Southern Ohio River Port
Project Narrative
5/29/2013
Submitted by:
The Lawrence County Port Authority
216 Collins Avenue
South Point, Ohio 45638
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Table of Contents
I.
Project Executive Summary .................................................................................................................. 1
II.
Project Description................................................................................................................................ 3
III.
Project Parties ................................................................................................................................... 7
A.
Lawrence County Port Authority (LCPA) ........................................................................................... 7
B.
Lawrence Economic Development Corporation (LEDC).................................................................... 8
C.
Ohio Department of Development .................................................... Error! Bookmark not defined.
D.
KYOVA Metropolitan Planning Organization .................................................................................... 8
IV.
Grant Funds and Source/Uses of Project Funds ............................................................................... 9
V.
Selection Criteria ................................................................................................................................. 10
A.
VI.
Long Term Outcomes ...................................................................................................................... 10
1.
State of Good Repair ................................................................................................................... 10
2.
Livability ...................................................................................................................................... 10
3.
Sustainability ............................................................................................................................... 12
4.
Safety .......................................................................................................................................... 13
5.
Job Creation and Near-Term Economic Activity ......................................................................... 14
6.
Innovation ................................................................................................................................... 17
7.
Partnership.................................................................................................................................. 18
8.
Results of Benefit-Cost Analysis .................................................................................................. 19
Project Readiness and NEPA ........................................................................................................... 21
A.
Schedule and Environmental Approvals ......................................................................................... 21
B.
Legislative Approvals....................................................................................................................... 21
C.
State and Local Planning ................................................................................................................. 21
D.
Technical Feasibility ........................................................................................................................ 22
E.
Financial Feasibility ......................................................................................................................... 22
VII.
Federal Wage Rate Certification ..................................................................................................... 22
VIII.
Additional Supporting Materials ..................................................................................................... 23
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I.
Project Executive Summary
Ohio’s economy has been faltering for nearly two decades and has been dealt severe blows in the
recession. According to data from the U.S. Bureau of Labor Statistics as shown in Chart 1
below, employment in the auto industry had decreased by nearly 50% between 2004 and 2009,
shedding approximately 57,600 jobs in six years. According to the Ohio Department of
Development, “employment in the iron and steel industry plunged from 44,400 to 23,400 in the
last decade. The loss of 21,000 jobs is a decline of 47.3 percent.1” Chart 2 shows the downward
trend of one of Ohio’s leading industries. These statistics are not uncommon in Ohio as
manufacturing output has decreased and jobs lost in other major employment sectors like plastics
& polymers. Similar to other manufacturers in Ohio, polymer industry employment in Ohio has
drifted downward since 2003; the net loss, exceeding 13,600 jobs, was a decline of 14.4 percent.2
Chart 1 – Employment Trends in the Auto
Manufacturing Industry
Chart 2 - Employment Trends in the Steel Industry
One of the bright spots of the Ohio economy has been in the distribution and logistics industry.
Due to its geographic location within 60% of the U.S. and Canadian population, Ohio has seen
companies develop distribution facilities and infrastructure. We have also seen companies begin
to “open the box” and locate and expand in Ohio to produce goods and services for the country
and the world. The Point Industrial Park (The Point)—in South Point, Ohio—encompasses more
than 500 acres of prime flat land with seven miles of rail and 3400 feet of Ohio River frontage.
The Point is an excellent place to locate business with an available skilled workforce, low
business and land costs, affordable utility rates, and unbelievable transportation access to major
1
Ohio Department of Development (JobsOhio) – Snapshot Iron & Steel in Ohio
http://www.development.ohio.gov/research/documents/SteelOhioSnapshot.PDF
2
Ohio Department of Development (JobsOhio) – Snapshot Polymers in Ohio: Plastics & Rubber
http://www.development.ohio.gov/research/documents/RubberPlasticSnapshot042011.pdf
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markets. The Point is designated as a developable site, saving companies valuable set-up and site
preparation costs.
Due to The Point’s location seven (9) companies have located within the industrial park bringing
over $36,000,000 million in private investment to the industrial park. Companies like Engines,
Inc. alone brought 100+ jobs and nearly $6 million in investments.
Other companies have brought significant employment and investment to The Point as well.
 Engine’s, Inc.-100 jobs, $6,000,000 investment on three buildings
 M&M Mailing – 12 jobs, nearly $1,000,000 investment
 M&M Services – 25 jobs, nearly $1,000,000 investment
 Merciers – 27 jobs, nearly $500,000 investment
 Applied Technologies – 11 jobs, $500,000 investment
 Liebert Corporation – 14 jobs, $500,000 initial investment and $1.3 million on a new
facility
 Hadsell Development Company – 50,000 S.F. spec building, nearly $1,000,000
investment
 FedEx Regional Ground- 125 jobs, over $20,000,000 investment on a new facility
 Minova International- 110 jobs, over $4,000,000 investment
 Intermountain Electronics- 35 jobs, over $4,500,000 in investment on a new facility
The Point has focused on bringing employers with good paying jobs to the region and a National
Infrastructure Investments grant herein referred to as TIGER Discretionary would allow The
Point to:
 Restore direct water access and heavy lift capacity for shippers,
 Provide intermodal movement from water to truck and rail with a new 300-ton bridge
crane and dock at a terminal with bulk dry and liquid storage facilities (pads and
warehousing);
 Handle material with a bulk conveyor and
 Serve as a portal for manufacturing in Southern Ohio, Eastern Kentucky, and Northern
West Virginia.
Three existing businesses have stated that they would use the Intermodal River Port Facility.
Engines, Inc. has estimated that an expansion of its existing operations to supply “parts and subassemblies to railroad corporations and rail car manufacturers around the world” would create 50
new jobs with a private investment in the expansion of over $5 million.
McGinnis, Inc., a company providing marine transportation, equipment, repair and stevedoring
services to the river industry for over a century is considering investing $3-5 million in a new
barge manufacturing operation. The operation is anticipated to create up to 100 full time jobs.
Shipments of steel and over 9 million gallons of fuel annually would need to arrive by water and
McGinnis, Inc. is located just downstream (north) of the proposed Intermodal River Port Facility.
Phoenix Hydraulics and Controls currently ships hydraulic parts and components. It also repairs
and manufactures hydraulic and electronic control systems and custom manifolds for heavy
industry. As stated by Phoenix Hydraulics, they currently must limit their contracts to a 20-ton or
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under capacity. They ship to Costa Rica, Mexico and other Central America and worldwide
locations. Phoenix Hydraulics has had to forego international contracts and refer existing clients
to European countries to ship goods to their clients. Phoenix Hydraulics estimates that if the 300ton lift crane is available they will add 10-20 additional jobs and pick up $5 to $10 million in
contracts with annual estimated exports at 5,000 tons of goods worldwide.
See all business support letters and documentation at http://lawrencecountyohio.org/tiger5 .
II.
Project Description
The proposed project is the improvement of existing barge mooring infrastructure, tank storage
and dock control equipment, construction and installation of a new dock and 300-ton bridge
crane, roadway extension, rail siding, bulk handling and storage areas to create the development
of an Intermodal River Port Facility at the Point of Huntington (Intermodal River Port Facility)
at a thriving industrial development at The Point Industrial Park (The Point) in South Point, Ohio
(Lawrence County). Currently, there are no similar bridge crane facilities, private or public,
within 100 miles of the site. The Point is located adjacent to the Ohio River and is part of the
Port of Huntington. A map of the location is shown as Figure 1 below.
Figure 1 - The Point Index Map
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The Point Industrial Park—in South Point, Ohio—encompasses more than 500 acres of prime
flat land with seven miles of rail and 3400 feet of Ohio River frontage. The Point is an excellent
place to locate business with an available skilled workforce, low business and land costs,
affordable utility rates, and unbelievable transportation access to major markets. The Point is
designated as a developable site, saving companies valuable set-up and site preparation costs.
The Point Industrial Park has existing infrastructure in place with prepared large and small tracts
ready for development. In addition, new and existing vacant buildings and storage tanks are
available for immediate occupancy.
This site is the first point where the Heartland Corridor intersects with the Ohio River. The Point,
bordering the Ohio River, is located at the southernmost tip of Ohio and is a central location in
the Tri-State of Ohio, Kentucky, and West Virginia. The Point Industrial Park’s unique location
near Interstate 64 Highway, U.S. Route 52, the Norfolk Southern Mainline (National Heartland
Corridor), and as a Port on the Ohio River in the Port of Huntington (Busiest Inland Port in the
Nation) the Point offers a major enhancement in the flow of goods into and out of the Midwest
Region of the United States. Also, one of the most strategic rail lines in Ohio, a double track
Norfolk and Southern main-Heartland Corridor is located on the site, as well as over 8 miles of
rail spurs throughout the industrial park, providing for unlimited multi-modal potential. South
Point and the location of The Point Industrial Park is marked by the letter “A” on Figure 2
below.
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Figure 2 - South Point Regional Location Map
The proposed Southern Ohio Intermodal River Port is designed to enhance the usage of The
Point Industrial Park and accommodate the transportation needs of heavy manufacturing in
Southern Ohio.
The Southern Ohio Intermodal River Port Facility is adjacent to The Point Industrial Park and a
new road has been constructed along the river front to open development to the site. The Ohio
Department of Transportation awarded American Recovery and Reinvestment Act (ARRA)
funds for a rail to road transload pad as well as an access road to and from the river. This access
road is constructed as a loop to provide single direction travel into and out of the proposed
Southern Ohio Intermodal River Port Facility. A map of the Point Industrial Park and the
proposed site for the Southern Ohio Intermodal River Port Facility is shown below as Figure 3.
The “main site” is The Point Industrial Park bounded in red and the Intermodal River Port is
shown bounded by the light blue area. The proposed project elements would all be constructed
within the Southern Ohio Intermodal River Port boundary with the exception of the 60,000 S.F.
Warehouse. It would be constructed in The Point Industrial Park. The proposed 300-ton bridge
crane is shown in purple and is located on the southern third of the river front property. The
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property is already owned by LEDC, the administering agency for the Lawrence County Port
Authority.
Figure 3 - Point Industrial Park & Intermodal River Port Facility Location
The Southern Ohio Intermodal River Port Facility has the ability to reduce congestion, increase
mobility, reduce transportation costs and create better connectivity between water and rail/truck.
A principal value of the inland waterway system is its ability to efficiently convey large volumes
of bulk commodities and oversized/overweight items moving long distances. Because this
project creates a facility that can move bulk and heavy products between water and rail or truck,
this project will facilitate shipping by barge and then accessing rail or truck to reach final
destinations. Accordingly, there will be cost savings by moving bulk and oversized/overweight
commodities by water and then completing the transportation by rail or truck. The Southern Ohio
Intermodal River Port Facility will also add significant global value as items imported and
exported through the existing foreign trade zone (FTZ) may be duty-free or have tremendous
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duty savings opportunities. This project will offer the availability of direct water access to the
world for the manufacturers in Southern Ohio.
The proposed Southern Ohio Intermodal River Port Facility would rehabilitate existing
infrastructure as well as add infrastructure to support the movement and storage of bulk
commodities and oversized manufactured goods. Table 1 presents a detailed summary of the
elements of the Southern Ohio Intermodal River Port Facility and the associated costs.
Table 1 - Southern Intermodal River Port Facility Project Elements & Associated Costs
Item Number
1
2
3
4
6
5
7
8
9
10
11
12
14
Use
60,000 S.F. Warehouse
Rail Development
Sheet Pile Dock
Liquid Tanks Catwalk Redevelopment and Loading Facility
Mooring Cells
Overhead Bridge Crane Dock Development
Control Center Barge Rehabilitation and Holding Cell
Liquid Loading Containment Areas
Road extensions, Parallel Access Road & Workflow Areas
Rail Siding
Repair Two one million gallon tanks
Rail Hopper Car Unloading/Conveyor Facility
Engineering & Administration
Amount
Project Total
$700,000
$3,000,000
$2,500,000
$300,000
$475,000
$8,500,000
$248,000
$302,000
$1,075,000
$3,200,000
$500,000
$935,000
$1,872,800
$23,607,800
All elements of the project will support the short term storage and waterborne movement of
goods such as fuel, grain, bulk metals, metal ores, oversized/overweight commodities such as
tanks, steel coils, large ducts, large manufacturing machines, transformers, and wind turbine
blades. This project will create direct river access for tenants of The Point as well as other
manufacturers in the area to ship and receive waterborne freight.
III.
Project Parties
A.
Lawrence County Port Authority (LCPA)
The Lawrence County Port Authority is the lead agency for the Intermodal River Port Facility
project. The LCPA is a partnership of governmental organizations spearheaded by LEDC and
organized by resolution of the Lawrence County Commissioners. Its service area is Lawrence
County and forges a long term relationship between Lawrence County Economic Development
Commission (LEDC) and the Lawrence County Community Action Organization to provide a
vehicle to implement programs most appropriate to a port authority. The LEDC is the
administering agency for the LCPA.
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B.
Lawrence Economic Development Corporation (LEDC)
The LEDC is a non-profit Community Improvement Corporation (CIC) formed under Chapter
1724, Ohio Revised Code. The LEDC is the lead agency for the Intermodal River Port Facility
project and the owner of The Point Industrial Park. The LEDC has the full support of the
community and has collaborated closely with state and local officials in Ohio, Kentucky, and
West Virginia on this and many other projects.
The Lawrence Economic Development Corporation was formed in 1983 and was designated the
economic development agent for the City of Ironton and Lawrence County. The goal of the
agency is job creation and retention as well as to provide assistance in community enhancement
projects such as the construction of parks and community centers throughout the county to help
the citizens of Lawrence County.
The Lawrence Economic Development Corporation administers a city and county-wide
revolving loan fund, as well as a Regional 166 revolving loan fund which supports economic
development projects in the area. The LEDC is directed by a Board of Trustees, composed of
local elected officials and local business leaders. LEDC is also in charge of marketing,
construction of infrastructure, and development of The Point Industrial Park.
C.
Ohio Development Services Agency
The Port Authority and LEDC has partnered with the Ohio Development Services Agency to
assist with the funding of five (5) speculative buildings – all which are occupied. Additionally,
ODSA has invested funds in the infrastructure of the site as well as equipment for manufacturers
that have expanded in the industrial park.
These funds are being used to match potential TIGER Discretionary funds and are ready and
available upon award. No funds have been expended. ODSA has awarded $6.5 million of
Logistics and Distribution (L&D) funds to LEDC to develop the first two phases of the River
Port Intermodal project. L&D Funds will be used to develop a sheet pile dock along the Ohio
River which will allow for the movement of containers and smaller bulk items from river to road
or rail. Funds will also be used to develop the rail line that will run parallel to the Ohio River
(TIGER Discretionary funds are being requested to complete the remainder of the rail
development to tie in two barge terminals that currently exist with McGinnis, Inc. and Superior
Marine Ways, Inc.). The catwalk to the liquid loading tanks will also be refurbished with L&D
Funds. These funds are being used to match potential TIGER Discretionary funds and are ready
and available upon award. No funds have been expended.
D.
KYOVA Metropolitan Planning Organization
KYOVA is an association of local governments in southwestern West Virginia and southern
Ohio that serves as a forum for assessing and acting upon regional transportation problems. The
Commission’s goal is to promote cooperation among members, the governments closest to the
people, and to maximize their capabilities for solving problems that cannot be solved by any one
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jurisdiction. KYOVA has worked with the Lawrence County Port Authority and the Lawrence
Economic Development Corporation to incorporate previous project at The Point into the
KYOVA Transportation Improvement Plan (TIP) and ultimately the Statewide Transportation
Improvement Plan (STIP). More information is about KYOVA available at
http://www.wvs.state.wv.us/kyova/ .
E.
EDA and FEDERAL HIGHWAYS:
It should also be noted that although these funds cannot be used as match for this project, EDA
and Federal Highways have committed financial support of the Southern Ohio Intermodal River
Port Facility. EDA has committed $2,900,000 to develop a rail spur to run alongside the Sheet
Pile dock development for transloading and Federal Highways has committed $2,600,000.00 in
CMAQ funds to construct the foundation for the river dock itself.
IV.
Grant Funds and Source/Uses of Project Funds
Table 2 - Summary of Grant Funds; Uses & Sources
Item Number
1
2
3
4
6
5
7
8
9
10
11
12
14
Use
60,000 S.F. Warehouse
Rail Development
Sheet Pile Dock
Liquid Tanks Catwalk Redevelopment and Loading Facility
Mooring Cells
Overhead Bridge Crane Dock Development
Control Center Barge Rehabilitation and Holding Cell
Liquid Loading Containment Areas
Road extensions, Parallel Access Road & Workflow Areas
Rail Siding
Repair Two one million gallon tanks
Rail Hopper Car Unloading/Conveyor Facility
Engineering & Administration
Amount
Project Total
% of project
10%
20%
70%
Sources
Funds
Total Committed From LEDC
Total Committed From Ohio Development Services Agency
Requested from Tiger
TOTAL
$700,000
$3,000,000
$2,500,000
$300,000
$475,000
$8,500,000
$248,000
$302,000
$1,075,000
$3,200,000
$500,000
$935,000
$1,872,800
$23,607,800
$2,360,780.00
$4,600,000.00
$16,647,020.00
$23,607,800.00
A link to the letters confirming the availability of the funds from LEDC and ODOD can be found
at http://lawrencecountyohio.org/tiger5 in the Proof of Funding folder.
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V.
Selection Criteria
A.
Long Term Outcomes
The proposed Intermodal River Port Facility is located within one of the two largest inland ports
(by tonnage) in the United States - the Port of Huntington, WV on the Ohio River. By
developing intermodal (water-rail-truck) infrastructure on the Ohio side of the river, full
advantage of the barge and rail transportation capabilities can be taken thus nurturing the
manufacturing and agricultural industries in the region.
The development of the Intermodal River Port Facility with a 300-ton bridge crane will provide
heavy lift capacity and support the existing and expanding industries in the region.
1.
State of Good Repair
The Intermodal River Port Facility project will rehabilitate several existing structures and bring
them into a state of good repair. The project includes the rehabilitation of mooring cells, the
control center barge, two-one million gallon tanks and the tank catwalks.
The mooring cells are used to dock barges for loading and unloading at other sites in the Port of
Huntington but will need repaired. The cells need major rehabilitation in order to hold loaded
barges securely in place. Currently, items cannot be loaded or unloaded from the proposed
location of the Intermodal River Port Facility. Without a bridge crane, the only possible usage is
for barge storage and if left unimproved the cells will not be utilized for their highest and best
use of transloading goods for movement by water.
The control center barge is to be a working platform for the movement of liquid products and
any other type of products that fit its capacity. Currently, the control center’s only access is from
the tank catwalks. The rehabilitation of the two-one million gallon tanks and tank catwalks need
to be performed together. The tanks can be used to store commodities ranging from liquids to
grains. The tanks are directly piped to the river port site along the Ohio River. In the past, these
tanks were used to hold fuel and various chemicals for the former Allied Chemical plant. These
tanks will be restored and lined for usage at the Intermodal River Port Facility. Permits are
currently in place for light oils but the tanks are not in usable condition.
In addition to bringing existing transportation facilities into a state of good repair, providing a
waterborne transportation option will help decrease deterioration on the highway. One legal
80,000 pound GVW tractor-trailer truck does as much damage to road pavement as 9,600 cars.
(Highway Research Board, NAS, 1962).
2.
Livability
As discussed in the TIGER Discretionary guidance, livability investments are projects that not
only deliver transportation benefits, but are also designed and planned in such a way that they
have a positive outcome on the qualitative measures of community life.
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The Intermodal River Port Facility project will reduce the average cost of user mobility through
the creation of more convenient transportation options for shippers in the area. The Southern
Intermodal River Port Facility offers shippers at The Point Industrial Park and the surrounding
area access to water and rail transportation. Currently, companies can only ship items by truck
and have very limited rail access. Many local manufacturing facilities have turned down
contracts because of the lack of ability to move large and bulk items from Southern Ohio.
This project will not only reduce air emissions by taking a large number of trucks off the road
but will create major new employments number in a 50+ mile radius. This will increase
businesses and profitability and therefore gives back to the community through employment tax
revenue and increase livability by allowing companies the opportunity to give back to the
community through various volunteer related projects.
The project is the result of a planning process which coordinated land-use planning decisions and
encouraged community participation in the process. LEDC has a long standing in community
involvement in all its practices. Having been formed in 1983 to decrease the high poverty rate
and then 20% unemployment rate, LEDC has brought together local, state, federal organizations
as well as the Metropolitan Planning Organization (MPO), KYOVA, to mentor agencies and
strategically grow the economy of Southern Ohio.
Ultimately, the Southern Ohio Intermodal River Port Facility supports the growth of The Point
Industrial Park and continues the effort to bring high paying manufacturing jobs to a county that
has low-unemployment but high poverty rates. Table 3 below shows the poverty rates for
Lawrence and the surrounding counties. The Point Industrial Park and proposed Intermodal
River Port Facility are nestled in the rolling hills of Appalachia. The residents are friendly and
the area rich in culture and recreation. Livability is about creating a live-work-play environment
and in this case the project brings work into the South Point, Ironton & Huntington communities.
Without good paying jobs, live and play fall out of the picture.
Table 3 - Poverty Rates Lawrence and Surrounding Counties
County
Jackson, OH
Lawrence, OH
Scioto, OH
Cabell, WV
Wayne, WV
Boyd, KY
Greenup, KY
Jackson, OH
Unemployment
10.8%
8.8%
12.3%
7.8%
7.8%
8.7%
9.0%
10.8%
Poverty
22.9%
19.6%
23.5%
20.9%
20.8%
20.9%
16.0%
22.9%
Sources: Ohio Poverty Report 2011, August 201, USDA Economic Research Services Data, 2009.
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3.
Sustainability
As quoted on the United State Environmental Protection Agency (U.S. EPA), “(s)ustainability is
based on a simple principle: Everything that we need for our survival and well-being depends,
either directly or indirectly, on our natural environment. Sustainability creates and maintains the
conditions under which humans and nature can exist in productive harmony, that permit fulfilling
the social, economic and other requirements of present and future generations.
The Intermodal River Port Facility will promote the transportation of goods via water – a more
fuel efficient and environmentally advantageous mode of transportation than either rail or truck.
On average, a barge can move one ton of cargo 514 miles. On the same gallon of fuel a truck
moves the ton of cargo 59 miles and rail moves the cargo 202 miles. Moving heavy goods by
water reduces deterioration of roads as trucks have been a major cause to road deterioration.
Inland waterways allow America to realize savings in fuel consumption, reduced air emissions
from fuel combustion, reduced traffic congestion, fewer accidents on our rail lines and highways,
and less noise and disruption in our cities and towns3. A principal value of the inland waterways
is the ability to efficiently convey large volumes of bulk commodities moving long distances.
Towboats push barges lashed together to form a tow. A tow may consist of four or six barges on
smaller waterways and up to over 40 barges on the larger Mississippi below its confluence with
the Ohio. A 15-barge tow is common on the Ohio and other rivers. Such tows are an extremely
efficient mode of transportation, moving about 22,500 tons of cargo as a single unit. A single 15barge tow is equivalent to about 225 rail cars or 870 tractor-trailer trucks. If the cargo transported
on the inland waterways each year had to be moved by another mode, it would take an additional
6.3 million rail cars or 25.2 million trucks to carry the load and add this traffic with the
associated air pollution to the already congested rail lines and highways that pass through our
communities. The portion of the Ohio River at The Point Industrial Park is a part of the
deepest/largest inland river port in the United States which allows for the maximum capacity for
barge movement in the Midwest and eastern region of the United States.
The proposed Intermodal River Port Facility is anticipated to move hundreds of tons of freight.
These movements will promote sustainability in the regional transportation system and benefits
will be realized in the form of reduced emissions, wear and tear on our highway system as well
as reduced congestion.
Sustainability is also about recycling land. The Point Industrial Park was cleared of its
Brownfield status by the U.S. Environmental Protection Agency and now operates as an
industrial park. Funds have been invested to clear the site and return the property to use.
Investing in the Intermodal River Port Facility further leverages this investment in Southern
Ohio.
3
U.S. Army Corps of Engineers: Inland Waterway Navigation Value to the Nation, 2000
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4.
Safety
Per tons of goods moved, water is the safest of all transportation outlets when moving goods. A
2007 study amended in 2009 by the Texas Transportation Institute shows that inland towing has
by far the lowest injury rate of any mode of transport. Per billion ton-miles, trucks have 2171
injuries while inland towing has one. Table 4 below compares the number of injuries per mode.
Additionally, the economic cost of an incapacitating injury is $84,698 and an injury is $70,815
according to the Ohio Department of Transportation.
Table 4 - Comparison of Injuries by Mode4
In addition, the same study reports that for one death per billion ton-miles for inland towing
trucks have 155 deaths.
According to the Ohio Department of Transportation, the 2009 economic costs only of a
highway fatality crash was $1,199,558. If even one life is saved by implementing this project it
adds $1,199,558 in economic and safety benefit.
Additionally, the type and size of goods moved via water can help eliminate conflicts. According
to a survey conducted in the early 1990s by the American Association of State Highway and
Transportation Officials (AASHTO) showed that many ramps on even Interstate highways were
unable to accommodate the off-tracking, swept path width of a tractor-trailer pulling even a 48foot long semi-trailer. Many combination trucks currently pulling 53-foot long trailers cannot
safely negotiate such ramps, especially elevated ramps bordered by bridge parapets or guardrails.
These trucks also intrude into the traffic lanes used by passenger cars and threaten their safety.
While infrastructure has been upgraded U.S. spending of current spending level of $70.3 billion
4
“A Modal Comparison of Domestic Freight Transportation Effects on the General Public”; Texas Transportation
Institute, The Texas A&M University System, 2007 – Amended 2009
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for highway capital improvements5 is well below the estimated $186 billion needed annually to
substantially improve the nation's highways.6
Additionally, a truck weighing 100,000 pounds with unadjusted brakes travels 25 percent further
after the driver steps on the brakes than an 80,000 pound truck. A 120,000 pound truck can travel
as much as 50 percent further before stopping than an 80,000 pound truck. (UMTRI, 1983; TRB;
National Academy of Sciences (NAS) 1990). The bulk and oversized commodities lend
themselves to transport by water and will facilitate the movement of those goods by water as
opposed to truck.
5.
Job Creation and Near-Term Economic Activity
The construction of the Intermodal River Port Facility is expected to create approximately 50
construction jobs for two years. However, the largest job creation and economic activity will
come from existing and future tenants of The Point Industrial park and other areas in the region.
Not including the immediate 25+ construction jobs created, the development of the Intermodal
River Port Facility will greatly increase direct job creation by local manufacturing companies.
Engines, Inc. anticipates adding up to 50 new jobs with a median income of $20/hour and
expansion of their business line specializing in the development and construction as well as
refurbishment and distribution of railcars. Engines, Inc. is a privately owned business that has
been providing machining and fabrication for over 25 years. Engines, Inc. is renowned within the
rail car industry for quality, versatility and reliability. Engines, Inc. is a major supplier of parts
and major sub-assemblies to railroad corporations and rail car manufactures. Engines, Inc. is also
a major repair facility of rail cars for several railroad corporations. Their large shops with rail
access provide Engines, Inc. with a unique advantage to serve our customers in the rail
transportation industry.
In addition, Engines, Inc. will have the opportunity to move forward with developing a full
warehousing system and they estimate a movement of 200+ containers and railcars products
from the proposed bridge crane every quarter of the year or 800+ movements per year. Engines,
Inc. has estimated a private investment of over $5,000,000 with the expansion of their business
line due to the Intermodal River Port Facility project. The letter written by Engines, Inc. is
referenced at http://lawrencecountyohio.org/tiger4 in Business Support Letters.
McGinnis, Inc. has provided marine transportation, equipment, repair and stevedoring services to
the river industry for over a century is considering investing $3-5 million in a new barge
manufacturing operation. The operation is anticipated to create up to 100 full time jobs.
Shipments of steel and over nine (9) million gallons of fuel annually would need to arrive by
5
U.S. Department of Transportation, Status of the Nation's Highways, Bridges and Transit: Conditions and
Performance, 2006.
6
Report of the National Surface Transportation Policy and Revenue Study Commission -- Transportation for
Tomorrow, December 2007. Volume II
14 | P a g e
water and McGinnis, Inc. is located just downstream (north) of the proposed Intermodal River
Port Facility. A gallon of diesel fuel weighs just over seven (7) pounds. The deliveries of fuel
alone would create movements of 31,500 tons.
Phoenix Hydraulics and Controls currently ships hydraulic parts and components. It also repairs
and manufactures hydraulic and electronic control systems and custom manifolds for heavy
industry. As stated by Phoenix Hydraulics, they currently must limit their contracts to a 20-ton or
under capacity. They ship to Costa Rica, Mexico and other Central America and worldwide
locations. Phoenix Hydraulics has had to forego international contracts and refer existing clients
to European countries to ship goods to their clients. Phoenix Hydraulics estimates that if the 300ton lift crane is available they will add 10-20 additional jobs and pick up $5 to $10 million in
contracts with annual estimated exports at 5,000 tons of goods worldwide
As offered in the Executive Summary, Other companies have brought significant employment
and investment to The Point as well.
 M&M Mailing – 12 jobs, nearly $1,000,000 investment
 M&M Services – 25 jobs, nearly $1,000,000 investment
 Merciers – 27 jobs, nearly $500,000 investment
 Applied Technologies – 11 jobs, $500,000 investment
 Liebert Corporation – 14 jobs, $500,000 initial investment and $1.3 million on a new
facility
 Hadsell Development Company – 50,000 S.F. spec building, nearly $1,000,000
investment.
Additionally, Engines, Inc and Muth Lumber, are examples of businesses that would realize an
operating cost savings with a reduction in time it takes to send and receive their goods. Engines,
Inc will have the opportunity to avoid the congestion associated with shipping their repair cars
and containers from ports in Southern California and Norfolk Virginia. Muth Lumber will also
experience a savings by being able to ship their lumber to China via barge on the Ohio River and
the Panama Canal rather than through the heavily congested railroad in Chicago.
In order to estimate how many other businesses that we did not interview but may benefit from
The Point intermodal terminal we created a list of businesses to use to look for others.
Businesses on the list were identified two ways: they were interviewed or they expressed in The
Point intermodal terminal directly to the LEDC staff. The list included seven businesses. We
looked up the primary NAICS code for each of the seven businesses and searched Hoover’s
Business Database for businesses with matching NAICS codes within a 50-mile radius of The
Point. Once the list was compiled we analyzed the number of employees and revenue that were
provided by the business information database. The information that was available is
summarized in Table 5.
15 | P a g e
#
1
2
3
4
5
6
7
Table 5 - Summary of Identified Companies Doing Business within the
Intermodal River Port Service Area
With
Company
NAICS # companies
Data
Response rate Revenue
AK Steel
331111
18
9
50%
189.33
Engines, Inc
331511
4
3
75%
47.9
Superior Marine 336611
9
6
67%
9.77
McGinnis
488320
5
2
40%
27.2
Muth Lumber
423310
100
80
80%
108.21
Service Pump
423830
116
78
67%
242.56
Premere Precast 327390
25
21
84%
13.64
Totals
277
199
72%
638.61
Source: Data from Hoover’s Business Database
Our search resulted in identification of 277 companies with matching primary NAICS codes
(199 of which had both revenue and jobs data). The combined revenue of the 199 was over $638
million and those companies employed 6518 workers!
Since acquiring the site in 2000, LEDC has helped to create over 350 jobs at The Point Industrial
Park, received Foreign Trade Zone #270 activation, development of the requisite infrastructure to
support manufacturing activities, and secured U.S. EPA Ready to Reuse Designation for the
entire site. LEDC is currently willing to donate adequate space for the construction and operation
of the River Port Project and develop a 60,000 square foot building that may be used to support
existing industries interested in developing or expanding distribution opportunities in Southern
Ohio. LEDC is also currently in partnership with the Department of Homeland Security to
construct fencing and secure areas as well as adequate surveillance systems along the Ohio River
to ensure the safety and security of the river port facility. This site will be under 24hour security
monitoring through LEDC and U.S. Customs and Border Protection.
In order to estimate the job creation and near-term economic activity, the direct jobs and private
sector investment from the previous five (5) years needs to be considered. As stated above,
LEDC has worked to create over 350 jobs at The Point Industrial Park. In the last six years,
several businesses including Engines, Inc., Mid-Valley Supply/M&M Services, M&M Mailing
Company, Superior Marine Ways, Mercier’s, Applied Technologies, and Calgon Carbon have
located in the original 180-acre tract of land. This represents over $15 million in private sector
investment.
Given a five job per acre projection, the additional 180 acres opened for business by this project
would likely create up to 850 new jobs and millions of dollars of investment.
As an example of the potential near-term economic activity, LEDC offers its partnership with
Superior Marine Ways, Inc. Superior Marine Ways, Inc. currently focuses on shipbuilding and
repair. However, the company plans to expand operations and therefore, employment, in order to
16 | P a g e
Jobs
789
542
895
1035
2062
1031
164
6518
manage the transfer (loading and unloading) of goods from the river. As estimated by Superior
Marine Ways, Inc., the transfer of commodities would create 10-15 new full time jobs.
Southern Ohio has felt the effects of the economic downturn of our nation. Living wage jobs
have been lost and the poverty level remains high – over 20% in Lawrence County alone. As
shown in Table 3 above, according to the Appalachian Regional Commission (ARC), Lawrence
County, the location of The Point, and the surrounding counties in Ohio and West Virginia are
classified either as “distressed” or “at-risk.” Unemployment has skyrocketed in Southern Ohio
due to recent shut downs of several top employers, displacing thousands of employees.
The State of Ohio overtly recognizes the needs that exist in Lawrence County and has listed
Lawrence County as a distressed county under the May -December 2009 Priority Investment
Areas. Also, although Lawrence County's unemployment rates are below the state average, the
poverty level is still extremely high. This is a reflection of the need for high quality jobs to help
support the economy of Southern Ohio. National policy and priorities regarding grant investment
and the need to produce positive economic impacts in Lawrence County are also clear.
It is our vision that the Southern Ohio Intermodal River Port Facility will place our community
on the forefront of the international logistics industry and help to create companies with a vested
interest in the movement of goods along the Ohio River. Growing nationally and becoming
globally competitive will not only increase our economic value to the nation but will also create
a more sustainable community for advancement.
The Point's comparison to other Foreign Trade Zone ports similar in size, the average annual
economic impact of the International Port of Memphis in Memphis and the region is
approximately $6.7 billion. The port generates about 5,500 direct and 9,900 indirect jobs in the
community. Companies in the port pay approximately $21 million each year in business and real
estate taxes and $12 million in retail sales taxes. It is our intention to replicate this trend in job
creation7. The impact of job creation itself will be a major impact on our local community but,
also, allowing another outlet for growth in the community would greatly increase the economic
structure of Southern Ohio.
6.
Innovation
As concept of containerization has taken hold, freight transportation in the United States has
increased exponentially. The Intermodal River Port Facility project is not a speculative project
waiting for a customer but rather a reactive project responsive to the needs of business and
industry. Water transportation is responsible for the foundation of America’s growth. Our
forefathers have moved goods via water for centuries as it was the path of least resistance and
therefore, an efficient and reliable means to transport goods throughout the country. As railroads
and highways developed, water became a less used form of transportation. However, as rising
7
Inland Rivers, Ports, and Terminals, Incorporated, Winter 2008 Publication
17 | P a g e
transportation costs factor into the bottom line of every company, waterborne transportation is
again seen as an economical and reliable form of transportation.
The LEDC is already constructing a 50-ton crane for use by industry. By adding large boom
cranes and bridge cranes on the river front, items can be moved quickly from water onto road or
rail and vice versa, thus creating a faster processing speed for the movement of goods in our
nation. By creating a regional port along the Ohio River, The Southern Ohio Intermodal River
Port Facility is not only innovative in creating logistical value to the nation but for business and
industry by creating added value in transportation and associated industrial developments in
manufacturing and assembly. This project has the capacity to create business trends in the region,
one in cargo handling and storage, and one in processing industries that transform materials
before shipment.
The Southern Ohio Intermodal River Port Facility has the potential of positively impacting the
total global economic value of the United States and in particular, the Midwest. This region
needs good, flat industrial sites on the river with the full range of intermodal services, and this
site provides a unique opportunity for the Midwest to capitalize on the site attributes and
accommodate the resurgence in the Ohio River industrial sector. An Intermodal River Port
Facility will provide an additional key access point into and out of the heart of Ohio via the River
System and Heartland Corridor for bulk goods, containerized shipping, etc.; a point that is
accessible year round and is also not currently congested like many other urban areas.
The site itself has received Foreign Trade Zone (FTZ), Empowerment Zone, and Enterprise Zone
designation, along with all the industrial recruitment tools and will continue development and job
creation, which is viewed as furthering the economic strategies of our region. The Point River
Port Facility will be Southern Ohio’s container hub with the capacity to load containers with
product from Southern Ohio and then giving the option of the river to the west and on via the
Panama Canal to Asia or via the Heartland Corridor to Europe through Norfolk. Additionally,
oversize/overweight items such as windmill blades, tanks, and oversized solar cells will be
accommodated through The Intermodal River Port Facility.
7.
Partnership
The LCPA and LEDC have worked in close partnership with the local, regional and state
governmental bodies throughout The Point Industrial Park development. This project also has the
support and active engagement of the Lawrence County Commissioners, Lawrence County
Community Action Organization, Village of South Point, Ohio Development Services Agency,
JobsOhio, Ohio Department of Transportation, KYOVA (regional metropolitan planning
organization), Governor's Office of Appalachia, Appalachian Regional Commission, and
Economic Development Authority.
Partnerships and a common vision have been in place for well over a decade.
18 | P a g e
8.
Results of Benefit-Cost Analysis
The Intermodal River Port Facility shows a net benefit ratio of approximately 3:1 including
initial project costs, annual maintenance costs and the benefits from the increases in productivity
and exports from the businesses that will use the Intermodal River Port Facility.
Benefits
The Intermodal River Port Facility shows a net benefit ratio of 3:1 including initial project costs,
annual maintenance costs and the benefits from the State of Good Repair, Economic
Competitiveness (user savings), Safety, Sustainability, and Productivity increases from the
businesses that will use the Intermodal River Port Facility. Table 4, below shows the value of the
benefits.
Table 6 - Value of Benefits
"Benefit" Scenario ("No Build" - "Build" = "Benefit")
Year
Period
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
PV Economic
Competitiveness
(7%)
$
1,058,112.71
$
1,018,557.09
$
980,480.19
$
943,826.73
$
908,543.49
$
874,579.24
$
841,884.69
$
810,412.37
$
780,116.58
$
750,953.34
$
722,880.32
$
695,856.76
$
669,843.42
$
644,802.54
$
620,697.78
$
597,494.12
$
575,157.89
$
553,656.66
$
532,959.22
$
513,035.51
$
493,856.61
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
PV CO2
Emissions
Reduction
32,584.62
33,299.19
34,013.77
34,728.34
35,442.92
36,157.49
36,872.07
37,586.64
38,587.05
39,444.54
40,444.94
41,302.43
42,302.84
43,160.33
44,160.73
45,018.22
45,875.71
46,876.12
47,733.61
48,734.01
49,585.84
PV Crash
Reduction ($)
(7%)
$
299,020.66
$
287,842.31
$
277,081.85
$
266,723.65
$
256,752.68
$
247,154.44
$
237,915.03
$
229,021.01
$
220,459.47
$
212,218.00
$
204,284.61
$
196,647.81
$
189,296.49
$
182,219.98
$
175,408.02
$
168,850.71
$
162,538.54
$
156,462.33
$
150,613.27
$
144,982.87
$
139,562.95
PV Reduced
PV Net
Construction
Productivity (7%)
Costs(7%)
$
70.79 $
5,297,350.47
$
68.15 $
5,099,318.67
$
65.60 $
4,908,689.94
$
63.15 $
4,725,187.51
$
60.79 $
4,548,544.99
$
58.51 $
4,378,505.92
$
56.33 $
4,214,823.46
$
54.22 $
4,057,259.96
$
52.19 $
3,905,586.69
$
50.24 $
3,759,583.45
$
48.37 $
3,619,038.28
$
46.56 $
3,483,747.13
$
44.82 $
3,353,513.59
$
43.14 $
3,228,148.60
$
41.53 $
3,107,470.14
$
39.98 $
2,991,303.04
$
38.48 $
2,879,478.62
$
37.04 $
2,771,834.56
$
35.66 $
2,668,214.58
$
34.33 $
2,568,468.24
$
33.04 $
2,472,450.73
PV Total Benefit
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
6,687,139.25
6,439,085.42
6,200,331.36
5,970,529.39
5,749,344.86
5,536,455.62
5,331,551.57
5,134,334.20
4,944,801.99
4,762,249.58
4,586,696.52
4,417,600.68
4,255,001.15
4,098,374.59
3,947,778.20
3,802,706.07
3,663,089.25
3,528,866.72
3,399,556.33
3,275,254.95
3,155,489.17
98,886,236.88
The total project benefits are $98,886,236.
Costs
The costs for this project include the initial costs from this grant, from LEDC, and from the State
of Ohio. On-going costs for operating costs and maintenance are explained in this section.
The LEDC contacted two ports in Louisiana who are familiar with maintenance costs for similar
bridge cranes. In the first 1-3 years aggregates are estimated to be the bulk of the freight moved
with the crane and it would not be used to capacity. The contacts also said that these costs are
usually written into the users’ contracts. At the fourth year we predicted that the crane’s use will
have increased and therefore maintenance would roughly double.
19 | P a g e
Table 7 - Project Cost Summary
Year
Period
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
FV Required Capital
FV Operations
& Maintenance
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
25,282,800.00
-
500,000.00
500,000.00
500,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
FV Total Costs
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
25,282,800.00
500,000.00
500,000.00
500,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
PV Total Costs
(7%)
$ 25,282,800.00
$
436,719.36
$
408,148.94
$
381,447.61
$
712,986.18
$
666,342.22
$
622,749.74
$
582,009.10
$
543,933.74
$
508,349.29
$
475,092.80
$
444,011.96
$
414,964.45
$
387,817.24
$
362,446.02
$
338,734.60
$
316,574.39
$
295,863.92
$
276,508.33
$
258,419.00
Total Costs:
$33,715,918.90
The total costs over the life of the project are $33,715,919 and the total net benefit is
$65,170,318
Affected Populations

Users
o Operating cost savings
o Access to global markets
o More reliable shipments with less congestion
 External parties
o Less emissions from trucks on highways
o Safer with fewer trucks on highway
o More income generated in community because of increased exports
Alternatives
The project as presented has no other comparable alternatives. Each of the individual tasks is
necessary to provide an operation intermodal facility. The only alternative would be not to build
this facility.
20 | P a g e
VI.
Project Readiness and NEPA
A.
Schedule and Environmental Approvals
The Point Intermodal River Port Facility is fully prepared to move into the final design phase.
All environmental approvals have been obtained and only one remaining permit needs to be
secured. The 401/404 permit is being finalized is anticipated to be provided by the Ohio
Environmental Protection Agency (OEPA) December 1, 2011. A copy of the anticipated
schedule is included below and posted on http://lawrencecountyohio.org/tiger5 .
Intermodal River Port Facility
Activity
Oct-13
Nov-13
Dec-13 Jan-14
Feb-14 Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
TIGER Award
TIP/STIP Approval
Pre-Obligation Actitivities
Obligation of Design Activities
Engineering & Design
Review of Engineering Documents & Obligation of
Construction Activities
Construction of Warehouse
Rail Development
Sheet Pile Dock
Liquid Tank Catwalk Rehabilitation
Overhead Bridge Crane Dock
Mooring Cells Rehabilitation
Control Center Barge Rehabilitation
Liquid Loading Containment Areas
Road Extensions, Parallel Access Road & Workflow
Areas
Rail Siding
Two-One Million Gallon Tanks Rehabiliation
Rail Hopper Car Unloading/Conveyor Facility
Bulk Material Covered Holding Area
Upon award, the Southern Ohio Intermodal River Port Facility will proceed into final design.
Time for obligation of design and construction activities has been provided separately. The
project design and construction phases can be obligated by October, 2014, if they are considered
separately. The schedule can be condensed if both LEDC and the USDOT move activities
forward at an expedited pace. Regardless, due to the environmental readiness and preliminary
project activities; this project can complete all pre-obligation activities prior to February, 2014
and all obligation activities by March, 2014. Final delivery of the project is anticipated to be
December, 2015.
B.
Legislative Approvals
No legislative approvals are required.
C.
State and Local Planning
The LCPA and LEDC have worked with regional and state planning authorities throughout the
development of The Point and related transportation facilities. Previous activities have been
performed under STIP/TIP number 85830 and described as The Point Intermodal Project.
21 | P a g e
Upon award of TIGER Discretionary funds, the LCPA and LEDC will request inclusion into the
KYOVA TIP and ultimately the Ohio STIP. KYOVA has provided a letter of support and it is
referenced at http://lawrencecountyohio.org/tiger5
D.
Technical Feasibility
The Intermodal River Port Facility project includes the rehabilitation and construction of
standard port infrastructure. The LEDC staff will oversee all remaining elements of the project.
The LEDC has administered site surveys, managed all environmental work to date and provided
the construction administration of buildings and infrastructure at the Point and the site where the
Intermodal River Port Facility will be constructed. LEDC staff commonly manages engineers
and contractors and are accustomed to managing Federal funds. However, LEDC staff often
supplements their skills with contracted experts. LEDC will procure final design services, grant
administration and ultimately construction administration expertise for the project. Costs for
design and administration are included as part of this grant.
E.
Financial Feasibility
The LEDC has set aside $1,000,000 and ODOD has awarded LEDC $6,500,000 for a portion of
the infrastructure costs. These commitments are documented in at
http://lawrencecountyohio.org/tiger5 . The LCPA and LEDC have a long history of investment in
the site. Since 1999, the LCPA and LEDC have successfully administered over $12 million in
both state and federal grants and invested over $1 million of its own funds. Again, the funds are
available, committed and ready to be invested upon obligation of TIGER Discretionary grant
funds.
VII. Federal Wage Rate Certification
I hereby certify that the requirements of Subchapter IV of Chapter 31 of Title 40 of the United
States Code (Federal Wage Rate Requirement) will be met in the utilization of any funds granted
to the Lawrence County Port Authority under the U.S. Department of Transportation’s National
Infrastructure Investment under the Full-Year Continuing Appropriations commonly referred to
as TIGER Discretionary Grants.
Name:
Position:
Applicant:
Address:
22 | P a g e
Bill Dingus, PhD
Executive Director
Lawrence County Port Authority
216 S. Collins Ave., South Point, OH 45680-8501
VIII. Additional Supporting Materials
Additional supporting materials are located at http://lawrencecountyohio.org/tiger5.
The supporting materials include:
Benefit Cost Analysis
Benefit Cost Summary
Benefit Cost Excel File
Project Schedule
Proof of Funding
LEDC 2010 audit showing funds available to match federal funds
Logistics and Distribution Loan agreement from Ohio Department of Development
CMAQ Agreement Letter
Environmental
Ready to Reuse Certificate
Environmental Protection Agency (EPA) reports
Archeological Report
Army Corps of Engineer’s Permit
Document Approvals
Business support letters
Engines, Inc.
McGinnis, Inc.
Phoenix Hydraulics and Controls
Superior Marine Ways
Public Support Letters
KYOVA Metropolitan Planning Organization
Other Public Support Letters
23 | P a g e