John Jay Rosacker Rail—Creating Jobs Locally September 12, 2011 Charlotte, NC

KDOT Programs – Rail Projects State Rail Infrastructure Improvement Fund (CTP and T-WORKS) During CTP - $3 million annually (10-year funding program) During T-WORKS - $5 million annually (no sunset) Competitive Application Process (Rail Only) Benefit-Cost Analysis Loan-Grant-Applicant Match o Major Rehabilitation Projects o Capacity Improvement Projects o Economic Development Projects Program Goals o Infrastructure Improvements (286K and 25 MPH Track Speed) o Improved Rail Operating Efficiencies o Improved Service to Shippers o Maintaining and/or increasing jobs

KDOT Programs – Rail Projects Economic Development Fund (T-WORKS) Competitive Application Process (Roadway, Rail or Combination) Benefit-Cost Analysis Grant – Applicant Match o Roadway and Rail Program Goals o Cooperate with other State Agencies and private sector partners to entice businesses to locate in Kansas and expand existing facilities o Adequate transportation infrastructure (both roadway and rail) o Job Retention o Job Creation

KDOT Programs – Rail Projects Federal Programs (ARRA, TIGER and HSIPR) o ARRA Flex Funds o TIGER II Key to successful projects is public-private partnerships that include cooperation between and funding by: o State Programs o Federal Programs o Railroad, local unit of government, private industry or port authority…or any combination of these entities

KDOT Programs – Rail Projects Project Examples State Funded – Cimarron Valley Railroad – State, Port Authority, Railroad o $15 million major rehabilitation project o $6 million bridge replacement project BNSF Intermodal Facility – State, Railroad o $35 million (state share) dirt work and initial construction o Total project cost = $250 million Ag Valley Co-op – State, Ag Valley, Norton County o $1 million project to build unit loader track o State loan and grant, Ag Valley, Norton County grant

KDOT Programs – Rail Projects Project Examples ARRA – City of Hutchinson – Siemens Nacelle Production Facility o Funding sources – ARRA, Federal EDA grant, City of Hutchinson, Hutchinson Transportation o $880,000 ARRA grant for storage tracks o KDOT provided project oversight Kansas and Oklahoma Railroad o Funding sources – ARRA, Kansas and Oklahoma Railroad o $960,000 ARRA grant, $240,000 railroad Two additional ARRA rail projects o Rail spur off Kyle Railroad to Niseka Energy (ethanol plant) o NKC RailNet critical bridge repairs

KDOT Programs – Rail Projects Project Examples TIGER II – State grant $2.1 million, South Kansas and Oklahoma Railroad $2.1 million, TIGER II $10.2 million o Critical bridge repairs for 286K compatibility – Cherryvale, KS to Tulsa, OK o Major rehabilitation – 17 miles of rail replacement, 38 miles of cross tie replacement, additional ballast and OTM o Phase II Cherryvale, KS Yard and Locomotive Repair Shop

KDOT Programs – Rail Projects Project Examples KDOT Economic Development Program – M&M/Mars Production Facility First NEW M&M/Mars facility to be built in the United States in 35 years State, Shawnee County, City of Topeka, Kansas Department of Commerce, BNSF Railway State grant $1.3 million for rail spur and storage tracks, $2.8 for local roadway improvements

Thank You! Questions