Rail Transportation Could Be Key In Post GM Era For Janesville
Rail Usage Expected To Increase In Coming Years
Updated: 11:31 am CDT July 24, 2008
JANESVILLE, Wis. -- Janesville and surrounding communities are looking forward at the possibility of life after General Motors.
VIDEO: Watch The ReportTransportation resources could play a big role in attracting new industry, and railroads could be key.Anyone driving through the south end of Janesville can see the rail cars. Union Pacific has been essential to General Motors. But if GM closes its doors for good, don't expect to see the railroad go with it, WISC-TV reported."We would not be here without rail," said Steve Scaccia, president of Freedom Plastics.In 32 years, Freedom Plastics has grown into an industry leader in PVC piping and fittings.The cost of the natural gas-based PVC resin changes rapidly, with the price of natural gas.Freedom Plastics receives two rail cars of the material daily."It's the biggest cost we have in producing our product, so without being able to get it at the best possible market price, we would not be able to be competitive in the marketplace," said Scaccia.Their shipments come in on the Iowa Chicago and Eastern Rail Line which operates along with Wisconsin and Southern, and the Union Pacific lines in Janesville.According to Rock County Economic Development, rail usage in Janesville is expected to rise 20 percent from 2006 to 2013 with much of the rail traffic catering to aggregate grain producers and food processors, WISC-TV reported.With growing markets, the rail system could also be utilized to attract new business."The opportunities are extraordinary for companies to come in because we do have the rail," said Scaccia. "It's already here and it's not something that has to be thought about or designed. It's here."Rock County officials are using the rail system, along with air transportation out of the Southern Wisconsin Regional Airport, and the interstate system, as tools to attract new industry.County economic development leaders said it's too early to tell what effect GM will have on the rail system locally.
VIDEO: Watch The ReportTransportation resources could play a big role in attracting new industry, and railroads could be key.Anyone driving through the south end of Janesville can see the rail cars. Union Pacific has been essential to General Motors. But if GM closes its doors for good, don't expect to see the railroad go with it, WISC-TV reported."We would not be here without rail," said Steve Scaccia, president of Freedom Plastics.In 32 years, Freedom Plastics has grown into an industry leader in PVC piping and fittings.The cost of the natural gas-based PVC resin changes rapidly, with the price of natural gas.Freedom Plastics receives two rail cars of the material daily."It's the biggest cost we have in producing our product, so without being able to get it at the best possible market price, we would not be able to be competitive in the marketplace," said Scaccia.Their shipments come in on the Iowa Chicago and Eastern Rail Line which operates along with Wisconsin and Southern, and the Union Pacific lines in Janesville.According to Rock County Economic Development, rail usage in Janesville is expected to rise 20 percent from 2006 to 2013 with much of the rail traffic catering to aggregate grain producers and food processors, WISC-TV reported.With growing markets, the rail system could also be utilized to attract new business."The opportunities are extraordinary for companies to come in because we do have the rail," said Scaccia. "It's already here and it's not something that has to be thought about or designed. It's here."Rock County officials are using the rail system, along with air transportation out of the Southern Wisconsin Regional Airport, and the interstate system, as tools to attract new industry.County economic development leaders said it's too early to tell what effect GM will have on the rail system locally.Copyright 2008 by Channel 3000. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
