Regarding the problems with the “alternative rail service from the west”, i. e. the Central Illinois Railroad’s (CIRY) connection to the Union Pacific Railroad at Pioneer Jct., which cost Carver Lumber Co. an extra $1,000-$1,500 per railcar as to compared to what it was on the Kellar Branch and its connection with the Tazewell & Peoria Railroad, the City of Peoria can’t say they weren’t warned.
From page A-9 in the October 20, 1999 edition of the Peoria Journal Star:
In a recent letter to [then-Peoria Mayor Bud] Grieves, Brenkman predicts rail service would become more expensive and less reliable to his clients if the city extends a Union Pacific Railroad spur to them from the west.
From the cover and page A-6 in the October 26, 1999 edition of the Peoria Journal Star:
Trail advocates have hoped a western rail link to a Union Pacific line could substitute for the Kellar line. But Brenkman warned Monday that building a substitute rail line would doom rail service to the area. "That will be the death of rail service to Pioneer Park," he predicted.
That’s because connecting to the Union Pacific line would carry additional costs for the shippers as well as reduced service, he told fellow commissioners.
Robert Happach, vice president and general manager of Carver Lumber Co., told the commission that switching from rail to truck would cost his company $50,000 annually. is being sold to its employees and cannot afford this extra expense, he said.
Finally, from page B-1 in the November 4, 1999 issue of the Peoria Journal Star:
The Council agreed nearly three years ago to close the city-owned Kellar Branch for a 7-mile trail bed and provide rail service to Pioneer Park businesses by extending a Union Pacific Railroad spur from the west. But the Kellar Branch’s operator recently warned city officials that giving Union Pacific a monopoly would result in higher fees; Peoria’s Railroad Commission raised similar concerns.
Now let’s see…the City and Peoria Railroad Commission was told that:
(1) Rail service would become more expensive and less reliable to his clients if the city extends a Union Pacific Railroad spur to them from the west.
(2) Building a substitute rail line would doom rail service to the area.
(3) Carver Lumber Co. switching from rail to truck would cost his company $50,000 annually.
(4) Giving Union Pacific a monopoly would result in higher fees.
Recently-retired Pioneer Railcorp CEO Guy Brenkman warned the City about these things in the fall of 1999, NEARLY SEVEN YEARS AGO.
Did the City listen?
The City’s contract operator, DOT Rail Services, dba Central Illinois Railroad Company failed to live up to its contract when it did not provide service to Carver Lumber on the existing Kellar Branch before the western connection was completed. This failure on CIRY’s part cost Carver Lumber an additional $60,000 during the nearly seven month period it was without service. Then, service began over the new connection on March 16 and since Union Pacific has replaced neutral switching carrier Tazewell & Peoria Railroad, Carver Lumber now must pay between $1,000 and $1,500 in additional charges for each carload of lumber.
The answer to the above question is a no-brainer.
