Author Topic: Virginia buys $3.7 billion of CSX track  (Read 604 times)

chriis

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Virginia buys $3.7 billion of CSX track
« on: December 22, 2019, 11:56:36 AM »
On Thursday the state of Virginia announced that it reached a deal to buy a lot of track from CSX for $3.7 billion to expand passenger and commuter service.

It includes the old RF&P from Washington DC to Richmond, the old C&O line from Clifton Forge through Charlottesville to Richmond, and the abandoned S-line from Petersburg to Ridgeway,NC (near Raleigh). It also includes building a new separate bridge parallel bridge over the Potomac River, a current pinch point.


Here's an article from the Richmond Times Dispatch:

https://www.richmond.com/news/virginia/plus/virginia-has-billion-deal-to-expand-rail-service-between-richmond/article_460c07a4-84d1-5b0c-9c0f-6dd384d7aa7b.html

Here's a news release from the governor's office: https://www.governor.virginia.gov/newsroom/all-releases/2019/december/headline-850120-en.html

rrnut282

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Re: Virginia buys $3.7 billion of CSX track
« Reply #1 on: December 24, 2019, 09:31:59 AM »
Are they actually selling the RF&P?  Isn’t that a critical piece of their iron triangle?
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chriis

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Re: Virginia buys $3.7 billion of CSX track
« Reply #2 on: December 24, 2019, 11:23:45 AM »
A quote from near the end of the RT-D article:

"The new bridge will be devoted to passenger service, with a separate span for bicycles and pedestrians, allowing CSX to use the existing crossing solely for freight service that is critical to state commerce, especially to and from the Port of Virginia."

The new bridge is slated to open in 2028, after new triple and quadruple track is slated to be built.


At the beginning of December, the state of Maryland and the feds committed hundreds of millions of dollars for upgrades to the Howard St tunnel and the port of Baltimore.
https://www.baltimoresun.com/business/bs-bz-howard-street-tunnel-20191205-cuhrwu3mbjat7fbdmeof7qwei4-story.html

Likewise, last week the state of Pennsylvania pitched $14.4m for double stack clearances southwest of Philly:
https://www.freightwaves.com/news/pennsylvania-provides-more-than-40-million-for-freight-rail-projects

IndyHog

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Re: Virginia buys $3.7 billion of CSX track
« Reply #3 on: December 24, 2019, 01:24:15 PM »





At the beginning of December, the state of Maryland and the feds committed hundreds of millions of dollars for upgrades to the Howard St tunnel and the port of Baltimore.
https://www.baltimoresun.com/business/bs-bz-howard-street-tunnel-20191205-cuhrwu3mbjat7fbdmeof7qwei4-story.html

Likewise, last week the state of Pennsylvania pitched $14.4m for double stack clearances southwest of Philly:
https://www.freightwaves.com/news/pennsylvania-provides-more-than-40-million-for-freight-rail-projects

Lowest Operating Ratio ever and railroads still need millions in corporate welfare. This on top of millions for the National Gateway Project. Hope it pays off. Baltimore needs it.
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CSX_CO

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Re: Virginia buys $3.7 billion of CSX track
« Reply #4 on: December 24, 2019, 01:35:48 PM »
Lowest Operating Ratio ever and railroads still need millions in corporate welfare. This on top of millions for the National Gateway Project. Hope it pays off. Baltimore needs it.

How is this corporate welfare?  If you could, tell me what corporate welfare even is?  Every time I hear that “Bernie Buzzword” thrown around, it’s usually used to describe a company keeping their money thru reduced taxes.  Not sure how keeping your own money is considered “welfare”?  If that’s the case, I’m on “welfare” because I’m paying a reduced tax rate to the Government because I’m married with two dependents vs that single and no dependent rate.  Thanks Government for the handout???

They’re selling them their own dedicated ROW to run eventual high speed rail with. If they (or anyone) is holding property that has some form of value, they (or anyone) should be free to sell it. Don’t proponents of high speed rail say it’s only successful if you can get your own ROW?

Sentiments like this, they should have just abandoned it, and let the state fight to get it back at a later date. At a much bigger cost then too.


IndyHog

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Re: Virginia buys $3.7 billion of CSX track
« Reply #5 on: December 24, 2019, 01:43:15 PM »
I wasn't referring to the sale of the RF&P but the millions to rehabilitate the Howard Street tunnel which Hunter said was not worth the investment.


Corporate Welfare=government support or subsidy of private business.


For the record, I support less government, not more.
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CSX_CO

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Re: Virginia buys $3.7 billion of CSX track
« Reply #6 on: December 24, 2019, 02:02:14 PM »
I wasn't referring to the sale of the RF&P but the millions to rehabilitate the Howard Street tunnel which Hunter said was not worth the investment.


Corporate Welfare=government support or subsidy of private business.


For the record, I support less government, not more.

Hunter was playing hard ball with them.  Was it needed? No. But if Baltimore, namely the port, wants to reap a benefit from it, then it needed to be dealt with.  Wasn’t absolutely necessary from CSX’s side, but if Baltimore throws some “shade” then they stand to them too.  So, city blinked, and in the end Hunter called their bluff.  If they’re gaining more of an ROI, why wouldn’t you try and get them to chip in?

If you dig into the whole Howard Street tunnel “issue” it sounds like the city’s crappy infrastructure (water pipes above it) has led to a lot of problems in the tunnel.  Leading up to Including derailments caused by the leaks. In that instance, the Government should recoup and remediate the damage their continued neglect has caused.  Lord knows I would be on the hook if my activities caused damage to infrastructure. 

chriis

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Re: Virginia buys $3.7 billion of CSX track
« Reply #7 on: December 24, 2019, 03:41:38 PM »
All three articles aired the same reasoning for why each state was offering the moneys. Parroting the same selling point of "for our port" rings hollow and duplicitous. Especially when you spend a little time thinking what the ports authorities are, and together the projects expedite domestic trade rather than international.