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MDOT outlines plan to convert Eastern Shore short lines to a public‑private partnership
Summary
Maryland Department of Transportation told the Eastern Shore Delegation it intends to solicit a long‑term private partner to invest in and operate four short‑line rail corridors on the Eastern Shore under a public‑private partnership (P3) model, citing maintenance challenges, 92 miles of track (65 active) and more than 3,000 carloads in 2024.
The Maryland Department of Transportation presented a plan to shift four Maryland Transit Administration‑owned short‑line rail corridors on the Eastern Shore into a public‑private partnership (P3) to attract private investment for track upgrades, longer‑term operations and new business development.
Assistant Secretary Jacqueline Hartman and JT Thomas, director of MDOT’s Office of Rail and Intermodal Freight, said the four lines total about 92 miles with 65 miles in active service and that the corridors carried more than 3,000 rail carloads in 2024. Hartman told the delegation the current long‑term operating lease is expiring and MDOT has submitted a presolicitation report under Maryland’s P3 law; the presolicitation report was transmitted to the legislature on Oct. 9 and the Board of Public Works designated the project on Dec. 18.
Nut graf: MDOT framed the P3 as a way to consolidate operations and maintenance responsibility with an operator that would invest private funds to restore tracks to a state of good repair, meet performance targets and pursue additional freight opportunities while sharing oversight and risk with the state.
MDOT said the P3 would be similar in structure to the 2008 public‑private arrangement at the Seagirt Marine Terminal: a long‑term private partner invests capital up front and operates the assets under performance standards. MDOT said a likely contract horizon for the rail corridors would be in the 40‑year range to allow a private partner to seek an appropriate return on investment.
JT Thomas outlined freight activity and potential benefits
Thomas said the four corridors connect to Delaware and support more than 16 active shippers in 2024, including agribusiness and manufacturing users. He said the corridors moved roughly $100,000,000 in freight in recent years and that each rail carload displaces roughly 3.5 to 4 truck trips.
Members asked for no immediate action from the delegation; MDOT said the next steps are industry outreach and an RFP, with a target of seeking Board of Public Works approval of a final contract by late this year or early next year. Hartman and Thomas said they had coordinated with the departments of Agriculture and Commerce and the state treasurer’s office during the P3 review.
Ending: Delegation members expressed support for preserving and improving freight rail service on the Eastern Shore and MDOT said it will keep the delegation informed as the solicitation and negotiations proceed.
