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Public Information Meeting Summary Meeting Dates and Locations: February 21-22, 2012, San Luis and City of Yuma Public

Public Information Meeting Summary Meeting Dates and Locations: February 21-22, 2012, San Luis and City of Yuma Public Feedback: 1. Is there an interest in short line rail for export/import? Majority of said “Yes”. Only one “No” vote.

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Public Information Meeting Summary Meeting Dates and Locations: February 21-22, 2012, San Luis and City of Yuma Public

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  1. Public Information Meeting Summary Meeting Dates and Locations: February 21-22, 2012, San Luis and City of Yuma Public Feedback: 1. Is there an interest in short line rail for export/import? Majority of said “Yes”. Only one “No” vote. 2. Is there an unmet need for short line rail for export/import?  Majority of attendees said yes. Only one responded “not at this time” 3. Do you have an interest for rail connection to the seaports in Mexico? Majority of attendees said “yes”. One said depends upon the route.

  2. Public Information Meeting Summary Cont. 4. If a rail line is developed to connect Yuma to Mexico: a. What portion of Yuma County should it pass through? •  Do the pink line with distribution centers at… POE • Follow Area Service Highway • South of the farmland along ASH • Through POE 2 and along (parallel to Ash Hwy) • It should travel parallel to the border then join the main line via a route across BMG Range east of Gila Mountains. The Wellton area would serve well for economic activity for trans load and other operations

  3. Public Information Meeting Summary Cont. b. What areas of the County are areas to avoid? • Agricultural land, populated areas, new Walmart along Ave 8E area, MCAS weapons range • Do not bisect east-west c. Or should it not be built? • Only if logistics can be built near port of entry so some economic benefit to Yuma County • Majority of attendees said “yes” 5. What concerns do you have about a rail connection through Yuma County? • Transport of Hazmat through Yuma County. Loss of viable agricultural land. • Disruption to community, lack of economic benefit to Yuma 6. Would you utilize rail if it were readily available • Divided reaction. Two participants indicated “Yes” and two indicated “No”

  4. Summary POE II Trade Meeting on March 20, 2012 Discussion Items: • Reviewed the Purpose and Need of the project • Reviewed the types of rail service to be considered a. Intermodal facility Container –on-Flatcar (COFC)/ Trailer-on-Flatcar (TOFC) b. Unit train facility attached to a consolidation center c. Carload facility • Industrial park • Bulk trans load/team tracks • Warehousing • Reviewed long term freight rail opportunities if a deep sea port at Punta Colonet is constructed 4.   Solicited input on a crossing location 5.   Emailed out a questionnaire • Currently waiting for responses

  5. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary This technical memorandum considers: • the types of industries that are located in Yuma County and their likely usage of rail • the current status of rail service in Yuma County • The nature of Yuma County’s trading relationships, particularly with Mexico • Provides a freight profile of Yuma County’s neighboring regions of Imperial County, CA and Sonora, Mexico • Rail’s role in the U.S. transportation system, and how this might impact options to improve rail service in Yuma County.

  6. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Economic Profile: Agriculture (2007 – US Census Bureau) • Agriculture is an important component of Yuma County’s economy • Yuma County Represents 20.4% of Arizona farm payroll • Yuma County's inbound shipments currently devoted to agriculture and fertilizer • Yuma County’s outbound shipments are currently devoted to grain • Produce accounts for 70% of the value of Yuma County’s agricultural production. • Rail service would need to be fast enough to bring products to market before spoiling

  7. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Economic Profile - Related to agriculture: • Yuma County’s largest manufacturing industry is perishable food manufacturing. • In the other US locations, rail is used for shipping frozen and non-frozen fruits and vegetables. • For non-frozen perishable foods, rail service would need to be fast enough to bring products to market before spoiling.

  8. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Economic Development Greater Yuma Economic Development Corporation (GYEDC) leads this effort. Target industries include: • Food processing • Military and Defense Testing • Industrial Manufacturing • Logistical and Distribution • Renewable Energy • Twin Plant/Maquila Operations • 41.7% business leads were in Manufacturing (2011 GYEDC Annual Report) • 10% of business leads were in Distribution (2011 GYEDC Annual Report)

  9. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Food Processing Products in the US Shipped by Rail in 2010 Source: US Surface Transportation Board (STB) 2020 Public Carload Waybill Sample • 20.2 Million tons of products derived from Grains (Soybean Cake, Flour, Grits, Meal) • 1.5 Million tons of frozen vegetables • 1 Million tons of non-frozen juice, vegetables and fruits • Rail could play a role in the Yuma Region for shipping these types of products

  10. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Military and Defense Products in the US Shipped by Rail in 2010 Source: US Surface Transportation Board (STB) 2020 Public Carload Waybill Sample • 8,024 rail carloads • Large rail volumes of military hardware often relate to deployments • It is unlikely that Yuma County will generate large volumes of rail freight • Smaller rail volumes in military testing operations could generate small rail shipments • The extents of rail supporting these small volumes would depend upon the type of operation

  11. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Industrial Manufacturing Shipped by Rail in the US in 2010 Source: US Surface Transportation Board (STB) 2020 Public Carload Waybill Sample • 43.7 Million tons of Pulp, paper or allied products The top categories include: • 17.9 Million tons of Fiberboard, Paperboard and Pulp board • 9.7 Million tons of Pulp • 39.1 Million tons of Transportation Equipment. The top categories include: • 16.4 Million tons of Assembled Motor Vehicles • 8.3 Million tons of Assembled Trucks • Rail could play a role in supporting economic development initiatives in the Yuma Region • The extent of rail relevancy will depend upon the nature of the manufacturing

  12. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Logistics and Distribution • Rail could play a role in supporting economic development initiatives in Yuma County • The extent of rail relevancy will depend upon the nature of the products to be distributed • Rail is often used to for building supply hubs • Retail distribution hubs are frequently coupled with rail intermodal service • Volumes generated would need to be substantial for containerized intermodal service to be viable

  13. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Imperial County, California and Mexico • Imperial County’s economy is similar to Yuma County’s in terms of its reliance on agriculture • Imperial County’s manufacturing sector has been more resilient than that of Yuma County • San Luis Rio Colorado (SLRC) has a lower population (178,380 people in 2010) than Mexicali (936,826 people in 2010) • Agriculture is a major source of employment in both SLRC and Mexicali • By tonnage, Yuma County’s most significant trading partners are the Los Angeles and Phoenix metropolitan areas, as well as other parts of Arizona.

  14. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Yuma County Freight Flows Source: FHWA Freight Analysis Framework – 3 (FAF3) • FAF3 has 3 zones in Arizona (e.g., Phoenix, Tucson and the remainder of the State) • Yuma County is a part of the remainder of the State FAF zone • FAF3 estimates international trade flows with 8 foreign trade zones • Commodities are categorized in 43 groups • Commodities in Yuma County are disaggregated from the remainder of the State information • The disaggregated model serves as the input to the Arizona Statewide Transportation model

  15. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Yuma County Truck Flows Source: FHWA Freight Analysis Framework – 3 (FAF3) • In 2012, 83% of total truck tonnage were accounted for in the following areas. • 32% Remainder of Arizona • 31% Los Angeles • 20% Phoenix • The highest tonnage products shipped into and out of Yuma County are building materials and agricultural food products • Other high volume markets include Las Vegas, San Diego, and Tucson

  16. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Cross Border Trends/Flows Source: FHWA Freight Analysis Framework – 3 (FAF3) • San Luis is the 5th busiest border crossing along among primary points of entry along Arizona and California • 73% of the products imported through San Luis are agricultural products • Over half of the shipments that cross at San Luis originate or terminate in Phoenix or Tucson. • Trade with Mexico are a small portion of Yuma County’s inbound and outbound freight flow as a % of total truck tonnage

  17. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Cross Border Trends/Flows • Factors that could impact cross-border trade include: • Development of the Port of Punta Colonet • Improvements to the Port of Guaymas • The Western CANAMEX Passage • Maquiladora plants to manufacturing in China

  18. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Role of Freight Rail • Rail is a mode of transportation used for transporting commodities long distances • The economics of rail over trucking improve with distance • The economics of rail improve with the ability to ship entire trainloads from one origin to one destination • New rail lines address specific transportation needs accessing a particular shipper or set of shippers.

  19. Technical Memorandum No. 1 – Yuma County Economic and Freight Profile Summary Role of Freight Rail In Yuma County • Gravel, Waste/Scrap, and Agricultural Products may have the highest number of tons that could potentially be diverted from truck to rail • Rail improvements targeted at these products could warrant additional consideration • The need for improved rail access appears to be a major issue for Yuma County • GYEDC notes that the region is frequently at a disadvantage bidding on economic development projects due to a lack of land and facilities with rail access • There are no truck/rail multimodal facilities in the region, including no publicly available trans load facilities

  20. Next Steps • Involve developing specific project alternatives that will consider: • the location or potential location of impacted industries • the type of rail service to be provided • the feasibility of connecting to existing rail infrastructure • Rail improvements that benefit the transportation of produce • Rail improvements that benefit the transportation of other agricultural products • Rail improvements that benefit the transportation of food products • Rail improvements that will benefit future economic development initiatives, particularly in food manufacturing and industrial manufacturing • Rail improvements that improve transportation to/from Phoenix • Rail improvements that benefit the transportation of construction materials, such as gravel, non-metallic minerals, etc.

  21. Study Process Universe of Potential Options to Improve Rail in Yuma County You are here Alternative 1 Alternative 2 Alternative 3 Alternative X Preferred Alternative How to Implement Preferred Alternative

  22. Schedule

  23. Questions and Open Discussion

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