Talk of potential new business on the Falls Road

A source (non-RR) had mentioned this to me several months ago... if this actually happens, it would be a HUGE shot in the arm for the Falls Road - increasing traffic by over 6,000 cars a year of inbound raw material and outbound finished product. This would likely mean service on the line at least 5 days / week - and possibly more if they handle plant switching duties.

Why Holley? Very cheap municipal electric to start - easy rail access with their industrial park bordering the Falls Road - and some attractive tax breaks for new industry.

For now, let's keep this in the speculation file as talks between the potential business and the folks involved are still informal at this point.

From today's Rochester Democrat & Chronicle:

http://www.rochesterdandc.com/apps/pbcs ... /1002/NEWS

Holley studies ethanol plant

Meaghan M. McDermott
Staff writer

(March 6, 2005) — HOLLEY — Officials from the village of Holley,
[snip]

I've said too much already. In order to comply with the railroad.net moderator police I've quoted the bare minimum and leave it to you - the reader - to hope that the link above is good and will get you to the story.

Building these plants where we have a good corn supply, a good labor
pool and very good transportation system seems to make sense. Are
you sure we can do that in NY?

STEAM ON
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O-6-O wrote:Building these plants where we have a good corn supply, a good labor
pool and very good transportation system seems to make sense. Are
you sure we can do that in NY?

STEAM ON
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Here in Western NY (not sure where Whitesboro is - sounds downstate to me), there is ample acreage for corn crops... plenty of fertile soil, good climate, etc. Good paying industrial jobs are in demand because of corporate downsizing. The Holley Industrial Park is along the Falls Road which I believe is maintained to Class 3 standards - and the NYS Thruway isn't too far from the village.

But it sounds like much of the in and outbound traffic will be rail - so being located near a major interstate isn't such a big requirement.

Trying not to go too far off tanget from Rails, but there are real economic reasons why you are seeing and hearing about Ethanol Plants recently in the news. There are a few other slated for construction in the NY/PA area.

Namely, big businesses are starting to see some writing on the wall about the costs of Oil and the $$$ signs are finally tipping the scales for a few to invest in alternative energy/fuels.

I'm not saying that our cars will be running on ethanol in 5 years, but as you see the price of a barrel of Oil continue to climb, keep your ears peeled for more talk of building these types of facilities, hopefully bringing increased rail business.

Brooks

nessman wrote: Here in Western NY (not sure where Whitesboro is - sounds downstate to me), there is ample acreage for corn crops...

Whitesboro is right outside of Utica.

IF (note that's a big if, LOL) this comes to fruition, this would be great for traffic on the Falls Road. But Holley is full of NIMBYs, remember the Diaz Chemical fiasco? I dont know if they'll be too receptive to an even larger chemcial operation in their town.

Actually anywhere along the Falls road would be a plus though. Not sure how all this Empire Zone stuff works though.

Hey Les. The question in my post about doing things that make sense
in NY was supposed to be sarcastic. This ethanol thing makes great
sense to me. A win for farmers,rail, jobs and motor fuel consumers (us).
IF they don't want it in Holley i'm sure any number of communities will
step up. Even Whitesboro!!! Lots of farms around here. The NIMBYS be
damned.

STEAM ON
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I grew up in Buffalo and visit friends there every year. I now live in Illinois and our gasoline is blended with ethanol beginning in May to supposedly reduce auto emissions. In the past, the cost of gasoline goes up about 10 cents a gallon when the ethanol season kicks in.

Ethanol is not free. Energy is required to produce it. The federal tax is lower on ethanol to make it competitive with gasoline.

Oh! But ADM Inc. and the farmers in Illinois, Iowa, etc. love it!

I believe it is now required in NYS. If so, I hope the proposal goes through for this RR.

At Sunoco stations here in NY - you see a sticker on the pump that says 10% Ethanol. They used to put MTBE in gas - but they realized that it was doing more harm than good.

Obviously - as more Ethanol plants come online the price will drop.

nessman wrote:Obviously - as more Ethanol plants come online the price will drop.

Yes I hope so...

I believe somewhere in Seneca county is suppose to have one too. Hopefully it will fall on FLRR line.

I had debate with a co-worker who bashes me about price rising. He loves it.. He's MORON. And he knows that I communtee between Canandaigua and Syracuse... Anyway. When I first heard about it, I told him that price's coming down once its up and running. he said no. all of these ethenal will be sold to highest bidders which would be foriegn county. I said no... it will be used for our GASOLINE!

Any thought on that??

ken

sd80mac wrote:Any thought on that??

Who cares? Ethanol plants = BIG traffic increases for shortlines!

Notice ARNSTG's post above - "In the past, the cost of gas goes up about 10 cents a gallon when the ethanol season kicks in." Obviously the higher the cost of crude oil, the more attractive ethanol is. But as noted it costs money to MAKE the ethanol. Ethanol makes more sense with $3/gallon gas than if gas was $1.00 a gallon. I sure would not hold my breath expecting gas prices to drop even if all 3 suggested plants in the area do come on line. For most people the benefit will be a bit lower emmissions and a bit less foreign crude brought into the country. For all of us, it would be a choice of whether to watch lightning stripe FGLK geeps, or Falls Road ALCOs, dragging grain cars around.

BR&P wrote:Notice ARNSTG's post above - "In the past, the cost of gas goes up about 10 cents a gallon when the ethanol season kicks in."

Right. but right now, where are the ethanol are being produced?? Out in texas? west?? california???

I dont know where they mix ethanol and gas before deliver to the gas stations right now.

And ethanol is probably scare (is that right word). and demand for ethanol is high...

more ethanol plants... and closer to home. 1. it produce more ethanol.. demand and produce will evently out... and 2. closer to home.. less cost to deliver ethanol to final spot before mixing with gas. that could help to reduce the cost of gas.

Yes, thats a lot of traffic for the FRR, 115 cars a week.

I just read some where in the last couple of days that NASCAR is going to be running 100% ethanol. Its is possible to run cars on pure ethanol; however, the energy per gallon is lower than gasoline. Pure ethanol will give fewer miles per gallon, but there would be far less pollution.

I would think that the cost of ethanol would be lower than hydrogen, but we are moving full speed ahead to make hydrogen fueled cars for the masses. Ethanol is less volitle than hydrogen although they both burn with a nearly invisible flame.

Who knows where this stuff is going right now. Ethanol means more rail freight.

To sd80mac.... Ethanol is produced in a big way in Iowa. There is is only require in higher octane fuels and is subsidized. Regular 87 octane costs more than 89 octane super blend.

Hmmmmm, gotta get the corn planter tuned up and get a few more acres of it in. Money to be made here..........

Ethanol is the coming thing moreso for emissions than anything else. I believe in some states you can get what's called E85 fuel. That's 85% enthanol and 15% gasoline. I think the gasoline is in it so that you can see a flame when the stuff burns. Ethanol burns with a clear flame. Not all vehicles can run the E85, but certain ones can. One being 2002 and newer GM pickups with V-8's.

Yes it takes energy to make ethanol, but it could be distilled with electricity generated from coal, hauled by railroads. This ethanol stuff is meant for trains!

I hope the plant is built in Holley, I'd like to see long trains on the Falls Rd again.! The Batavia paper ran an article on the proposed plant a week or so ago. The article said that a site in Bergen was being looked at. I'm hoping for Holley!

Joe

Here is a site on E85

http://www.cleanairchoice.com/outdoor/E85background.asp

One reason why Holley is being looked at is because of very cheap municipal electric there. Bergen also has municipal power - but I think what will make Holley a better choice is that the Falls Road has better rail service than CSX. The class 1's aren't exactly looking for new local business.

I think what it'll come down to ultimately is who will offer a better tax incentive package - Genesee or Orleans county.