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Small-Road Briefs: G&W, Watco

Georgia Ports Authority is using $120 million in federal grants for electrical and rail infrastructure improvement projects. (GPA Photograph)
Georgia Ports Authority is using $120 million in federal grants for electrical and rail infrastructure improvement projects. (GPA Photograph)
The Georgia Ports Authority (GPA) receives a $26.5 million federal grant for the Colonel’s Island Rail Improvements project, which is supported by Genesee & Wyoming (G&W). Also, Watco helps bring a building materials customer to Oklahoma and lands three awards for rail infrastructure projects.

GPA / G&W

(Map Courtesy of G&W)

At GPA’s Dec. 1 meeting, President and CEO Griff Lynch reported receiving three federal grants totaling more than $120 million to improve “operational sustainability.”

The rail-related grant—$26.5 million from the Federal Railroad Administration (FRA)—will help construct Phase II of the Colonel’s Island Rail Improvements project at the Port of Brunswick. GPA and G&W will provide a $27.6 million match. G&W is the parent company of Golden Isles Terminal Railroad, which serves the Colonel’s Island Terminal and interchanges with Norfolk Southern and CSX (see map, top).

According to GPA, the funding will go toward improving the Myd Harris Yard and completing construction of the new South Side Rail Yard, which is “needed to handle the growing volume of automotive exports and imports moving through Brunswick, the second busiest Roll-on/Roll-off port in the United States.” At the Myd Harris Yard, tracks will be lengthened and reconfigured to improve operational efficiency and to bring rail switching activities inside the terminal and away from the adjacent neighborhood. The new South Side Rail Yard will include four new tracks, estimated at approximately 23,735 feet; an auto storage area and perimeter road; plus the grade separation of an existing crossing at SCM Road.

The FRA grant was administered through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, which awarded more than $2.4 billion to 122 freight and passenger rail improvement projects across 41 states. 

Phase I of the Colonel’s Island Rail Improvements project is now under construction, according to GPA, which provided $22 million to fund it. When both phases are complete, the expansion will add nearly 500,000 Ro/Ro units of annual rail capacity, for a new total of approximately 700,000 units, the Port said.

“Our customers have expressed interest in increased rail capacity for exports of autos and high and heavy machinery,” Lynch said. “This project is a win-win for all port stakeholders, reducing port impacts on the local community while delivering needed capacity for exports.”

GPA’s Lynch also reported that a $49.8 million Maritime Administration grant will help GPA “ensure uninterrupted power supply” at the Port of Savannah’s Garden City Terminal and a $48.7 million U.S. Environmental Protection Agency grant will help it provide shore power at a total of four berths: three in Savannah and one at the Port of Brunswick.

“We are constantly looking for ways to be a good steward for our local communities near our ports in Savannah and Brunswick,” Lynch said. “These federal grants will help us reduce the community impact of our ship, rail, and truck traffic operations and emissions. We’d like to thank our federal partners for their role in supporting our plans to reduce our carbon footprint and strengthen our business resiliency.”  

Separately, GPA recently announced that Savannah container volumes in October were up 10% year-over-year.

Watco

(Map Courtesy of Watco)

Kingspan, a global building materials company, is bringing its operations to Stillwater, Okla., thanks, in part, to Watco, a full-service supply chain solutions company based in Pittsburg, Kans., which provides rail, transloading, terminal and port, and logistics services. “Working alongside other partners, Watco helped lobby for the passage of the Strategic Industrial Development Enhancement (SIDE) Act tax credit through the Oklahoma state legislature in 2022,” the company reported in the December edition of its employee newsletter, The Dispatch. “The SIDE Act was established to make improvements between railroads and industrial parks. Eligible projects must either be located in a rural area or adjacent to a short line railroad, switching operation, or terminal.”

Kingspan is the largest-to-date recipient of the SIDE tax credit, according to Watco. Construction of its Stillwater facility is expected to begin in 2025; it will be served by Watco’s Stillwater Central Railroad (see map, top).

“Rail access was crucial in securing the Kingspan opportunity and the Watco partnership was instrumental in its success,” said Kari Moore, Economic Development Director for the Stillwater Chamber of Commerce, according to Watco.

“We’re thrilled to have Kingspan’s newest facility call Oklahoma home, and to be able to serve them,” added Luke Bellamy, Director of Industrial Development at Watco. “Thank you to everyone who helped make this project possible, including the Oklahoma Department of Commerce, City of Stillwater, and the Stillwater Chamber of Commerce.”

Meanwhile, Watco, also reported in its December newsletter that two of its subsidiaries have earned America’s Transportation Awards (ATA) from the U.S. Chamber of Commerce, AAA, and the American Association of State Highway and Transportation Officials. All state departments of transportation were invited to nominate infrastructure projects.

(Jay Hastings Photograph, Courtesy of SKOL/Watco)

South Kansas & Oklahoma Railroad (SKOL), Railway Age’s 2022 Regional of the Year, and the Kansas Department of Transportation received the Midwest Region’s top honors for Operational Excellence for their 2023 project upgrading rail infrastructure in southeast Kansas. The $43 million investment included 34 miles of new rail, 150,000 new crossties, 27 bridge improvements, 66 crossing upgrades, and more, according to Watco, which said the project “supports new and existing customers by improving service while making the community safer through better grade crossings.”

Additionally, Watco’s Palouse River & Coulee City Railroad (PCC) and the Washington State Department of Transportation earned the Operations Excellence award in the Western Region for their response following a wildfire. “The fire destroyed a 200-foot bridge near Winona, Wash., which is a major artery for agricultural producers in the region,” Watco reported. “In just 33 days, they replace the old wooden structure with a steel and concrete bridge, reopening the line and making it more resilient in case of future fires.” The 2023 project was also selected as a national “Top 12” project, Watco said.

“It’s an honor to be in the running,” SKOL General Manager Jerry Waun said. “We accomplished what we set out to do: improve and repair rail infrastructure in rural areas. These projects and their recognition by the ATA show what we can achieve when we collaborate with our state partners.”

Separately, Watco’s was recently named a recipient of a 2024 HIRE Vets Medallion Award from the U.S. Department of Labor’s Veterans’ Employment and Training Service and its El Dorado switching in Arkansas celebrated 30 years of serving LSB Industries.