(The San Antonio Express-News posted the following article by Patrick Driscoll on its website on February 18.)
SAN ANTONIO, Texas — A new railroad line for a future Toyota plant in South Bexar County also could be a centerpiece for an industrial district luring thousands of additional jobs, officials said Monday.
“San Antonio does not have any real rail development sites,” said Ted Liljenwall, a board member of the Bexar County Rail District.
“It’s now a little piece here and a little piece there,” he said. “Opening up two lines would open up the area for development.”
Union Pacific Railroad owns the only tracks close to the factory site, near Applewhite and Watson roads, and will not let Burlington Northern Santa Fe Railway use the line.
The rail district was formed in November to build a second line because Toyota wants access to competing services.
The intent to build a second line could be enough to persuade Union Pacific to sell trackage rights, said Bruce Flohr, the rail district’s chairman. But he and other board members said it probably would be better to build the second line because an agreement could have limitations.
“That way we’re in control of our own destiny,” said board member Henry Cisneros. “We’ve got to do this right, and that’s a state-of-the-art industrial zone, and you can’t do that without (competing) rail service.”
Though Toyota’s $800 million manufacturing plant is expected to employ up to 2,000 workers by 2006, the real prize would be to also attract companies supplying auto parts for this factory and others around the nation. That could amount to some 10,000 jobs, Cisneros said.
Shipping large volumes by rail can cost half as much, or even less, than using trucks, Flohr said. And having access to two or more railroad services can reduce costs by a third.
The rail district took several steps Monday to move as quickly as possible to build a railroad line, including hiring HDR Engineering Inc. for $56,600 to do an initial environmental assessment.
There are six route options.
“We would like to lock down a preferred route within the next 30 to 60 days,” said Seth Mitchell, intergovernmental services manager for Bexar County.
The board voted to save money by terminating a contract with Community Rail Development Corp., which helped the district get organized, after a month of service. It instead created a position for an executive director. The job description will be considered at the next meeting, scheduled for March 3.
Officials announced that the county has lent another $250,000 to the rail district, bringing the total to $350,000. Also, bills have been filed in the Legislature to give the district $15 million.
Building the eight-mile line is estimated to cost $23 million to $28 million, not including land acquisition and engineering, Mitchell said. Burlington Northern Santa Fe has offered an undisclosed amount to help fund it. And the rail district can sell bonds and pay them off with a shipment fee.