Changes Coming to the South End of the former Kellar Branch

Looking north from NE Adams and Cornhill streets in Peoria, Illinois, Sunday, February 12, 2023

Here's some notes and thoughts on "AB-1056 (SUB-NO. 1X) PIONEER INDUSTRIAL RAILWAY CO. LLC - Discontinuance of Trackage Rights Exemption - In Peoria County, Ill.," a filing to the Surface Transportation Board last week and entered into the public record Wednesday, February 15, 2023. 

(1) The carrier asks the STB to authorize PIRY to "terminate its trackage rights over approximately 1.07 miles of line (a portion of the Kellar Branch) located between milepost 1.71 and 2.78 (the 'Line') in the City of Peoria, Peoria County, Illinois."

(2) As of January 1, 2023, the carrier is legally known as "Pioneer Industrial Railway Co. LLC."

(3) PIRY's filing is part of the City's railroad service plan, discontinuing long out of service trackage rights over the south end of the old Kellar Branch. 

(4) Board approval will free up the City of Peoria to 550 feet of track to O'Brien Steel Service Co. for use as a private siding with service provided by the Tazewell & Peoria Railroad, whose line runs behind O'Brien's plant at 1800 NE Adams Street. The rest of the line north will be abandoned. 

(5) The filing includes a map of the south end of the Kellar Branch. (Of course, switches at both ends of the short runaround track were removed in April 2020, leaving two short gaps. These, and vegetation on other sections make the rest of the line impassable. 

My thoughts -

In 2019, Pioneer Railcorp's original management sold to Brookhaven Partners/BRX Transportation, which in turn sold these assets to Patriot Rail in 2022. They have no connection to the Peoria area, thus they have no reason to block the City of Peoria's plan out of spite (deserved or not). The section of track to be abandoned is of little use these days. The only former customer, a ready mix concrete facility at 600 Van Buren Street, has long been disused. Restoration of rail service to O'Brien Steel via the Tazewell & Peoria Railroad will be a good thing. 

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Also last week, the City of Peoria filed a notice with the Surface Transportation Board, which was entered February 15, 2023. "AB 1066 (Sub-No. 3X) CITY OF PEORIA, IL - Discontinuance of Service Exemption in Peoria County, Ill."

Here are some notes and comments - 

(1) With Pioneer Industrial Railway filing to discontinue its trackage rights over the approximately 1.1-mile south end of the Kellar Branch, the City is asking the Board to discontinue service on behalf of defunct Central Illinois Railroad Co. over this section of track. 

(2) The City's filing is "the second and concluding part of a two-part strategic initiative by the City, in cooperation with Pioneer Industrial Railway ('PIRY'), to restore rail service to customers over certain City-owned rail lines that had been out of service since 2010."

(Last October, PIRY made the necessary filing asking for a legal change to the north end to restore service to Carver Lumber Co. The 3.74 miles of trackage connects with Union Pacific's Peoria Sub mainline. It is highly unlikely the railroad would do this solely for the small volume of traffic potentially generated by Carver Lumber. Lucrative railcar storage contracts are likely in play here.)

(3) The City hopes that if the Board decides in its favor, the discontinuance of the South Line will be consumated 50 days after the filing date (50 days after February 15 would be April 6, 2023). 

(4) Favorable action by the STB would enable O'Brien Steel to rehabilitate 550 feet at the south end so that it can get rail service from TZPR. 

(5) To avoid delay, the City asks the Board to exempt proceedings from the Offer of Financial Assistance (OFA) statute. 

(6) A map on Page 18 shows the line and the section to be conveyed to O'Brien Steel for use as a private siding. 

(7) A letter of support from O'Brien Steel can be found on Page 28 of this filing. 

- David P. Jordan