An update on the Regional Intermodal Authority for the Fort Smith/Van Buren area

guest commentary by Ken O’Donnell, director of the Bi-State Metropolitan Planning Organization

There have been numerous questions asked from businesses and residents alike about what is happening with regard to improving our region’s ability to move freight more efficiently and, in fact, do we really need to improve these efficiencies and capabilities.  The answers to these two questions are yes, emphatically yes.

The regional freight community is a significant element of our economic engine.  Although most individuals do not think of freight unless it has to do with a few seconds delay at traffic signals or when a delivery vehicle is double-parked while delivering goods or parcels to various businesses or residences, the movement of freight within and through our area is extremely important to our regional manufacturers (imports and exports) and our region’s retailers (merchandise and other materials).

We are in the early but defining stages of developing a mechanism to advance and improve these delivery and distribution systems by creating a Regional Intermodal Authority comprised of local governments, shippers, transportation providers and other major players in the freight distribution and forwarding sectors. Once established, this Authority will aid and assist the freight community in the administration of federal and state grant funds to initiated infrastructure improvements, create and manage a marketing strategy for the region’s freight handling capabilities, and provide the necessary planning for and oversight of regional freight movement needs.

It should be noted that the region’s freight movement needs are not relegated to one mode of transportation. Improvement to all of our modes need to be planned for and considered.

We have a water navigation system that is horribly underutilized yet has the potential to become not only a regional force but also a national force in the face of the changing dynamics in international trade and freight distribution.

We are also fortunate to have three Class 1 railroads serving our area with two short line railroads that have reciprocal agreements with the Class 1 lines.

We are also in an enviable position to have a major east-west Interstate traversing the region and, hopefully in the not to distant future, a completed major north-south Interstate servicing our region.

Our goal and our energies must be to wisely use and maintain these assets and educate those beyond our area, both domestic and international. who are in the freight delivery and distribution industry.

A study conducted in our region by a freight consultant in the late 1990s and completed in early 2000 indicated that there is an extraordinarily large amount of freight in our region that could be captured by a local intermodal freight operation. This study identified the potential for more than 115,000 container lifts during a facility’s first year of operation and over 250,000 container lifts at full build-out (15-20 years). The financial impact that this would have on our area, besides the transport benefits accrued by regional manufacturers and businesses, is in the millions of dollars.  It is estimated that there will be more than $14 million in revenue generated the first year with a total regional economic impact of more than $70 million upon total build-out of the facility.

Compelling arguments have been offered regarding the eventual location of the intermodal facility. Although each has been developed through thoughtful deliberations and processes, the ultimate location should be and will be more influenced by: market considerations; locational factors such as accessibility and land availability; and, functional requirements of the transportation network.

These considerations and decisions would be one of the first undertakings of the Regional Intermodal Authority after it has been established. It is envisioned that the Authority would be seen as a neutral entity working on the behalf of all of the local governments, manufacturers, businesses, and residents to develop the most efficient, effective, and sensible strategies for the investments of public funds for improvements especially since the anticipated costs over a 15 to 20 year period for a full build-out intermodal facility, as defined by the above referenced study, exceeds $40 million.

Two final points of clarification need to be stressed.

During the planning stages and discussion phases pertaining to the intermodal facility that have been going on over the past 15 to 20 years, the term “port” has been used almost exclusively when referencing the proposed facility. Yes, there are port elements and proposals in the overall intermodal facility concept but there are also rail and truck components of the concept. Each is an integral part of the envisioned operations and each compliments the other as well as broadens the scope and enhances the benefits to the local freight community.

The second point of clarification is the definition of an inland waterway port and intermodal operations. It is, first, not a single source operation. Inland port communities such as the port of Pittsburgh, the Port of Tulsa, and the various ports along the Ohio River in Illinois and Indiana are made up of numerous privately owned and operated terminals for water-borne as well as for rail and truck freight movements. In fact, the Port of Pittsburgh, Pa., is comprised of more than 260 river miles or shoreline of terminal operations on three separate rivers. The key consideration is that they have been developed over time in large part though private investment resulting from market based needs and analyses.

The goal for our proposed Regional Intermodal Authority, as previously mentioned, is to initially provide the necessary administrative services and promotional activities to existing and future freight operations within the region. Trust and the formation of working partnerships between the freight community and the Regional Intermodal Authority are the two most important factors needed to accomplish this task.

As we continue along the path of establishing the Authority and developing the framework for its success, additional updates and announcements will be provided to the general public. Here again, trust and the formation of partnerships between the freight and business communities and the public are essential for this to be a successful endeavor.