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JBC Rail tells LaPorte County it needs multi-year extension as CSX, CN connections advance
Summary
JBC Rail representatives said private investments and new carrier connections at Kingsbury Industrial Park warrant a multiyear extension of the county’s switching contract; the commission requested staff review and took no action.
Representatives from JBC Rail told the LaPorte County Redevelopment Commission on Oct. 22 that recent private investments and new carrier connections could significantly increase traffic at Kingsbury Industrial Park and asked the county to consider a multi-year contract extension for switching operations.
"We need to have this contract extended 5 years, at at least 5 years," said Kim McDonald of JBC Rail, explaining that the company's existing agreement with CSX and planned coordination with Canadian National require continuity to recoup investments and secure customers. McDonald said JBC has invested approximately $2,000,000 in track improvements and that the county previously fronted about $500,000 for the park switch.
Bill Broyles, a rail industry consultant for JBC, told commissioners the facility has grown to the point that the Federal Railroad Administration (FRA) is treating the operation as a class-3 facility, which requires heightened employee certification and opens additional operational possibilities. Broyles said the FRA review and the presence of two class-one carriers would enhance the park's intermodal prospects and potentially increase revenue.
Commissioners and JBC discussed contract mechanics and revenue sharing. McDonald said the county receives a portion of net revenues tied to car counts and switching fees; she also said JBC did not submit an application for the prior year’s reimbursement cycle but intends to do so this January. Commissioners asked staff to review the existing contract terms, switching fees and the net-revenue sharing language rather than act immediately.
No formal action was taken at the Oct. 22 meeting. Staff said they will review the contract language and return with options, including whether an extension on current terms is appropriate or whether a new procurement is required.
JBC asked the commission to consider an extension to align switching-term end dates with related carrier commitments and insure continuity while JBC seeks FRA approvals and CN connection.
