TheBakersfieldCalifornian.com

Officials in Shafter are working on a multimillion-dollar project that could make the city a regional hub for rail and international trade. We asked the man in charge of that initiative to give us an update on its status.

NAME: Brent Green

TITLE: Shafter business development director

Question: For readers who are unfamiliar with it, what exactly is the Shafter Intermodal Rail Facility?

Answer: The Shafter Intermodal Rail Facility is part of a broader full-service rail facility that would provide an inland multi-modal transportation hub supported by air, ground and rail connections.

Q: Why build it, and why in Shafter?

A: Logistically, Shafter is located in the ideal location with access to existing infrastructure. Both class one railroads (BNSF and UP) are within the city limits with easy access to highway connections such as Highway 99, Interstate 5 and Seventh Standard Road. Seventh Standard also connects to I-5 and the new four lanes on Highway 46. The city has invested in infrastructure and has entitled land that is designated for industrial use, including a soon to be added municipal fiber optic ring. The city of Shafter is a rural city adjacent to an urban area, which is perfect to generate the synergy that imports and exports need to be efficient. Think about Shafter's location being within 300 miles of about 14 percent of the entire U.S. population.

Q: Is there enough freight in the ports of Los Angeles and Oakland to support the facility?

A: Global logistics is extremely complicated and constantly changing. The Shafter facility is not just about the goods coming to us locally or agricultural products being exported. This is about infusing our region into the world logistics chain. The Shafter facility would be designed to adjust to the current needs of the shipping community but be flexible enough to adjust to the next upturn or downturn in the economy. After the housing downturn and imports declining, we saw exports of agricultural products increase. It would be naive to only look locally to analyze the worth of this facility. Shafter would be a key link on the west coast of the United States, with access to two of the three commercial harbors.

Q: Would the facility help or hurt air quality in the region?

A: Air quality is an issue, and today the valley is totally dependent on only trucks to move its goods. This rail facility would allow for more trade and more efficiency using the same or less trucks. By having more goods move by rail, we would be eliminating the movement of empty containers into or from the San Joaquin Valley on both import and export loads. Having a Shafter facility would also allow for a higher efficient trucking fleet to be based locally, providing better service with fewer emissions. Currently, the Clean Air Action Program in the Ports of L.A. and Long Beach push the older trucks to the outlying areas like here. A Shafter terminal would keep jobs and equipment local. Remember, not only is rail freight transportation three times more efficient than trucking, it's also three times less polluting.

Q: How large is it now and how big could it potentially be when it's finished?

A: Currently, the city is only servicing rail accounts that take boxcars, hoppers and tank cars. The facility has two mainline switches, more than 10,000 feet of track including switches and one Rail King switch engine. Additional track needs to be constructed on the BNSF site and the UP site before any serious intermodal services could be provided.

Q: How many jobs will be created?

A: Jobs are what Shafter builds best, but it would be complete speculation at this point. Other facilities like this within the U.S. can produce as many as 25,000 jobs, primarily from the users of the facility. The actual facility would probably be contracted to a terminal operator with experience handling rail terminals. Currently the Shafter public works employees are providing the switching services and are enjoying the new challenge. Remember, one out of every 22 jobs in Southern California comes from the port activity of the Port of Long Beach alone.

Q: To what extent would the facility complement the Tejon Ranch Commerce Center?

A: It would only be a plus as the Tejon facility does not have access to rail. In the world of logistics, the more options the better. Both class one railroads have traditionally resisted any short-haul rail within the state, so a Shafter facility would be a welcome change with huge benefits. Currently, the UP railroad is the only one to provide the city of Shafter with a memorandum of understanding to provide such a unique service.

Q: What benefits does this facility offer?

A: History shows us that great cities are usually built around trade centers. The southern San Joaquin Valley has been blessed with agriculture and oil based economy for many years; however, diversifying our local economy could only be a blessing. In a day when Internet shopping replaces brick-and-mortar stores and when we shop all over the world via our computers, it would be exciting to have our local economy be an integral part of such a fundamental change in commerce.

Q: Who is going to use it?

A: The obvious answer would be exporters and importers; however, it would provide limitless opportunities to everyone from consumers who want their electronics faster and cheaper to the hungry person in a country in Southeast Asia who needs food from the U.S. The facts are the U.S. is the greatest producer of food and fiber while being one of the biggest importers of consumer goods in the world.

Q: What will this do for the local economy?

A: The local economy would be stimulated; however, this would allow the region to play on a much bigger stage and invite more companies to locate near this facility. It would provide more jobs and increased value to both land and housing, while better utilizing many of our current assets.

Q: How much will it cost to build it?

A: Rail track, switches and the necessary infrastructure to create such a facility are expensive. The city has more than 10,000 feet of track with 3,000 feet being added. Depending on demand it would be reasonable to expect up to 60,000 feet of track to allow multiple trains, which could run as high as $15 million in track alone.

Q: Where is the money coming from?

A: The initial money for the current facility came in the form of a grant from the state. The city has been selected for an additional $15 million of TCIF 1-B funds but given the timing and the requirements has not executed that commitment with the California Transportation Commission yet. The most likely scenario is the freight will pay the bill. Whether it is a terminal at the Port of Long Beach or a truck going down the road tradition says that the user of the facility will pay for the facility in the form of fees. Annual commitments are expected and guaranteed volumes address the size of any debt. The key is that the railroads provide rates and service that will justify the capital investment in the facility.

Q: When will it be finished and operational?

A: I would hope that it would never be finished. In a world that is changing it would be expected that this facility would change with the evolving needs. The facility is currently operating with one customer, and will have three steady rail users by this summer. Ongoing discussions on a plethora of other projects and products will show us where the market is.