(The following story by Laura Bomyea appeared on the Watertown Daily News website on June 30, 2010.)
MASSENA, N.Y. — Alcoa says it will not likely be hurt by a move by CSX Transportation to reduce daily rail service through the north country, but local officials are not sure other firms or projects will be so lucky.
CSX has applied to the federal Surface Transportation Board for permission to move its trains along a line from New York City to Rouses Point, on the Canadian border, instead of along the Massena Line it currently uses, which runs from Syracuse to Huntingdon, Quebec.
If approved, the change would involve reducing rail service to communities along the Massena Line to two or three days a week and save CSX an estimated $280,000 annually.
Alcoa spokeswoman Laurie A. Marr said the aluminum company was initially concerned about how the change would impact shipping there.
“We ship out a small amount of product by rail, but by far our biggest rail use is inbound raw materials, particularly alumina,” Ms. Marr said. “When we first heard the news, we were very concerned.”
After talking with officials from CSX and Rail America, which operates rail spurs running directly to the Massena plants, Ms. Marr said the company has determined it will most likely not be harmed by the proposed change.
Because Alcoa’s alumina shipments come in large batches, usually taking up several rail cars, Ms. Marr said the decrease in days CSX plans to serve the area will not necessarily disrupt Alcoa’s ability to bring in the materials on schedule.
“We’re going to monitor the situation and make sure it doesn’t start to impact us,” Ms. Marr said.
While Alcoa may not be affected by the change, Business Development Corporation Executive Director Jason A. Clark said other projects and shippers may suffer.
In particular, the BDC’s proposal to build a rail spur into the Massena Industrial Park could be threatened by the change.
Tenants in the industrial park, such as Curran Renewable Energy, have expressed interest in taking advantage of rail service there, especially since CSX’s line already runs directly behind the property. The BDC has been looking for the money from state transportation funds to build the spur for more than a year, but has been unsuccessful.
“We’re trying to make the park, and a few other locations, more attractive by adding rail spurs,” Mr. Clark said. “The reduction is counterproductive to that effort. The project was still going. In recent weeks we had discussed new options for funding it and spoken with other agencies about funding, as an alternative to the delays we’ve been seeing with the state.”
Mr. Clark said he and Ogdensburg Bridge and Port Authority Executive Director Wade A. Davis have discussed the issue and a meeting with affected companies is planned in the coming weeks.
Another potential challenge is the demolition and cleanup of the General Motors Powertrain plant, bids for which are due Thursday.
The U.S. Environmental Protection Agency would prefer demolition and cleanup contractors rid the site of contaminated soils and other debris by using existing on-site rail infrastructure, instead of shipping the material by truck. The use of rail has been factored in during the bid preparation process, officials said.
“That’s potentially a huge issue,” Mr. Clark said. “Will that delay the whole process? EPA had been pushing for using rail options, but if those aren’t there anymore because of this change, how will that affect the process?”
If the Surface Transportation Board approves CSX’s plan, it would become effective Nov. 21. The GM demolition is projected to start Sept. 1 and last for 16 to 18 months.
Motors Liquidation Corporation, the owners of the GM site, did not return calls for comment Tuesday on potential impacts to their demolition project.