KS shorlines want aid from state...

John Barnhill Sep 20, 2007

  1. John Barnhill

    John Barnhill TrainBoard Member

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    Shortline railroads want state aid

    By Sarah Kessinger

    Harris News Service

    TOPEKA - Summer floods in southeast Kansas left 250 train cars, 35 miles of track and bridges submerged, halting business for days on the South Kansas & Oklahoma Railroad.
    The company gradually restored traffic on its lines, but an official asked lawmakers Thursday for a grant to cover part of a $39 million, seven-year rehabilitation project to help prevent derailments on damaged or decaying lines.
    "This is a major issue for us," said Ed McKechnie, representing the shortline's owner, Watco Industries of Pittsburg. "We can't continue to have reliable service for our customers."
    Problems continued this week with a derailment of nine cars off a southeast Kansas bridge, which is expected to cost $1 million to fix. The company's willing to put up a dollar for every grant dollar offered by the state, McKechnie said.
    The request was followed by a smaller proposal from the Mid-States Port Authority and Kyle Railroad in northwest Kansas, where a new rail line is sought leading to an energy production complex under construction at Goodland.
    The proposals exceed the current levels of $5 million to $8 million in the state's revolving loan and grant fund for shortlines. But Rep. Gary Hayzlett, R-Lakin, chairman of the Special Committee on Transportation, said the requests are simply indicators the industry wants legislators to continue the $3 million in annual funding for loans and matching grants.
    "It's a pretty essential thing. Those shortlines sure move a lot of grain in our part of the state," said Hayzlett, whose committee will make recommendations to the Legislature later this year.
    The shortline fund is part of the state's current 10-year transportation plan, which has invested billions in highways, rail, public transit and airports. It is due to expire in 2009.
    The plan's aid for rails so far have included 42 rebuilding projects on 1,042 miles of outdated rail lines, said Terry Heidner, legislative liaison for the Kansas Department of Transportation.
    The program also helped Watco purchase a shortline system in central and western Kansas, saving hundreds of miles of rail from abandonment and resulting road repairs caused by more truck traffic.
    The Legislature is expected to start work on the next plan during the 2008 session, which begins in January.
    "We'll definitely have serious discussions about what approach to take on a new funding source," Hayzlett said.
    Rep. Richard Proehl, R-Parsons, said the SK&O Railroad's work in the region merits some form of state support.
    "As far as granting all that money, the jury's still out on that," Proehl said. "But it's important to have the loan fund to help keep tracks and crossings up."
    Bob Alderson, a representative of the port authority and Kyle Railroad, based in Phillipsburg, told lawmakers they planned to ask KDOT for a $2 million low-interest loan for track construction.
    The money would help build a 2.5-mile spur for delivery of coal to a small power plant at the Goodland Energy Center and to haul ethanol from the complex's ethanol plant.
    09/14/2007; 1:49:01 PM
     

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