Intermodal shipping: NS, Pennsylvania invest $11 million into Philadelphia Navy Yard intermodal facility
Effort is part of Crescent Corridor initiative
Jeff Berman, Group News Editor -- Logistics Management, 11/4/2009
In an effort to expand track and parking capacity, Class I railroad carrier Norfolk Southern and the Commonwealth of Pennsylvania announced earlier this week they are investing $11 million into the NS Philadelphia Navy Yard intermodal facility, which is part of the NS Crescent Corridor initiative.
Launched in June 2007, the Crescent Corridor is a nearly $2.5 billion public-private partnership (PPP) to build a rail corridor spanning from Louisiana to New Jersey. NS officials said this endeavor will expand and improve its rail network from the northeast to the southeast, expedite the delivery of cargo shipments, and reduce highway congestion by diverting truck traffic. When it is completed, NS said it will stretch across 2,500 miles from New Orleans to Newark, N.J. and run through New Jersey, Pennsylvania, Virginia, Maryland, North Carolina, South Carolina, Tennessee, Georgia, Alabama, and Louisiana. The entire Crescent Corridor project is expected to be completed by 2013.
NS officials said the objective of this joint investment-with $6 million from the NS and $5 million from Pennsylvania-is to create the capacity to handle more than 72,000 containers and trailers annually, adding that construction is on track to begin by the middle of 2010. The Philadelphia terminal that is not currently in use, but the company told LM that with the Crescent Corridor there will be opportunities for shippers moving freight in and out of Philadelphia to utilize it. NS also has improvements planned for existing intermodal terminals in Harrisburg as well as Philadelphia, along with $27 million in track and signal upgrades.
"Because of its strategic location to Southeastern Pennsylvania, South Jersey, and Delaware, expansion of the Philadelphia Navy Yard intermodal facility is critical to the success of our Crescent Corridor," said Wick Moorman, Norfolk Southern's chief executive officer, in a statement. "We commend Gov. Ed Rendell for his efforts to provide state funding for our intermodal terminal initiatives in the commonwealth."
"The Crescent Corridor is targeted for the domestic intermodal market," said Rudy Husband, NS spokesman, in a recent interview. "Right now, between the northeast and the Gulf Coast, freight is moving about 95 percent via the highway, whereas between the northeast and Chicago, it is more of a 50-50 split. We think there are incredible opportunities to lure freight to the rails, which in turn brings benefits to shippers in terms of consistency, reliability, and transit times."
Benefits for Pennsylvania: NS officials said that when the Crescent Corridor is fully operational, annual benefits to Pennsylvania are expected to include: nearly 700,000 long-haul trucks diverted to rail, almost 10 million gallons of fuel saved, carbon dioxide reduction of 110,000 tons, more than $9 million in traffic congestion savings, and avoidance of an estimated $8.5 million in accident costs. And over the next ten years 26,000 jobs in Pennsylvania are expected to be created or enhanced by the Crescent Corridor, said NS. NS said it is currently at work on various Crescent Corridor-related projects, including straightening curves, adding passing tracks, improving signal systems, and building new terminals. And upon completion, NS estimates more than one million truckloads of freight will be transferred from highway to rail and save more than 170 million gallons pf fuel on an annual basis.
In August, NS announced it plans to build a new intermodal terminal in Greencastle, Pennsylvania that will serve the Mid-Atlantic region as part of its Crescent Corridor initiative. The $95 million Greencastle terminal will be built on a 200-acre site and open in late 2011. NS stated this terminal will have the capacity to handle more than 85,000 trailers and containers on an annual basis.
And in September, the state of Pennsylvania submitted an application for $300 million in federal funding to receive financial assistance with Crescent Corridor. The funding the state of Pennsylvania applied for was submitted as "The Crescent Corridor Intermodal Freight Application," and it is for federal stimulus that is part of the American Recovery and Reinvestment Act of 2009 Transportation Investment Generating Economic Recovery (TIGER) Program. Introduced by U.S. Transportation Secretary Ray LaHood in February, TIGER's objective is to ensure that economic recovery funding is rapidly made available for transportation infrastructure projects and that project spending is monitored and transparent.
NS officials said this application seeks $300 million for new intermodal facilities at Memphis, Birmingham, and Franklin County, Pennsylvania, as well as the expansion of intermodal terminals in Harrisburg and Philadelphia. They added that track improvements in the five partner states will be comprised of ten passing tracks, 557 individual speed improvements, and 393 miles of track with upgraded rail improvements.
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