Riverport Railroad reaches compromise with U.S. Army

LRA supports barge terminal bid near Thomson

By PAUL GALE - Prairie Advocate Reporter, (815) 493-2560 PGale@prairie-advocate-news.com

SAVANNA - Riverport Railroad reached a compromise with the U.S. Army to reschedule its exclusion zone when inspections are made to find munitions at the short line railroad's switching yard.

The railroad's contract would have to be changed to allow the compromise.

During the LRA meeting May 2, Tom Kamper, Riverport general manager, said his switching crews wouldn't be able to get into the yard to switch cars if the Army imposed a previous plan to clean up unexploded ordnance from the area.

"We would have to shut down our operation," Kamper complained.

With the railroad's increased business, the Burlington Northern Santa Fe Railroad is now switching cars to the depot's short line railroad at least three times a week.

Six times during the past two months, the Burlington has switched at least 80 cars in one dropoff and 768 cars were switched in and out of Riverport during April, Kamper said.

"We are looking at a company who would be bringing in more freight (carrying telephone poles). There would be no way this company can come in if we can't get into the yard," Kamper said.

The Army's previous plans for an exclusion zone would also limit production at Rescar, which rehabilitates freight cars, he said.

Rescar currently has 21 employees and recently hired several more.

"We want to work with them (the U.S. Army). We need some kind of system so we can all live together," said Riverport CEO Jack Koster.

Last year, Riverport switched cars in the yards when Army cleanup people took an hour for lunch, but this year, the company has too much work to get it all done in an hour's time, Kamper added.

Army representative Cindy Irwin said there might be times when the Army can shift its cleanup schedule.

The cleanup needs to be done this year because the Army has funding for it, she said. The search for munitions is needed in the yard because a chemical-filled shell was found there last year, Irwin said. A crew had to be called in to dispose of it.

After LRA Chairman Jack Rapp urged them to work things out, Riverport and Irwin agreed to meet the next morning.

Koster said Riverport has plans to spend $2 million on new track and another $1 million for an engine house.

Government loans are available for companies wanting to locate businesses on LRA land if they plan to utililize Riverport, Koster added.

Currently, large Union tankers are being stored in Riverport's yard because the ethanol-producing business is lagging behind Union's ability to manufacture large tank cars designed to ship ethanol, Kamper said.

In another matter, the LRA board agreed to support a bid by developers of a Carroll County ethanol plant for a barge terminal near the site north of Thomson proposed for the plant.

LRA executive director Diane Komiskey said the LRA wants a barge terminal to serve the LRA, but all the waterfront land was given to the U.S. Fish and Wildlife Service.

It would take an act of Congress to get land from the wildlife service for a terminal, she added.

Carroll County Ethanol is waiting on the Environmental Protection Agency to approve a permit.

LRA clients are employing 83.5 employees, down from 92.5 on Dec. 31.

The board agreed to oppose a proposal by Gov. Rod Blagojevich for a gross receipts tax because it would adversely affect Eagles Landing businesses.

The board voted to pay a $3,770 bill from attorneys Hammer, Simon and Jensen of Galena for legal services. Fees of $1,900 were submitted for 19 hours of work March 5 and $1,720 was submitted for 17 hours of work April 27. Also submitted were an $80 filing fee and a $70 service fee.