New Proposed Transload Facility Promises Economic Growth for Oskaloosa and Mahaska County
Railroad Transportation (Oskaloosa News file photo)
Strategic Location and Design
The proposed transload facility will be located on a 27-acre site adjacent to Innovation Park, a certified development-ready site that is the fifth largest in Iowa. The facility’s location is strategically chosen to leverage the nearby Union Pacific Railroad (UPRR) spur and major highways, including Iowa Highway 23 and US Highway 63. This proximity to key transportation routes is expected to enhance the flow of goods and reduce transportation costs for local businesses.
The facility’s design includes two siding tracks capable of accommodating up to 15 rail cars, with room for future expansion. Trucks will have direct access to the sidings via South 31st Street, ensuring smooth and efficient operations.
Economic Impact
The transload facility is projected to generate significant economic benefits for Oskaloosa and Mahaska County. According to the feasibility study, the facility will primarily serve industries that deal with commodities such as cement, rock, salt, and lumber. These industries will benefit from lower transportation costs by switching from truck to rail, which is both more cost-effective and environmentally friendly.
The facility is expected to create new jobs in construction, logistics, and facility management. Additionally, the availability of a modern transload facility is likely to attract new businesses to the region, further boosting the local economy.
“Having a certified site with rail access gives us a competitive edge,” said a local economic development official. “It’s a significant advantage for attracting new businesses that require efficient freight handling.”
Environmental and Social Benefits
In addition to economic gains, the facility is expected to deliver environmental benefits by reducing the number of trucks on local roads. This shift to rail transport will lower greenhouse gas emissions and reduce wear and tear on road infrastructure, leading to potential savings in road maintenance costs for the city and county.
The facility’s design and operations will also incorporate Environmental, Social, and Governance (ESG) principles, with a focus on sustainability and reducing the carbon footprint of freight transportation.
Financial Viability
The feasibility study’s benefit-cost analysis reveals a benefit-cost ratio of 8.85, indicating that the project is highly cost-effective. The facility is projected to generate $31.8 million in benefits against $3.6 million in initial capital costs, with a net present value of $28.2 million. The study anticipates that the facility will become profitable by the fifth year of operation, ensuring long-term financial sustainability.
Next Steps
While the project is still in the planning stages, discussions are ongoing with potential operators and funding sources. The Iowa Department of Transportation, local industries, and other stakeholders are involved in these discussions to ensure the project’s success.
“Building this facility is an investment in the future of Oskaloosa and Mahaska County,” said Deann DeGroot, Executive Director of Mahaska Chamber and Development Group. “It will create opportunities for growth and position our community as a key player in Iowa’s logistics network.”
