Eastern Railroad Discussion > Virginia Inland Port gets $15.5 million grant

According to article In Northern Virginia Daily (that I can't link to), Virginia Inland Port near
Front Royal, VA on NS H Line, got a grant of $15.5 million. They earlier got $3.3 million grant
and Port of Virginia investment of $7.7 million.  These will cover:
     3 new tracks
     extend existing tracks
     2 new loaders
     bridge over tracks for Rockland Road
     improving access in and out of VIP

This is a good thing and the bridge over Rockland Road is needed very badly  

hollywood
NS B Line MP 74





 

I remember hearing several years ago that the Virginia Inland Port was not very busy. Sounds like that has changed, and that is a good thing.

PRR_4859 Wrote:
-------------------------------------------------------
> I remember hearing several years ago that the
> Virginia Inland Port was not very busy. Sounds
> like that has changed, and that is a good thing.

The economy in this region is exploding, and many of us are informed it is indeed due to the tax changes the Trump Administration made earlier this year.  Where I work, a massive paper mill 40 miles east of Richmond, we are shipping an astonishing amount of product out, which translates to about 200 trailers daily, up to 31 boxcars daily, and around 70 intermodal boxes daily.  The intermodals (JB Hunt and Schneider) are taken to rail heads to double-stack west across the continent.  Some of those might go to this port on occasion, but most go to NS in Norfolk (JB Hunt containers) and Shippensburg, Pa. to CSX (Schneider containers).  Overall, Virginia businesses are seeing an increase in shipments, at least in our area east of the state's center.

Linerboard, cardboard, new pallets etc are tracked as leading economic indicators. Manufacturers often place orders for boxes and container materials long before they are ready to ship finished goods.

rbx551985 Wrote:
-------------------------------------------------------
> PRR_4859 Wrote:
> --------------------------------------------------
> -----
> > I remember hearing several years ago that the
> > Virginia Inland Port was not very busy. Sounds
> > like that has changed, and that is a good
> thing.
>
> The economy in this region is exploding, and many
> of us are informed it is indeed due to the tax
> changes the Trump Administration made earlier
> this year.  Where I work, a massive paper mill 40
> miles east of Richmond, we are shipping an
> astonishing amount of product out, which
> translates to about 200 trailers daily, up to 31
> boxcars daily, and around 70 intermodal boxes
> daily.  The intermodals (JB Hunt and Schneider)
> are taken to rail heads to double-stack west
> across the continent.  Some of those might go to
> this port on occasion, but most go to NS in
> Norfolk (JB Hunt containers) and Shippensburg, Pa.
> to CSX (Schneider containers).  Overall, Virginia
> businesses are seeing an increase in shipments, at
> least in our area east of the state's center.


It's good to hear that business is booming for you.

Just for clarification...

There is no intermodal transfer in Ship., PA. My guess is that Schneider trucks the trailers to the CSX ramp in Chambersburg, PA.

Posted from Android

Some of those containers may be going to CSX at Norfolk/Portsmouth for Q139 to North Baltimore, OH and connections from there   When CSX started those Portsmouth trains many years ago they tapped what had once been a primarily NS market (Norfolk-Chicago), and now with double stacking and better schedules the customers/shippers in that area have more options.

PS.   Anybody who has been on I-81 in the last year has noticed many more trucks (yes, a sign of booming economy) and NS trains 227/228 that serve VIP increased container numbers and train lengths.  What is really needed though in the I-81 corridor is better railroad TOFC service.  (The NY-Texas freight corridor is an extremely busy route yet CSX doesn't have any line and NS has obstacles to offering better service, thus I-81 is seeing 5-10 times the truck traffic it was designed for)



Edited 1 time(s). Last edit at 12/09/18 08:29 by CSX602.

And with all the various construction projects on I81 now (at least near where I live), you can see trucks back up for miles...

I'm thankful that I don't have a long commute that requires me to use that road everyday.

Posted from Android

Interesting topic  thanks for introducing it.

hiwever, as a railroad economist Indonwantbto challenge everyone’s thinking about tge commercial success of the Virginia Inland Port.

if it is successful, then why does it require a subsidy

The report suggests a grant of $15.5 million to cover CAPEX of:
     3 new tracks 
     extension of existing tracks 
     2 new loaders 
     bridge over tracks for Rockland Road 

If commercially profitable, these inland port improvements would be funded “out of “earnings”.  Correct?

What is the rest of the financial story here?  How do we “discover” that information?

Thank you for introducing the topic.
 

Virginia Port Authority runs the VIP to make Virginis ports more competitive. It also reduces truck traffic. Before it
was build a lot of imports and exports from this area went through Baltimore.  It has brought a lot of business to Front Royal
and surrounding area.  I think Front Royal was chosen to pick the local economy up to because the area's biggest
employer, Avtex Fibers, had just closed.  

When VIP opened trains went down H Line to Glasgow then CSX trackage rights to Lynchburg and N&W to Norfolk.
Riverton Jct. was a crossing and car interchange with the low traffic B Line. Much has changed 
 

holiwood Wrote:
-------------------------------------------------------
> Virginia Port Authority runs the VIP to make
> Virginis ports more competitive. It also reduces
> truck traffic. Before it
> was build a lot of imports and exports from this
> area went through Baltimore.  It has brought a
> lot of business to Front Royal
> and surrounding area.  I think Front Royal was
> chosen to pick the local economy up to because the
> area's biggest
> employer, Avtex Fibers, had just closed.  
>
> When VIP opened trains went down H Line to Glasgow
> then CSX trackage rights to Lynchburg and N&W to
> Norfolk.
> Riverton Jct. was a crossing and car interchange
> with the low traffic B Line. Much has changed 
>  

NS still has those rights and we have parallel rights from Lyncburg to Petersburg, via Crewe. Rarely used by either party but obviously valuable under the right circumstances.