Cities, county look to state for rail line funding efforts

“TxDoT (the Texas Department of Transportation) and the State of Texas have not pursued federal funding for rail enhancements due to the lack of a state appropriation of matching funds for federal grants. According to rail advocates, Texas has left $19 billion in potential federal grants on the table due to lack of state matching funds for federal grants,” El Campo City Manager Courtney Sladek said Thursday.

Rail line funding is especially important in Wharton County with the long-pending rail supported warehouse seeking dollars for the installation of spurs into the not-yet-constructed park.

“Our local economic development corporations (WEDCo [Wharton Economic Development Corporation] and EC-CDC [City Development Corporation of El Campo]) are asking local governments to petition our state leaders to start budgeting for some of these much needed match funds. As you know, the legislature is preparing to meet next week,” County Judge Phillip Spenrath said Friday.

Developers Stonemont Financial Group, Ridgeline Property Group and NAI Partners want to put a 540-acre railroad-supported warehouse development at the intersection of CR 421 and U.S. 59.

The project, dubbed the Southwest International Business Park, was first announced more than six years ago and was annexed into El Campo in 2019 as part of the initial development agreement.

In July, city officials were told Stonemont predicted actual construction would begin in May 2023. Since then, city and rail park officials have met in several closed door sessions, but no information has been released to the public as allowed under state Open Meeting law when agencies are discussing economic development.

The now-near complete merger of Kansas City Southern, the owner of the line running through Wharton County, and Canadian Northern into Canadian Pacific had caused delays earlier as the plan went through the federal Surface Transportation Board with an extended period for public comment.

KCS announced it was merging with CN in October 2021, filing an request and environmental impact study for the line which, once merged, would connect from the major Port of Lazaro Cardenas on Mexico’s western side to Eastern Canada through trackage owned by the company. That line runs through central Wharton County crossing through Louise as well as the cities of El Campo and Wharton.

Among possible items the federal grant dollars could provide funding for are improving at-grade highway crossings, track rehabilitation, bridge work and “for the development of industrial rail parks and transload facilities in rural areas to promote economic growth and jobs,” according to the proposed El Campo City resolution.

County commissioners will consider the resolution during their 9:30 a.m. meeting Monday with the City of El Campo having it on council’s agenda at 6 p.m. that night.