LACKAWANNA, N.Y. — A year-old Canadian National Railway Co. lumber “transload” terminal in Lackawanna is proving successful and is poised for additional growth, the Buffalo News reported.
Cliff Carson, Canadian National’s vice president for commercial development, said the rail-to-truck transport operation, located on idled Bethlehem Steel grounds, has expanded from 10 acres to 18 acres in the past year.
“We see strong potential for continued expansion, by as much as one-third, in the near future,” Carson said.
Last fall, Canadian National quietly moved its lumber transport operation from Niagara Falls, Ont., to the Bethlehem Steel property in an effort to better position itself to handle lumber shipments coming into the United States from Canada. By bringing the lumber to Lackawanna via rail, rather than truck, for distribution to retail outlets, there are savings in time and cost – plus reduction in truck traffic across the area’s international bridges.
“We have processed 1,800 rail cars of lumber here in the past year. That’s the equivalent of 7,002 truckloads,” Carson said.
The efficiencies of rail transport are also demonstrated in terms of volume. While a truck can hold enough lumber for 1.5 homes, a full-loaded rail car can accommodate enough wood products to build six average-sized houses.
The transload site also serves as the train-to-truck transfer point for forest products shipments originating from the Western and Southern U.S., and services a geographic area which includes New York, Pennsylvania and Ohio.
Rep. Jack Quinn, R-Hamburg, said Canadian National’s quick success at the brownfields site is a very good sign for the former industrial location.
“When you have a company like CN come in here and double its capacity in a year, it tells you something about the potential of transmodal shipping operations,” said Quinn, chairman of House Transportation Committee’s railroad subcommittee.
The early success of the lumber transfer operation also bodes well for broader plans to harness the power of the transportation industry to improve the Buffalo area’s economic climate. Andrew Rudnick, president of the Greater Buffalo Partnership, said creating stronger links between rail and truck transport are fundamental to the business community.
“When we talk about transportation issues here, a lot of the attention goes to the Peace Bridge and airlines,” Rudnick said. “But in the business community, the talk is about rail and truck, and the connections between the two.” Intermodal developments, like the Canadian National project in Lackawanna, are viewed in some local development circles as the key to the Buffalo area’s future by making it a dominant player in the global shipping arena.
The presence of the new lumber transport facility has had a positive impact on the home building industry in Western New York, according to a representative of the area’s largest home construction company. Mark Marranco, Marrano/Marc Equity Corp. executive, credited the operation with providing faster and less expensive lumber shipments.
“It’s having a direct impact on our customers,” said Marrano, noting that lumber is the single largest expensive in new home construction.
He said the lower and more stable lumber costs also benefit the bottom lines of contractors and sub-contractors in the area.
The railroad expects to handle at least 2,300 rail cars of lumber in its second year of operations. Its 11-member crew works five days a week, utilizing South Buffalo Railway Co. tracks to process the lumber trains. The facility has the capacity to hold up to 15 lumber cars at one time.
National Distribution Services operates the center for Canadian National.
Two other companies have opened smaller rail-to-truck operations at the Bethlehem site in the past year. RSI Inc. has started an agricultural products shipping operation, and Tonawanda Coke moves coal and coke products through the Lackawanna site.