SHAMOKIN - Renovations to railroad tracks in the city will begin next month as the Shamokin Valley Railroad prepares for a significant increase in rail traffic.
More than 1,000 rail cars per month are expected to roll through the city in connection with developments at TimberEnd Inc., a wood processor near Ranshaw, and anticipated new businesses in the SEEDCO-Coal Township Industrial Park.
SEDA-Council of Governments (COG) Joint Rail Authority Property Manager George Fury said 1,000 cars per month will be a significant increase from the approximately 200 cars that came through Shamokin during all of 2010.
"Anytime you bring that amount of business to the area, there's going to be an increase in jobs as well as tax revenue for the city," said Fury.
Hundreds of new railroad ties have been piled near the tracks behind the Weis Markets along Walnut Street.
That's where the work will begin.
"This is a very positive step for the city," said Shamokin City Clerk Steve Bartos, who has also served as a local representative for the investors involved at the SEEDCO park. "The bottom line is to attract new industries, and these are the kind of things we have to do to bring manufacturers to the area. We have to restore basic infrastructure and significant work needed to be done to the railways to support the increased amount of traffic."
Fury said the routine maintenance planned over the next two to three years includes the replacement of the ties and improvements to crossings in the city. SEDA-COG and Shamokin are also working together on beautification efforts around the railroad and crossing sites.
Yearly grants will fund future improvements to the railway throughout the city, and it may take two to three years to acquire all the necessary funds, Fury said.
Separate from TimberEnd
While funding will involve some of the same state and federal sources, the Shamokin work is separate from the $1 million project announced in Dec. 10 at TimberEnd, Fury said. In what was described as a "big, big day" for economic development in eastern Northumberland County, Shamokin Valley Railroad officials at that time announced plans to build a 1,500-foot runaround and a 2,000-foot siding to serve TimberEnd and, eventually, any SEEDCO tenants. A runaround is a parallel track that switches on either end of the already established tracks (which in this case run near Route 901) while a siding is a railroad track that breaks off and serves a specific customer (in this case TimberEnd).
TimberEnd Inc., a landscape mulch manufacturer, said at the time it would likely expand by about 25 percent in facilities, production and employment in the first year after the rail was built. The company in December employed about 30 people.
Efforts to reach TimberEnd Inc. officials Monday and Tuesday for an update on the company's plans were unsuccessful.
That project is funded by $300,000 in TIGER II funds from the Federal Railroad Administration and $700,000 of PA Capital Budget funds from PennDOT Rail Freight. A company match of at least 20 percent was required.
Intelliwatt connection
It was reported at the time that the wood products TimberEnd products could be sold as renewable fuel sources for businesses such as Intelliwatt Renewable Energy LCC.
The New Jersey-based company hopes to build a bio-mass energy facility on 22 acres of land in the Mount Carmel Township portion of the SEEDCO park, using recycled wood pallets and clean wood chips to generate electricity.
Bartos also said he expects several major announcements in the next few months concerning developments at SEEDCO.
The North Shore Railroad Company, based in Northumberland, operates five public railroads, including Shamokin Valley, and one private line for the SEDA-COG authority.
Through Shamokin Valley, North Shore already services a number of businesses, including Sealed Air in Paxinos, along its Sunbury-to-Shamokin route.