Farmers, Railroad ask NETEX to push forward Hopkins rail facility

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  • NETEX members Neal Barker and Paul Burt listen to Farmer's Co-Op general manager Brad Johnson/ Staff photo by Taylor Nye
    NETEX members Neal Barker and Paul Burt listen to Farmer's Co-Op general manager Brad Johnson/ Staff photo by Taylor Nye
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Eight months with no progress since board gave okay

 

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Stakeholders of the Northeast Texas Rural Rail Transportation District (NETEX) are urging the multi-county transportation board to deploy $2.5 million worth of grant funding the group was awarded in January 2018. Two years have passed since entities received grant funding, and eight months have passed since the NETEX board gave their blessing for Sulphur Springs to construct new rail facilities. 

Beginning in May 2017, NETEX began to apply for a $2.5 million grant from the United States Economic Development Administration (USEDA) to repair track or build additional facilities along the 88.6 miles of rail track NETEX owns, which stretches from Greenville to Winfield. On January 1, 2018, with help from the Ark-Tex Council of Governments (ATCOG), NETEX was awarded two grants totaling the $2.5 million they were seeking. 

One portion of $325,140 was to be used in Sulphur Springs, and the remainder was to be used in Mount Vernon, according to USEDA documents. However, due to personality conflicts with former NETEX executive director Phil Davila, Mount Vernon voted in July 2019 to return their share of the grant to the federal government, according to the Mount Vernon city council. 

However, due to actions by the Sulphur Springs economic development corporation (EDC) and ATCOG, in January 2020 the two entities were able to salvage the portion of the grant Mount Vernon wished to return to the federal government in order to use the total $2.5 million on Sulphur Springs. 

Eight months have passed since NETEX gave the go-ahead to Sulphur Springs and ATCOG to use the grant money, but according to Northeast Texas Farmer’s Co-Op general manager Brad Johnson, “we haven’t turned dirt yet.” 

“This thing was shovel-ready when it came to y’all six or eight months ago,” Johnson noted. “When are we going to shovel dirt? I think it’s worthy of attention, because the sooner we can shovel dirt somewhere, the better off we all are.” 

In January, the NETEX board unanimously approved a Hopkins County rail spur, contingent upon viewing detailed engineering plans. EDC Chairman called it a “win-win” for NETEX, as it would not cost the transportation board anything, but could make them money through increased rail traffic. Feagley stated that SSHC EDC would be responsible for all costs and liabilities associated with the proposed project.

Now in August, new operator Freedom Railcar is just as enthusiastic to deploy the grant, according to senior vice president Jeff Lederer. 

“I’ve sat down with Marc [Maxwell, Sulphur Springs city manager], EDC and ATCOG [executive director] Chris Brown,” Lederer said. “They’re all very knowledgeable on what it’s going to take… we’re [Freedom Rail] in favor of it because we’d like to move Custom Commodities there and move them out of downtown… I think it’s a dangerous place where they’re at right now.” 

Custom Commodities, which operates out of approximately 640 Church Street, is a trucking company which ships non-hazardous bulk goods using rail as one of its modalities. 

“I think as many of you are commissioners, you can certainly consider getting trucks off the roads,” Lederer said. 

The EDC proposed site for two rail spurs off the NETEX line are located at Heritage business park, approximately eight miles due west of the city, and at White Oak business park approximately six miles northeast of the city.

“We’re excited about it,” Lederer said. “Let’s put a shovel in it and get serious, because we’ve had a lot of customers call wanting one.” 

Hopkins County representatives Neal and Mickey Barker stated they would take the initiative to speak to SSHC EDC to help provide guidance and feedback moving forward with the project. 

“We’ll even donate the land if we have to,” Johnson told the News-Telegram. “Let’s just turn dirt somewhere.”