Western Railroad Discussion > Salinas Valley Perishable Freight Rail Terminal Project

I found this Proposal for Salinas Perishable Freight Terminal a while back but haven't heard any current news.

Here's a snippet:

In 2014, the City of Salinas was approached by representatives of Aurora Express International regarding the potential development of an intermodal rail center in Salinas. The concept of the intermodal center would be to bring produce from processing/packing facilities to the intermodal rail facility by truck, and then load it onto a train. Due to changes in the rail and trucking industries, the business owners believe they can reduce the time and cost that it takes to ship produce across the country. The concept of locating one of these facilities in the region has been examined several times over the past few decades, with studies in 1995 and 2008 both finding that the development of such a facility would have positive benefits related to economic growth and the reduction of truck traffic in the region. The desired site for this location would be on the north side of the main railroad track line, across from the Salinas Train Station and south of West Lake Street. This site is owned by Union Pacific Railroad, and includes a number of obsolete spur tracks from an intermodal center which has fallen out of use. The proposed project would include the removal of all existing tracks, installation of new tracks to serve the new intermodal facility, the installation of a large electric crane, and some minor administrative buildings, as noted on the site plan below:The site is currently being used for outdoor storage, as noted in this aerial photograph. Operationally, the business would employ a fleet of dray trucks that would transport shipping containers from processing/packing facilities and bring them to this site. The crane would then directly lift the container from the back of the truck and place them directly onto a railroad car. The cars would then be held on the tracks until the train is ready to transport them. The business anticipates one train trip per day. The projected number of jobs created would be 22 by 2020, increasing to 68 by 2024 if their projections prove accurate, with a mean compensation of $27.39 per hour plus benefits.

At this point, the business represents that they have secured a lease from Union Pacific on the site, and have completed project design documents, and are now trying to secure financing for the project. The business has indicated that the total cost of start-up for this project is approximately $101 million, including nearly $79 million in equipment and slightly more than $17 million in construction costs. To date, the business has secured about $76 million through selling equity, acquiring debt, and personal resources. This leaves a gap of about $25 million to complete the project.=12ptThere are several Federal grants available that can assist in the completion of this project. The business would be able to fund the remaining $25 million balance through the use of a BUILD (Better Utilizing Investments to Leverage Development) from the Department of Transportation. The business has retained the services of a respected consultant, Seneca Group LLC, which specializes in transportation grants, to author the grant application. However, as a private company, Aurora Express International is not a permitted applicant for a BUILD grant. Therefore, Aurora Express International has requested that the City partner with them to submit the grant application.

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SP tried that in 1981. No success. Ramp people weren't interested in staying for late trailers. SP did run a dedicated pig train from Salinas to Oakland to connect with the OACHT that summer ( July and August)

Where to the empties come from?  There are very few loads going into the Watsonville/Salinas area.  Trucks will run with loads, whether they are dry or wet, into the Southern CA (LA Basin), or Northern/Central CA (Bay Area, or Tracy/Stockton/Lathrop/Modesto area).  A lot less into the Fresno/Bakersfield area.  So how to you get those trucks, having delivered a load into a DC (or other industrial facility) that is 50 – 150 miles away (Northern/Central CA) or 300 miles away (Southern CA)?  It is cheaper for UP (or BNSF, for that matter) to dray them from one of those high-volume ramps to Salinas/Watsonville area, then dray back to those high-volume ramps, than to construct a low-volume ramp and add two lifts and a short rail shuttle. 

Bruce

I did a little googling and found this funded by the Salinas growers association.  Interestingly none of the sites identfied (Chular, Gonzales or South Salinas) was chosen.  

The study does some hand waving about the logistics of empty containers. 

These results are preliminary as our analysis does not include the destination transportation delivery cost nor does it include the backhaul freight that might offset charges included in rates to reposition empty containers back to California. The cost comparison serves to show in more detail than had previously been shown, that this type of service would be competitive and would provide a workable alternative to over-the-road truck transport for produce from Salinas to the eastern U.S.

And nothing has been done or materialized since 2014.
C
 

Carol Voss
Bakersfield, CA

In the big picture of perishable shipping, have the shippers created their own problem, given how they used to ship by rail, meaning calling in for their cars to be diverted here or there while in transit?  Did the shippers make it too hard for the RR's to offer a good service with too many unreasonable demands?  Or did the RR's see diminishing returns and intractable problems and leave the market?

Considering how much produce is still grown down there, this seems viable.  All those reefer boxcars usually came back empty, didn't they?  The odd thing is nowadays, it seems lots of reefer traffic is bringing meat and juice from back east to the West coast, and returning empty!  A reefer can make money both ways, produce east, meat west, but I've read Rob L.'s stories about the management of it all.  Is it impossible, or does it just take a bit more hustle from all involved?



Edited 1 time(s). Last edit at 06/09/19 23:25 by coach.

Most of the refer semis hauling CA perishables back east came from the east with non perishable dry goods. After the last piece of furniture or pallet of automotive parts is unloaded, the refrigeration unit is fired up & the truck heads for Indio or Watsonville for their eastbound load. To coordinate something like this via rail transport between the car owner, shippers, & railroad is probably more of a headache than any of those parties care to deal with. Easier to just stick with intermodal, autos, & chemicals.

Desmond Praetzel "4451 Puff"

The problem with this idea is that it's a big investment for a ramp that will be inactive for 5 months of the year.

Salinas produce shuts down late November and doesn't start back until Mid April. 



 

looks like bnsf is doing a fair amount of business.

Posted from Android

Even if viable in general, who in their right mind would invest in a project like this that depends on UP service, given all the "PSR" cutbacks going on systemwide these days.