Area projects awarded state grant funds

VW independent staff/submitted information

COLUMBUS — A pair of area projects have been grant assistance from the Ohio Rail Development Commission. The grants were announced last week. The projects will help create and retain jobs, generate new rail traffic and upgrade the rail system to help keep trucks off the road.

The Rail Commission approved a $350,000 grant to First Quality Tissue Midwest, LLC for the installation of the rail infrastructure necessary to support the company’s new $985 million plant in Defiance. The company commits to creating 407 new jobs and shipping/receiving 1,500 new rail carloads annually over a five-year period.

“First Quality Tissue is very excited to be part of the Defiance and northwest Ohio region,” said Tim Fisher, Director of Major Projects and Expansions, First Quality Tissue Midwest. “Reliable transportation via rail was a crucial factor in the site selection. Establishing the new rail connection will ensure consistent, cost-effective transportation of raw materials to the facility.”

“We appreciate the Ohio Rail Development Commission’s commitment to projects like ours that support job creation and economic development in Ohio, he added.

The Rail Commission approved a $497,875 grant to RJ Corman Railroad Company to support a project to rehabilitate a portion of the St. Marys Subdivision located in Mercer and Auglaize Counties. The project is needed to ensure that customers on the western portions of the line continue to receive safe and efficient rail service. RJ Corman’s customers move a variety of commodities by rail including scrap metal, agriculture, plastics, and lumber. The Rail Commission grant will be matched by the railroad for a total project investment of nearly $1 million. 

“We are grateful for our ongoing collaboration with the Ohio Rail Development Commission, which continues to play a vital role in strengthening our rail infrastructure,” said R. J. Corman Railroad Group Vice President of Government Affairs, Tyler White. “With safety as our top priority, this funding enables us to enhance our infrastructure and keep delivering reliable freight services tailored to our customers’ needs. The Rail Commission exemplifies how state-level leadership can effectively champion rail investment and elevate the safety and reliability of freight transportation throughout Ohio.”

Three other projects were awarded grants by the ORDC.

The Rail Commission approved a $150,000 grant to the Kraft Heinz facility in Fremont in Sandusky County. This grant supports a $1.45 million rail project that will help ensure the Fremont facility remains competitive for additional product lines.  The project will consist of the replacement of the on-site rail spur including repair and replacement of catch basins and storm sewers necessary to ensure continued, safe rail service to the facility. The company will commit to retain 225 jobs and will generate 923 railcars each year for three years after project completion.

The Rail Commission approved a $174,000 grant to Wilmington Iron & Metal to expand its on-site rail capacity to meet an increase in rail gondola usage from 136 railcars to 600 railcars per year. Wilmington Iron & Metal Company is a third generation, family-owned enterprise engaged in the processing of scrap metals for Ohio mills. The rail project is part of a $17.4 million facility expansion to accommodate demand from manufacturing and steel mill consumers.  The total rail project investment is estimated at $870,000.

The Rail Commission approved a $1.2 million grant to rehabilitate a bridge on Wheeling & Lake Erie Railway’s (WLE) Rook Subdivision in Tuscarawas County. The bridge, built in 1903 over the Tuscarawas River, is on a critical route for the WLE because it connects customers along the Ohio River to its main yard in Brewster. Since the bridge was originally designed to accommodate two tracks, new spans will be installed on existing foundations which will allow the railroad to construct the project with limited disruption to rail customers. The total project investment is estimated at greater than $3.3 million.

“These five projects represent a significant commitment to improved safety and economic development in the state,” said Matthew Dietrich, Executive Director of the Ohio Rail Development Commission. “Together these projects demonstrate just how important rail is to Ohio’s economy.  We are pleased to assist in these efforts and help the companies continue to grow in Ohio.”