Why Not Ohio? State Rail Plan Will Boost Iowa City

[irishbobcat]

State Rail Plan Will Boost Iowa City
A $3 million state grant awarded Tuesday will give Sioux City a competitive edge in recruiting wind energy manufacturers and other large scale industries.

The Iowa Department of Transportation funds will cover half the cost of proposed rail improvements to the city's Southbridge Business Park. The city is working with Union Pacific Railroad on a design for the project, which involves constructing additional track and a so-called "drop and pull" rail yard.

The yard would accommodate longer unit trains. By hauling one kind of freight from one destination to another, unit trains can reduce shipping costs, as well as the hassle and time of switching cars at intermediate junctions.

"It's a huge advantage for the business park," Marty Dougherty, city economic development director, said of the rail improvements. "It's a further aspect of the park that will set it apart from other parks in the country."

The Iowa Legislature this year approved $7.5 million in funding to support construction of rail facilities targeted to wind energy and other heavy industries. Sioux City received the maximum individual grant of $3 million. The Department of Transportation on Tuesday also announced smaller grants to the cities of Iowa City and Clinton and Worth County.

Along with other infrastructure, City Manager Paul Eckert said the rail service could help attract wind energy, advanced manufacturing and other industries to Southbridge, a 400-acre development located just south of Sioux Gateway Airport.

The rail grant, though not tied directly to any project, could help bring wind energy manufacturer TPI Composites and up to 500 new jobs to Sioux City.

In May, the state Department of Economic Development approved a $2.5 million forgivable loan and other incentives to help TPI build a $38 million turbine blade factory in Southbridge.

Citing the economic downturn, the company said it has delayed its plans for the factory, which was originally scheduled to open in the middle of 2011.

The original plans called for the city and Woodbury County to build the facility and lease it back to the company. County officials continue to discuss financing options with the company, which also has applied for a federal loan guarantee from a U.S. Department of Energy renewable energy program.