CTroyMathis
24 September 2005, 01:46 PM
Rail line gathering steam for Chihuahua, Mexico
Robert Francis - September 26, 2005
Visit: http://www.fwbusinesspress.com/display.php?id=3840
A 650-mile rail line from Fort Worth to the Mexican border state of Chihuahua has started to fulfill its promise by carrying freight following a multiyear, $30 million struggle by the Texas Alliance of Rail Districts.
Known as the South Orient line, investors, developers and communities along the line said they envision it as an alternative to border crossings at Laredo and El Paso. They said they hope to one day ship cargo to and from Fort Worth to the Persidio crossing, through Chihuahua, down to the port city of Topolobampo in northwest Mexico. Some companies are also interested in passenger routes to Copper Canyon, Mexico.
“We’re very happy it is finally up and running, but there is still a lot of work to do,” said John Helsley, president of the non-profit Texas Alliance of Rail Districts, which is based in Granbury.
Helsley said the line still needs a great deal of repair and improvements before it can carry larger loads at faster speeds. Helsley also said the line will provide an additional route to the crowded Mexican border, where the other border crossing areas are heavily congested.
“For smaller shippers, the problem is very, very acute. Many of them have either stopped shipping or reduced their shipments because they can’t afford to wait,” he said.
Other rail lines through Texas cross into Mexico at Del Rio, Brownsville, Laredo and El Paso. The Rail Alliance has fought for years to save the line from Fort Worth to Persidio. Most of the line once belonged to the Santa Fe Railroad, the predecessor of Burlington Northern Santa Fe. When Santa Fe announced it planned to abandon the line, the Rail Alliance began working to save it. By 1994, the Rail District had purchased most of the line, but it then faced a struggle to upgrade and repair the track.
Rail Districts are formed by a county when railroads abandon rail lines. Rail Districts are non-taxing entities that typically seek to upgrade and maintain rail lines in order to maintain their economic viability. To raise funds, the districts seek state and federal grants, levy user fees, obtain loans or issue bonds. There are currently 29 rail districts in Texas. The Texas Alliance of Rail Districts used the Jackson Walker law firm in Fort Worth for legal advice, according to Helsley.
The Texas Alliance of Rail Districts is on something of a roll after being credited as a key reason Toyota recently selected San Antonio for a major truck manufacturing plant.
“There was an abandoned rail line that they needed, and we worked to get it ready for the plant,” said Helsley.
A large portion of the line running through Texas will be operated by the short-haul Fort Worth & Western Railroad, which maintains operating rights from Fort Worth to San Angelo. Texas Pacifico Transportation, a subsidiary of Groupo Mexico, operates the 382-mile-long section between San Angelo and the U. S. Mexican border at Presidio. That portion of the rail line is owned by Texas Department of Transportation and leased to Groupo Mexico. Brownwood-based Texas Pacifico Transportation, which has invested about $20 million in the line, has operating rights along the whole line.
Fort Worth & Western Railroad has customers that can ship steel pipe, rebar, coil steel, beer, lumber, vegetables, canned goods, paper, cement, and other products on the line, according to the company. For instance, a test run on the line in March ran from Torreon in north central Mexico to Dallas. It carried 29 rail cars, with four carrying calcium carbonate headed for Texas Industries in Dallas.
While the line is up and carrying freight, so far the loads are rather small, primarily because much of the rail line needs upgrading, according to Helsley. A 70-mile stretch from Fort Stockton to Alpine, for example, is hardly Casey Jones-ready. Along that stretch of track, trains can only move at a maximum of seven miles an hour.
“That’s too slow, so we need to upgrade that portion of the track so we can move along at around 30 to 35 miles an hour,” he said.
The Texas Alliance of Rail Districts has formed a lobbying coalition of shippers and rail district members that will visit lawmakers in Washington, D.C., in November to seek transportation funds to upgrade the line.
Helsley said the rail line, along with all rail lines in Texas, are seeing increased traffic due to the increase in fuel prices.
“We’ve already seen increased business because of that and we believe that once businesses see how effectively we can transport, we’ll just see more,” he said.
Robert Francis - September 26, 2005
Visit: http://www.fwbusinesspress.com/display.php?id=3840
A 650-mile rail line from Fort Worth to the Mexican border state of Chihuahua has started to fulfill its promise by carrying freight following a multiyear, $30 million struggle by the Texas Alliance of Rail Districts.
Known as the South Orient line, investors, developers and communities along the line said they envision it as an alternative to border crossings at Laredo and El Paso. They said they hope to one day ship cargo to and from Fort Worth to the Persidio crossing, through Chihuahua, down to the port city of Topolobampo in northwest Mexico. Some companies are also interested in passenger routes to Copper Canyon, Mexico.
“We’re very happy it is finally up and running, but there is still a lot of work to do,” said John Helsley, president of the non-profit Texas Alliance of Rail Districts, which is based in Granbury.
Helsley said the line still needs a great deal of repair and improvements before it can carry larger loads at faster speeds. Helsley also said the line will provide an additional route to the crowded Mexican border, where the other border crossing areas are heavily congested.
“For smaller shippers, the problem is very, very acute. Many of them have either stopped shipping or reduced their shipments because they can’t afford to wait,” he said.
Other rail lines through Texas cross into Mexico at Del Rio, Brownsville, Laredo and El Paso. The Rail Alliance has fought for years to save the line from Fort Worth to Persidio. Most of the line once belonged to the Santa Fe Railroad, the predecessor of Burlington Northern Santa Fe. When Santa Fe announced it planned to abandon the line, the Rail Alliance began working to save it. By 1994, the Rail District had purchased most of the line, but it then faced a struggle to upgrade and repair the track.
Rail Districts are formed by a county when railroads abandon rail lines. Rail Districts are non-taxing entities that typically seek to upgrade and maintain rail lines in order to maintain their economic viability. To raise funds, the districts seek state and federal grants, levy user fees, obtain loans or issue bonds. There are currently 29 rail districts in Texas. The Texas Alliance of Rail Districts used the Jackson Walker law firm in Fort Worth for legal advice, according to Helsley.
The Texas Alliance of Rail Districts is on something of a roll after being credited as a key reason Toyota recently selected San Antonio for a major truck manufacturing plant.
“There was an abandoned rail line that they needed, and we worked to get it ready for the plant,” said Helsley.
A large portion of the line running through Texas will be operated by the short-haul Fort Worth & Western Railroad, which maintains operating rights from Fort Worth to San Angelo. Texas Pacifico Transportation, a subsidiary of Groupo Mexico, operates the 382-mile-long section between San Angelo and the U. S. Mexican border at Presidio. That portion of the rail line is owned by Texas Department of Transportation and leased to Groupo Mexico. Brownwood-based Texas Pacifico Transportation, which has invested about $20 million in the line, has operating rights along the whole line.
Fort Worth & Western Railroad has customers that can ship steel pipe, rebar, coil steel, beer, lumber, vegetables, canned goods, paper, cement, and other products on the line, according to the company. For instance, a test run on the line in March ran from Torreon in north central Mexico to Dallas. It carried 29 rail cars, with four carrying calcium carbonate headed for Texas Industries in Dallas.
While the line is up and carrying freight, so far the loads are rather small, primarily because much of the rail line needs upgrading, according to Helsley. A 70-mile stretch from Fort Stockton to Alpine, for example, is hardly Casey Jones-ready. Along that stretch of track, trains can only move at a maximum of seven miles an hour.
“That’s too slow, so we need to upgrade that portion of the track so we can move along at around 30 to 35 miles an hour,” he said.
The Texas Alliance of Rail Districts has formed a lobbying coalition of shippers and rail district members that will visit lawmakers in Washington, D.C., in November to seek transportation funds to upgrade the line.
Helsley said the rail line, along with all rail lines in Texas, are seeing increased traffic due to the increase in fuel prices.
“We’ve already seen increased business because of that and we believe that once businesses see how effectively we can transport, we’ll just see more,” he said.