$700Million for CSX Relocation in doubt

Trains Magazine General Discussion
1

Posted on Thu, May. 18, 2006

Katrina money bill doubtful
Cochran: Bush not backing it
By GEOFF PENDER
capitalbureau@aol.com

JACKSON - U.S. Sen. Thad Cochran says it’s looking doubtful that an additional $28.9 billion in Katrina spending approved this month by the Senate will pass, primarily because of lack of support from the White House.

The House and Senate are in negotiations on the measure, but Cochran says he’s heard from House leaders “that if the president doesn’t ask for it, then they’re not going to approve it.”

“I think President Bush feels a lot of pressure to show leadership in holding down the deficit, even though the deficit because of how well the economy is doing is about $100 billion less than had been projected,” Cochran said. “But in spite of that reality, I think the White House advisers have convinced (Bush) that he’s got to be shown holding down spending.”

Cochran helped shepherd the passage late last year of the $29 billion Katrina relief package that was nearly double what Bush had recommended.

But Cochran said he doesn’t foresee much more federal Katrina spending “for the balance of this fiscal year,” which ends in September, although he predicts more can be secured next year.

“We are working hard every minute to get as much as we can justify,” Cochran said.

The current Senate proposal has $700 million to move the CSX railroad tracks, a move proposed long before Katrina and seen by some as key to rebuilding a better Coast. A vacated rail line would allow construction of a new east-west highway, taking traffic off U.S. 90 and allowing it to return to a scenic beach boulevard.

But Cochran said, “We haven’t received any encouragement about that from the House at this point.”

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Where would the new line be if the house approved the bill?

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Good. Hopefully the president will grow some balls and refuse to sign it.

Spending for bells and whistles like that need to be stopped.

Relocate the rail line so they can have a scenic boulevard? How is that essential to Katrina relief?

4

This was started by Senator Lott. There was more to it than a highway, it was supposed to spur casinos and redevelopment in a depressed area. My understanding was that CSX didn’t want it anyway - no advantage to them and they just rebuilt the current line.

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Actually, that isn’t quite true. CSX is sitting on the fence. Remember, they get $700 Million for the ROW. CSX just rebuilt it for about $300 MIllion with $250 Million coming from insurance. So, since the state doesn’t need the track, if the deal goes through you can figure that CSX will also be able to pick up all that BRAND NEW material. So the deal probably has value of closer to $900 Million for CSX. There is very little industry on the line west of Pascagoula (where the line would end). As Mississippi folks might say, “that ain’t chicken feed, neither…” Also, lets not forget that although CSX was able to rebuild this time, do you really think that the insurance companies will ever want to insure that line again after Katrina??? Not on your life…

So there are indeed advantages for CSX to accepting some sort of deal. Will it happen? Only the shadow knows…

LC

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No. See my prior post conmcerning the Railroad to Nowhere on this site with explanatory article.

LC

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I feel that this $700 Million should be used for other things and let CSX keep there line. I feel this plan is a bad idea and very stupid.

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Perhaps, but the people who live and work in Mississippi want it to happen and their Congressional delegation is quite powerful. Given that they need help after Katrina and the fact that highway construction is going to produce a LOT of jobs the amount of money is not that great. Also, what do you suppose will happen the next time someone else wants a project in their state or district who votes against this one?? Sen. Cochran could probably block most earmarks in either chamber by himself as Chairman of the Senate Appropriations Committee. With Sen. Lott’s help, well lets say that I wouldn’t want to need much money from the government in such a district or state…politics, its all politics…

LC

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Seems to me that with $700 million and the track material, CSX would be in a good position to get into a joint venture with the Norfolk Southern and/or CN and add a lot of capacity to run the trains from Mobile to New Orleans via Hattiesburg.

Not that that would be my favorite place to spend the money, but then there not going to give it to me, so what the hey…

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Wether it benefits the railroad or not, it is public tax dollars. Why should public tax dollars be used to re-locate a track that isn’t really necessary? If CSX wants to keep the track there and they aren’t willing to foot the bill to move it themselves, then why not just leave it? You don’t have to spend the money just because it is there.

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Dont worry us taxpayers will wind up footing the bill for this boondoggle since GWB Secy of the $$$$$$$$ is ex CSX CEO Snow [:(!]

[quote]
QUOTE: Originally posted by Limitedclear

Posted on Thu, May. 18, 2006

Katrina money bill doubtful
Cochran: Bush not backing it
By GEOFF PENDER
capitalbureau@aol.com

JACKSON - U.S. Sen. Thad Cochran says it’s looking doubtful that an additional $28.9 billion in Katrina spending approved this month by the Senate will pass, primarily because of lack of support from the White House.

The House and Senate are in negotiations on the measure, but Cochran says he’s heard from House leaders “that if the president doesn’t ask for it, then they’re not going to approve it.”

“I think President Bush feels a lot of pressure to show leadership in holding down the deficit, even though the deficit because of how well the economy is doing is about $100 billion less than had been projected,” Cochran said. “But in spite of that reality, I think the White House advisers have convinced (Bush) that he’s got to be shown holding down spending.”

Cochran helped shepherd the passage late last year of the $29 billion Katrina relief package that was nearly double what Bush had recommended.

But Cochran said he doesn’t foresee much more federal Katrina spending “for the balance of this fiscal year,” which ends in September, although he predicts more can be secured next year.

“We are working hard every minute to get as much as we can justify,” Cochran said.

The current Senate proposal has $700 million to move the CSX railroad tracks, a move proposed long before Katrina and seen by some as key to rebuilding a better Coast. A vacated rail line would allow construction of a new east-west highway, taking traffic off U.S. 90 and allowing it to return to a scenic beach boulevard.

But Cochran said, "We haven’t received any encouragement a

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Snow won’t have anything to do with the passage of this legislation or its signing in to law. That would be Congress and the President. As it has already passed the Senate, that leaves the House of Representatives and the W.

LC

13

Can someone tell me what route CSX traffic would actually use between NOL and FL, should this change actually come to pass? NS? NS and some other lines?

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Ralph -

Here is a repost of the Mobile Register Article. I think it explains a few things.

LC

CSX rerouting proposal could cost Mobile jobs
Freight trains coming from New Orleans would be sent north to Meridian and then to Montgomery, bypassing Mobile
Saturday, April 29, 2006
By ANDREA JAMES
Business Reporter
CSX Transportation Inc. documents obtained Friday by the Press-Register reveal new details about a plan to abandon the railroad’s Gulf Coast artery connecting New Orleans and Mobile – a $765 million project that Mississippi lawmakers are pushing as part of hurricane recovery.

Freight trains that now travel due east from New Orleans would instead be routed north to Meridian, Miss., and then hook a right into Montgomery, according to documents that CSX prepared for government officials. Upgrades on existing tracks and new infrastructure would make up more than half of the project’s price tag.

But the plan, which has become a target of Washington conservatives who want it eliminated from a growing emergency spending bill, could cost Mobile jobs.

IPSCO Inc. has sent a letter to Alabama lawmakers expressing concern about the plan, said Greg Maindonald, vice president of operations services for the steelmaker, which has a mini-mill in north Mobile County that employs about 370 people.

Losing the rail service would kill Mobile’s chance for a pipe plant that could create 200 new jobs, he said.

“If that rail line is abandoned, that would take Mobile out of our selection criteria for expansions,” he said. “It’s going to really hurt us.”

IPSCO said changes proposed by CSX at the urging of Mississippi’s Republican senators, Trent Lott and Thad Cochran, would quadruple the distance trains have to travel to reach New Orleans from Mobile. The company ships up to 30,000 tons per month of heavy plate stee

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Ah but as a Secy in GWB Cabinet he has tons of other goodies to offer our elected officals in DC which I think you have completely overlooked to obtain there favorable vote[:o)]

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So let me get this straight…they want to tear out the railway line that was damaged by the hurricane to build a new highway that is needed for evacuation in case of a hurricane, right? Am I missing something, or would not this new fancy highway suffer the same fate as the railroad tracks, should another hurricane hit?

Why should our government authorize another 28.9 billion to rebuild that part of OUR country? We have to rebuild Iraq first. What a great way to get the cash-flow energized–first blow it up at our expense, then rebuild it at our expense.

It’s all about priorities, I guess. The question is: who’s priorities are we following?

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Oh, it’s got nothing to do with ‘rebuilding’ anything. And everthing to do with Federal ‘priorities’. You Bush haters MMAT.

The State of Mississippi wants this and they’re using Katrina as an excuse to try to grab some Federal (read yours and mine) dollars to do it.

They’ve got a good opportunity down there. Casino gambling is legal in Mississippi (who’d a thunk it!) The Mississippi Gulf Coast in the only place in the continital US that has good beaches, a warm climate, and casino gambling. It’s one Hell of an opportunity to develop as a tourist destination.

To do this the State of Mississippi wants to give the beach area over to casinos, move the highway inland to the railroad right-of-way and get the freight trains out of town.

Fine. If Mississippi wants to do this, then let Mississippi pay for it. There’s certainly no Federal interest in developing casinos on the Mississippi Gulf Coast. I might vacation there, but my vacations are not a Federal responsibility.

It’s got nothing to do with the storms. And its got nothing to do with Iraq, President Bush, or Secretary Snow. It’s not, in any way, a Federal ‘priority’ and no Federal Government money should be spent on thi

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Except that Snow’s boss the W has already come out against this bill as extra spending and Bush has indicated he will veto it. So, why would Snow go against his boss by offering anything to anyone? He is already rumored to be leaving the administration anyhow…

LC

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I don’t “hate” Bush; I just question his priorities compared with the priorities of most of the citizens of the US.

And originally the $700 million was to come out of the $28.9 billion Katrina rebuilding fund–THAT makes it a Federal program. If the state want’s to do it on their own, and the majority of Mississippi is for it, then I agree with you, good for them. I wi***hem well.

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[quote]
QUOTE: Originally posted by greyhounds

Oh, it’s got nothing to do with ‘rebuilding’ anything. And everthing to do with Federal ‘priorities’. You Bush haters MMAT.

The State of Mississippi wants this and they’re using Katrina as an excuse to try to grab some Federal (read yours and mine) dollars to do it.

They’ve got a good opportunity down there. Casino gambling is legal in Mississippi (who’d a thunk it!) The Mississippi Gulf Coast in the only place in the continital US that has good beaches, a warm climate, and casino gambling. It’s one Hell of an opportunity to develop as a tourist destination.

To do this the State of Mississippi wants to give the beach area over to casinos, move the highway inland to the railroad right-of-way and get the freight trains out of town.

Fine. If Mississippi wants to do this, then let Mississippi pay for it. There’s certainly no Federal interest in developing casinos on the Mississippi Gulf Coast. I might vacation there, but my vacations are not a Federal responsibility.

It’s got nothing to do with the storms. And its got nothing to do with Iraq, President Bush, or Secretary Snow. It’s not, in any way, a Federal