Economic Development

The implications of Headwaters Junction extend far beyond the development it can anchor at 4th street, but provide a very unusual opportunity for Fort Wayne to leverage both attractive commercial and industrial real estate, and also a selection of transportation services, namely freight rail.

Acquisition of an underutilized industrial spur on the city’s northwest side would allow the incorporation of a short line railroad, which the State of Indiana’s Rail Plan explains are “a vital element of the state’s rail network, serving 62 counties.”

Short line railroads offer tailored service in greater capacity and frequency than Class 1 railroads and can greatly influence a location’s feasibility for site selection by a business. Not only can a short line railroad serve existing businesses, but attract over $100 million dollars in new investments as well.

In an essay on short line railroads the Appalachian Regional Commission extends that “[short line railroads] are a critical part of economic development…that many communities may be overlooking.”

To protect local businesses, Auburn and Kendallville Indiana have established Port Authority Railroads to enable and continue service to industries located off the Class 1 rail network.

Whereas the more numerous the car counts, the more likely a Class 1 railroad is to serve an industry, as few as one car load per day can handily be interchanged by a short line railroad. “Through service” by Class 1 railroads has seen many near-line-side industries decline or relocate entirely. Short line railroads help extend the reach of the general railroad system and work hand in hand with their communities to attract new businesses.

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