Skip to contentU.S. Department of Transportation Federal Highways Administration Public Private PartnershipsFHWA HomeFeedback
 
PPP Home | Contact Us   
 
  PPP Case Studies

CASE STUDY NAME: HEARTLAND CORRIDOR « back
Location Virginia, West Virginia, Kentucky and Ohio
PPP Option Private Equity Contribution
Mode Intermodal/Freight
Description

Due to the Norfolk Southern’s rail network, the Port of Virginia (Newport News) has always had good rail access to the Midwest markets.  The Heartland Corridor project make the most direct rail route to the major markets of Columbus and Chicago accessible to double-stack container trains, shortening the trip to Chicago, for example, by over 200 miles by obviating the need to travel via Harrisburg and then west or to Knoxville and then north.

Extending through Virginia, West Virginia, Kentucky and Ohio, the Heartland Corridor consists of series of five separate intermodal projects designed to improve mobility and increase freight capacity.  They include:

  • Central Corridor Double-Stack project, which is the core of the Corridor, Heightens clearances in 28 tunnels and associated obstructions throughout Virginia, West Virginia, and Kentucky enabling double stack rail operations between Roanoke, VA and Columbus, OH.

  • A possible new Intermodal facility in Prichard, WV

  • A new intermodal facility in the Roanoke region of Virginia

  • New state-of-the-art mega-intermodal facility at the former Rickenbacker Airport in Columbus, OH (now controlled by the Columbus Regional Airport Authority)

  • Relocation of the Commonwealth Railway into the median of the Western Freeway in Portsmouth, VA, connecting to the new APM Terminal and the future 4th marine terminal for Virginia Port Authority.  The APM Terminal is under construction in planned to open in July 2007
Sponsor

FHWA Eastern Federal Lands Division
(for the Heartland Central Corridor Double Stack Clearance Project only)

Cost
Heartland Central Corridor Double-Stack Clearance Project $ 151 million  

Separate but complementary projects not involving FHWA include:

New terminal in Columbus, OH at the former Rickenbacker AFB: $ 62 million
New terminal in the Roanoke region, VA:  $ 18 million
New terminal in Prichard, WV: $ 18 million
Western Freeway Rail Relocation project: $ 60 million
 

$309 million Total

Type of Finance

For the Heartland Central Corridor Clearance Project: $95 million in federal SAFETEA-LU funds, $9.8 million from Virginia Rail Enhancement Fund; $0.8 million from the Ohio Rail Development Commission grant; $44.4 million from Norfolk Southern Railroad

For the new terminal at Rickenbacker in Columbus, OH:  $30.4 million in federal SAFETEA-LU funds; the balance from Norfolk Southern Railroad

For the Roanoke Region Intermodal Facility:  $12.6 million from the Virginia Rail Enhancement Fund; $5.4 million from Norfolk Southern Railroad

For the Western Freeway Rail Relocation:  $15 million from the federal SAFETEA-LU funds, DRPT Rail Enhancement Funds (FY 07) $4.80 million, DRPT Rail Enhancement Funds (FY 08 & 09) $21.00 million, Governor’s Transportation Funds $5.00 million, Commonwealth Match of Federal Funds $3.75 million.  DRPT funds require a 30% match from Commonwealth Railway, Inc.

Revenue Sources NA
Project Delivery / Contract Method

Heartland Central Corridor Clearance Project: Design-Bid-Build

Western Freeway Rail Relocation: Design-Build

Private Investor Partner

Western Freeway Rail Relocation: Commonwealth Railway, Inc/Moffatt and Nichol/Branscome, Incorporated, awarded July 1, 2006.

Lenders NA
Status

Design / Construction

Financial Status

 

Innovations

The first time that the private freight rail industry has worked together with U.S. DOT (FRA, FTA, and FHWA) to develop and finance a rail improvement project.  Norfolk Southern is investing $44.4 million in the Central Corridor Double Stack Initiative.  This in turn has leveraged $105.6 million in public funding, including a $90 million earmark in SAFETEA-LU.  While the project will benefit Norfolk Southern’s operations, it will also enhance the competitiveness of ports in the Tidewater region.

Related Links / Articles

PowerPoint presentation presenting the various project comprising the Heartland Corridor

Port of Virginia PowerPoint Presentation on the Heartland Corridor

Article on the Heartland Corridor

Article discussing the benefits and future plans

Port of Virginia Western Freeway Rail Relocation web site

Press Release - Agreement Reached on Federal Funding for Heartland Corridor

Contact

Federal money and project oversight will be administered by:
FHWA Eastern Federal Lands Highway Division
21400 Ridgetop Circle
Sterling, VA   20166-6511
703-404-6201

Dr. Robert Martinez
Vice President Business Development
Norfolk Southern Corporation
remartin@nscorp.com

back to top

 
PPPS Defined | PPP Options | PPP Legislation | SEP-15 Program | Private Activity Bonds | PPP Case Studies | Links | Resources
Events Calendar | Contact Us | Glossary
 
FHWA Home | Feedback
FHWA
United States Department of Transportation - Federal Highway Administration