CTB Decision Brief
Rail Industrial Access Applicant
Location: Accomack County
Coastline Chemical, Inc.
Summary: Coastline Chemical, Inc., located in Accomack County on the Eastern Shore of Virginia, has submitted an application for Rail Industrial Access grant funds in the amount of $365,400 to construct a new 754 foot track off the Bay Coast Railroad at New Church, Virginia. The project will enable Coastline Chemical to load and unload railcars containing glycol for the manufacture of automotive antifreeze coolant, and in future, to load and unload carloads of plastic pellets to manufacture the bottles for the antifreeze. The track will be served by the Bay Coast Railroad.
Coastline Chemical, Inc. has grown from a chemical brokering business operated out of the president’s home and into a successful operation employing 15 people and providing products and services to Fortune 500 companies in the antifreeze manufacturing business. Currently, Coastline utilizes two spurs owned by Bay Coast Railroad that are also leased to another local business which uses the spurs intermittently. The current unsecured and potentially unreliable access to the railroad shipping limits Coastline’s ability to expand business operations. Rail access is critical to the company’s plans for continued growth in the antifreeze business as well as expansion into other parts of the manufacturing process.
Facts:
· DRPT has evaluated the project in accordance with the Board’s Rail Industrial Access policy. The project scores 55 points. Projects must reach a 50 point threshold to receive a recommendation by DRPT staff.
· The Applicant will commit to an additional 75 rail carloads annually.
· The Applicant will commit to 12 new jobs with this expansion.
· Total Capital Investment in the new consolidated facility is estimated to be $2,600,000.
· Total Track Construction is estimated at $430,800.
· There will be a claw-back provision in the agreement for failure to meet performance requirements.
Source of State Funds: FY 2014 Industrial, Airport, and Rail Access Fund.
Recommendation: In accordance with the CTB Rail Industrial Access policy, DRPT recommends the Board approve the project.
Action Required by CTB: CTB policy for Rail Industrial Access requires Board action on the resolution.
Options: Approve, Deny, or Defer