WSOR's 5+1 Plan

April 12, 2005

A PLAN TO AID GROWTH AND IMPROVEMENTS SYSTEM WIDE

The WSOR is currently participating in an effort to solicit additional state dollars into the short-line and regional railroad system in the State of Wisconsin. Industries, businesses, communities, and railroad companies of all sizes are utilizing larger railroad cars to transport more freight volume, resulting in transportation cost savings for everyone. More state dollars will enable short-line and regional railroads like Wisconsin & Southern to make the necessary capital upgrades to their track infrastructure to accommodate today’s industry standard--the 286,000 pound rail car.

Wisconsin & Southern Railroad has adopted its “5 + 1 Plan” which calls for infusing $5.0 million annually into the public railroad system for rail infrastructure, and $1.0 million annually into bridge improvements and repairs. Currently, the existing state grant program allows for $2.25 million for rail improvements and $0 for bridges annually.

Considering there are over 125 miles of main line track and over 300 bridges to rehabilitate at current funding levels, it would take approximately 25 years for the system to become 286k compliant. Under the proposed plan, the same compliancy would be accomplished in approximately eight years. “We have gained the support of several key state legislators, state department secretaries, and agricultural associations on the merits of the 5 + 1 Plan. It is now time for the legislature to take up this issue in their upcoming budget deliberations,” according to Ken Lucht, Community Development Manager for the Wisconsin & Southern Railroad Co.

Deterioration and old age are the main reason for track failure today. Rails manufactured in the early 1900’s were not designed to withstand the larger heavier railcars that are in use today. In some areas, the track is literally breaking apart from normal stresses of every day operations.

In order for our economy to be as efficient as possible, we must rely on a strong, reliable, and responsive transportation system that helps bring down the cost of doing business. Freight railroads can do just that.

The 5 + 1 Plan will help ensure our public railroad facilities will remain an important part of the total state transportation system. In the year 2003 alone, there were 199,584 less trucks on the road due to the public railroad system in place today in Wisconsin. This resulted in a $12 million savings in highway maintenance costs on an annual basis to Wisconsin Taxpayers.

Public education about these cost savings is crucial. Wisconsin & Southern Railroad and our rail industry partners are actively pursuing an increase in existing funding levels to address our infrastructure crisis. Over 150 industries shipping by WSOR rail employ over 18,197 people in twenty southern Wisconsin counties. Their future depends on increased funding to ensure a viable and modern rail transportation system.