(The following story by David Tewes appeared on the Victoria Advocate website on July 18, 2009.)
VICTORIA, Texas — About 120 officials from three counties got a first-hand look Friday at the new rail line they hope will bring an economic boon between Victoria to Fort Bend counties.
They were aboard the Kansas City Southern Southern Belle passenger train as it traveled between Victoria and Kendleton, picking up VIPs in Victoria, Edna, El Campo and Wharton. The company was showcasing its new rail line and the CenterPoint Intermodel Center at Kendleton.
“This is a dream that has been a long time in coming,” said Warren Erdman, executive vice president for Kansas City Southern. “We are so proud to be a corporate citizen of South Texas.”
Construction to refurbish the line began in March 2008 and was completed in June at a cost of about $1.5 million to $2 million a mile. The new line saves the company time and money by eliminating 67 miles of the 157-mile trip Kansas City Southern trains previously had to make over Union Pacific lines.
Harrison Stafford, the Jackson County Judge, said the new line won’t have an immediate impact on the economy in his county.
“But it has the potential for growth later on,” he said. “At the current time, there are no plans to have any sidings in Jackson County for industry to use.”
A more immediate impact will be on the county’s tax base, because the rail lines and property are subject to property tax at a value of more than $1 million a mile. “What it will be appraised at, I don’t know,” Stafford said.
The railroad will also have to pay a rolling stock tax on the train cars based on the number of miles of track in the county.
Adrian Cannady with the Victoria Economic Development Corp. said he envisions the new line offering a number of opportunities for economic growth.
“I think, first of all, opening the line that connects to us in Victoria is really going to open lot of economic development opportunities with respect to industrial clients that may need that rail service,” he said. “We already have some rail service here, but Kansas City Southern, being another service, might open up more opportunities.”
It also doesn’t hurt that the current line passes by the city’s business park, he said.
“Although that is a temporary line, construction of a bypass could be years down the road,” Cannady said. “In the meantime, the availability of that line at the industrial park could offer an advantage in attracting new customers.”
Edna Mayor Joe Hermes said he had concerns when he learned the line would be restored after being out of operation for years.
“I was one of those that thought it would never happen because it was such a tremendous cost,” he said. “But as I sit here, I see I was wrong.”
While the railroad has done a great job, he worries about the safety of motorists who aren’t used to having trains pass through Edna. Enclosed, air-conditioned cars with sound systems make it difficult for drivers to hear the trains at the crossings.
“But the Kansas City Southern people have made every effort to see that the public knew what was going on,” Hermes said.
Tony Rigdon with the Port of Victoria said having dual rail service from Kansas City Southern and Union Pacific available is a plus for the port. It means competition and possibly lower shipping rates for businesses that use the port.
“Realistically, it’s probably going to be down the road,” he said. “But we are already working on accommodating and developing those needs.”
The new line provides the railroad company with a key link from the heartland of the United States to the heartland of Mexico, said Michael Haverty, chairman of Kansas City Southern.
“I think we’re going to see more business come in here,” he said. “I think everyone here recognizes the potential for growth.”