CHAPTER 6 6.8 RAIL

6.8.1. INTRODUCTION

Even though rail service is important to the economy, the railroads physical size has been diminishing since the 1920’s with the abandonment of underutilized track. The construction of federally funded highway projects initiated in the 1950's and 1960's increased the use of truck transportation. Waterborne shipping transport was also improved, and in some cases created, with the use of federal funding. But, in recent years, the railroad’s share of the transportation market has been increasing and abandonments have slowed. American railroads have generally been privately owned. The one exception was for the first 11 years of its existence. Eastern railroads, until recently, have not been on the receiving side of any federal funds.

Nonetheless, the railroad industry continues to play a vital role in the maintenance of a healthy economy in and nationwide. Many industries throughout the state depend on rail service that varies from the use of a short line operator with a few miles of track to the Class I railroad companies with thousands of miles of track in many states. In Ohio and across the country, more than 40% of all intercity freight is transported by rail.

Deregulation allowed the rail industry to abandon lines without going through a long regulatory procedure. This permitted the railroads to become more productive and more competitive. Although this process has resulted in track abandonments and sales, and workforce reductions, service has been improved resulting in more cost effective railroads able to compete with other forms of transportation and to attract the capital necessary to fund improvements. It has also allowed the creation of numerous shortline railroads. Shortlines generally have lower labor costs and less stringent work rules, so they may serve shippers more efficiently than a larger railroad. However, because shortlines are by definition short, the long haul still belongs to the Class 1 railroads. This results in a win‐win situation where Class 1’s are relieved from ownership of marginal lines, but still get the long haul, new businesses are started and jobs are created, and most importantly, shippers still receive the benefits of having the most energy efficient/cost effective method of transportation available to them. Prior to 1980, there were three shortline railroads in the two county area and these were all subsidiaries of one or more class 1 railroads. Today there are five shortlines in the area, none owned by a Class 1. In fact four of these shortlines are owned by the Genesee & Wyoming System, a company that owns over 60 shortline railroads in the U.S. and three other countries.

One area of growth for the railroads in recent years has been intermodal traffic. Intermodal traffic is where more than one type of transportation is employed for moving goods such as truck/rail, water/truck, or water/rail. Also, the cargo should stay in the same shipping container. A myriad of technological improvements have contributed to more efficiency in the rail industry. Ohio is one of the top ten states nationally in railroad track mileage and employment.

The Ohio General Assembly established the Ohio Rail Development Commission (ORDC), on October 19, 1994. There are 15 ORDC Commissioners. Commissioner’s appointments include four non‐voting members from the Ohio General Assembly, seven Commissioners are appointed by the Governor, one each by the Speaker of the Ohio House and the President of the . The Directors of the Ohio Department of Development (ODOD) and the Ohio Department of Transportation (ODOT) are both ex‐officio members. The primary responsibilities of the ORDC include:

 Preserving Ohio’s rail infrastructure through rehabilitation, acquisition and construction;  Promoting Ohio’s rail freight and intermodal freight system;  Developing Ohio’s intercity rail passenger system;  Assisting in the development of Ohio’s commuter rail corridors;  Providing grants, making loans and issuing bonds for various projects;  Granting franchises for passenger rail and station operations;  Initiating freight and passenger rail projects which contribute to the establishment of a balanced transportation system and the economic development of Ohio.

The Commission staff functions as an integral part of ODOT to ensure the coordination of rail investments with other modes of transportation. When railroads apply to abandon an unprofitable line, a process begins to determine the feasibility of maintaining the line through cost/benefit and viability analysis. The Commission is available to assist a community with alternatives to purchase the rail line and acquire a short line company to operate and provide service on it. If the track is deteriorated, the ORDC can also provide support to rehabilitate the line. The Commission provides other service options to local entities, including the connection of facilities for freight transfer from one mode to another.

Amended House Bill (HB) 163, a Legislative Mandate for a study to be performed by the ORDC, the Public Utilities Commission of Ohio (PUCO) and the Ohio Emergency Management Agency (OEMA), was signed by Governor Bob Taft on March 31, 1999. HB 163 recognized problems related to Conrail acquisitions and required the ORDC/PUCO/OEMA to investigate the following;

 Grade separations and improvements needed to alleviate safety problems and congestion in the state;  How to develop a priority system to determine the order in which those grade separations and improvements could be completed;  Potential funding sources for the grade separation and improvement projects;  Statutory and regulatory changes that may be necessary to maintain public health and safety with regard to predicted increases in rail transportation of hazardous materials in the state.

Study findings for HB 163 recommended that between $200 million and $225 million be made available for a railroad grade separation program to address worst‐case situations in the state. Additional information on this program can be found on ODOT’s web page www.dot.state.oh.us.

6.8.2. OVERVIEW OF THE OHIO RAIL SYSTEM

Ohio’s location, midway between the major East Coast ports and the mid‐continent gateways of and St. Louis, and strong industrial/agricultural base combine to make Ohio an important national transportation area. The State’s rail freight system is heavily utilized and has experienced a steady increase in volume since the 1990’s. Mining, agriculture, vehicle and equipment manufacturing, and heavy manufacturing industries in Ohio comprise an important part of the State’s economic base and they depend heavily on rail freight services.

Coal is the largest commodity by volume that is shipped by rail. Other major commodities include metallic ore, grain and other farm products, primary metal products such as , food products, chemicals, plastics, automobiles and parts, non‐metallic minerals, lumber, waste and .

Generally, major manufacturing industries in Ohio receive raw materials and ship finished and semi finished products. Railroads account for approximately 30+ percent of the total value, 25+ percent of the total tonnage and 50+ percent of the total ton miles of commodities shipped from Ohio. On the average, 40 percent of shipments from Ohio to the neighboring states of , , West , , and were made by rail.

The future demand for rail services does in fact appear encouraging. Employment in industries that are also major users of rail transportation is anticipated to amount to 20 percent of the State’s workers. , metallic ore, non‐metallic minerals and petroleum products are heavily rail dependent and account for more than 75 percent of rail tonnage in Ohio. Most of the railroad shipments with origins in Ohio are intra‐state movements and movements between Ohio and its adjacent states of Kentucky, Michigan, and Pennsylvania. Most shipments that terminate in Ohio also have origins from these states and Ohio. Shipments from Ohio to southern states account for approximately 30 percent of Ohio rail shipments. Also, a large percentage of the freight, especially intermodal freight, on the rail lines in Ohio is passing through on its way from the East Coast ports to the Midwest gateways of Chicago and St. Louis and vice versa. Economical rail transportation has been essential to Ohio’s and the ’s economic development and should continue to stimulate economic growth in the future.

6.8.3. PASSENGER RAIL SERVICE

As of 2005, the B&O station in Youngstown ceased to offer passenger rail. The last remaining line at that point was ’s “Three Rivers” that ran daily between New York and Chicagoa. The primary reason Amtrak stopped service to Youngstown was because of low ridership; however it continued its service through Alliance, where ridership was not much greater. Unfortunately, the only train that comes into Alliance does so at around 1:30 AM west bound, 3 AM east bound. The late night Youngstown “fly through” service (3,600 annual passengers) that was provided did nothing to compete for the transportation business of the Mahoning Valley intercity traveler.

From a transportation planning perspective, Eastgate is more optimistic about the Ohio Hub Rail Passenger Service being proposed by the Ohio Rail Development Commission (ORDC). The Ohio Department of Transportation and ORDC jointly initiated a feasibility study of a regional rail system consisting of four corridors with a central hub in : 1. Cleveland‐Columbus‐Dayton‐ (3C) 2. Cleveland‐ (Keystone) 3. Cleveland‐Toledo‐ 4. Cleveland‐Erie‐Buffalo‐Niagara Falls‐. The Cleveland Hub would increase the efficiency of the overall transportation system by improving railroad infrastructure. The system would complement air and automobile travel by providing modern rail passenger service that offers convenient travel times, frequent and reliable services and comfortable, modern passenger amenities. The Cleveland Hub intends to reduce travel times by increasing maximum train speeds from 79‐mph to 110‐mph. This increase will make same‐day, round‐trip service possible throughout the region.

This proposed rail system will consist of 860 miles, 32 passenger stations and would service over 22 million people in 4 states and southern , Canada. Included in this total is nearly 1 million non‐driving Ohioans. The corridors will connect 9 major metro areas and 12 small cities and towns. Feeder bus service to various smaller areas will extend the proposed system even further.

There are a number of benefits, primarily economic and environmental, that coincide with passenger rail development in the Ohio and Region. It will increase regional employment and income and is expected to create 6,600 construction, 1,500 operating and 6,000 indirect jobs over the life of the project. It will connect 12 economically distressed counties to additional job markets. Property value, travel and tourism and downtown redevelopment opportunities are expected to increase. The rail stations would be close to many entertainment facilities, sports franchises and academic, cultural and research institutions. They would also be a short distance to over 200 million square feet of suburban and downtown office space. Among 18‐35 year olds,

a Youngstown 2010 Plan 73% support the “Quick Start” plan. This is promising as it is expected to attract and retain young professionals. It has the potential to add at least 1.2 billion dollars to Ohio’s economy as $1 in passenger rail development can generate $3 in economic benefit.

There are a number of environmental benefits to this proposed plan as well. It will remove 320,000 vehicle miles travelled and save nearly 15,000 gallons of fuel per day. It will relieve congestion on the nation’s 4th largest interstate network, as well as to significantly reduce hydrocarbon emissions.

Another goal for the Cleveland Hub system is to provide improved capacity for increasing volumes of freight transport. The proposed passenger rail system will use existing, privately held railroad track and will share these with freight trains. However, proposed passenger rail cannot impair current operations, create bottlenecks or impediments, or constrain future growth in any way. Consequently, introducing passenger rail through the improvement of existing rail infrastructure will improve freight transport as wellb.

Cleveland‐Columbus‐Dayton‐Cincinnati (3C): In late January 2010, ODOT and ORDC received a federal grant of $400 million for the Ohio 3C “Quick Start” Passenger Rail Plan. This award is contingent upon achieving milestone targetsc. This was the area’s share of the $8 billion in federal passenger rail funds made available under the American Reinvestment and Recovery Act.

Currently, there is political opposition against creating the new passenger rail system. To move forward, the plan must be approved by the State Controlling Board, requiring a super‐majority of 5 out of 7 members to advance rail spending. This $400 million is designated only for high speed passenger rail and cannot be used for anything else. The list of concerns is extensive. The opposition questions whether or not the plan is a viable use of tax dollars and is wary of the $17 million annual subsidy. They raised the question of how willing freight railroads will be to share their existing lines with passenger rail. They also brought up concerns that the initial rail service will be slow. To this Ken Prendergast, executive director of All Aboard Ohio, stated, “No high‐speed service was ever built without a conventional speed precedent.” Should the State Controlling Board vote to support the plan, the system will connect Cleveland, Columbus, Dayton and Cincinnati‐ a total of 256 miles. It will operate at speeds of 79‐mph, with plans to eventually increase speed to 110‐mph with better infrastructure and increased support. This plan will put passenger rail as an option for 60% of Ohio’s population. Passenger train service via this line could begin as early as 2012d.

Cleveland‐Pittsburgh (Keystone):

The Cleveland‐Pittsburgh corridor met federal criteria for high speed designation. This corridor would be an excellent complement to the proposed 3C line. It is also of special significance locally, as it is the only proposed line that will service the Eastgate vicinity. Currently, this service goes between Pittsburgh and , but a joint effort between Ohio and Pennsylvania officials is requesting the corridor to be extended westward to Cleveland. This would effectively link the Keystone corridor to the Chicago Hube.

The Ohio and Lake Erie Regional Rail Study concluded that the 140‐mile Pittsburgh to Cleveland line provides a vital interstate link. The study compared two different potential routes: one through Alliance and the other through Youngstown. It provided engineering assessments of the infrastructure requirements, capital cost and train performance. It also developed an operating plan and provided revenue and ridership forecasts for both options. When comparing Alliance and Youngstown’s capability of handling Modern (79‐mph) and High Speed (110‐mph) scenarios, it was found that 110‐mph service via Alliance is not feasible due to horizontal and vertical

b ORDC: “The Ohio and Lake Erie Regional Rail Cleveland Hub”, ODOT: “3C ‘Quick Start’ Passenger Rail Plan: Benefits” c Letter from Federal Railroad Administration to ODOT Director d Columbus Dispatch: “Blocking ‘3C’ Train May Not Be Hard”, ORDC: FAQS e Letter from Ohio and Pennsylvania Governors to US Secretary of Transportation, Federal Transit Administration alignment problems, right‐of‐way width and the substantial volume of Norfolk Southern freight traffic on the line. In terms of overall cost, the Alliance scenario would cost an estimated $609.6 million for 79‐mph service, whereas the Youngstown scenario would cost an estimated $461.9 million for 79‐mph service or $484.9 million for 110‐mph servicef. The following Exhibits 1 and 2 displaying Capital Cost Summaries for Youngstown and Alliance were taken directly from the study and show how the estimated costs were determined:

Exhibit 6.8.1 – Pittsburgh ‐ Cleveland via Youngstown Capital Cost Summary

Modern Scenario High‐Speed Scenario Maximu Railroad m Design Cost Cost/Mile Cost Cost/Mile Scenario Segment Name Name Speed Miles (1000s) (1000s) (1000s) (1000s) 1 Cleveland‐Ravenna NS/W&LE 79 mph 35.1 $214,245 $6,103 $214,245 $6,103 2 Ravenna‐Warren NS 110 mph 23.0 $68,354 $2,971 $81,425 $3,540 3 Warren‐ NS 110 mph 18.4 $66,219 $3,598 $72,400 $3,934 Youngstown 4 Youngstown‐New P&LE 110 mph 16.0 $72,740 $4,546 $76,544 $4,784 Castle 5 New Castle‐ NS 79 mph 47.3 $40,353 $853 $40,353 $853 Pittsburgh TOTALS 140.2 $461,912 $3,294 $484,968 $3,459

Exhibit 6.8.2 – Pittsburgh ‐ Cleveland via Alliance Capital Cost Summary

Modern Scenario Maximum Railroad Design Cost Cost/Mile Scenario Segment Name Name Speed Miles (1000s) (1000s) 1 Cleveland‐Ravenna NS 79 mph 37.1 $217,642 $5,866 2 Ravenna‐Alliance NS 79 mph 18.8 $73,102 $3,888 3 Alliance‐Beaver Falls NS 79 mph 52.9 $288,416 $5,452 4 Beaver Falls‐Pittsburgh NS 79 mph 30.2 $30,525 $1,010 TOTALS 139.0 $609,684 $4,386

Other Routes:

Also out of the Cleveland Hub is a proposed Cleveland‐Toledo‐Detroit line as well as a Cleveland‐Erie‐ Buffalo‐Niagara Falls‐Toronto line that will connect to Canada’s System. However, the 3C and Keystone lines are of much higher priority at the moment.

f ORDC: “Ohio and Lake Erie Regional Rail Study”. 6.8.4. FREIGHT RAIL SERVICE

Overview The railroad industry continues to plays a vital role in the maintenance of a healthy economy in Ohio. For many industries within Eastgate’s study area the maintenance and ability to expand their rail service is a key factor in remaining competitive. Starting in the 1980’s nine operating shortline railroads throughout Ohio were merged to form the Ohio Central Railroad System (OCRS). The OCRS provided freight and switching services in 15 northeast and central Ohio counties and in two southwestern Pennsylvania counties until 2008. In 2008 all of the Ohio Central Railroads were purchased by and merged into the Genesee & Wyoming system. Genesee & Wyoming Inc. (G&W) owns/leases and operates 62 short line and switching railroads in 22 states and three other countries. The G&W owns/leases and operates four railroads in the Eastgate study area, the Youngstown and Austintown RR Co., the Warren and Trumbull RR Co., The Mahoning Valley Ry. Co., and the Youngstown Belt RR Co. The fifth shortline in the area, the Youngstown and Southeastern Railroad is locally owned. Sources of data are the web sites of the individual railroads and the ORDC Rail Plan. Maps 6.8.1 and 6.8.2 identify Ohio Railroad Companies traversing through Mahoning and Trumbull Counties.

Short Line Railroads

A. Youngstown and Austintown Railroad (Y & A):

The Y & A, located in the City of Youngstown and Austintown Township commenced operating in 1985 on a 5 mile track segment formerly owned and operated by the Consolidated Rail Corporation (Conrail). The track is owned by the Economic Development Rail Co I (EDRC I), a subsidiary of the Mahoning Valley Economic Development Corp. (MVEDC). The Y & A is operated by the Genesee & Wyoming Inc. The Y & A track is in a heavily industrialized area with the potential to serve more customers than it does now. Currently, there are several companies that use this railroad for the shipments of both raw materials and finished products. Other companies in the area utilize trucks for the transportation of their commodities. Youngstown Steel Door, once a major industry on the line, ceased operations in January 2006. At one time this line continued southeast to cross South Meridian to a point near the intersection of Bears Den Rd. and Industrial Rd. The line is currently out of service south of Oakwood Ave. There are no intermodal connections being made at this time. During 2008‐ 2009, the industries on this line shipped or received an average of approximately 30 cars a month. Connecting railroads include CSXT, NS and its G&W stable mate the Youngstown Belt RR.

B. Warren and Trumbull Railroad (W&T)

The short line Warren and Trumbull Railroad (W&T) main line extends from North Warren west to Leavittsburg on former Conrail trackage and also from Warren north to the former Copperweld Steel facility in Champion Township on former CSXT trackage. The 9 miles of track is owned by the Economic Rail Development Corporation II (EDRC II), an affiliate of the MVEDC. The W&T is the contract operator of the line and is itself owned by the Genesee & Wyoming. Operations commenced on March 15, 1994 on 3 miles of line formerly from Warren to Copperweld Steel facility and 5 miles of line from North Warren to Leavittsburg. A one mile section from North Warren to the K Mart Regional Distribution Center has never been used for anything except storage of rail cars. Currently, there is little activity on this line. Copperweld Steel Corp. (CSC) closed its facility in 2000, as did Luntz Scrap. Other industries on the line have never used rail service that much. This is especially apparent with regard to the K‐Mart Distribution Center. This large regional warehouse has always shipped and received all merchandise via truck. In 2006, the former CSC facility reopened under the name of Warren Steel Holdings (WSH). By 2008, when business for WSH and the W&T was beginning to turn around, the recession hit and car loadings went to zero. The W&T is serviced out of the terminal in the area of Youngstown which includes a unique trackage rights agreement with the Norfolk Southern. Connecting railroads include Norfolk Southern, and the Youngstown Belt Railroad. Map 6.8.1 – Mahoning County Railroads

Map 6.8.2 – Trumbull County Railroads

C. Youngstown Belt Railroad

The Youngstown Belt Railroad (YBRR) operates in Youngstown, Girard and Warren on its own trackage. The YBRR is owned by the Genesee & Wyoming. The YBRR reaches its Warren tracks via a unique trackage rights agreement with the Norfolk Southern (NS). The YBRR purchased from NS a section of tracks extending from Control Point (CP) Pine, the Pine Street grade crossing, to the SR5 & SR82 overpass, approximately 4.5 miles to the northeast. NS retains ownership of these tracks north of the overpass and south of CP Pine and has a trackage rights agreement with the YBRR. The YBRR serves several industries in Warren including Dietrich Industries and its Genesee & Wyoming stable mate the Warren & Trumbull RR. The most important customer on the YBRR is V&M Star Steel located adjacent to the Y&BRR terminal in the Brier Hill area of Youngstown. V&M will become even more important to the YBRR in light of their recent announcement of a $650 million expansion that will employ an additional 450 workers. The Youngstown Belt RR connects with NS, CSXT, and all 3 other Genesee & Wyoming railroads in the area.

D. Mahoning

The (MVRy), also a Genesee & Wyoming railroad, is a switching railroad providing services to industries in Youngstown, Campbell, and Struthers. The MVRy operates over 6 miles of track and interchanges with CSXT, NS, YBRR and the Y&SRR.

E. Youngstown and Southeastern Railroad (Y&SERR)

The Youngstown and Southeastern Railroad (Y&SERR) operates over approximately 36 miles of track going from Campbell, Oh. to Darlington, Pa.. Y&SERR is owned by the Columbiana County Port Authority. The line was originally owned and built by the Youngstown and Company, a short line railroad that started operation in 1903 with a main line extending from Youngstown, Ohio to Darlington, Pa. The Ohio Central Railroad system entered into a lease purchase agreement with the Y & S for a purchase date targeted for 1996. The Ohio Central Railroad could not honor the lease purchase agreement with the Y&S in 1996 because the rail line did not generate enough business to be profitable. The Y & S declared bankruptcy and Rail Ventures Incorporated purchased the line through bankruptcy court. Rail Ventures Incorporated ordered the Ohio Central Railroad off of the line in November 1996. In 1999 Rail Ventures announced the line would be abandoned and presumably sold for scrap. The ORDC and the Columbiana County Port Authority contacted the Surface Transportation Board to investigate conditions that would be required to repair the line and restore service by the Ohio Central Railroad for shippers on the line. In 2000, the line was purchased by the Columbiana County Port Authority and leased to the Central Columbiana and Pennsylvania Railway. The Columbiana Port Authority tapped into a $500,000 fund created by the ODRC to be used for the rehabilitation of the line. Operation under the Y&SERR name began in 2006. In April, 2012 Tervita Corp. made an offer to purchase the Y&SERR from the Columbiana Co. Port Authority. Several months later the offer was withdrawn and as of October 2012 the Y&SE is still for sale. The Y&SERR connects with CSXT, NS, and the O&PRR.

Class 1 Railroads

Norfolk Southern Railway Corporation (NS) and CSX Transportation Corporation (CSXT)

A. Corporation ( NS)

On August 22, 1998 the Norfolk Southern Railway Corp. (NS) and CSX Transportation Corp. (CSXT) purchased the assets of the former Consolidated Rail Corp. (Conrail). The division of Conrail between NS and CSXT was primarily along the lines of Conrail’s two most significant predecessors, the Pennsylvania RR and the New York Central RR. For the most part, NS owns and operates lines that were formerly owned by the Pennsylvania RR and CSXT owns and operates lines formerly owned by the New York Central. In essence NS and CSXT undid the 1968 Penn‐Central merger. Operations of the former Conrail property by CSXT and NS began on June 1, 1999. NS did not have a presence in Mahoning or Trumbull County before the Conrail purchase.

When the Penn Central (and six other railroads) filed for bankruptcy in the late 1960’s and early 1970's, the continuation of rail service in the Northeast and Midwest was threatened. To assure adequate rail service, the U. S. Congress passed the Regional Rail Reorganization Act of 1973, known as the 3 R Act. The intent of this Act was to allow the failing rail lines to remain in operation while a plan could be developed to restructure operations. This was the start of Conrail. The Rail Revitalization and Regulatory Reform Act of 1976, the 4 R Act, formally established Conrail as a federally owned railroad.

Conrail officially began operations on April 1, 1976. Conrail had, by far, the most extensive rail network in Mahoning and Trumbull Counties. Conrail owned and operated over trackage formerly owned by the Erie‐ Lackawanna RR, the Pennsylvania RR and the New York Central RR. However, over the years Conrail abandoned or sold a number of redundant and/or underutilized lines. Many of these abandonments took place after the passage of the Northeast Rail Services Act in 1981 which among other things simplified the abandonment process for Conrail.

In 1987, the U. S. Government’s 85 percent ownership of Conrail was sold in a public stock offering. Conrail’s only expansion in the area was a spur which was constructed from the Detour Secondary Track into the Youngstown Commerce Park in Jackson Township to serve industries located there. Conrail sold nearly all trackage located in the Lordstown Cluster to the Ohio Central Railroad System in the early 1990’s. The exception was the Niles Secondary, located between North Warren and Latimer. This track was utilized by Conrail to haul ore from the Ashtabula docks on Lake Erie to Warren Consolidated Industries located in the City of Warren. Trains operating between Ashtabula and Warren travel a shorter distance utilizing the Niles Secondary than traveling on the Main Line south into Youngstown then traveling north from Youngstown to Warren. The line may also serve as a detour if tracks in Youngstown are out of service for any reason. The following trackage was purchased by the Ohio Central Railroad:

1. Warren to North Warren‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2.3 miles 2. Pymatuning Industrial Track‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1.5 miles 3. Ohio Works Industrial Track‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1.9 miles 4. Austintown Industrial Track‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0.7 miles 5. Pymatuning Industrial Track‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1.9 miles Total‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8.3 miles

Because of its size and long experience, NS is a major player in the transportation picture of the Mahoning Valley. NS has a contract with Severstal Steel (nee Warren Consolidated) to deliver iron ore to the Warren facility. They also deliver coke to that plant. NS delivers coal to the Warren coke plant and takes the coke that is produced to Cleveland. NS operates over 2,200 miles of track in Ohio and serves most of the metropolitan areas in the state.

B. CSX Transportation Corporation ( CSXT)

CSXT was formed in 1980 by merger of the Railroads and Seaboard Coast Line Railroads. CSXT trackage traverses Mahoning and Trumbull Counties in a southeast to northwest direction with a spur servicing Warren and Niles. Most of the trackage in the two county area is generally in excellent condition. Only one yard, the Lordstown Yard is maintained by CSXT. This yard is located adjacent to the Ohio Commerce Center which is an industrial park situated in the Village of Lordstown. The Bulk Intermodal Distribution Services Company is located in the park adjacent to the yard. Here, hopper cars are unloaded with their commodities transferred to trucks. Trucks distribute the materials to various locations throughout the Mahoning Valley. The commodities consist of fertilizer and construction material, such as sand and gravel. Major types of freight transported by CSXT are scrap metal, finished steel products, auto parts, coal and finished automobiles. CSXT is the largest railroad in the eastern , operating 22,889 miles of track. In Ohio, CSXT operates almost 2,000 miles of track and serves every major .

For the past several years CSXT has been planning and working on the National Gateway project. Presently CSXT carries a single container on each rail car. However, the cars are designed to carry two containers on each car (hence the name double stack). The National Gateway project will increase clearances on the major CSXT lines to permit the shipment of double stack containers. Most of the work will be occurring east of Ohio in Pennsylvania, western , and West Virginia. The work will consist of reconstructing bridges or lowering the tracks under bridges and through tunnels to permit the tall double stack cars to pass. This National Gateway project is scheduled to be completed by 2015, which is also when the Panama Canal modernization project will be completed. The Panama Canal Project is a $5+ billion project consisting of the construction of a new wider, longer, deeper set of locks at both the Atlantic and Pacific ends of the Canal. When the new locks in the Panama Canal are operational, large (12,000 twenty foot equivalent units [TEU]) container ships will be able to pass through and economically deliver their containers to ports on the east coast. Transportation planners project that this will dramatically increase the number of containers moving inland from these ports. Some increase in container traffic is already being seen with some shipments from Asia coming through the Suez Canal to east coast ports rather than across the Pacific to ports on the West Coast then to the Midwest via rail. This is more cost efficient for shipments to the Midwest than a route across the Pacific to a west coast port then by rail to the final destination.

Special Services ‐ Intermodal Connections

Throughout the latter part of the 20th Century, the rail industry has been somewhat in decline while truck and air freight hauling industries have grown. Prior to 1980, the trucking industry was advancing into the market domain of the rail industry. After 1980, through the use of intermodal hauling methods and with the passage of the Stagger’s Act, the rail industry began to recapture part of its former market share. In an effort to readjust the benefits of the trucking industry while retaining the advantage of the railroads, the major carriers have been actively pursuing methods of increasing intermodal transportation. Rail has become more competitive in the freight transportation industry since shippers are making special requirements their primary priority and fulfilling those needs in a cost effective and time efficient manner.

These special programs vary from carrier to carrier and change with their customer’s needs. In the Eastgate area, CSXT has an alternative to traditional ways of transferring freight. The CSXT service combines rail, truck and barge systems into a package fitted to an individual shipper’s needs. CSXT is affiliated with the American Commercial Barge Lines and with CSL as its trucking affiliate. The Highway Rail Service of CSXT allows shippers the economy of using long distance rail on specially designed cars plus the advantage of short haul trucking, with the option of interim product storage. By manipulating these various choices, CSXT asserts that the shipper should be able to find a desirable combination to meet their needs. NS has similar programs such as Thoroughbred Service, Thoroughbred Direct, and Triple Crown service, designed to grow their intermodal traffic.

At the present time, March 2010, there is a small but growing movement afoot in the Eastgate region to attempt to establish an intermodal terminal somewhere in the Mahoning‐Trumbull County area. Economic development professionals, businesses, and concerned citizens believe that a properly located intermodal terminal would be an asset to the area, both to receive goods and to facilitate the shipment of products, especially to ship overseas. It is generally felt that a site that is accessible to both Class 1 railroads would be advantageous. Also close proximity to the Interstate system would be desirable. Needless to say that the number of sights meeting these criteria is limited, but they do exist. The most promising location would be somewhere in the area where Girard, McDonald and Weathersfield Township all meet, just west of US422. Interstate 80 is only about a mile away and NS, CSXT, and the YBRR are on the site or adjacent to it. Several businesses have shown an interest in this concept as it will reduce transportation costs and be just as reliable as a truck only route.

Bridges

Due to the extensive rail system in the area, there are numerous highway over/underpass structures in Mahoning and Trumbull Counties. The majority of these bridges are highway underpasses and they occur on all types of traffic ways, including city streets, state routes, county highways and township roads. Twenty‐four of these structures have been identified as posing impediments to the through movement of vehicular traffic within the area. Most of these bridges were constructed early in the twentieth century and were built according to design standards at that time. All of the bridges could be reconstructed to comply with present day minimum clearance requirements. However unless the bridge is an impediment to rail traffic or the structure is in danger of failing, it is very unlikely that any improvements will be made by the railroads.

Three highway bridges over rail lines, the Girard Viaduct in the City of Girard, and the Merwin Chase bridge in Brookfield Township, Trumbull County, and the Ellsworth Bailey road bridge in the village of Lordstown have been reconstructed in the near recent past. All of these bridges were built with public funds with no railroad companies participating. The Fifth street bridge in Niles was replaced as part of the CSXT National Gateway project. The funding for this bridge will include federal and state stimulus funds and funds from CSXT, but no local funding. Restrictions for railroad bridges over highways, and highway bridges over railroad are shown below in Tables 6.8.1 and 6.8.2. Current minimum standards for bridge and highway designs are presented as follows:

Table 6.8.1 – Railroad Bridge Over Highways

Functional Vertical Minimum Lane Width Lateral Clearance* Classification Clearance Approach/Bridge Arterials 16 ft. 5 in. 12 ft. 12 ft. 2 ft. Collectors 14 ft. 5 in. 11 ft. 11 ft. 2 ft Local 14 ft. 5 in. ** ** 2 ft * If a barrier (sign, lights, etc.) is located under the bridge, additional clearance is required. ** 11 ft.‐‐ industrial or commercial area: 10 ft ‐‐ residential area

Table 6.8.2 – Highway Bridge Over Railroad

Functional Vertical Minimum Lane Width Classification Clearance Approach/Bridge Arterials 23 ft. 10 ft. 0 ft. Collectors 23 ft. 8 ft. 8 ft. Local 23 ft. 8 ft. 8 ft. Notes:  In no case shall the minimum road width be less than the approach pavement.  Where the approach roadway width (traveled way plus shoulder) is surfaced, that surface width shall be carried across all structures.  Clear width between curbs or rails, whichever is the lesser, is considered to be at least the same as the approved traveled way width.  Source: Location and Design Manual, Volume One, Roadway Design, ODOT.

6.8.5. RAIL ADDENDUM

Over the past three to four years, Eastgate staff has become more involved with several rail, freight and passenger, advocacy groups. Eastgate is one of many participants that represent the “Community” arm of RESTORE, which is an acronym for (Rail Enhancements = Sustainable Transportation, Opportunity, Revitalization & Employment). Others participants included: Citizens, Mahoning Valley Economic Development Corporation (MVEDC); Trade & Economic Consortium (NEOTEC); Ohio Rail Development Commission (ORDC); Representative from Congressman Tim Ryan; Western Reserve Port Authority (WRPA); and the Youngstown‐Warren Regional Chamber of Commerce.

In early 2012 the Western Reserve Port Authority contracted with RESTORE, a rail advocacy group, to prepare a study entitled “Immediate Needs Assessment of Railroad Infrastructure in the Youngstown‐Warren‐Mahoning Valley Region”. The geography covered by the assessment included not only Mahoning and Trumbull counties, but also Ashtabula and Columbiana counties. Some projects also reach into Pennsylvania. The report attempts to identify the improvements that could be made to the rail system that would provide the most economic benefit to the Region for the least amount of time and cost invested. Identification of these improvements was perceived as being particularly timely in light of the increasing activity surrounding Marcellus and Utica shale gas developments. Once identified, the thirteen prospective projects were evaluated using a 10 criteria rating system to prioritize them to see which ones gave the best cost and benefit score. The 10 rating criteria were:

1. Timeline (how soon could the project be started.) 2. Unfunded Capital Cost 3. Estimated number of car loads per year. 4. Access to navigable waterways. 5. Near Major Assets. 6. Large vacant land adjacent to right‐of‐way. 7. Fosters railroad competition. 8. Wide railroad right‐of‐way. 9. Class 2 or 3 Railroad. 10. Long term use of the improvement.

These criteria were developed to be able to fairly and impartially assess the cost/benefit of each project. Please note that as stated above, out of the 13 projects that were assessed, one project is located in Ashtabula County, three are partially located in Columbiana County (one of the three continues on into Pennsylvania), and three others involve connecting the Mahoning Valley directly to Cleveland/Cuyahoga County by rail through Geauga, Portage, and/or Summit Counties.

As previously stated, with Eastgate’s involvement over the years with several advocacy groups; participation in the RESTORE initiative; and the increasing activity surrounding Marcellus and Utica shale gas developments, Eastgate added six rail projects (three in Mahoning; three in Trumbull) to the 2040 MTP. Those project are listed TABLE 3 on the following page. Following Table 6.8.3 is “RESTORE’s” “Immediate Needs Assessment of Railroad Infrastructure in the Youngstown‐Warren‐Mahoning Valley Region” (prepared for the Western Reserve Port Authority: May 31, 2012). This report has been copied and inserted into this section of the plan with their approval. The report provides project details for each project: scoring, project cost, and Maps.

Table 6.8.3 – Rail Projects Included in Eastgate’s 2040 MTP

County Route LOCATION AND TERMINI MAH Campbell to PA State Repairs and improvements to its tracks from Youngstown to PA State Line, as Line Track‐Capacity well as capacity expansion; construction of a second track connection with CSX Enhancements at Campbell.

MAH CASTLO/Lally Rail Track and railroad bridge repairs are needed for the ongoing redevelopment of Service Yard CASTLO’s Area 7 including its Rail Service Yard concept and to accommodate an Repairs/Rehab increase in steel pipe business at Lally Pipe & Tube Corp. Lally receives pipe by rail from V&M’s growing steel plant on the Northwest side of the city. MAH Ohio Junction To accommodate growing steel pipe business at V&M Star’s Expansion Youngstown Works, expansion of the interchange yard at Ohio Junction between CSX and Ohio Central (G&W) has been consideredby Ohio Central.

TRU Clev. Direct Rail Cleveland direct rail corridor to Mahoning Valley (Option 2 via Kent). This is a Corridor to MAH concept for linking Northeast Ohio industrial shippers by shortline RR to each Valley ‐ Option 2 via other and the . Requires reactivation of 20 mi. of NS‐owned Kent Freedom Secondary between Ravenna‐Leavittsburg railbanked since about 1998. TRU Ohio Commerce Ohio Commerce Center‐On‐site and site access track Onsite Track improvements o accommodate growing manufacturing, storage Access and distribution use of its 476‐acre facility, including as a transload site for energy‐related companies, numerous rail infrastructure investments are planned. TRU Warren/TRU RR WSH onsite track & West Warren track connection onsite rail (a Genesee & infrastructure improvements Wyoming Co)

IMMEDIATE NEEDS ASSESSMENT Of railroad infrastructure in the Youngstown‐Warren Mahoning Valley region

For the

May 31, 2012

Conducted by

with

Excelsior Transportation Management

1. Project: On‐site and site access track improvements Sponsor: Ohio Commerce Center

Project Summary: To accommodate growing manufacturing, storage and distribution use of its 476‐acre facility, including as a transload site for energy‐related companies, numerous rail infrastructure investments are planned. These include street resurfacing, railroad crossings, rehab of track and turnouts for drop‐and‐swap tracks, construction of new track including a parallel access track and headroom track extension, plus modification of the underside of the SR 45 overpass for the headroom track. A retaining wall will be built to support the embankment for the overpass bridge. About 200 acres of the Ohio Commerce Center are rail accessible. Rail traffic capacity needs to be enhanced to accommodate projected growth from shippers already on site, new shippers that are constructing facilities or those seeking to locate shipping activities at the OCC. The sum of rail traffic from current and potential shippers is projected to be significant – more than 35 carloads daily.

Criteria Comments Score Funded track and underpass work could begin within one year. TIMELINE 10 No property needs to be acquired. Up to $2.173 million may be needed to complete rail UNFUNDED CAPITAL COST 6 improvements. Existing and projected traffic within two years is estimated by EST. CARLOADS PER YEAR 10 OCC at more than 13,000 carloads per year. CSX, a Class I RR, provides rail access without interchange to WATERWAY(S) ACCESS the Lake Erie port of Ashtabula (via trackage rights on NS) and 4 to transloading terminals on the Ohio River. Site can serve a drilling‐related transload within 2 weeks, an NEAR MAJOR ASSETS existing/willing rail shipper, an existing/planned Industrial 7 park, and is within 4 miles of a highway interchange. OCC has 67 acres of rail‐accessible, developable land per route‐ LARGE VACANT LAND 5 mile of track. FOSTERS RR COMPETITION The site is accessible by one railroad carrier. 1 Parallel rights of way allow for lateral clearances of 200+ feet WIDE RR RIGHT OF WAY 4 for pipelines, utilities or rail including for high/wide loads. Proposed improvements are to rights of way accessible by CLASS OF RAILROAD 2 Class I RR. Rail capacity, unrelated to the shale gas business, is already cramped without the presence of rail/shale customers. LONG TERM USE 4 Expanded capacity will likely continue to be used for many years by non‐shale gas users. TOTAL 53

See map and cost estimates for this project on the next page…

OHIO COMMERCE CENTER On‐site and site‐access track improvements and construction (FRA Class 1 track standards)

2012 ESTIMATED ITEM QUANTITY UNIT UNIT COST AMOUNT_

Rehabilitate existing track 12,400 LinFt $ 10.00 $ 124,000 New track on existing RR grades 11,300 LinFt $110.00 $ 1,243,000 Replace/construct turnouts Placeholder $600,000 $ 600,000 Clearing of vegetation 6 Acre $ 6,000 $ 36,000 Roadway crossings 1 Each $ 50,000 $ 50,000 Retaining walls 4,400 SqFt $ 75.00 $ 330,000

SUBTOTAL $ 2,393,000 30% CONT. $ 720,000

TOTAL $ 3,113,000

TOTAL JRS‐FUNDED RAIL COMPONENTS ...... $ 1,000,000

TOTAL NEEDED $ 2,113,000

2. Project: Ohio Junction rail yard expansion Sponsor: CSX & Ohio Central RR (a Genesee & Wyoming Company)

Project Summary: To accommodate growing steel pipe business at V&M Star’s Youngstown Works, expansion of the interchange yard at Ohio Junction between CSX and Ohio Central (G&W) has been considered by Ohio Central. Prior to 2012, V&M’s Youngstown Works produced about 500,000 tons of seamless steel pipe each year. With the $707 million in total investment underway for expansion, this output is projected by V&M to grow by another 350,000 tons of seamless tubes in the near term, and potentially as much as 500,000 tons over the long term. Thus, it is assumed that capacity of the CSX/Ohio Central interchange yard may need to double to accommodate this growth, as well as to serve other growing industries and shippers nearby. Two design options for this expansion were considered – a long, two‐track yard option and a short, four‐track yard option. Both options offer similar capacity, may incur nearly identical costs and use the same CSX‐owned parcel, so they do not need to be assessed on separate scorecards. Ultimately it will be up to the railroads to decide how to design the expanded yard to suit their own operating preferences. There is sufficient CSX‐owned land for additional yard expansion as well as vacant land in the nearby Ohio Works Industrial Park for more industrial users.

Criteria Comments Score Project could be underway within one year of funding TIMELINE 10 becoming available as no property needs to be acquired. UNFUNDED CAPITAL COST Estimated at $2.3 million. 6 Actual carload data for the interchange yard was unavailable EST. CARLOADS PER YEAR but is estimated at 5,000‐10,000 per year currently, growing to 10 10,000 to 20,000 per year after V&M’s expansion. CSX, a Class I RR, provides rail access without interchange to WATERWAY(S) ACCESS the Lake Erie port of Ashtabula (via trackage rights on NS) and 4 to transloading terminals on the Ohio River. Site can serve a drilling‐related transload within 2 weeks, an NEAR MAJOR ASSETS existing/willing rail shipper, an existing/planned Industrial 8 park, and is within 2 miles of a highway interchange. About 50 total acres of vacant land is adjacent to the project LARGE VACANT LAND site, divided by about 13,000 feet of new track is 20 acres per 3 track‐mile. FOSTERS RR COMPETITION The project site is accessible by two railroad carriers. 2 CSX rights of way to the site are at least 100 feet wide, and Ohio Central rights of way and/or clearances (including WIDE RR RIGHT OF WAY 3 lateral/overhead bridge structures) to V&M are not constrained. CLASS OF RAILROAD CSX is a Class I carrier and Ohio Central is a Class III carrier. 6 The existing Ohio Junction interchange rail yard serves non‐ V&M shippers in the area, but the expansion is clearly LONG TERM USE motivated by the expansion of V&M. If shale drilling activities 0 were curtailed, the existing rail yard might be sufficient to serve the area’s remaining shippers. TOTAL 52

See map and cost estimates for this project on the next pages…

OHIO JUNCTION RAIL YARD EXPANSION – OPTION ONE Two new yard tracks 6,000 and 6,300 feet long, realigning 2,800 feet of track (FRA Class 1 track standards)

2012 ESTIMATED ITEM QUANTITY UNIT UNIT COST AMOUNT_

Rehabilitate existing track with 110# CWR 2,300 LinFt $ 110.00 $ 230,000 (less scrap value = $23,000) Remove existing track (less the scrap 850 LinFt $ 15.00 $ 3,000 or relay value = $10,000) New track with 110# CWR 12,800 Line $ 110.00 $ 1,408,000 Turnouts on new/realigned yard tracks 4 Each $ 35,000 $ 140,000

SUBTOTAL $ 1,781,000 30% CONT. $ 534,300

TOTAL $ 2,315,300

OHIO JUNCTION RAIL YARD EXPANSION – OPTION TWO Four new yard tracks 2,900, 3,300, 3,550, and 3,900 feet long (FRA Class 1 track standards)

2012 ESTIMATED ITEM QUANTITY UNIT UNIT COST AMOUNT_

New track with 110# CWR 13,650 Line $ 110.00 $ 1,501,500 Turnouts on new/realigned yard tracks 8 Each $ 35,000 $ 280,000

SUBTOTAL $ 1,781,500 30% CONT. $ 534,450

TOTAL $ 2,315,950

3. Project: CASTLO/Lally Rail Service Yard repairs/rehabilitation Sponsor: CASTLO Community Improvement Corp.

Project Summary: Track and railroad bridge repairs are needed for the ongoing redevelopment of CASTLO’s Area 7 including its Rail Service Yard concept and to accommodate an increase in steel pipe business at Lally Pipe & Tube Corp. Lally receives pipe by rail from V&M’s growing steel plant on the Northwest side of the city. Total track length measures about 13,000 lineal feet plus two steel girder bridges – one over Yellow Creek (about 90 feet long) and Hines Run (about 55 feet long). A Job Ready Sites grant was recently awarded to CASTLO to demolish and remediate a 300,000‐square‐foot building, construct a sanitary lift station, remediate soil, grade the 60‐acre site, construct roadways and utilities, and repair track. Due to other priorities, only about $100,000 of the $5 million JRS grant will be used to repair track. Up to $1.33 million is needed to carry out CASTLO’s remaining Rail Service Yard plan and improve rail access to Lally Pipe & Tube Corp.

Criteria Comments Score TIMELINE Funded track/bridge repairs could begin within one year. 10 CASTLO estimates up to $1.175 million to complete rail UNFUNDED CAPITAL COST improvements; RESTORE estimates up to $1.33 million is 6 needed. Both estimates result in the same score. Between CASTLO and Lally, existing rail traffic is perhaps 200 carloads per year. This could double with the development of EST. CARLOADS PER YEAR 2 CASTLO’s Area 7 and with growth at V&M and Lally to 400 carloads or more per year. NS and CSX are both Class I RRs that provide rail access without WATERWAY(S) ACCESS interchange to the Lake Erie port of Ashtabula and to 4 transloading terminals on the Ohio River. Site can serve a drilling‐related transload within 2 weeks, an NEAR MAJOR ASSETS existing/willing rail shipper, an existing/planned Industrial 8 park, and is within 2 miles of a highway interchange. CASTLO’s Area 7 has 24 acres of developable vacant land per LARGE VACANT LAND 3 route‐mile of track. The site is accessible by four railroad carriers – CSX, G&W, NS FOSTERS RR COMPETITION 4 and Y&S. The onsite right of way, owned by CASTLO, is in excess of 110 WIDE RR RIGHT OF WAY 4 feet wide. Proposed improvements are to rights of way accessible by CSX, CLASS OF RAILROAD 6 NS (Class I) and G&W, Y&S (Class III). Certain rail infrastructure is more than 100 years old and needs LONG TERM USE 4 renewal so it can continue to serve non‐shale gas users. TOTAL 51

See map for this project on the next page…

CASTLO Area 7 Job Ready Site as seen from the direction of Lally Pipe & Tube.

See cost estimates for this project on the next page…

CASTLO AREA 7 + LALLY PIPE & TUBE Track and Bridge Improvements (FRA Class 1 track standards)

TRACK PROBABLE SECTION DESCRPTION OF WORK COSTS _

7A Minor joint tightening $ 20,000 7B Timber replacement, joint tightening, ballast and surfacing, $ 200,000 install switch timbers, brush and debris removal 7C Minor surfacing, ballast, joint tightening and crossing renewed $ 55,000 7D Minor surfacing, ballast and joint tightening $ 15,000 7E Minor surfacing, ballast and joint tightening $ 100,000 Yellow Crk Short‐Term Repair: repair walkway, bearings, and reinforce $ 70,000 Bridge beams to achieve legal load capacity Long‐Term Rehab: short‐term repairs, improve approach ballast, $ 300,000 replace ties, paint all structural steel Hines Run Short‐Term Repair: repair walkway, reinforce beams, encase $ 100,000 Bridge footers, fill in washout cavity on approach Long‐Term Replacement: install two side‐by‐side 10’‐wide by 8’‐high $ 350,000 precast concrete box structures, two full height concrete head walls, fill in embankment material and reconstruct rail line above

PRIORITY

FUNDED 1 Yellow Creek Bridge, Short‐Term Repair $ 70,000 BY JRS 2 Section 7A $ 20,000 _ 3 Section 7C $ 55,000 4 Hines Run Bridge, Short‐Term Repair $ 100,000 NO 5 Section 7E $ 100,000 FUNDING 6 Section 7D $ 15,000 PRO‐ 7 Section 7B $ 200,000 GRAMMED 8 Yellow Creek Bridge, Rehabilitation $ 300,000 9 Hines Run Bridge, Replacement $ 350,000

TOTAL JSR‐FUNDED COMPONENTS...... $ 90,000 TOTAL NO FUNDING PROGRAMMED...... $ 1,020,000

30% CONT. $ 310,000

TOTAL NEEDED $ 1,330,000

4. Project: WSH onsite track & West Warren track connection Sponsor: Warren & Trumbull RR (a Genesee & Wyoming Company).

Project Summary: Warren Steel Holdings is producing steel but using trucks for transportation. The need for up to $300,000 in onsite rail infrastructure improvements are a hurdle to using more rail service and keeping shipping costs down for long‐distance moves. Enhanced rail infrastructure can improve effective rail service and open up development opportunities. Combined with track improvements to the former Freedom Secondary track and construction of a new West Warren track connection immediately west of Martin Luther King Boulevard allows Warren & Trumbull RR to reach CSX’s Newton Falls Subdivision, an interchange with the CSX mainline at Newton Falls, as well as new industries resulting from the West Warren Industrial Partnership and the Warren Commerce Park. At minimum, W&T RR would use a mix of its own rails and those of the Mahoning Valley Economic Development Corp.’s “Rail II Corp.”

Criteria Comments Score Project could be underway within one year of funding TIMELINE 10 becoming available as no property needs to be acquired. UNFUNDED CAPITAL COST Estimated capital cost of $1.9 million. 6 Actual carload data for the project area was unavailable but is estimated at 5,000‐10,000 per year based on WSH’s annual EST. CARLOADS PER YEAR 8 production capacity of 500,000 tons as well as other potential users. Requires interchange with NS or CSX unless Cleveland WATERWAY(S) ACCESS Commercial RR extends service to this area (see Cleveland 0 Corridor). Site can serve a drilling‐related transload within 2 weeks, an NEAR MAJOR ASSETS existing/willing rail shipper, an existing/planned Industrial 8 park, and is within 2 miles of a highway interchange. Along the total 8 miles Rail II Corp. and the new track LARGE VACANT LAND connection are about 340 acres of developable properties for 5 commercial purposes, or 42.5 acres per route‐mile. The project area would offer W&T/G&W (Class III RR) carrier to FOSTERS RR COMPETITION 3 provide access to CSX and NS, two Class I carriers. Some sections of right of way are flanked by obstructions WIDE RR RIGHT OF WAY 0 narrowing it to as little as 30 feet. Proposed improvements are to rights of way accessible by CSX, CLASS OF RAILROAD 6 NS (Class I) and W&T/G&W (Class III). Most of W&T’s existing and future customers are unrelated to LONG TERM USE the shale gas business and will likely continue to want rail for 4 many years. TOTAL 50

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WARREN STEEL HOLDINGS ONSITE TRACK ENHANCEMENTS + WEST WARREN CONNECTION Warren & Trumbull RR (G&W) connection with CSX’s Newton Falls Subdivision (FRA Class 2 track standards)

2012 ESTIMATED ITEM QUANTITY UNIT UNIT COST AMOUNT_

WSH onsite track enhancements* Placeholder $ 300,000 Rehabilitate inactive track 10,500 LinFt $ 10.00 $ 105,000 bridge repairs Placeholder $100,000 $ 100,000 Construct new track on graded right of way 1,200 LinFt $110.00 $ 132,000 Construct mainline, manual turnouts 2 Each $200,000 $ 400,000 Clearing of vegetation 12.6 Acre $ 6,000 $ 75,000 Repair active devices at grade crossings 5 Each $ 50,000 $ 250,000 3 new crossing surfaces w/ full‐depth rubber 260 LinFt $ 500 $ 130,000

SUBTOTAL $ 1,492,000 30% CONT. $ 447,600

TOTAL $ 1,939,600

* Cost estimate provided by Warren Steel Holdings & Ohio Rail Development Commission.

6. Project: Cleveland direct rail corridor to Mahoning Valley (Option 2‐via Kent) Sponsor: None

Project Summary: At this time, this is only a concept for linking Northeast Ohio industrial shippers by . Such shippers are producing or using finished steel, scrap steel, coke, aggregates, natural gas liquids, polyethylene and other products in and the Mahoning Valley. This concept represents the longest but probably least capital‐intensive of three potential routing options for linking the two regions. It totals about 61 route‐miles from Rockefeller Avenue in Cleveland east to South Leavitt Road in Leavittsburg. It is via:  Cleveland‐Glenwillow (14.6 miles) – Cleveland Line owned by Wheeling & Lake Erie RR but leased to CCRL;  Glenwillow‐Kent (17.4 miles) – Cleveland Line owned and operated by W≤  Kent‐Ravenna (9 miles) – Freedom Secondary owned by Portage County and leased to W&LE subsidiary Akron Barberton Cluster Railway. Mileage includes reversing move required at Kent;  Ravenna‐Leavittsburg (20 miles) – Freedom Secondary owned by Norfolk Southern over which Warren & Trumbull RR (a Genesee & Wyoming Corp. subsidiary) has a lease for non‐common carrier operations, and is self‐renewing annually at $1 per year until terminated. This route option assumes that right‐of‐way access is granted by W&LE, Portage County and NS. It also requires reactivation of 20 miles of NS‐owned Freedom Secondary between Ravenna‐Leavittsburg railbanked since about 1998. The STB and/or the PUCO have typically approved the reactivation of railbanked rights of way in less than one year. No shortline has confirmed implementation plans so the following should be considered as speculative. Criteria Comments Score A supportive STB review could allow inactive portions of the Freedom TIMELINE Secondary to see construction in less than two years of funding becoming 5 available. UNFUNDED CAPITAL COST A rough estimate of capital costs is $4.9 million. 4 An existing shortline handled 5,400 carloads in 2010. Estimated traffic on EST. CARLOADS PER YEAR reactivated portions needs to be many times larger to sustain them. Future 8 carloads are unknown. Westernmost end of NS-owned (Class I) and CCRL-leased (Class III) ROW of WATERWAY(S) ACCESS 4 way in Cleveland is 700 feet from a navigable portion of the . Online sites can serve as a drilling-related transload within 2 weeks, an NEAR MAJOR ASSETS existing/willing rail shipper, an existing/planned Industrial park, and is within 2 8 miles of a highway interchange. Along 43.6 miles of CCR leased + Freedom Secondary ROW are about 2,100 acres of developable properties for commercial purposes (including 1,500 LARGE VACANT LAND 5 acres unused by Camp Ravenna Joint Military Training Center), or 48 acres per route-mile. Provides a direct railroad link between Greater Cleveland and Youngstown- FOSTERS RR COMPETITION Warren in competition with less direct routes used by Class I RRs and would 2 interchange with four rail carriers. WIDE RR RIGHT OF WAY Relevant portions of the Freedom Secondary are more than 75 ft wide. 1 Rail segments are owned by NS, a Class I carrier, and W&LE, a Class II CLASS OF RAILROAD 6 carrier, and portions are leased to CCRL, a Class III carrier. Most existing customers are unrelated to the shale gas business and will likely continue for many years. A much larger number of daily carloads are LONG TERM USE needed to sustain the Freedom Secondary if reactivated in its entirety. NA Although potential users have been identified, none have committed so it is premature to assign a score to this criterion. TOTAL 43

See map and cost estimates for this project on the next page…

CLEVELAND CORRIDOR – OPTION TWO (via Kent) Via Portage County/Norfolk Southern’s Freedom Secondary (FRA Class 2 track standards)

2012 ESTIMATED ITEM QUANTITY UNIT UNIT COST AMOUNT_

Rehabilitate active track Kent to Ravenna 42,000 LinFt $ 10.00 $ 420,000 Vegetation removal 50 Acre $ 1,000 $ 50,000 Rehabilitate inactive track 110,000 LinFt $ 20.00 $ 2,200,000 Grade crossing signals/gates/circuits* 5 Each $ 75,000** $ 375,000 Leavittsburg track (connect to CSX) 2,700 LinFt $ 150.00 $ 405,000 Leavittsburg turnouts (connect to CSX) 2 Each $ 35,000 $ 70,000 Mahoning River bridge placeholder NA NA $ 250,000 $ 250,000

SUBTOTAL $ 3,770,000 30% CONT. $ 1,131,000

TOTAL $ 4,901,000

* Crossbucks at seven other grade crossings. ** Half‐cost. Assumes the other half to be funded by state.

8. Project: Campbell‐Darlington track and capacity enhancements Sponsor: Y&SE/Tervita

Project Summary: Before the Youngstown & Southern right of way was sold to Tervita Corp., the Y&S sought repairs and improvements to its tracks from Youngstown to Darlington, as well as capacity expansion of the sand transload at Signal, OH near Rogers and construction of a second track connection with CSX at Campbell. An agreement to sell the 36‐mile rail line to Tervita by the Columbiana County Port Authority was announced April 17, 2012. A Y&SE RR representative reported that the Class III carrier would continue to operate the rail line and that the previously sought improvements would still be needed. Track conditions limit trains to 10 mph and projected traffic volumes of 7,000 carloads per year would require the added track capacity at the south and north ends.

Criteria Comments Score Project could be underway within one year of funding TIMELINE 10 becoming available as no property needs to be acquired. UNFUNDED CAPITAL COST Estimated capital cost of $4.9 million. 2 Right of way buyer Tervita Corp. estimates traffic on the EST. CARLOADS PER YEAR existing portion of the Y&SE could grow to 7,000 carloads per 8 year in the next few years. Requires interchange with NS or CSX unless the abandoned WATERWAY(S) ACCESS Y&SE ROW from Negley OH to Glasgow PA is restored (see 0 Y&SE restoration to Ohio River). Project can serve a drilling‐related transload within 2 weeks, an NEAR MAJOR ASSETS existing/willing rail shipper, an existing/planned Industrial 8 park, and is within 2 miles of a highway interchange. Along the 39 miles of ROW used by Y&SE are about 360 acres LARGE VACANT LAND of developable properties for commercial purposes, or 9 acres 1 per route‐mile. FOSTERS RR COMPETITION The project site is accessible by one railroad carrier. 1 Some sections of right of way are flanked by obstructions WIDE RR RIGHT OF WAY 0 narrowing it to as little as 20 feet. Proposed improvements are to rights of way accessible by CSX, CLASS OF RAILROAD 6 NS (Class I) and Y&SE (Class III). Although most of the new traffic to the Y&SE/Tervita ROW is LONG TERM USE shale‐related, the rail line has been used for non‐shale 4 shipments for years. TOTAL 40

Y&SE/TERVITA – CAMPBELL, OH TO DARLINGTON, PA Track and capacity enhancements (FRA Class 2 track standards) 2012 ESTIMATED ITEM QUANTITY UNIT UNIT COST AMOUNT_

Rehabilitate existing track 180,000 LinFt $ 10.00 $ 1,800,000 New track on new RR grades 5500 LinFt $200.00 $ 1,100,000 Construct mainline, manual turnouts 4 Each $200,000 $ 800,000 Construct yard, manual turnouts 2 Each $ 35,000 $ 70,000

SUBTOTAL $ 3,770,000 30% CONT. $ 1,131,000 TOTAL $ 4,901,000 Y&S/Tervita Rail Corridor Overview

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