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News Wire: City of Rochelle to consider offering its own intermodal service

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Posted by Brian Schmidt on Monday, May 6, 2019 8:53 AM

Brian Schmidt, Editor, Classic Trains magazine

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Posted by Overmod on Monday, May 6, 2019 9:36 AM

A big question (or so it seems to me):  Can the community set up and manage the necessary long trackage-rights arrangements?  

And are they prepared to make the necessary infrastructure improvements in drayage access, either 'on their nickel' or with whatever OPM they can bring to bear, that will be needed for proper competitive advantage in end-to-end service?

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Posted by PNWRMNM on Monday, May 6, 2019 3:53 PM

I can not imagine that they want to get into the real railroad business, which makes the question 'Who is their connection and how will their traffic enter and exit the national network?'

This is the same question I have about Milwaukee's recent deal.

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Posted by tree68 on Monday, May 6, 2019 6:01 PM

PNWRMNM

I can not imagine that they want to get into the real railroad business, ...

They're already in the railroad business...

https://www.cityofrochelle.net/departments/economic-development/city-of-rochelle-railroad-cir.html

 

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Posted by PNWRMNM on Monday, May 6, 2019 8:10 PM

Tree,

I assumed they had some little railroad. It looks like a switch carrier to me.

You missed the point, which is who do they expect to play with them at the interchange point and why?

Traffic, traffic, traffic! Cost, cost, cost!

Mac

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Posted by Chris30 on Monday, May 6, 2019 8:30 PM

The City of Rochelle Railroad (CIR) has operated in the growing industrial park on the east side of Rochelle since 1986 and contracts its switching services to the Burlington Junction Railway. It connects to both the UP and BNSF providing first and last mile service.

The UP might be idling the Global III yard in its current configuartion, but it will be repurposed. Remember, Rochelle isn't like a lot of other towns that don't want a railroad running through their town; Rochelle consisders itself a railroad town. Ways that Global III might be re-configured:

  •  City of Rochelle Railroad / BJRR operates reduced IM loading / unloading terminal. If the City of Rochelle Railroad / BJRR were to take over this service, would the UP allow them to interchange IM with the BNSF if there is such a market?
  •  IM holding and block swapping yard (similar to what Global III does now).
  •  Move / expand some of the auto unloading that's currently done at West Chicago to Global III?
  •  Cold Connect (Railex) midwest hub?
  •  All of the above??

Chris

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Posted by PNWRMNM on Tuesday, May 7, 2019 6:48 AM

Chris,

The UP is exiting Global III for reasons that make sense to them. Given that, it makes no sense to me for UP to turn it over to the city's contract operator and even less sense to open it to BNSF which may not be physically possible. Most IM terminals are operated by contractors, so there would be no significant cost savings to be had by a change in contract operator. If city operatiion made sense, UP could certainly have, and I think would have, suggested it before closing the facility.

I think the notion of his city railroad going into the intermodal business is the mayor's knee jerk reaction and that when/if they talk to UP, or six months goes by, the idea will sink beneath the waves.

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Posted by Chris30 on Tuesday, May 7, 2019 9:09 PM

UP didn't say that it's closing Global III. Their word is, 'idle' which to me sounds like this is an experiment to cut costs. One of the primary costs that the UP is attempting to cut are the transfer runs from Rochelle to intermodal yards closer to Chicago. If Global II & IV can handle the additional traffic, then we'll see what becomes of Global III. If Global II & IV can't handle the extra traffic and start to meltdown, then it will be interesting to see what the UP does.

My point in my previous post was to show that UP has options with the Global III yard and time will tell how this plays out. And yes, if needed, it is physically possible for BNSF to interchange traffic at Global III. (Not that UP would necessarily welcome that!)

Any other town and I would probably agree with PNWRMNM's 'mayor's knee jerk reaction' assesment. Again, Rochelle has been in the railroad business for thirty-three years; so, they at least have some idea of what they're getting into if they were to pursue operating an IM facility.

Chris

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Posted by CShaveRR on Tuesday, May 7, 2019 11:09 PM

Chris, I'm not so sure I'd like to see stack cars or large power negotiate that connection, or get into the City's yard from the UP tracks, for that matter.  Those curves are pretty horrendous!

Carl

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Posted by BaltACD on Wednesday, May 8, 2019 10:22 AM

Chris30

UP didn't say that it's closing Global III. Their word is, 'idle' which to me sounds like this is an experiment to cut costs. One of the primary costs that the UP is attempting to cut are the transfer runs from Rochelle to intermodal yards closer to Chicago. If Global II & IV can handle the additional traffic, then we'll see what becomes of Global III. If Global II & IV can't handle the extra traffic and start to meltdown, then it will be interesting to see what the UP does.

...

Chris

Not all 'plans' work as intended.  Recall a 'plan' in CSX Baltimore Term to have Curtis Bay Yard be the only active switching yard in the terminal.  Based on a simple number of cars switched per day it was thought to be feasible.   When implemented it was quickly found out that the trains to and from the other yard areas could not get into or leave Curtis Bay when having to contend with the native Curtis Bay traffic.  Inside of a week the 'new plan' was scrapped and the old plan was restored.

Railroads always try new methods of serving their customers always seeking the lowest cost method.

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Posted by Falcon48 on Monday, May 13, 2019 5:13 PM

It's not real surprising to me that UP is "idling" the Global III facility.  To my knowledge, it's always been a bit of a disappointment to the railroad.  Part of the reason is that Rochelle isn't where UP wanted to build it.  UP wanted to build it at Maple Park, IL which is 25 miles closer to Chicago than Rochelle and close to the western edge of the metro area.  The reason it was built at Rochelle was because of NIMBY opposition to the Maple Park location

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