STB Authorizes New Rail Line in Webb County, TX

The Surface Transportation Board today issued a decision authorizing the construction and operation by Laredo Gateway Industrial Railway, LLC (LGIR) of an approximately 2.6-mile rail line in Webb County, Texas, creating a new freight rail option for shippers. The line would connect to the Union Pacific Railroad (UP) Laredo Subdivision mainline and serve a new industrial park under development, known as the Gateway Industrial Park (Park), near the intersection of Interstate Highway 35 and State Highway 255 north of Laredo, Texas.

The line would extend from a switch on UP's Laredo Subdivision and terminate within the Park, and, according to LGIR, would serve shippers utilizing the Laredo Port of Entry. LGIR states that it has entered into an agreement with a third party, Iron Horse Resources, Inc. (IHR), to operate the line, and that IHR will separately seek Board authority to operate on the line.

In today's decision, the Board authorizes LGIR to construct and operate over the line, subject to certain environmental mitigation conditions. The Board finds that construction and operation of the line would increase competition by creating a new rail service option where it does not currently exist, thereby providing an alternative mode of transportation for customers at the Park. The line would facilitate the diversion of traffic to rail, increasing overall energy efficiency and reducing emissions. The Board's environmental analysis recommended two mitigation measures to minimize potential impacts to biological resources and cultural resources, which the Board adopts in today's decision.

Today's decision in Laredo Gateway Industrial Railway, LLC-Construction and Operation Exemption-in Webb County, Texas, Docket No. FD 36847, may be viewed and downloaded here.