Polk County Rail Hub

Like most U.S. railroads, the growth of intermodal shipping, where containers are moved from one mode of transportation to another without off-loading contents, has been a crucial part of the economic mix. However, the privately-borne costs of terminal construction, coupled with massive taxpayer-funded highway construction over the past decades and the railroads’ inability to respond adequately to demands for “just-in-time” shipping arrangements, has continued to hamper development of this potential profit area. As a consequence, despite intermodal rail growth, most American ground-based shipping in terms of dollar value/ton goes by truck. Low-margin commodity shipment (coal, wheat, chemicals) still goes largely by rail.

The facility is eventually expected to employ more than 2,000 people working in 3 million square feet of warehouse space, 1.5 million square feet of industrial space and 500,000 square feet of office space. The average wage of those employees is projected at $43,000. Those employees will work for the industrial park and in warehouses, industrial plants and in administration, reported the Ledger. -- National Corridors Initiative, Inc

City commissioners gave the go-ahead to a major land sale to CSX Transportation Inc., but the commission's vote on Monday wasn't the first or last step in a process that will last years.

Talks with the company started months ago and everything is far from complete, city officials said.

The city bought 1,700 acres in 1975 to build Wastewater Treatment Plant No. 3, using grants from the Environmental Protection Agency. The 1,250 acres now up for sale to CSX have been used for "overland flow" treatment and spray fields, two systems designed to remove nutrients from water before discharge into the Peace Creek tributary.

--

"Winter Haven offered a large tract of land, 1,250 acres, with two key features," said Gary Sease, director of corporate communications for CSX. "One, proximity to our tracks, and the other is potentially very good access to State Road 60 and Interstate 4. Those factors along with the fact the property was available all came together to make this the optimal site for CSX."

Sease said other sites were under consideration, but did not know exactly where they were. -- PolkOnline.com

b could bring as many as 8,500 jobs and more than $10 billion in economic impact to the area over 10 years.

"The new logistics center should help reduce long-haul transportation costs for shippers and provide improved freight mobility," said Denver Stutler Jr., Florida's Department of Transportation secretary, in a release.

The property is part of 1,700 acres purchased by the city in 1975 for $1.55 million and is the site of Wastewater Plant No. 3.

---

The facility wouldn't change water needs, and CSX would be a potential customer for the reused water. Plus, sludge from the treatment could be made into fertilizer products, opening up potential markets.

The City of Winter Haven has set aside 100 acres of the property for a recreation facility north of the treatment plant. The recreation plans were already being discussed and would provide some spacing between the freight hub and the community. -- Tampa Bay Business Journal

Tucked into a sleepy hamlet of Polk County in the Florida heartland are the beginnings of an industrial project that could forever change the landscape of distribution in the Sunshine State.
The 1,250- acre (506- hectare) CSX Integrated Logistics Center in Winter Haven – the first such facility in the southeastern United States – is being planned by the Jacksonville- based rail giant to accommodate Florida's exploding population and demand for consumer products.
Upon build- out, the facility would create 8,500 full- time jobs in Polk, generate more than US$10 billion in economic development activity and add $900 million in local, state and federal tax revenue over 10 years.
The ILC eventually will include 3 million sq. ft. (278,700 sq. m.) of warehouse space, another 1.5 million sq. ft. (139,350 sq. m.) of industrial sites and 500,000 sq. ft. (46,450 sq. m.) of office space. The total annual payroll of the new jobs would be $282.2 million.

-

CSX Corp. first proposed the land acquisition on Jan. 18. While the transaction with Winter Haven is 18 months away, the necessary rezoning and change in land- use restrictions on the first 300 acres (122 hectares) are under way.

Site Selection Magazine May 2006

Metro Jacksonville recently completed a five part series on the benefits of commuter rail in Jacksonville and how it could successfully be implemented. The Central Florida Commuter Rail plan has unintentionally cleared a major hurdle for Jacksonville.

The Central Florida plan requires CSX freight trains to predominately operate on what is known as the S-Line, which runs from Baldwin to Central Florida. The only logical connection between the S-Line and the A-line is from Jacksonville to Baldwin, effectively shifting freight traffic patterns away from the Jacksonville to Orange Park line.

This plan has the potential to remove a significant amount of traffic currently operating on the A-Line in Jacksonville. With less freight traffic operating over this line, CSX may be much more receptive to hosting commuter rail on a line with available capacity. The State of Florida has now shown its commitment to bringing commuter rail to congested areas. It only makes sense to look at the unique situation this has created in Jacksonville.

This map clearly shows the rerouting of freight traffic in yellow and the affect it will have on Jacksonville. Most of the freight trains will head due west from Jacksonville, instead of the current route south on the A-Line. This will reduce the amount of freight trains scheduled to travel along Roosevelt Blvd and into Orange Park. The 61 mile segment being purchased by the State of Florida is highlighted in blue. -- MetroJacksonville.com

Ex-CSX Transportation employee Dave Nelson told WND the deal in Florida amounts to providing CSXT with a public subsidy. Money from the public purse will position the railroad company as a major freight carrier throughout Florida, transporting cargo containers filled with cheap goods coming into the NAFTA marketplace from China.

CSXT is positioned to receive millions in the deal. Under the terms of the agreement, the state of Florida will invest $318 "in partnership with CSXT" to improve the infrastructure and expand capacity on existing train tracks. According to CSXT, the breakdown of how the Florida subsidy will be spent is specified as follows:

* $198 million for projects on the CSXT rail line between Baldwin to Plant City, referred to as the "S" line;
* $ 59 million to build five road overpasses in Alachua, Sumter and Marion counties on this line;
* $ 52 million on other CSXT rail lines around the state; and
* $ 9 million to build access roads to the new Integrated Logistics Center in Winter Haven – the mother of all rail yards – which will be built by CSXT

Commuter lines, when opened, will only operate five trips at peak morning and afternoon rush hours, with the commuter trains running again only at two-hour frequency in non-peak hours. At other times, CSXT will use the commuter rail lines for transporting freight.

Dave Nelson told WND the Florida subsidy for CSXT reflects a nationwide trend. In 2005, the Bush administration passed through Congress a $286.4 billion transportation bill, the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy for Users. The purpose of the legislation was supposedly to provide funding for federal highways and transit programs.

But Nelson told WND the bill was being used to provide a public subsidy for upgrading freight railroads such as CSXT on taxpayer dollars.

"This CSXT deal in Florida reflects a national strategy that falls in line with President Bush’s $286 billion transportation spending package for highways and railroads," he said. "What the federal government plans to do is to buy up unused and aging rail lines all across the country and to use taxpayer dollars to pay for upgrading the infrastructure. What is left unsaid is that the railroad freight companies CSX will get priority over mass transit for the use of the new rail lines."

Nelson also told WND that CSXT plans to over-charge the government for upgrading and maintaining rail lines.

"CSX will do the maintenance on the rail lines, but state and federal funds will fund the maintenance for CSX," he said. "As I have already proven to the U.S. Department of Transportation, companies like CSX in particular use a form of cost-shifting which permits CSX to take the cost of labor and materials and 'cost-shift' CSX responsibilities over to maintenance, which then will be paid by federal and state tax dollars. Instead of keeping this as a separate entity to improve transportation between two points, the Bush administrations nationally and in Florida are shoving this down the people's throat." --- World Net Daily

First, let’s consider the price. According to Gov. Bush’s office, the state will pay CSX Transportation $150 million for 61 miles of existing tracks between DeLand in Volusia County and Poinciana in Osceola County. As part of the project, another $23 million will be spent to relocate operations from Taft Yard in Orlando to the new CSX Integrated Logistics Center the railroad will build in Winter Haven.

Sounds like a bargain so far, but then you have to consider the estimated $475 million it will take to actually build the commuter rail system, including at least 16 stops. So, now we’re up to $625 million.

Next, we have to consider that this particular deal also includes a promise by the state to spend an additional $259 million to improve other CSX infrastructure or otherwise accommodate the railroad. It also includes $59 million to build five road overpasses in Alachua, Sumter and Marion counties.

Are these additional improvements part and parcel to the commuter rail portion of the deal? Did CSX say, “We’ll sell you the 61 miles of track if you pay for these other items?” Hard to say. I called both the governor’s office and CSX for comment. The governor’s press aides simply sent me their original press release, and CSX didn’t call me back in time for this column. -- Florida Real Estate Journal

“We’re here, we value our partnership with the City of Winter Haven, we are committed to being a good neighbor and we’re spending money. And anytime we’re spending money … you know we are truly committed.” With those words, Cameron Wilson, Director of Acquisitions and Development for CSX Corporation summed up his remarks to the Business Trustees of the Greater Winter Haven Chamber of Commerce at their February 21 luncheon. -- East Polk Committee of 100

In January 2006, CSX Corporation announced it had taken its first step, a proposed property purchase, toward building an integrated logistics center (ILC) in Winter Haven, Polk County. The ILC is to include a truck, rail, and warehousing hub and terminal for the transfer and storage of containerized consumer goods.
Development will be in two phases, the first starting in 2007 and the second in 2010. Employment at the ILC is expected to total 2,000 with an average wage of $43,000. Related employment in Winter Haven outside the ILC is expected to grow by 6,500.

David Greene, Winter Haven city manager, said “As experiences with similar facilities have shown, the ILC could generate more than 8,000 jobs in Winter Haven and Polk County as companies establish nearby warehousing, manufacturing, and logistics operations.” Economic research shows that over a 10-year period, operations like the proposed ILC could produce more than $10 billion in economic activity and add $900 million in state and federal tax revenue... Trade and Industry Development

OCALA -- Six years ago, Mike Sizemore and his friend Edward Anderson proposed to city and county leaders that the best way to cure Ocala of its traffic ills at railroad crossings was to move the trains out of downtown.

"And we got nowhere," Sizemore remembered. "They all but showed us the door."

Of course that was long before the state government's announcement last year of a $491 million plan to divert more CSX freight traffic from Orlando to the route through Ocala -- a move expected to increase rail traffic in the city from roughly 20 trains a day to more than 30. CSX also plans to build a 1,250-acre logistics center with a truck, rail and warehousing hub in Winter Haven in anticipation of growing freight demand on its Chicago-to-Florida line. -- Ocala.com

Of course, that was long before the state government's announcement last year of a $491 million plan to divert more CSX freight traffic from Orlando to the route through Ocala - a move expected to increase rail traffic in the city from roughly 20 trains a day to more than 30.

CSX also plans to build a 1,250-acre logistics center with a truck, rail and warehousing hub in Winter Haven in anticipation of growing freight demand on its Chicago-to-Florida line -- Ocala Star-Banner

The Lakeland Police Department is not taking a stand on this issue, but we thought we might share with everyone what the City Ordinance says about trains and how long they can delay traffic at a crossing. -- INSIDE

Q:How many trains will come through the ILC each day? How long will each train be?
A: It is expected 3 to 4 trains per day will enter and exit the terminal facility that will be a 24-hour, seven-day a week operation. Trains will vary in size from a maximum length of 10,000 feet,to a majority today being about 7,500 feet.

Q:What is a realistic daily truck count?

A: Initially, it is anticipated 150 trucks will enter and depart the terminal operation each day. It is also estimated another 240 vehicle carriers will leave the terminal and 160 will return. All told, fewer than 1,000 truck-trips are expected to be spread out over a 24-hour period.

Q:What is the timeline for the facility’s construction?
A: The intermodal/automobile terminal is targeted to be operational at the beginning of 2009, which means construction would begin early next year. Under the CSX contract with the City, sale of the first 318 acres will occur by the end of 2007,and purchase of the remaining 930 acres would occur by December 2010. Development of the larger parcel will not occur until required local, county and state approvals are in place.

Winter Haven Insider

Another innovation in distribution is intermodal freight transport. This kind of transport involves multiple modes of transportation, including rail, ship, and truck. Typically the freight is containerized, so there is no need to handle the freight itself when changing from mode to mode. Intermodal transport is faster and more efficient because it reduces cargo handling. It also improves security and reduces damages and loss.

In January 2006, CSX Corporation announced it had taken its first step, a proposed property purchase, toward building an integrated logistics center (ILC) in Winter Haven, Polk County. The ILC is to include a truck, rail, and warehousing hub and terminal for the transfer and storage of containerized consumer goods. Development will be in two phases, the first starting in 2007 and the second in 2010. Employment at the ILC is expected to total 2,000 with an average wage of $43,000. Related employment in Winter Haven outside the ILC is expected to grow by 6,500.

David Greene, Winter Haven city manager, said “As experiences with similar facilities have shown, the ILC could generate more than 8,000 jobs in Winter Haven and Polk County as companies establish nearby warehousing, manufacturing, and logistics operations.” Economic research shows that over a 10-year period, operations like the proposed ILC could produce more than $10 billion in economic activity and add $900 million in state and federal tax revenue. Clear Springs Land Company

Notes: This is a reprint of an article published in the March/ April 2007 Trade & Industry Development Magazine

Concerns over the CSX hub don't break down entirely along regional lines, but they do highlight complications of planning in a county that has more than a dozen incorporated cities or towns and a fast-growing unincorporated population.

There has been talk of a countywide transportation summit, but it hasn't materialized.

Lakeland's government and business community have been reluctant to discuss the CSX hub publicly. Privately, a number of officials have said they fear upsetting Winter Haven or stoking regional bad feelings. Lakeland's meetings to discuss concerns have been carefully choreographed by business groups and government staff so as not to trigger open government laws.

At the same time, Winter Haven City Manager David Greene, who has aggressively committed his city to the CSX project, has refused to speak to The Tribune about the project.

The first politician to formally question the CSX project and its approval process was Polk County Commissioner Randy Wilkinson. He's dismayed by the lack of public airing of the issues. -- The Tampa Tribune

CSX Railroad may get what it wants from Fairburn, but only if it makes good on issues that have plagued the city, and municipal neighbor Palmetto, for many years. Fairburn planning commissioners Tuesday tied their recommendation on the railroad’s expansion plans to a dozen conditions, including repairing and maintaining the three degraded and dangerous overpasses and consideration of establishing a “quiet zone” for the customary train whistles that blow throughout the downtown area in the dead of night. -- TheCitizen.com