Freight Rail Day 2011 “Freight Rail: Working for Wisconsin” A CASE STUDY Ken Lucht Wisconsin & Southern Railroad Co.

A PUBLIC / PRIVATE PARTNERSHIP Est under Stats Wisconsin Department of Transportation Wisconsin River Rail Transit Commission Pecatonica Rail Transit Commission Wisconsin & Southern Railroad Co. Local Units of Government Economic Development Organizations East Wisconsin Counties Railroad Consortium

PLYMOUTH TO KOHLER RAIL RECONSTRUCTION PROJECT RECONSTRUCTION PROJECT  11-Mile East West Segment  Originally built in 1859 for passenger service  Sheboygan & Mississippi RR  “Out of service” for 30 years, never abandoned  Railroad corridor still in tact today

PLYMOUTH TO KOHLER RAIL RECONSTRUCTION PROJECT RECONSTRUCTION PROJECT  In 2006, eastern portion of line was embargoed  Impacts felt in private and public sectors  Commodities include: Grain, Fertilizer, Lumber, Plastics, Cold Foods  In 2008, WisDOT released Economic Report  In 2009, State of WI acquired line from UP

TRANSLOADING TRANSLOADING

ECONOMIC IMPACT ANALYSIS  Approximately 2,883 Direct Jobs At Stake  $137 Million in Personal Income  $614 Million in Output (Sales)  Study identified over 100 potential rail users within 1 mile  Loss of Rail increases transportation costs by $500 K  Conclusion: Clear potential for business development if rail line is re-activated in Sheboygan County.

PLANNING & CONSTRUCTION  Complete Reconstruction $15 Million  Federal / State Government Permitting STB WDNR WSHS WisDOT  Local Government Participation  Stakeholder Identification  Economic Feasibility & Financing

 Brush Cutting / Surveying  Dismantle Existing  Rebuild to meet 286,000 Lb. Standards  11 miles of Welded Rail  40,000 New Wood Ties  Rebuild 17 At-Grade Public Rail Crossings  Rebuild 4 Structures Competitive Bid & Prevailing Wage Requirements WORK SCOPE

 7 Private Companies  3 Communities  1 County  Chambers & Sheboygan County EDC  2 Railroad Companies  State of Wisconsin  Locally-Elected Officials STAKEHOLDER GROUP

 Shared amongst various stakeholders  Fair & Equitable  Return on Investment  State would play key role FINANCIAL PLAN  In 2009 State awarded a $12 Million Grant  Stakeholder Group to secure Local Match

TO DATE: Secured: 93% of Total Project Costs 80%Preservation Grant 8%Private Sector Sources 5%Municipal Sources Unsecured: 7% of Total Project Costs FINANCIAL COMMITMENTS

$5 Million infused into local economy AAR Estimates $15 Million investment will yield $45 Million in economic output Could result in 300 new jobs in region Enhance Local Tax Base Direct access to national and world markets Business Attraction throughout county PROJECT BENEFITS

COMMUNITY INVOLVEMENT

Ken Lucht Community Development Mgr Wisconsin & Southern Railroad Co. THANK YOU