Peoria Station

This evening, I attended Public Information Meeting regarding the Illinois State Rail Plan at the Peoria Public Library’s downtown campus. Details of the plan can be found here.

From what I heard, it was fairly well patronized with 47 attendees. This beats prior a meeting held at Rockford by a long shot (23 attendees) and is close to the Chicago event (52 attendees). Hopefully, publicity on my blog helped out a little.

My main concern about the state’s rail plan is that it presumes multi-million dollar taxpayer-funded projects for not only rail passenger projects but to entice rail freight expansion as well. More and more new spending programs are not a good thing in a state with an $85 billion pension debt, $8.5 billion in debt to vendors and in medicaid bills and $600 million in in corporate tax refunds.

While it must be recognized that some of these investments may reap far more benefit than public monies doled out, a massively debt-ridden state government shouldn’t be adding more projects with funds it does not have.

And it’s not like we need taxpayer-funded projects to ensure industrial expansion in Illinois. Let’s do away with the “build it and they will come” mentality. Railroads after all are private businesses and must market their services to new customers for their long-term viability. Fact is, the Peoria area alone has seen numerous rail freight-related improvements in recent years. Examples are:

PEORIA RIVER TERMINAL – In the year 2000, this subsidiary of Fort Lauderdale (FL)-based Interstate Asphalt Corp, purchased the old Martin Oil Marketing tank farm off S. Darst Street in Peoria. A spur was subsequently constructed into this facility, though when is not clear (I first noticed it in late 2003). A second track had been completed in 2009 or 2010. Tank cars of petroleum asphalt liquid are received from western U. S. and Canadian refineries. In the past, cars have been loaded for eastern points as well. Beneficiaries included the Tazewell & Peoria RR, Toledo Peoria & Western Rwy and the Union Pacific – all of which have direct access. Most recently, the Tazewell & Peoria has performed switching duties with most inbound asphalt arriving via BNSF Railway.

AMEREN ENERGY RESOURCES (E. D. EDWARDS STATION) – In March 2004, Ameren completed a rail loop at its E. D. Edwards Station, located south of Bartonville. This eliminated a time-consuming requirement to break inbound coal trains into several sections prior to unloading at the power plant. The new rail loop significantly increased efficiency of unloading coal trains and appears to have led to higher volume. Beneficiary is Union Pacific, which has handled most (or all) coal at the plant since the early 2000s (TP&W has access but has not delivered a coal trains since late 2003).

GALENA ROAD GRAVEL CO. – In 2005, this Chillicothe company’s sand loading facility off W. Moffit Street had its siding extended north past the BNSF overpass to accommodate increased traffic. Also, a remnant of the old Santa Fe connection was rehabilitated for storing empty sand cars.

AMEREN ENERGY RESOURCES (DUCK CREEK STATION) – In late 2005, a 4.8-mile rail spur was built from Ameren’s Duck Creek Station (near Canton) to the Keokuk Junction Railway’s mainline near Rawalts. This build out, placed into service in February 2006, enabled the power company to receive competitive rail service for the first time (only BNSF and predecessor BN provided service for 30 years prior).  Beneficiaries are the Keokuk Junction Railway and any carrier originating coal for Duck Creek (primarily Union Pacific).

AMERHART LTD. constructed a new 75,000 sq. ft. warehouse and lumber storage yard at Pekin’s Riverway Business Park. Relocating from Peoria, Amerhart opened its new facility in October 2006. Primary beneficiary is serving carrier Canadian National Railway.

PMP FERMENTATION PRODUCTS – This food additives manufacturer installed a rail siding in late 2006 to receive tank cars of corn syrup. Since then liquid gluconate has been shipped outbound to at least one customer as well. Primary beneficiary of PMP’s joining the ranks of local rail users is serving carrier Tazewell & Peoria RR and line-haul carriers BNSF, Iowa Interstate and Norfolk Southern.

EDELSTEIN CONNECTION – By late April 2007, BNSF and Union Pacific completed a high-speed connection in the northwest quadrant of their grade-separated crossing just west of Edelstein. The new connection enabled UP intermodal trains operating between Global 2 and 3 and Los Angeles/Long Beach ports a faster route. To accomodate increased traffic, BNSF installed crossovers at strategic locations every ten miles. Additional signals were installed where necessary. Beneficiary is Union Pacific, though BNSF gets revenue from trackage rights.

HOSTESS BRANDS C/O CARRY TRANSIT – In June 2009, Peoria’s Butternut Bakery began receiving bulk wheat flour via a rail-to-truck transload at the Tazewell & Peoria RR’s Creve Coeur Team Track. Carry Transit does the short truck haul to the bakery on W. Lincoln Ave. This required no new rail facilities, so it is solely new rail freight business. Beneficiaries include BNSF Railway (which originates this traffic) and the Tazewell & Peoria RR, which handles switching.

HANNA STEEL CORP. – In September 2009, Hanna Steel Corp’s spur track at Pekin’s Riverway Business Park was re-arranged. Beneficiary is Canadian National, though there appears to have been very little rail traffic into this plant the past few years.

MIDWEST GENERATION LLC – By July 2010, a rail loop was completed and in service to enable power plant to remove old track and install emissions equipment (thus the project was driven by the desires of a federal agency). The rail loop eliminates the need to break up arriving coal trains into three cuts for unloading. Now, trains can be unloaded without switching, thus increasing efficiency. Beneficiaries are serving carrier Illinois & Midland RR and Union Pacific, which has handled most (or all) inbound coal for this plant since the 1990s.

SENECA PETROLEUM CO (OR PEORIA BARGE TERMINAL)? – Since summer 2011, a new two-track petroleum asphalt liquid loading/unloading facility has been developed just off S. Darst St. Though located next to Peoria River Terminal, the new rail facilities probably serve Seneca Petroleum Co. or Peoria Barge Terminal, one of which operates a nearby storage facility (public details are vague). Beneficiaries are unconfirmed, but like Peoria River Terminal, this one is accessible to the Tazewell & Peoria RR, TP&W and Union Pacific.

OZINGA MATERIALS INC. – In 2009, this Henry sand and gravel pit began loading pea gravel on a track leased from neighbor United Suppliers LLC for railcar loading, but recently discussed plans for its own spur.

Illinois is already seening considerable growth in rail freight infrastructure. So there is no need to drive expansion as part of a new program. Best to reform its regulatory, spending and tax policies to ensure ithat it is business-friendly and competitive with neighboring states. Hopefully, other visitors share my concerns about this program.

- David P. Jordan