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LIMBA Presentation November, 2011

LIMBA Presentation November, 2011. Project Overview. Brookhaven Rail Terminal: Contributing to Long Island’s Freight Transportation Future

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LIMBA Presentation November, 2011

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  1. LIMBA Presentation November, 2011

  2. Project Overview • Brookhaven Rail Terminal: Contributing to Long Island’s Freight Transportation Future • U S Rail of New York, LLC (“USRNY”), a Class III shortline terminal railroad, was formed to construct and operate the Brookhaven Rail Terminal (“BRT” or “Terminal”) • BRT received construction and operating authority from the Surface Transportation Board (“STB”) in fall of 2010 and commenced initial operations in September, 2011 • The Terminal will be built in two primary phases : • Construction of approximately 13,000 linear feet of new rail track on 28 acres • Construction of an expanded facility that encompasses an additional 90+ acres which were recently accumulated • Terminal has serviced approximately 250 car loads in the first two months of operations (eliminating over 2000 long haul truck trips) and expects to handle over 10,000 railcars in its first full operating year • Site will be served by two GP-38 diesel powered engines • Strong business relationship with the New York & Atlantic Railway (“NY&A”) and cooperative scheduling and planning with the Long Island Rail Road (“LIRR”) • Rail rates are embedded in the NY&A quoted rates • Daily coordination, training and safety are critical

  3. Site Selection Was Everything • Perfect Location for Truck Transfers • The BRT is ideally situated adjacent to the Long Island Expressway (“LIE”) and the LIRR • Trucks can be on the LIE headed East or West within moments of being loaded • No infrastructure improvements required – ingress and egress are excellent – LIE South Service Road extension would substantially reduce traffic from local roads • Good Neighbors • The Terminal is bordered by the LIE to the north, the LIRR to the south , Sills Road to the west and the county farm to the east – no residential impacts • Noise, vibration and other traditional railroad complaints will be minimal with the natural noise barriers of the site • The closest single family residence is over 1/4 of a mile north of the LIE. • Increased capacity: • Assembled approximately 130 acres of land • BRT will have the capacity to store, inventory and stage delivery of a variety of commodities that now move by truck to the Long Island market, including aggregates, cement, asphaltic cement, lumber and other building materials, steel, biodiesel and others as well as containerized freight • Ability to erect large refrigerator storage – 500,000 square feet or larger if necessary

  4. Where is the BRT – In the Center of the Freight Corridor Brookhaven Rail Terminal

  5. Ideal Location Project Location • Ingress & Egress • Neighbors • Expandable • Highest and Best Use

  6. Ease of Operation • Phase I - Goals • High speed material handling • Capacity to hold shipper inventory

  7. Ease of Operation • Cooperation and Coordination with the NYA and LIRR is Critical • LIRR very supportive of the facility design and the goal of increasing rail freight on Long Island • The Terminal and its operations were designed for ease of use and full consideration given to the LIRR operating plan • Only facility that can accommodate 35 block trains in Phase I and potentially larger train blocks when Phase II is fully operational • Design enables a large freight train to draft a passenger train and travel non-stop to the Terminal • NYA locomotives will pull the trains right into the Terminal and never have to hold the mainline for the LIRR • Ease of operation is critical to expanding the freight capacity of the LIRR

  8. November 2011 – Terminal Track

  9. November 2011 – Unloading Bunkers

  10. Why Did We Invest? • When completed $100 million of capital will have been invested in the BRT • It is all about the Fundamentals: • Long Island’s Nassau and Suffolk Counties are home to nearly 3 million people, with access to the Greater New York City market of nearly 19 million consumers • Less than 1% of all freight comes onto Long Island by rail • Population growth for this region is forecasted to be faster than the balance of the country • Traffic congestion worsens daily and will have to be addressed • Rail freight is the only solution that diminishes congestion, improves air quality, increases shipping reliability and lowers freight costs • There is a tremendous opportunity to bring in new, incremental traffic that Long Island has never had before

  11. Keys to Success • Short Term • Coordination and cooperation with the LIRR, Port Authority and all of our freight partners – NYA, CP, NS and CSX • Support of our local, state and federal leaders • Exposure to the market – the rail and shipper world doesn’t necessarily believe in the viability or future of freight rail due to the checkered past and current challenges (infrastructure, site selection, local resistance, etc.) • Near term success – high volume shippers and commodities do exist; they will use the facility; and they want to come to the terminal • If we demonstrate short term wins – the long term success will follow • Long Term • Comprehensive freight plan needs to be developed with high volume operational issues/constraints of the LIRR taken into consideration • Infrastructure improvements will completely change the type and volume of freight – this is inevitable and has to occur • Coordinated efforts of all freight stakeholders will need to occur – traffic flow first, profit second

  12. Keys to Success

  13. Partners with the Long Island Railroad • Public/Private Initiative • We have been working with the LIRR to assist them in identifying and developing funding plans for various rail projects that will enhance the capability of the LIRR system to accommodate the most efficient rail freight equipment without affecting its commitment to high quality passenger service

  14. Summary • Brookhaven Rail Terminal: • Represents four years of intensive efforts – American entrepreneurial spirit • Has been completely financed with private capital • Has the support of critical transportation agencies, economic development authorities, local municipalities and business leaders • High volume shippers that have never before railed to Long Island are prepared to use the Terminal – they need our help • Public benefit could be outstanding – economic growth, traffic reduction, job creation and environmentally friendly • The BRT is a critical infrastructure development which will transform freight transportation on Long Island and serve as a catalyst for economic development and job creation in the region

  15. For further information, please contact: • Andrew Kaufman, Brookhaven Rail Terminal • 631-924-8800 (Yard) • akaufman@brookhavenrailterminal.com • Jim Newell, US Rail of NY, LLC • 646-302-1432 • jnewell@oaklandtransportation.net

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