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South Orient Railroad Rehabilitation and Presidio-Ojinaga Bridge Replacement Project: Narrative

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South Orient Railroad Rehabilitation and Presidio-Ojinaga Bridge Replacement Project: Narrative South Orient Railroad (SORR) Rehabilitation & Presidio- Ojinaga International Bridge Reconstruction Project Presidio County, Texas TIGER FY16 Grant Application April 2016 CONTENTS Contents .......................................................................................................................................... ii i. Project Description .................................................................................................................. 1 a. Eligibility ............................................................................................................................. 1 b. Detailed Project Description ................................................................................................ 3 c. Use of TIGER Funds ........................................................................................................... 6 d. Expected Project Users ........................................................................................................ 6 e. Transportation Challenges ................................................................................................... 7 f. Ladders of Opportunity ........................................................................................................ 8 ii. Project Location ....................................................................................................................... 9 iii. Project Parties ........................................................................................................................ 10 iv. Grant Funds and Sources/ Uses of Project Funds .................................................................. 11 a. Previous Federal Funding Requests ................................................................................... 12 b. Project Compliance Funding Commitments ...................................................................... 12 v. Selection Criteria ................................................................................................................... 12 a. Primary Selection Criteria .................................................................................................. 12 State of Good Repair .............................................................................................................. 12 Economic Competiveness ...................................................................................................... 13 Quality of Life ........................................................................................................................ 16 Environmental Sustainability ................................................................................................. 17 Safety ...................................................................................................................................... 17 b. Secondary Selection Criteria.............................................................................................. 18 Innovation............................................................................................................................... 18 Partnership .............................................................................................................................. 18 vi. Results of Benefit-Cost Analysis ........................................................................................... 19 a. Benefit Cost Analysis ........................................................................................................ 19 b. Project Costs ...................................................................................................................... 21 c. Monetized Benefits ............................................................................................................ 21 Shipping Cost Savings ........................................................................................................... 22 Emission Reductions .............................................................................................................. 22 Safety Benefits ....................................................................................................................... 22 Pavement Maintenance Cost Savings .................................................................................... 23 vii. Project Readiness ................................................................................................................... 25 a. Technical Feasibility .......................................................................................................... 25 ii b. Financial Feasibility ........................................................................................................... 25 c. Project Schedule................................................................................................................. 27 d. Environmental Reviews and Required Approvals ............................................................. 27 NEPA ..................................................................................................................................... 27 Legislative Approvals ............................................................................................................ 28 State and Local Planning Approvals ...................................................................................... 28 e. Assessment of Project Risks .............................................................................................. 28 viii. Federal Wage Certification .................................................................................................... 29 Appendices Appendix A Letters of Support Appendix B Benefit-Cost Analysis Details Appendix C Texas Pacifico Transportation-South Orient Rail-line Infrastructure Assessment Appendix D Detailed Cost Estimates Appendix E Pages from the El Paso/Santa Teresa-Chihuahua Border Master Plan Appendix F Federal Wage Certification iii i. PROJECT DESCRIPTION a. ELIGIBILITY The Texas Department of Transportation (TxDOT) South Orient Railroad (SORR) Bridge project includes the construction and reestablishment of a border crossing from Ojinaga, Mexico to Presidio, Texas. The project would also include track tie and surfacing, switch replacement, timber bridge component replacements, and drainage improvements along the existing line from the new international rail bridge north to the Union Pacific Railroad (UPRR) crossing near Paisano Junction, Texas for approximately 72 miles in total, as shown in Figure 1. The total estimated project cost is $16.2 million. The State of Texas partnered with the Texas Pacifico Transportation Company (TXPF), Ltd. who currently leases the rail line from TxDOT. TXPF has agreed to provide 57 percent of the necessary funding ($9.2 million) for the United States (U.S.) portion of the SORR Bridge reconstruction over the Rio Grande River. TxDOT is requesting the remainder of the costs, $7 million, for railroad improvements and upgrades from the Transportation Investment Generating Economic Recovery (TIGER) Discretionary grant funds. The project will foster the creation of high-paying jobs in a region with relatively high unemployment rates and will improve safety and environmental impact by removing truck traffic from local rural roads. 1 Figure 1: Project Location Map 2 b. DETAILED PROJECT DESCRIPTION In 1991, prior to the signing of the North American Free Trade Agreement (NAFTA), the Atchison, Topeka and Santa Fe Railway (ATSF) filed to abandon the South Orient rail line. The abandonment was proposed because there was very little local or international rail freight pre- NAFTA, and the South Orient rail line was in poor condition due to deferred maintenance. Attempts to foster international traffic over the line were largely unsuccessful due to the condition of the line and the reduced operating speed limit (10 miles per hour), rendering the rail line to be non-competitive with trucks. The State of Texas partnered with private investors to acquire the line Figure 2: Existing SORR Bridge from ATSF and prevented its abandonment. The investors formed the South Orient Railroad Company (SORC) to operate the line, but SORC was also unable to realize an operational profit and subsequently sold its interest in the SORR to the state in 2001. TxDOT then leased operations on the line to a subsidiary of Grupo Mexico, Texas Pacifico Transportation, Ltd, a short line railroad which was formed to operate the SORR. Grupo Mexico is also the majority owner of Ferromex, the largest railroad in Mexico which also connects to the SORR at the border. In February 2008, the SORR International Rail Bridge burned to the ground south of a levee on the U.S. side. This event severed one of eight rail crossings between the U.S. and Mexico and one of five rail crossings in the state of Texas. The remnants of the bridge are pictured in Figure 2. Since then, TxDOT has been working with TXPF to rehabilitate the line, starting at the eastern end where industries currently supporting the railroad are located. TxDOT has invested over $34 million in rehabilitation projects from San Angelo Junction to Mertzon, Texas, a total distance of over 100 miles. TXPF has invested approximately $35.8 million in rehabilitation and capacity expansion between 2002 and 2015.1 In total, the SORR extends approximately 391 miles in length from San Angelo Junction to Presidio at the U.S./Mexico border as shown in Figure 3. Rehabilitation of the eastern end of the line has resulted in improved
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