(The Rockford Register Star published the following story by Sarah Roberts on its website on August 28.)
ROCHELLE, Ill. — The 40-foot crane swooped over its target — a steel container the size of a semitrailer-truck — clamped down and smoothly hoisted the container in the air as 400 pairs of eyes followed its every move.
A trailer immediately slid underneath the suspended container, waited until the crane gently deposited it and then motored the cargo off to a waiting train. The entire process took slightly more than a minute.
The demonstration was just for show, a visual treat for the large crowd gathered Wednesday to celebrate the grand opening of Union Pacific’s truck-train cargo hub at Rochelle, complete with bus tours and barbecue lunch. But for the company and community leaders, the opening ceremonies marked the culmination of six years of research, lobbying and construction.
Known formally as the Global III, Union Pacific’s $181 million cargo hub is a place where trucks and trains can quickly ex-change cargo from the Midwest, West and international ports.
Union Pacific has a vested interest in its various hubs, as they represent the fastest-growing segment of the company’s business. Such hubs have been called the future of transportation because cargo can be shipped via air, rail or port without having to be repackaged at each stop.
“This hub is truly extraordinary and will soon take its place among the biggest and best intermodal operations in the world,” said Ike Evans, president and chief operating officer of Union Pacific Railroad.
Evans joined other dignitaries at the grand opening, including U.S. Rep. Don Manzullo, R-Egan; state Sen. Brad Burzynski, R-Sycamore; state Rep. David Wirsing, R-DeKalb; and Rochelle Mayor Chet Olson, who all touted the rail site?s expected economic impact.
Even before it opened, the hub has attracted several new businesses to Rochelle and the surrounding area, and more are expected to follow. A preliminary economic study predicts the Rochelle hub will generate $2.8 billion for the region?s economy within 10 years.
“This is one of the brightest lights shining in the state in terms of economics,” said Manzullo, who was instrumental in securing millions in federal funding for the project. “This hub will anchor economic growth and development in the northern part of the state and will serve as a magnet for business.”
Meanwhile, Union Pacific is enjoying phenomenal success in a traditionally staid market.
North America’s largest railroad covers 23 states across the western two-thirds of the country.
It serves all major West Coast ports and Eastern gateways and is the only railroad to serve all six gateways to Mexico.
Its parent company, Union Pacific Corp., posted a 39 percent growth in net income last year, and the second quarter was the company?s most successful ever, when revenue reached $3.3 billion.
In another effort to increase market share, Union Pacific recently joined forces with CSX Corp. to lure UPS away from Burlington Northern Santa Fe Railway for part of its shipping needs.
The switch will allow UPS to shave time off its guaranteed four-day ground service between Los Angeles and New York.
Union Pacific spokesman Mark Davis said the UPS cargo hub at Greater Rockford Airport does not presently figure into the new deal, but the combination of the Rochelle hub and Rockford’s UPS hub could eventually generate interest.
The railroad has pledged $4.5 million to Rochelle to be used for future road improvements around the hub.
The upgrades should make the hub more efficient and resident-friendly, a critical element of the rail site’s success.
Union Pacific originally considered locations near the Du Page County Airport and DeKalb for its cargo hub, but community opposition there forced the company to look elsewhere.
In Rochelle, hub proponents have made a concerted effort to keep noise and lighting at a minimum so as to not disturb citizens.
Wednesday’s dignitaries commended city officials and residents for working together to make the hub a reality.
“It speaks well for Rochelle to show what a small town can do rather than what a small town can’t do,” Burzynski said. “It proves there is vision here.”