Rail Development Study Says Ohio Hub Could Bring $9 Billion in Benefits

While we await news regarding the Breuer Tower from the special CPC Meeting this morning, here is some encouraging news from Ohio Rail Commission:

THE HANNAH REPORT - Thursday, June 28, 2007

Rail Development Study Says Ohio Hub Could Bring $9 Billion in Benefits

A recently completed study by the Ohio Rail Development Commission (ORDC) on a plan to establish a high-speed passenger rail system in Ohio shows it could create 16,700 new jobs and bring $9 billion in benefits over the project's 30- year life.

Just months after a Midwest rail development group released a report showing the economic impact of passenger rail, the ORDC study also shows promising numbers for the Ohio Hub system.

According to the ORDC, the project will create 7,100 construction jobs and generate a $1.84 billion increase in householdincomes related to construction, manufacturing, health care, retail
trade, and professional, financial, and insurance services.

The study is based on an 860-mile "Cleveland Hub" with four lines radiating from Cuyahoga County to Cincinnati, Detroit,Pittsburgh, and Toronto. The full system calls for 1,270 miles of
passenger rail and 46 stations in Ohio.

The forecast predicts the following:

· Annual riders to and from a station in Cincinnati in 2025 would exceed
900,000. The downtown development potential from the station would
range from $330 million to $470 million, and up to 1,390 new local jobs would
be created.

· Annual riders to and from a station in Columbus would range around
1.11 million, with up to $340 million in downtown development potential
and up to 1,925 local jobs created.

· Annual riders to and from a station in Cleveland would be around 1.10
million, with up to $520 million in downtown development potential
and up to 1,910 local jobs created.

· Annual riders to and from a stations in Toledo and Dayton would be
around 640,000, with the potential for over a 1,000 local jobs created.

The study also shows the Ohio Hub would have an annual economic impact on state tourism by generating 320,000 new overnight trips; creating the potential benefit of short-haul freight rail operations in the range of $3-6 billion; and spurring an average energy savings of approximately 9.4 million gallons of fuel.

Already in the planning stages, the ORDC is planning to proceed with an environmental impact study, which could also help determine where upgrades and improvements need to be made on the current rail system that the Ohio Hub plan will utilize.

Stu Nicholson, spokesman for ORDC, said officials are seeking $5 million from Congress to pay for the environmental impact study.

He said ORDC hopes to fund the $4.9 billion project without having to go to taxpayers for money, or at
least by minimizing the amount taxpayers would provide. Nicholson estimated that if the full funding is available, the project could be built within 10 years, with the first service
beginning in three to four years.