Contact: Colleen Roche (212) 788-2958
Curt Ritter (212) 788-2971
Bernadette O'Leary (212) 312-3523 (EDC)
The designation of CSX and NS by the New York City Economic Development Corporation, the New Jersey Department of Transportation, Union County, N.J., and the Port Authority of New York and New Jersey will provide competitive rail access from Northern New Jersey to New York City.
The railroad, which runs from the Travis Branch to the Arlington Rail Yard and ultimately to the major continental routes in New Jersey, and its dockside service to the Howland Hook Marine Terminal are vital to future growth at the terminal. Expanded rail service will enable the terminal to attract more shipping lines. In addition, the new railroad will also service the Pratt/Visy paper mill, which opened last summer in Staten Island.
"The rehabilitation of the Staten Island Railroad is another significant step towards lowering transportation costs for goods manufactured in New York City, as well lowering the high costs of goods brought into the City," said Mayor Giuliani. "We have seen a dramatic revitalization take place on Staten Island. The rebirth of the Howland Hook Marine Terminal, the addition of the Visy Paper Mill, and the opening of the Staten Island Corporate Park have each helped to establish the borough as a place for business. The opening of the rehabilitated Staten Island Railroad will further boost the local economy," the Mayor concluded.
"The Staten Island Railroad provides a critical link between Northern New Jersey and New York City," said Randy Levine, Deputy Mayor for Economic Development Planning and Administration. "When complete, we will no longer have to depend solely on transporting goods across the City's roads and bridges, and we will have a newly renovated rail line with an experienced and successful operator."
The City has invested $11 million towards the rehabilitation of both the Staten Island portion of the railroad as well as the Arthur Kill Lift Bridge, both of which are expected to be completed later this spring. The New Jersey portion is expected to be finished in early 1999.
"The awarding of this contract is the first step in connecting Staten Island and New York City with the rest of North America by rail," said Staten Island Borough President Guy V. Molinari.
Port Authority Executive Director Robert E. Boyle said, "This rail service will be a powerful new business development tool for Staten Island's Howland Hook marine terminal, as well as for Union County. Howland Hook has shown strong growth since the Port Authority reopened it in September 1996. And, like the rest of the port, the Staten Island terminal has a major opportunity to capture a projected surge in shipping to and from North Atlantic ports during the next decade. The revived rail line also offers Union County new opportunities to expand its commercial and industrial base. The railroad will operate along tracks that run adjacent to several commercial and industrial areas in Elizabeth, Linden and Cranford, N.J. Several private companies have expressed strong interest in taking advantage of the reactivated rail line."
Howland Hook Container Terminal Inc. President and Chief Executive Officer Carmine F. Ragucci said, "Reactivating Howland Hook's direct rail connection to continental North America is a critical component in Howland Hook's viability as a world class container port. This allows our service to extend to major destinations in the Mid West and the West Coast of the United States, as well as Canada. The services and routes that will be offered by CSX and NS should allow for the efficient flow of imports and exports in both the East/West and North/South directions, allowing Howland Hook to continue to flourish and grow, thereby creating hundreds of additional jobs."
The City and the New Jersey Department of Transportation (NJDOT) together own the Staten Island railroad. Each public entity purchased the portion of the railroad which lies within its respective jurisdiction with the exception of the Arthur Kill Lift Bridge, which is located in both Staten Island and New Jersey and is owned by the City.
New Jersey Transportation Commissioner John J. Haley, Jr. said, "The New Jersey Department of Transportation purchased the right of way back in 1994 for future use. It is now proving to be a wise investment. By putting this preserved right of way back to work, we demonstrate that New Jersey takes a lead, through fully utilizing its transportation network, in bringing economic prosperity to the region."
Union County Board of Chosen Freeholders Chairman Daniel P. Sullivan said, "Our top priority is to promote economic development and position Union County for investment as we move towards the new millennium. Reactivation of this rail freight line opens our County to new markets and promotes redevelopment of vacant and underutilized properties that have become eyesores. In addition to helping businesses grow, this means new tax ratables for our towns, jobs for our residents and improving our neighborhoods."
The Staten Island rail line has been largely inactive since 1992. The State of New Jersey and the City of New York acquired their respective segments of the tracks in 1994. New York City and Union County are actively engaged in rehabilitating the tracks.
The conditional selection of CSX and NS represents a commitment on the part of the public agencies to negotiate and execute an operating contract with CSX and NS. The Port Authority, due to its unique bi-state obligations, has formed a subsidiary corporation that will enter into a contract with CSX and NS.
Norfolk Southern is a Virginia based holding company headquartered in Norfolk. It operates 14,400 miles of railroad in 20 states and Ontario, Canada. CSX, based in Richmond, Virginia, operates a 18,500-mile railroad in 20 states, the District of Columbia and Ontario, Canada.