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TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE

Meeting Date:	11/09/2020
Subject: Northern Waterfront Short-Line Railroad Feasibility Study
Submitted For:	TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE
Department:	Conservation & Development
Referral No.:	15
Referral Name:	Freight transportation issues, including freight issues related to the Northern Waterfront.
Presenter:	Robert Sarmiento, DCD	Contact:	Robert Sarmiento (925)674-7822

Information

Referral History:

At its October 9, 2017 meeting, TWIC approved the submission of a grant application, “Feasibility of a Short-Line Railroad in the Northern Waterfront,” for the Planning and Local Technical Assistance Program to the United States Economic Development Administration (EDA) to study a short-line railroad in the Northern Waterfront.

The Board of Supervisors approved the submission of the grant application to the EDA at its February 6, 2018, meeting. In May 2018, the County was awarded $37,500 in grant funding to develop the Northern Waterfront Short-Line Railroad Feasibility Study
("Study") (Exhibit A).

Referral Update:

The Draft Final Study evaluates the feasibility of implementing a short-line railroad in the Wilbur Avenue Corridor (“Study Area”), which encompasses an area from the Fulton Shipyard in Antioch east to the Contra Costa Logistics Center in Oakley, and from the waterfront south to about 18^th Street in Antioch. The short-line railroad would transport goods between businesses located in the Study Area and the nearby Class I railroads^*. The Study consists of three parts:

Assessment of Existing Conditions,
Market Analysis, and
Findings and Conclusions

The Assessment of Existing Conditions (“Assessment”) analyzes four components:

Engineering Feasibility,
Environmental Concerns,
Commercial/Economic Development Conditions, and
Transportation System

The Assessment identifies five parcels along the waterfront in the Study Area, which were previously served by railroads, that have the greatest potential to be developed as railroad-served businesses. The Assessment provides cost estimates to re-establish a rail connection to each of the five parcels. Four of the five parcels are currently in the process of environmental remediation. As parcels are developed, additional evaluation of the impact on wildlife would be needed. The Assessment determines that the existing businesses in the Study Area rely primarily on trucks to transport goods. Finally, the Assessment provides information on the existing roadway network, Class I railroads (Burlington Northern Santa Fe, or BNSF, and Union Pacific [UP] ), and maritime facilities in the Study Area, along with the goods movement that occur on each of these transportation facilities.

The Market Analysis evaluates the following:

Customer Types,
Land Development Opportunities,
Short-Line Railroad Operators, and
Relationships with Class I Railroads

The Market Analysis determines that businesses seeking a location with lower land and business costs and good connections with water, Class I railroads, and highways would be attracted to the parcels in the Study Area. For the five parcels that have the greatest potential for short-line railroad service, the Market Analysis provides details on each parcel's characteristics that make it attractive for business development. The Market Analysis identifies five short-line railroad operators that would be good candidates to serve a short-line railroad operation in the Study Area. The Market Analysis notes that BNSF does not support an independent short-line railroad operation in the Study Area, but instead prefers to provide in-house railroad service to the individual parcels in the Study Area. The Market Analysis determines that a new railroad connection from the UP railroad line just south of the Study Area would be too costly to build and limited in providing short-line railroad service in comparison to BNSF.

The Findings and Conclusions include the following:

A new independent short-line railroad operation is not feasible in the Study Area because of: 1) the lack of support from BNSF for an independent short-line railroad operation that would connect to its track, 2) the infeasibility of constructing a separate railroad line to connect the five parcels due to the lack of available right-of-way, and 3) the high cost to construct a new railroad connection from the UP line.
A recommendation that City economic development staff establish ongoing communication with BNSF economic development staff to stay informed and coordinate on development opportunities that have potential railroad access in the Study Area.
The County currently does not have any parcels in the Study Area with potential for a railroad connection to the BNSF line. County economic development staff could reach out to BNSF economic development staff in the future if a development opportunity arises in the Study Area that would be beneficial to both parties.

Staff plans to present the Draft Final Study to the Northern Waterfront Ad Hoc Committee at its next meeting, as well as share with the City of Antioch and City of Oakley for their information. Subsequent to consideration by the cities, staff recommends that the Draft Final Study go to the Board of Supervisors for consideration. Otherwise, no further staff work is anticipated on this issue as the short-line railroad was found to be infeasible.

*Class I railroads are defined as railroad companies with an annual operating revenue greater than $490 million (in 2019).

Recommendation(s)/Next Step(s):

RECEIVE update on the Northern Waterfront Short-Line Railroad Feasibility Study, FORWARD the Study to the Board of Supervisors for acceptance or other action, and DIRECT staff as appropriate.

Fiscal Impact (if any):

None

Attachments
DRAFT Short-Line Feasibility Study (11-2020)rs