North Carolina Eastern Infrastructure Improvement Study
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North Carolina Eastern Infrastructure Improvement Study Pursuant to SB 402 Section 34.23 passed during the 2013 Session of the General Assembly Submitted to North Carolina General Assembly Submitted by North Carolina Department of Transportation Rail Division January 2015 Eastern Infrastructure Improvement Study: A Report to the North Carolina General Assembly January 2015 Pat McCrory, Governor Anthony J. Tata, Secretary of Transportation Jeff Mann, Deputy Secretary for Transit Paul C. Worley, Rail Director Acknowledgements The NCDOT Rail Division wishes to acknowledge the contributions of those individuals within the North Carolina Department of Commerce (Susan Fleetwood, Joshua Levy, Zachary Oliver), the North Carolina Department of Agriculture and Consumer Affairs (Robert Hosford, Joy Hicks), the North Carolina Rail- road Company (Scott Saylor, Jim Kessler), the NCDOT Statewide Logistics and Global TransPark Author- ity (Sherman R. Lupton, Rick Barkes), NCDOT Strategic Planning (Susan Pullium, Sebastian Montagne), North Carolina State Ports Authority (Paul Cozza, Jeff Miles, Stephanie Ayers), the General Counsel’s Office of the North Carolina Department of Transportation (Shelley Blake, , V. Lori Fuller), and the many stakeholders who contributed their time and expertise in interviews and workshops. Preparers: Dr. Toni Horst (AECOM), Jeff Mann (Parsons Brinckerhoff), Alex King (Parsons Brincker- hoff), Carey Barr (AECOM), Jeffrey Chang (Parsons Brinckerhoff), James Bridges (NCDOT Rail Divi- sion), Marc Hamel (NCDOT Rail Division) Table of Contents Executive Summary .......................................................................................................................... ES-1 Introduction and Background of the SB 402 Section 34.23, Eastern Infrastructure Improvement Study (EIIS) ......................................................................... 1-1 • Introduction • Study Approach • The Governor’s 25-Year Vision Profile of Eastern North Carolina .................................................................................................... 2-1 • Population and Employment Growth Trend • Cost Structure • Industrial Structure Stakeholder Outreach....................................................................................................................... 3-1 • Wallace to Castle Hayne Outreach Summary • Global TransPark and Port of Morehead City Outreach • Global TransPark and Port of Morehead City Invitations and Outreach Process • Outreach Findings: Global TransPark and the Port of Morehead City Evaluation of the Wallace to Castle Hayne Rail Restoration .......................................................... 4-1 • Introduction • Market Assessment • W2CH as a Shortcut • Technical Assessment and Cost Estimation for Restortation of Wallace to Castle Hayne • Strategic Value Assessment • Strategies and Next Steps • Conclusion i Eastern Infrastructure Improvement Study: A Report to the North Carolina General Assembly Evaluation of Market Opportunities at the Global TransPark ....................................................... 5-1 • Original Concept and Expectations • Considerations in the Original Site Selection • Mission and Expectations • Budget Trends • What’s Changed Since GTP Was Established? • Is There a Case for Developing a Dry or Refrigerated Bulk Inland Terminal at GTP • Scenarios • Methodology • Approach to Identifying Other Opportunities • GTP Payback Analysis • Conclusions Evaluation of Market and Mobility Opportunities at the Port of Morehead City .......................... 6-1 Funding Considerations................................................................................................................... 7-1 Recommendations ............................................................................................................................ 8-1 Appendices • Appendix A: Conceptual Plans for Wallace to Castle Hayne Rail Restoration .................. A-1 • Appendix B: Wallace to Castle Hayne Cost Estimate .............................................................. B-1 • Appendix C: Wallace to Castle Hayne Benefit Cost Report .................................................... C-1 • Appendix D: Resolutions of Support for the Wallace to Castle Hayne Project .................... D-1 • Appendix E: Assessing Bulk Shipping Costs at the GTP ......................................................... E-1 References ......................................................................................................................................... R-1 ii Eastern Infrastructure Improvement Study: A Report to the North Carolina General Assembly Executive Summary Senate Bill 402 Legislation The Eastern Infrastructure Improvement Study (EIIS) assesses how improvements at three points in Eastern North Carolina’s transportation network may support the expected growth and greater economic development in the region. The three transportation network locations considered are: 1) the former section of rail line between Wallace and Castle Hayne north of Wilmington (W2CH), 2) access improvements on and around the Port of Morehead City (MHC), and 3) improvements on and around the Global TransPark (GTP). Exhibit ES-1 illustrates the location of each investment or facility Keysville considered. Norfolk Virginia Portsmouth Beach Suolk Martinsville NS Hilltop While all three locationsBBRR are located in Eastern North Carolina,Emporia stakes are higher than just economic prosperity for this single South Ringgold Clover Lawrenceville Danville Bostonregion of the state.Clarksville Eastern North Carolina’s success is everyone’sBoykins success. TheFranklin Port of Morehead City, a major Class I rail ALLEGHANY Mount Airy CA HycoconnectionHyco Jct. to North Carolina’s other marine port at Wilmington, and the Global TransPark are majorCAMDEN stateCURRITUCK assets. Shippers Blanche WARREN CSXT PASQUOTANK ASHE YVRR GATES SURRY VANCE Warren Plains HERTFORD STOKES RoxboroelsewhereMayo in the state depend onNorlina one or more of these facilities and benefit from their operation. The success of these facilities Eden GRANVILLE NORTHAMPTON NCVA Tunis CASWELL CSXT Pinnacle Madison Reidsville PERSON Picks Weldon PERQUIMANS YVRR benefits the economyOxford throughoutRidgeway North CarolinaRoanoke and the Southeast US. Elizabeth City ROCKINGHAM Timberlake Rapids Ahoskie WILKES Rural Hall Henderson WATAUGA Belews Creek CHOWAN NS HALIFAX Hertford NCVA Weeksville Elkin YADKIN FORSYTH GUILFORD The 2013 Session of the North Carolina General EneldAssembly passed and Governor Pat McCrory signedCA into law Senate Bill 402 (SB Erwin ORANGE DURHAM 95 Winston- NCDOT Burlington Kelford North Wilkesboro Greensboro NCDOT MITCHELL AVERY Salem Franklinton SO U N D 402), an act that sets budget appropriations for state departments, institutions, and agencies. As part ofR SBL E 402 in Section 34.23, Newport Kernersville Joyland BERTIE Edenton EM A Louisburg NASH 17 A L B Kona CALDWELL CSXT ALEXANDER WSS Hillsboroughthe legislation required the Departments of Transportation, Commerce, and Agriculture and Consumer Services to study the Micaville YAN DAVIE CSXT FRANKLIN Spring EDGECOMBE MARTIN Taylorsville IREDELL DAVIDSON Climax ALAMANCE Durham MADISON Spruce Pine Lenoir High Point SUR WAKE Hope 64 CWCY Mocksville Global TransPark Infrastructure and RailCLNA Access. Tarboro Williamston YANCEY Thomasville Carrboro Plymouth ARC NCDOT Parmele CSXT TYRRELL Marshall Morganton Cooleemee HPTD Zebulon Rocky Mount WASHINGTON Conover Statesville Jct. Exhibit ES-1:Raleigh Candidate Investment Locations DARE TAINS Newton CLNA Barber Jct. Lexington NCDOT Garner ARK Hickory NCDOT Siler City AT SMOKY MOUNP BUNCOMBE Marion BURKE RANDOLPH Wilson GRE ATIONAL CMR Linwood CHATHAM NHV WILSON PITT CSXT N WSS New Hill Cary ClaytonNS/NCRR Troutman Salisbury Spencer BEAUFORT CLNA HAYWOOD Old Fort CATAWBA Maiden Asheboro Bonsal Apex Farmville HYDE Asheville MCDOWELL ROWAN HPTD Greenville Phosphate Jct. Canton Gulf Cumnock Fuquay- CLNA Bryson City Mooresville High Rock Selma CLNA Washington D Gilkey RUTHERFORD LINCOLN Lincolnton Varina Fremont N GSMR Smitheld GREENE CLNA Pinetown Belhaven U TBRY Kannapolis Brickhaven O CLNAWhitney SWAIN Waynesville CLEVELAND Star Colon Chocowinity S GRAHAM Rutherfordton ACWR Sanford 70 264 O Dillsboro HENDERSON Hall’s Ferry Jct. CLNA ATW NS Bostic Jonesboro I C Hendersonville Lillington CSXT L Washburn WSS Forest JOHNSTON Global CSXT NS Goldsboro M Mt. Holly Badin LEE Dunn A GSMR City GASTON Albemarle Candor MOORE HARNETT TransPark Lee Creek P JACKSON POLK CABARRUS Andrews Ellenboro Shelby PNRW ACWR Lattimore Charlotte STANLY CSXT WAYNE NCDOT NS Brevard Tuxedo Norwood Mt. Gilead Southern 95 40 Seymour Elmer CHEROKEE MACON Belmont ACWR Manchester Johnson AFB CRAVEN NCDOT CLNA Gastonia Pines Spring TRANSYLVANIA Landrum NCDOT MONTGOMERY Mt. Olive NS/NCRR Murphy Crowder MECKLENBURG Pinehurst Lake LENOIR70 Kinston CLAY Blacksburg FORT PAMLICO Aberdeen BRAGG CSXT Pineville WSS CFR SAMPSON UNION Raeford ANSON AR Fayetteville New Bern Ganey Kings Creek Fort Mill RICHMOND JONES Tirzah Skibo CSXT River Vander Clinton Warsaw Rock Hill SCOTLAND Terminal Spartanburg Monroe Wadesboro HOKE CTR 70 Hamlet Red Parkton Cherry Pt. Catawba Rockingham CUMBERLAND MCAS LRS Springs DUPLIN Havelock St. Pauls ONSLOW Laurinburg RSNR 40 CARTERET Duart NS Radio Wallace Morehead City Cheraw Johns Camp Island Pembroke LeJeune McColl CSXT Breedin 17 CLNA State Port PDRR BLADEN Lumberton PENDER Bennettsville CSXT Marboro Burgaw Port of Rowland