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Rail News Home Rail Industry Trends

9/11/2012



Rail News: Rail Industry Trends

Sen. Collins, Rep. Tipton tour rail facilities


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A U.S. senator and representative recently toured rail facilities in Maine and Colorado to gain a better understanding of the rail industry's contributions to both the national and local economies.

On Sept. 4, Sen. Susan Collins (R-Maine) toured a rail loading facility at Dragon Cement Products' Thomaston, Maine, plant along with representatives from the company and the Maine Eastern Railroad. The American Short Line and Regional Railroad Association and National Railroad Construction and Maintenance Association (NRC) helped organize the event.

Owned by Morristown & Erie Railway Inc., the Maine Eastern Railroad works with Dragon Cement to haul products from the Thomaston plant to Atlantic Point in Rockland Harbor, where the freight is loaded onto a barge and transported to Boston. The Maine Eastern also hauls cement to an interchange with another railroad, which moves it into Canada.

During the tour, rail officials explained how short lines like the Maine Eastern create jobs, help support the state's economy and help link small businesses like Dragon Cement that otherwise wouldn't have rail access, according to the NRC. They also provided an overview of why the short-line tax credit — which expired at 2011's end and has yet to be extended for 2012 or beyond — is vital to the rail industry.

Collins, a ranking member of the Senate's Subcommittee on Transportation Appropriations, is a co-sponsor of the Short Line Railroad Rehabilitation and Investment Act (S. 672), which proposes to extend the tax credit. Many short lines' infrastructure reinvestment needs exceed 30 percent of their annual revenues, so reducing their taxes increases their ability to bolster infrastructure, according to the NRC.

Meanwhile, Rep. Scott Tipton (R-Colo.) toured a L.B. Foster Co. facility in Pueblo, Colo., Aug. 22 with L.B. Foster and NRC officials. The 56,000-square-foot plant, which produces insulated rail joints, has reduced manufacturing costs more than 60 percent since 2007 via continuous-improvement programs and streamlined production processes, L.B. Foster and NRC officials told Tipton.

They also explained that the products produced at the plant help railroads better serve Colorado's agricultural, industrial and energy markets. The event also included a briefing on the plant and a question-and-answer session with workers.