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Ag producers encourage north-south rail project
Bob Campbell
Midland Reporter-Telegram
09/19/2007

Cotton, grain sorghum and peanut growers are interested enough in a north-south rail line between Lubbock and the Permian Basin to encourage a Bethesda, Md. , company that is six weeks into a study of the idea.

Driving spikes and laying crossties for a 120-mile railroad between McCamey and Seagraves for at least $1 million a mile may seem fanciful, but the Texas Department of Transportation was serious enough to give La Entrada Rural Rail District $96,220 to finance a feasibility study by Cambridge Systematics of Bethesda, Md.

"We've spoken to a number of people in agriculture, minerals, logistics and warehousing and several railroads," said Cambridge Senior Associate Don Ludlow on Tuesday.

"What we have found so far in the entire swath from Lubbock to Midland-Odessa, including Seminole and Andrews, is that most people are enthusiastic about improved rail access to move their products to market. It has run the gamut and we have not met much resistance."

Emphasizing they will not consider the project's financial feasibility, Ludlow said he and his associates "are in the middle of interviews" with officials of the east-west running Union Pacific and north-south Texas al Pacifico rail companies and are not ready to say if they would oppose the project.

"We're not sure what to expect because they have been very successful during the past few years," he said.

"We're analyzing commodity flow data and demand characteristics. We have a lot to chew on, but we should have preliminary findings to TxDOT in a few weeks and complete the report by the end of November."

Rail District President John Cunningham of Odessa said cotton and grain sorghum were expected to be prominent, but bio-diesel production and a petroleum refinery near Seminole in Gaines County will also be important.

"We hope to hear confirmation of what we believe is good economic demand for transportation up and down this corridor," said Cunningham Tuesday. "Andrews, Terry and Gaines counties are big cotton, sorghum and peanut producers and I believe Gaines is the leading peanut county in Texas.

"Beyond that, there are going to be a couple of bio-diesel plants up there and they're talking about a refinery. All those things are indicative of a demand we think will authenticate our feelings."

The state grant was announced at an Aug. 7 rail district board meeting at Midland International Airport, where it was noted that the region's only north-south line now is the Burlington Northern-Santa Fe from Sweetwater to Lubbock.

TxDOT Odessa District Engineer Lauren Garduсo said the McCamey-Seagraves route would be decided by an engineering study.

TxDOT's Texas Orient, running from Ferro Mex-Texas al Pacifico at Presidio to McCamey, would connect with Iowa Pacific's Permian Basin Railways from Seagraves to Lubbock.

Garduсo said the Union Pacific crossing under Interstate 20 near Penwell could be used and the Texas Orient would have to be substantially upgraded.

[SHANEA]

Good, bad news on Entrada front

"There's great frustration with TxDOT. ... It must be the most difficult agency to work with. ... It's domineering and slow-moving, but difficult to stop once it starts moving. ...