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BNSF putting out intermodal word
By: Kurt Kloeblen, Staff writer kkloeblen@sunpublications.com
Skip Kalb will talk about the Gardner intermodal logistics park for Rotary clubs, government officials and anyone else who wants to listen.
Kalb serves as Burlington Northern Santa Fe railroad’s director of economic development, and one of his key messages is that the KC Logistics Hub is vitally important.
“We not only see this as an important facility for BNSF, we see that intermodal facility and logistics park as a significant economic engine for the state of Kansas, the Kansas City metro, not to mention Gardner,” Kalb said. “We think it’s very significant.”
Kalb offered estimates of tax dollars from the development going to various entities from 2009 to 2028. His figures show: $56.6 million to Gardner, $190 million to the Gardner-Edgerton School District, $43.6 million to Johnson County, $ 3.7 million to the state, $21.8 million to Johnson County Community College, $7.2 million to the Johnson County Library, and $3.8 million to the Johnson County Parks and Recreation District.
Kalb said the wage impact from employees to the city of Gardner would be about $173 million over the 20-year span and the total economic impact to Johnson County would be around $6.6 billion.
Kalb said those numbers may be conservative.
He said actual economic impact on the city could depend on whether and what Gardner annexes.
“We feel the numbers are conservative,” Kalb said. “They all come from an economic impact analysis. The numbers are very solid at all levels.
“In some respects it is up to the city of Gardner. Are they going to annex? What incentive policies will they come up with to help attract businesses? Gardner has a good chance to get a large component or all of that revenue. It’s up to them to compete for businesses.”
Kalb said the use of rail to move goods around the country continues to grow, as does trans-Pacific trade. Kalb said the amount of trans-Pacific goods imported is expected to triple by 2025.
BNSF, which this year became the largest rail company in the country, moved 5.4 million intermodal units in 2006. Kalb said BNSF’s international shipments have doubled in the past five years.
With most of the trans-Pacific trade comes in along the West Coast or Mexico, there are only a few key routes to move those goods to the rest of the country. One of the main routes is directly through Kansas City, with Gardner on the main line from Texas.
“We sized the intermodal facility to handle business out to 20 years, Kalb said. “We think the proof is in the pudding. With the size investment BNSF has proposed to make and the associated warehouse development by The Allen Group, we think it will meet demand.”
Kalb also talked about BNSF’s partnership with trucking companies and some of the struggles they face in the current marketplace. He said key concerns for trucking companies include hours-of-service rules, environmental regulations, fuel costs and insurance. He said the number of qualified truck drivers is decreasing and the average age of truck drivers in the U.S. is 57.
However, BNSF spokesman Steve Forsberg, who works closely with Kalb, said the rise in intermodal facilities has helped the trucking industry co-exist with railroads.
“I think intermodal is one of the significant logistics breakthroughs,” Forsberg said. “Railroad and truck companies have traditionally competed, but now we can play to each other’s strengths. That’s why intermodal is so exciting. Trucks are best at local pickup and delivery. Rail moves a large volume long distances.”
Kalb said working with Gardner has been a good experience for BNSF and that the city has gone about things in the right way.
“The city of Gardner staff is the most competent staff of a city that size,” Kalb said. “The cooperation has been outstanding. They’ve been up front with us, and us with them. This is a people business, so we need to understand each other’s desires and wants. It’s been a very smooth process. I can’t say enough great things about Gardner.”
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Kalb serves as Burlington Northern Santa Fe railroad’s director of economic development, and one of his key messages is that the KC Logistics Hub is vitally important.
“We not only see this as an important facility for BNSF, we see that intermodal facility and logistics park as a significant economic engine for the state of Kansas, the Kansas City metro, not to mention Gardner,” Kalb said. “We think it’s very significant.”
Kalb offered estimates of tax dollars from the development going to various entities from 2009 to 2028. His figures show: $56.6 million to Gardner, $190 million to the Gardner-Edgerton School District, $43.6 million to Johnson County, $ 3.7 million to the state, $21.8 million to Johnson County Community College, $7.2 million to the Johnson County Library, and $3.8 million to the Johnson County Parks and Recreation District.
Kalb said the wage impact from employees to the city of Gardner would be about $173 million over the 20-year span and the total economic impact to Johnson County would be around $6.6 billion.
Kalb said those numbers may be conservative.
He said actual economic impact on the city could depend on whether and what Gardner annexes.
“We feel the numbers are conservative,” Kalb said. “They all come from an economic impact analysis. The numbers are very solid at all levels.
“In some respects it is up to the city of Gardner. Are they going to annex? What incentive policies will they come up with to help attract businesses? Gardner has a good chance to get a large component or all of that revenue. It’s up to them to compete for businesses.”
Kalb said the use of rail to move goods around the country continues to grow, as does trans-Pacific trade. Kalb said the amount of trans-Pacific goods imported is expected to triple by 2025.
BNSF, which this year became the largest rail company in the country, moved 5.4 million intermodal units in 2006. Kalb said BNSF’s international shipments have doubled in the past five years.
With most of the trans-Pacific trade comes in along the West Coast or Mexico, there are only a few key routes to move those goods to the rest of the country. One of the main routes is directly through Kansas City, with Gardner on the main line from Texas.
“We sized the intermodal facility to handle business out to 20 years, Kalb said. “We think the proof is in the pudding. With the size investment BNSF has proposed to make and the associated warehouse development by The Allen Group, we think it will meet demand.”
Kalb also talked about BNSF’s partnership with trucking companies and some of the struggles they face in the current marketplace. He said key concerns for trucking companies include hours-of-service rules, environmental regulations, fuel costs and insurance. He said the number of qualified truck drivers is decreasing and the average age of truck drivers in the U.S. is 57.
However, BNSF spokesman Steve Forsberg, who works closely with Kalb, said the rise in intermodal facilities has helped the trucking industry co-exist with railroads.
“I think intermodal is one of the significant logistics breakthroughs,” Forsberg said. “Railroad and truck companies have traditionally competed, but now we can play to each other’s strengths. That’s why intermodal is so exciting. Trucks are best at local pickup and delivery. Rail moves a large volume long distances.”
Kalb said working with Gardner has been a good experience for BNSF and that the city has gone about things in the right way.
“The city of Gardner staff is the most competent staff of a city that size,” Kalb said. “The cooperation has been outstanding. They’ve been up front with us, and us with them. This is a people business, so we need to understand each other’s desires and wants. It’s been a very smooth process. I can’t say enough great things about Gardner.”