RJ Corman Railroad Company
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2 CAROLINA LINES PURCHASED: August 17, 2015 LOCATION: Mullins to Whiteville and Chadbourn to Myrtle Beach INTERCHANGE: CSX at Mullins MILEAGE: 90 miles CAR LOADINGS: This Line was Out of Service for 4 years 7/31/2016 2
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4 DEVELOPMENT R.J. Corman Railroad Company purchased this line on August 17, The line had not been operated since We have been working with Marion County, Columbus County and Horry County along with Economic Development Groups and local Government to bring back a once thriving Railroad to provide service to the communities. 4
5 IMPACTS & BENEFITS Restoring the Railroad Line offers a transportation option to local business that allow them to be more competitive, giving way to potential growth and development. Rail service allows new business development opportunities along the line as well as removing heavy truck traffic which reduces highway maintenance and relieve heavy congestion on Highways. Rail service offers a safe, efficient and reliable service to the community. 5
6 IMPACTS & BENEFITS Local businesses were forced to turn to trucking their commodities. Now they have options. They will benefit from much more competitive transportation rates and have access to new markets to maximize their potential. We currently have 7 committed customers and others that have indicated interest. In addition, we are aggressively pursuing new business. 6
7 CUSTOMERS MET GLAS CAROLINA EASTERN PLY GEM IDAHO TIMBER PERDUE ATLANTIC PACKAGING CANFOR LUMBER We expect more customers to request service and for these numbers to grow each year. 7
8 THE RIPPLE EFFECT Rail activity causes a ripple effect in businesses served by rail. Restoring rail service attracts new business creating new jobs and a more efficient and economical mode of transportation for current businesses allowing for expansion, retaining current jobs, and also creating new jobs. The ripple effect of job creation will continue throughout the economy and the communities. 8
9 FINANCIAL IMPACT Existing Businesses 100 new $18/hr.(including benefits) 2080 hrs/yr x $18/hr. = $37,440 x 100 new jobs = $3,744,000 per year in wages. 20 YEAR IMPACT $3,744,000 per year x 20 years $74,880,000 wages for 20 years x 7% state income tax $5,241,600 benefit to the community 9
10 FINANCIAL IMPACT New Business 200 new $18/hr (including benefits) 2080 hrs/yr x $18/hr = $37,440 x 200 new jobs = $7,488,000 per year in wages. It will take approximately 5 years to attract these businesses. 20 YEAR IMPACT $7,488,000 per year x 15 years $112,320,000 wages for 15 years x 7% state income tax $7,862,400 benefit to the community 10
11 CONDITONS OF TRACK & BRIDGES This track went through a long period of neglect and had not been operational in 4 years. The deferred maintenance and repairs led to accelerated deterioration which caused critical issues such as poor drainage, tie decay, track geometry deviations and rail defects. The overall track structure was in poor condition with approximately 25% useable ties. The track in some places was buried or covered in brush and trees. The bridges have also been neglected and need repair. 11
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22 Moving the Carolinas Forward: a Rural Freight Rail Project Currently rail service is 10 mile per hour. This speed is neither optimal nor efficient. Long term, R.J. Corman plans to increase the speed to 25 miles per hour. 22
23 Moving the Carolinas Forward: TIGER PROJECT We have invested over $3 million to fund deferred maintenance since taking control of the rail line however due to years of neglect the line will consistently be playing catch up unless a significant investment is made. 23
24 TIGER PROJECT COSTS NC SC Total Mullins Sub $ 1,887,600 $ 8,126,849 $ 10,014,449 Conway Sub $ 2,234,958 $ 4,503,400 $ 6,738,358 Horry County $ 519,640 $ 519,640 Contract Administration $ 293,173 $ 293,173 TOTAL $ 4,122,558 $ 13,443,062 $ 17,565,620 R.J. Corman $ 3,500,000 SC $ 4,300,000 Fed $ 9,765,620 Total $17,565,620 24
25 TIGER PROJECT WORK ITEMS NC SC Total Ties 23,360 35, each Ballast tons Surfacing miles Switch Ties each Rail 202 Tons (1 Mile) 1867 Tons (7.8 miles) 2069 Tons (8.8 miles) Bridges
26 TIGER PROJECT In addition to the tie and rail rehabilitation project, R.J. Corman will be fixing 29 grade crossings along this line, which will make these crossings safer for the community. 26
27 BENEFITS Reduced wait times at crossings for residents and tourists Additional infrastructure improvements enhance the safety of the rail line Faster speeds are important in attracting new business to the rail line Faster speeds improve the efficiency of the rail line allowing lower rail rates for the customer 27
28 Our Vision... To be the best service provider to the railroad and related industries. 28
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