Schumer Meets with Transportation Secretary Foxx, Pushes $1.5M Investment in Port Oswego to Modernize Rail Link - Feds Must Expedite Connector Project to Ensure NY Businesses, Global Users Have Reliable Supply Chain to Keep Port in the Game

Press Release

In a personal meeting with the Secretary of Transportation Anthony Foxx, Senator Schumer urged him to select the Port of Oswego for a $1.5 million TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grant through the Department of Transportation (DOT). The grant would allow the port to make critical upgrades to infrastructure and equipment so that it can meet future shipping demands, increase productivity, and preserve its role as a critical resource for businesses throughout Central New York and even across the globe. Schumer said that the Port of Oswego project is one of his top priorities for the program, and explained that the Port would use this funding to upgrade rail along the docks, which customers like Trafigura aluminum and Goldman Sachs rely on, and that has deteriorated to the point of shutting down. What's more, the grant would allow the port to leverage $1.75 million in matching funds to bring the total investment in infrastructure upgrades to $3.2 million. Schumer noted that the project would create close to 100 construction jobs and prepare the regional port for a new era of increasing shipping demands.

"The Port of Oswego is gearing up for a boost in shipping traffic and imports in valuable commodities, but the federal government holds the keys to unlocking the full potential of this job-creating trade hub in Central New York," said Schumer. "The fact that the Port of Oswego's rail line - a critical link between the port and local supply chains - has been left to decay is unacceptable, and I have gone straight to the top at the Department of Transportation to push for a federal investment. I spoke with Secretary Foxx and urged him to select the Port of Oswego for a federal TIGER grant to provide funding to revamp this crucial one mile of rail. The federal investment is great bang for its buck--it will increase storage by 67%, ease congestion and facilitate the movement of goods in and out of the port, so that the vessels that come through each day can continue to pump over one billion dollars into the local economy each year."

Specifically, the Port of Oswego Authority would use the funds to construct a roadway, embedded with heavy rail track, connecting the Port's main East Terminal to a six-acre secure, open-storage area to accommodate increased traffic and new commodities. The roadway connector will utilize the existing right-of-way to accommodate both truck and rail traffic. The development will nearly double the present storage and operation area for the Port and relieve the current yard congestion and lack of space. Construction of the new access corridor road will improve truck movement within the Port, and the rehabilitated rail/road network will connect the Port's main deep-water dock to this new almost six-acre expansion site. The additional two sidetracks will allow the Port to increase its storage of railcars on site from 16 to 48 -- a 67 percent increase -- and provide a more efficient and safer traffic flow for railcars.

The port has transformed into a critical asset for retaining existing businesses reliant on shipping and for attracting new growth opportunity to Central New York. Commodities shipped out of the port include soybeans, windmill components, cement, chemicals, ores and minerals, like road salt, which represent some of the major businesses taking advantage of the port throughout Central New York. However, the Port of Oswego could soon be rendered useless should its rail link, which would transport these commodities to the outside world, be shut down. A $1.5 million TIGER Grant would allow critical upgrades to a mile of rail to prevent that from happening.

Schumer added that the rail along the docks at the Port has been in place since 1963, and has not undergone any major rehabilitation since that time. The rail has deteriorated to the point where CSX has at times shut down activity, and rail at the north end is out of alignment, which causes derailments on a consistent basis. Furthermore, the port has eight switches on site - none of which work properly - which is hazardous now that the port handles 1,000 cars annually. In the near future, should the Port of Oswego be able to meet expected demand, frequent shipments of soybeans, wheat, corn, aluminum and other cargo could increase bringing another 250-500 cars annually within the next year. However, continued deterioration of the rail could force closure of rail along dock and reduce the Port's appeal to potential users and new business interested in locating in Central New York. Schumer pressed to Secretary Foxx that the Port of Oswego should be on the top of the list for the $1.5 million TIGER grant, in order to revamp its infrastructure for an increase in capacity.

Schumer has long advocated for upgrades to the Port of Oswego, and has recently pushed the Dept. of Homeland Securities to award a Port Security Grant for the installation of an additional four security cameras--which would make the Port of Oswego the most secure port in the Great Lakes System. In 2011, Schumer fought hard to secure over $160,000 of homeland security funding which allowed the Oswego port to build and install a 17-camera

Integrated Surveillance System at the Port of Oswego Authority. The funding came at a crucial time when other cuts might have impacted preparation for a local or national emergency, but the award helped to ensure that the port remained safe and secure. It has helped expand port recovery and resiliency capabilities; and further capabilities to prevent, detect, respond to, and recover from attacks involving improvised explosive devices (IEDs) and other non-conventional weapons.

The TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grant Program was developed to spur a national competition for innovative, multi-modal and multi-jurisdictional transportation projects that promise significant economic and environmental benefits to an entire metropolitan area, a region or the nation.

This fiscal year, at least $120 million of TIGER funding is required to be spent on rural area projects. The Port of Oswego project qualifies as a rural area project under TIGER guidelines. Projects that typically receive TIGER grants include improvements to roads, bridges, rail, ports, transit and intermodal facilities, and Schumer noted that the City of Rochester's plan fits squarely within the program's mission.

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