Annual Report on Economic Development Activities

Of

Pennsylvania Northeast Regional Railroad Authority

The Pennsylvania Northeast Regional Railroad Authority (PNRRA) in 2011 achieved several economic milestones relating to expanding economic development in Northeast Pennsylvania.

The Authority accomplished its regional mission by acquiring the final 6 miles of the Pocono Mainline between East Stroudsburg and the Delaware Water Gap from Norfolk Southern for $1.5 million dollars.  This acquisition puts the ownership of track and right of way by the Authority at just under 100 miles located in four northeastern Pennsylvania counties.  This represents a truly regional growth achievement from the first acquisition of the 22 mile Scranton to Carbondale rail line that was being abandoned by the privately owned Delaware and Hudson Railway in 1985.  This latest acquisition also provides the Authority and its contract private rail operator, the Delaware-Lackawanna Railroad, with ownership of its all important interchange connection with the Norfolk Southern Railway at Slateford, PA.

This interchange provides over 20 rail dependent industries which employ over 2,000 employees served by the DLRR with a major economic advantage since it provides the option of shipping by two Class I railway direct interchanges with the Canadian Pacific at Taylor, PA or the Norfolk Southern at Slateford, PA.  This acquisition also completes the ownership requirement of having the entire Scranton to Delaware Water Gap segment of the Scranton to Hoboken rail line in public ownership for future passenger train service to northeastern Pennsylvania.

Another major rehabilitation project was the rebuilding of Bell’s Bridge in Monroe County.  This bridge was reconstructed with new steel members to allow a safe and efficient upgrade for the new and heavier railcars that the rail industry is employing nationwide to allow shippers more efficient shipping alternatives.

Also, the Carbondale Mainline was upgraded with a $486,000.00 project to install new rail, ties and stone to handle the increasing rail shipments that are taking place on this line to the existing shippers and to the new Linde Transload Railyard located in the Carbondale Rail Yards Industrial Park in Carbondale and Fell Township.  The Authority was also the recipient of another PennDOT grant in the amount of $ 224,375 for signal upgrades on the Carbondale mainline.  “All these PennDOT grants total $ 3,090,375.00 with the Authority paying $421,793.54 as its portion of the required local matching share”, said Larry Malski, President of PNRRA.

“With the economy starting to rebound the Authority and the DL are working with new industrial clients that are looking to expand or locate new industries and jobs in northeastern Pennsylvania.  Since the Authority can offer a pledge of continuing rail service and the ability for new industries to interchange with two Class I rail carriers, NS and CP, we have a great enticement to offer new industries looking to locate in the northeast”, said Malski.

Lastly, the most important indicia of economic activity is our annual carload statistic and we are happy to report that revenue freight carloads handled in 2011 increased by 4.25% for a total of 7037.  “This is a tremendous growth rate from our first full year of operation in 1986 when we handled 562 revenue carloads”, stated Malski.

With more and more freight being handled by the rail industry in the United States, and with new industries and jobs looking to locate along PNRRA’s 100 mile regional railroad system, the rail industry in northeastern Pennsylvania again has become a growth industry. (January 3, 2012)