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Iron mine could help rail service push in NorthwoodsSubmitted: 11/22/2013

Ben Meyer
Managing Editor / Senior Reporter
bmeyer@wjfw.com


RHINELANDER - A group representing more than a dozen northern Wisconsin and Upper Michigan counties would love to see increased rail service in their areas.

The Northwoods Rail Transit Commission believes an iron ore mine in the Penokee Hills would dramatically help their efforts.

The Commission formed last year to push for better freight rail service in the North.

Service by rail companies has slowed or stopped in many areas of the Northwoods.

Rail companies often say there's not enough freight to make service profitable for them.

An operating iron ore mine would increase freight traffic heavily.

"You can see what happened with frac sand mining in the Chippewa (Falls) area. If that mine becomes operational and starts shipping ore, a lot of that could come east toward the port in Escanaba. That will help give reason and volume to reopen that Highway 8 line that we're talking about," says Northwoods Rail Transit Commission Chair Wendy Gehlhoff at a meeting of the Commission Friday in Rhinelander.

Most of the rail line that hugs Highway 8 from Ladysmith to Pembine currently sits unused.

The Canadian National railway shut down service, saying it wasn't profitable.

The director of Michigan Tech University's Rail Transportation Program addressed the Commission Friday.

He stressed that for a rail company to operate, it needs to see a way to make money on carrying freight in a certain area.

"If we have high volumes, low value, long distance - if you don't look at rail or intermodal, you're absolutely nuts. It has to be in the equation, or you're not going to be able to compete with the other regions of this nation or other nations," said Dr. Pasi Lautala.

The Commission's next task is to get better information from companies on how they would use rail service, if it was available.

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