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Local News

Saturday, August 15, 2009

CSX: $175M rail yard will spur additional businesses
By LOU WILIN

STAFF WRITER

NORTH BALTIMORE -- CSX officials are betting that in 2011, North Baltimore will become a $175 million hub to sort goods for shipping across the nation by train and truck.

CSX Corp. officials, Gov. Ted Strickland, U.S. Rep. Bob Latta and others held a groundbreaking ceremony Friday to celebrate the rail yard, to be built north of Ohio 18 and a mile west of North Baltimore.

It will employ more than 200 when fully operational. Four hundred more jobs are being generated during construction. The rail yard will spur warehouses and other businesses, generating about 2,600 jobs in the next 10 years, CSX officials predicted.

"This is a great opportunity for northwest Ohio to play a major role in the nation's vital freight transportation network, while creating jobs and boosting the economy of the region," Strickland said.

"It really is going to make Wood County a major national logistics center," CSX Chief Executive Officer Michael Ward said.

About 25 trains coming from East Coast ports like Newport News, Va., Baltimore and New York City will enter the rail yard daily. Five 500-ton cranes, 300 feet wide and spanning eight rows of tracks, will move containers and trailers onto flat cars of other trains, or onto truck chassis parked beside the tracks, said Wilby Whitt, assistant vice president of operations for CSX Intermodal.

Cargo will be arranged into longer trains headed for other destinations, like Chicago and farther west to California, Ward said.

Goods also will come from the west to be sorted and shipped east.

Some goods will be reorganized without a crane. A nine-track support yard will enable blocks of five to 20 cars to be rearranged, said John Bradley, CSX Great Lakes Division manager.

The rail yard will have 23 miles of track, and will stretch east-to-west about three miles from Liberty Hi Road to Range Line Road.

It is estimated that 20 percent of the rail yard's business will be loaded onto trucks for delivery to destinations within 75 miles.

"We would expect that (percentage) to grow over time to be a larger percentage as the distribution centers build up around the area," Whitt said.

If Home Depot builds the warehouse it has been talking about near Van Buren, it would likely use the rail yard.

"We would expect them to be a large user," Whitt said. Home Depot merchandise would come to East and West Coast ports from Asia and other countries, he said.

North Baltimore, with its main CSX line, is in the right location for the terminal.

It also is benefiting from timing. Rail transportation is far more fuel efficient and pollutes less than trucks, CSX leaders said. Trucking companies, having difficulties recruiting drivers willing to be on the road for weeks, have sought rail companies' help to shorten truck trips, said Gary Sease, a CSX spokesman.

It is driving a "rail renaissance," CSX's Ward said.

"Demand for freight transportation will almost double in the next 25 years," he said. "We are investing, we are betting on the future. ... Even for a large corporation ... ($175 million) is a huge investment, a huge bet we are making here, and we are very confident we are making a good bet."

The terminal near North Baltimore is part of an $840 million CSX project with the federal and state governments to reduce carbon dioxide emissions, shipping costs and highway congestion.

CSX will spend $390 million, 45 percent of that near North Baltimore, for the "National Gateway." The rest of the money will come from federal and state governments, mostly to raise clearances under bridges and tunnels. It will enable CSX to double-stack rail cars.

On the Web:

www.csx.com



Wilin: 419-427-8413

Send an e-mail to Lou Wilin

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High-powered growing lights, fans, and a box filled with dried marijuana were also found in the house, according to a police report.

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Courier business and advertising offices will close at 3 p.m. Friday for the holiday.