From todays NY Daily News...
Train Deal Floats Boats Barge firm sees a rail advantage in shipping
By BILL FARRELL Daily News Staff Writer
t wasn't all that long ago that 13 railroads used huge barges to float 2,000 freight cars a day across the harbor between Brooklyn and Jersey City.
Those numbers may never be reached again, but at New York Cross Harbor Railroad, operators of the last remaining rail-barge service on the East Coast, they believe float-rail is heading back to the future.
Cross Harbor officials are hoping that a new freight handling agreement among the Norfolk Southern Railway, CSX Transportation and the Canadian Pacific Railway that went into effect last week is going to create a boom for their business.
"We don't expect to have 1,000 cars waiting for us each day off the bat," said Gregory Kisloff, spokesman for Cross Harbor, "but this agreement is a major opportunity for us, and a benefit to the region."
In anticipation of the opportunity, the Bush Terminal-based firm ordered three new locomotives last month. All should be delivered within six to eight weeks.
The benefit to the region comes from reducing commercial truck traffic.
"One rail car can carry the equivalent amount of freight of four tractor-trailers," said Robert Bentley, president and CEO of Cross Harbor.
"Currently, only 3% of New York City's freight comes in by rail. Conversely, between 30% and 40% of New Jersey's freight comes by rail."
With a rail system that runs along the Brooklyn waterfront from Bay Ridge to Red Hook, and links to the Long Island Rail Road freight lines at the Fresh Pond Junction in Queens, Bentley says his company is the gateway to the New York City and Long Island marketplaces.
"Considering that almost all food and goods are coming in by truck, we can help bring goods in and out by rail, faster and cheaper and at the same time reduce truck traffic," said Bentley.
"Right now, the only way anyone can ship freight to Long Island is by truck. It just makes sense to ship goods by rail.' '
Among the major users of Cross Harbor's service is Red Hook-based American Warehousing, which last year alone sent more than 100,000 tons of cocoa beans to the Hershey and Bloomer chocolate works in Pennsylvania.
"I'd like to know how many Hershey's Kisses came from Brooklyn," said American Warehousing President Sal Catucci.
"Along with our 100,000 tons, another 75,000 tons of those beans are shipped across the harbor by other local companies."
Under the deal with Norfolk Southern, which, along with CSX, took control of Conrail's routes, a new facility is being built at Bush Terminal, and the railroads will soon be shipping edible oils and flour.
Last week, Norfolk Southern spokesman Rudy Husband said the railroad has reached an agreement with two Midwest shippers to start bringing flour into New York using the cross-harbor service.
"We are also in the process of seeking other similar deals," said Husband. He said Norfolk Southern officials will also meet with Cross Harbor officials later this week to discuss other opportunities.
Bentley says the opportunities are there.
"We have four car floats, two can carry nine to 12 cars and two others can carry between 12 and 15 cars. Without any major expansion, we can handle 25,000 rail cars a year."
Original Publication Date: 06/08/1999 |