Economic Development Programs at WisDOT

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2 Economic Development Programs at WisDOT David M. Simon, P.E. Director Bureau of Transit, Local Roads, Railroads and Harbors September 28, 2018

3 ECONOMIC DEVELOPMENT PROGRAMS AT WISDOT OVERVIEW Bureau of Planning & Economic Development (BPED) Transportation Economic Assistance (TEA) Program State Infrastructure Bank (SIB) Bureau of Transit, Local Roads, Railroads and Harbors (BTLRRH) Freight Railroad Infrastructure Improvement Program (FRIIP) Freight Railroad Preservation Program (FRPP) Harbor Assistance Program (HAP)

4 ECONOMIC DEVELOPMENT PROGRAMS AT WISDOT BUREAU OF PLANNING & ECONOMIC DEVELOPMENT (BPED) Transportation Economic Assistance (TEA) Grant program helps support business development in communities by funding transportation improvements needed to secure jobs. May include: roads, railroads/rail spurs, harbors & airports Goal is to attract new or grow existing employers New job creation $5,000 per new job created, 50% of the TEA-eligible costs, $1M per project $3,402,600 available each state fiscal year First-come first-serve basis, Available year round Communities are reimbursed for project costs Loans may be made to cover gap between grant amount and $1M or 50% of TEA-eligible costs

5 ECONOMIC DEVELOPMENT PROGRAMS AT WISDOT BUREAU OF PLANNING & ECONOMIC DEVELOPMENT (BPED) State Infrastructure Bank (SIB) The State Infrastructure Bank (SIB) Program, similar to a private bank, offers a range of loans and credit options to help finance eligible surface transportation projects. Revolving loan fund Created with federal matching funds (80/20) Communities may borrow funds to support transportation infrastructure improvements to help preserve, promote and encourage economic development and/or promote transportation efficiency, safety and mobility. Offers low interest rates Projects may be amortized up to 25 years.

6 BUREAU OF TRANSIT, LOCAL ROADS, RAILROADS ANDHARBORS (BTLRRH) Railroads & Harbors Section

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8 8 Railroad Crossings

9 9 Bridges

10 WISCONSIN FREIGHT RAILROAD ASSISTANCE PROGRAMS BUREAU OF TRANSIT, LOCAL ROADS, RAILROADS AND HARBORS (BTLRRH) Freight Railroad Preservation Program (FRPP) Grant program designed to preserve rail service or rail corridors within Wisconsin FRPP grants are used to: Acquire abandoned rail lines Rehabilitate publicly owned rail lines or spur tracks Grants up to: 100% of land acquisition costs 80% of improvement acquisition costs 80% of rehabilitation or construction costs

11 624 MILES OF TRACK

12 WISCONSIN FREIGHT RAILROAD ASSISTANCE PROGRAMS BUREAU OF TRANSIT, LOCAL ROADS, RAILROADS AND HARBORS (BTLRRH) Eligibility For Grants (FRPP) Projects (generally publicly owned facilities) which accomplish the following: Acquisition of a rail line for continuation of service Acquisition for future rail service Rehabilitation of rail lines Construct rail property improvements needed to continue service

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15 WISCONSIN FREIGHT RAILROAD ASSISTANCE PROGRAMS BUREAU OF TRANSIT, LOCAL ROADS, RAILROADS AND HARBORS (BTLRRH) Freight Railroad Infrastructure Improvement Program (FRIIP) Loan program designed to improve rail service within Wisconsin Used to build systems and transload facilities that connect industry to the national rail system Most often used to build grain elevators, conveyors, and storage facilities Loans may be used to cover up to 100% of project cost Requires repayment within 10 years Low interest rate Up to $1.5M non-track Can be used for new track

16 WISCONSIN FREIGHT RAILROAD ASSISTANCE PROGRAMS BUREAU OF TRANSIT, LOCAL ROADS, RAILROADS AND HARBORS (BTLRRH) Eligibility For Loans (FRIIP) Projects which accomplish the following: Rehabilitates a segment of rail line Improves transportation efficiency Promotes safety Promotes the viability of the statewide system of freight rail service Assists intermodal freight movement Provides industry access to the national railroad system

17 HARBOR ASSISTANCE PROGRAM

18 Moving Freight by Water is a Wisconsin Tradition Wisconsin is uniquely positioned with navigable waterways on three borders Ports provide efficient transportation of bulk goods Over 28 million tons of cargo at over $2.4 Billion/year

19 Economic Impact of Commercial Ports Over 10,000 jobs Over $500 Million/Year in wages and salaries

20 WisDOT Freight Plan Waterways are underutilized asset Water Transportation is efficient, environmentally friendly and safe Great Importance - Ports connecting with other modes for intermodal and transload freight 21% growth expected between 2013 and 2040 Need for continued infrastructure investment

21 21 HAP Supporting Water Transportation Wisconsin s Legislature created the Harbor Assistance Program (HAP) in 1979 Helps harbor communities maintain and improve waterborne commerce Through 2017, WisDOT HAP invested $135 Million in 108 port preservation and improvement projects

22 22 Harbor Advisory Council U.S. Army Corps of Engineers (2) UW Sea Grant Institute WI Coastal Management Program WI Economic Development Corporation WI Department of Natural Resources Great Lakes Maritime Research Institute 7

23 23 HAP Eligibility Awards 67% - Freight Movement (>1000 Tons) 13% - Ferries 12% - Ship Building 8% - Commercial Fishing

24 ECONOMIC DEVELOPMENT PROGRAMS AT WISDOT CONTACTS Bureau of Planning & Economic Development (BPED) Transportation Economic Assistance (TEA) Program Wisconsindot.gov/tea Valerie K. Payne, TEA Program Manager (608) State Infrastructure Bank (SIB) Dean M. Prestegaard, Economic Development Chief (608)

25 ECONOMIC DEVELOPMENT PROGRAMS AT WISDOT CONTACTS Bureau of Transit, Local Roads, Railroads and Harbors (BTLRRH) Freight Railroad Infrastructure Improvement Program (FRIIP) and Freight Railroad Preservation Program (FRPP) Rich Kedzior, Railroads and Harbors Section (608) Harbor Assistance Program (HAP) Lisa Stern, P.E.; Chief, Railroads and Harbors Section (608)

26 Intermodal Subcommittee of the Wisconsin Freight Advisory Committee

27 Intermodal -- versus -- Transload

28 International Containers 40-Foot

29 International Containers 20-Foot

30 30 Prince Rupert Major lanes ports and corridors Vancouver Seattle/ Tacoma Chicago Cent. PA Oakland Kansas City Memphis Columbus Norfolk NY/NJ Los Angeles / Long Beach Dallas/ FW Atlanta Savannah / Charleston Jacksonville Houston Lazaro Cardenas Mexico City Ron Sucik Five major corridors to Chicago from the west three via Wisconsin RSE Consulting

31 Domestic Containers 53-Foot

32 International intermodal and domestic intermodal are two different operations Export containers follow routes to and from coastal ports Domestic intermodal containers can move anywhere

33 Intermodal has dramatically increased its share of US railroad carloads

34 Subcommittee Goals Identify current and future opportunities and challenges to connect Wisconsin industries to world markets through the increased efficiency of containerized shipping Intermodal Strategy Report

35 Members and Participants Dave Simon, Wisconsin Department of Transportation (WisDOT) - Co-Chair Cory Fish, Wisconsin Manufacturers & Commerce (WMC) - Co-Chair State agencies Jack Heinemann, DATCP Danielle Jones, WEDC Shirley Malski, UW-Oshkosh Small Business Development Center Class I and Regional railroads Brian Buchanan, Canadian National Kelli O Brien, Union Pacific Brad Peot / Ken Lucht, Watco / Wisconsin & Southern David Ruehrdanz, Canadian Pacific Agricultural and timber/lumber organizations/businesses Tom Bressner, Wisconsin Agri-Business Association Bo DeLong, The DeLong Co., Inc. Larry Krueger, Lake States Lumber Association Electronics manufacturing Brian Jackson, JUSDA USA

36 Members and Participants Shipping Chad Olson, Hapag-Lloyd (America) Logistics and intermodal experts Steve Rose, Logistics Council of Milwaukee Chris Winkler / Ron Mazmanian, Aim Transfer & Storage Mark Sericati, Schneider National Major retail Al Rowland, Menards Wisconsin ports Peter Hirthe, Port of Milwaukee Dean Haen, Port of Green Bay / Wisconsin Commercial Ports Association Local government interests Jerry Deschane, League of Wisconsin Municipalities Nationally-recognized experts from academia Dr. Richard Stewart, UW-Superior Dr. Ernie Perry, UW-Madison CFIRE

37 Wisconsin has enough product to fill export containers Mostly grains and DDGs Hardwoods

38 Demand drives investment Where sufficient, sustainable demand for freight shipping is demonstrated, intermodal service can be considered Trucking and short line railroads can greatly extend the reach of intermodal terminals.

39 Business Survey Directed to importers, exporters, and domestic users Quantifying current and potential use / interest Questions to identify similar content: Imports: Country of origin Port of entry Intermodal yard used Final Wisconsin destination (by ZIP code) Container sizes / numbers General contents Exports: Wisconsin ZIP Code origin Intermodal yard used Port of export Destination country Container sizes / numbers General contents Domestic: Wisconsin ZIP Codes (origin or destination) Intermodal yard used Origin or Destination outside of Wisconsin Container sizes / numbers General contents

40 Heat Maps

41 Subcommittee Report The Subcommittee report can help find promising regions of the state that are most favorable to development of intermodal terminals Actual site selection and development will be determined by the railroads and local partners

42 Funding There are federal grant programs with money available for intermodal WisDOT or local governments could sponsor grant applications

43 Questions? DOT Freight Shared Mailbox Intermodal Subcommittee Project Manager Matt Umhoefer Freight Program Manager (608) Intermodal Subcommittee Co-Chair David M. Simon, P.E. Director, Bureau of Transit, Local Roads, Railroads and Harbors (608) Intermodal Subcommittee Co-Chair Cory Fish Wisconsin Manufacturers and Commerce (608)

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