvements, including new passing sidings and crossing upgrades. These projects will increase capacity and efficiency on the S Line, the main railroad line that runs through the center of the state. The S Line connects ports in South Florida and the Gulf Coast to CSXT’s entire network, which provides rail service to major consumptive markets in the eastern United States.
- $150 million for other Florida freight infrastructure, including a Rail Terminal Facility that will form the heart of a planned Integrated Logistics Center in Winter Haven. This Rail Terminal Facility will be a state-of-the-art logistics center for
intermodal and automotive freight and is expected to spur logistics-related economic development on adjacent land, creating a master planned Integrated Logistics Center (ILC). This will be the only planned ILC in Florida, and will help Florida compete with Atlanta for warehousing and distribution center business. Currently, freight bound for Central Florida is frequently railed to
distribution centers near Atlanta and trucked down I-75 by long-haul trucking companies. The Winter Haven Rail Terminal Facility will allow that freight to be railed directly to Central Florida for warehousing in Winter Haven and then delivery by Florida short-haul trucking companies. The Rail Terminal Facility also will provide an inland staging area for intermodal containers delivered through Florida ports.
- CSX also has committed to invest up to $40 million out of these funds in rail connections to the Jacksonville Port Authority (JAXPORT) that would complement a planned on-dock Intermodal Container Transfer Facility (ICTF) and support JAXPORT’s efforts to compete with Savannah and other ports for “discretionary” cargo that is destined for out-of-state markets.
- $52 million for statewide rail improvements which will be matched dollar for
dollar by CSXT.
- $23 million to enable the cessation of certain freight related operations and facilities in the Orlando area and to facilitate the transfer of certain freight trains from the A Line to the S Line.$9 million for the extension of Pollard Road, which will provide access to the Winter Haven Rail Terminal Facility and the ILC.
In addition to preserving the excellent freight service provided to existing Florida businesses (phosphate, aggregate, agriculture, intermodal) and to key Florida ports, the upgrades to the S Line will increase the marketability of commercial and industrial property along the rail corridor and reinforce Florida as an attractive logistics center.
Each year, CSXT works with state and local economic development agencies to help relocate businesses to Florida, specifically to rail-served sites. The Winter Haven Rail Terminal Facility and the S Line improvements will help make our joint economic development efforts even more competitive as intermodal and port connectivity and proximity are emphasized. At the same time, the transfer of certain freight trains from the A-Line will remove those trains from downtown Orlando and its numerous street crossings.
These beneficial infrastructure invedstments are in addition to the numerous economic benefits of the SunRail project itself. Learn more at www.sunrail.com. You can show your support for SunRail by joining their facebook page at www.facebook.com/SaveSunRail
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