Rail loader cuts trucks, could save $102 million

The $23 million proposed unit train loader at McCoy could take 5,652 trucks off the road and provide as much as $102,637,019 in savings to the public.

That’s the analysis provided by University of Idaho economist Dr. Steve Peterson in the Port of Whitman County’s application for $5.9 million of federal stimulus dollars from the Transportation Improvement Generating Economic Recovery program, or TIGER.

Federal funding would be used to upgrade 29 miles of the state-owned P&L shortline railroad from the McCoy siding south of Rosalia to the Burlington Northern Santa Fe main line connection at Marshall.

Rosalia-based Cooperative Agricultural Producers is spearheading construction of a $16 million facility that would transfer grain from trucks to tanks and into 110-car unit trains that would ship the grain to Portland.

The 110-car trains can haul more than 410,000 bushels of wheat. The larger trains provide discounted shipping rates from the BNSF because they can haul them to Portland direct without having to switch in more cars .

The port’s application says without the upgrades to the track, the unit train loader would not be possible.

Dr. Peterson unveiled his economic analysis of the project to port commissioners last week.

Main value, he said, is in providing a check to river shippers, keeping rates to take Palouse grain to coast markets competitive.

“If one goes down the region is going to be badly hurt,” said Peterson. “We need both.”

Charles McCall, manager of Columbia Grain in Lewiston, told port commissioners his firm was concerned the train loader could cost his firm shipping volume, but said he welcomed the competition.

“We’re not going to stop it. We’ll just have to learn how to live with it,” he said.

The savings in public costs would be removal of trucks from the road.

Dr. Peterson figured trucks would drive 1.7 million fewer miles over the next 20 years by trucking grain to McCoy instead of port facilities on the Snake River.

He found 16.4 million bushels of wheat would be shipped to Portland through the McCoy facility instead of being trucked to the river. That, he said, would reduce trucking costs by $3,673,564 every year.

Another savings would be in safety costs.

“If you take those trucks off the road, you’re saving lives,” Dr. Peterson said.

The fatality factor, including insurance and losses, is rated at 2.13 cents per ton mile for trucking versus a .29 cents for rail. The difference, figured off the estimated reduction in truck miles figures out at $728,212 per year.

“You need to tell that to the guy that told me I wasn’t worth a plug nickel,” countered Port Commissioner John Love.

Fewer trucks also means less damage to roads, the port’s application said.

Peterson figured $703,382 in annual road maintenance costs would be avoided if the train loader is built.

Peterson also figured $26,692 would be saved each year from reduced carbon dioxide emissions.

Trucks would make shorter trips to the rail facility, reducing overall emissions from the 8,114 tons of CO2 Peterson figured were produced by trucking to barge facilities and sending barges downriver to Portland, to 6,207 tons produced by trucking to the train loader and shipping by train to Portland.

Peterson said he figured a “conservative” cost of $14 per ton of CO2 emissions, though he noted the cost could be as high as $50 per ton if and when government officials place a price tag on carbon emissions.

Debbie Snell, port properties and development manager, said she expected federal officials to announce the TIGER grant awards early next year.