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NORTHERN WATERFRONT ECONOMIC DEVEL INITIATIVE AD HOC CTE
Meeting Date: 12/17/2020  
Subject:    Short-Line Rail Feasibility Study
Submitted For: John Kopchik, Director, Conservation & Development Department
Department: Conservation & Development  
Referral No.: 4  
Referral Name: Northern Waterfront Goods Movement
Presenter: Amalia Cunningham and Robert Sarmiento Contact: R. Sarmiento, 925-674-7822
Information
Referral History:
Exploring the economic and transportation benefits of the rail lines along the Northern Waterfront has been an action item in the Northern Waterfront Initiative since its earliest days, and Department of Conservation and Development economic development, sustainability, and transportation staff collaborated to find a relevant grant opportunity. At its October 9, 2017 meeting, the Transportation, Water, and Infrastructure Committee (TWIC) approved the submission of a grant application, “Feasibility of a Short-Line Railroad in the Northern Waterfront,” to the United States Economic Development Administration (EDA) to study the feasibility of 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", attached), and the Northern Waterfront Ad Hoc Committee approved the 50% match funding from the Northern Waterfront implementation funds.
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 18th Street in Antioch. This area was selected for having the most opportunity sites within close proximity of existing rail lines. The short-line railroad would transport goods between businesses located in the Study Area and the nearby Class I railroads (Class I refers to large railroad companies with operating revenue in excess of $490 million annually). The Study consists of three parts:
  1. Assessment of Existing Conditions,
  2. Market Analysis, and
  3. Findings and Conclusions
The Assessment of Existing Conditions (“Assessment”) analyzes four components:
  1. Engineering Feasibility,
  2. Environmental Concerns,
  3. Commercial/Economic Development Conditions, and
  4. 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:
  1. Customer Types,
  2. Land Development Opportunities,
  3. Short-Line Railroad Operators, and
  4. 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.

TWIC reviewed and accepted the study at its meeting of November 9. Staff plans to share the study with the City of Antioch and City of Oakley. Staff recommends that the Draft Final Study go to the Board of Supervisors for acceptance as a final report, which will close out this project.

While a stand-alone short line was determined to be infeasible, freight rail service via spur and last-mile road connection remain very possible and one of the business advantages of a Northern Waterfront location. The benefit of having completed this analysis is that it raised awareness on the railroad side of the many opportunity sites in the Northern Waterfront that they could potentially serve, and on the private property owner side of the availability of rail service for the appropriate user in the future.
Recommendation(s)/Next Step(s):
Accept the Study and refer to the full Board for its review.
Fiscal Impact (if any):
No further fiscal impact.
Attachments
Short Line Rail Study

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