Economic Impact

Economic Summary: Public Freight Railroad System Owned and Managed by the State of Wisconsin

In Wisconsin, there are 160+ industries in 20 counties that ship freight by rail utilizing the public freight railroad system operated by the Wisconsin & Southern Railroad Co. Shipping freight by rail provides industries with a low cost, efficient alternative to shipping by truck or other means.

Participating Counties:

Columbia
Grant
Milwaukee*
 Sheboygan
Crawford
Green
Ozaukee
Walworth
Dane
Green Lake
Richland
Washington
Dodge
Iowa
Rock
Waukesha
Fond du Lac
Jefferson*
Sauk
Winnebago
* = Membership pending

2005 Economic Benefits From Industries Utilizing Public Freight Rail System:

2005 Employees
(Includes Seasonal)
Total Property
Taxes Paid
Property Tax
to
All Counties
Property Tax
to State of
Wisconsin
Ad Valorem
Tax
(All Railroads)
Total
Railcar
Loads
19,529
$22,682,517.93
$2,379,321.67
$94,936.04
$14,912,520.68
59,728
    • With the public railroad system in place today, over $12 million is being saved in highway maintenance costs on an annual basis in Wisconsin.
    • Freight rail service preserves existing highway infrastructure. There were 216,000 fewer trucks on Wisconsin highways in 2005 due directly to utilization of the public freight railroad system. WSOR handled 7% more railcars in Wisconsin in 2005 than in the previous year 2004.
    • Property taxes paid to Wisconsin counties by freight rail shippers were up by 10% in 2005.
    • Employment of rail served industries increased by nearly 200 new employees over the previous year. Most of the employees working at these rail served industries live less than 25 miles from where they work.
    • There are 250+ employees working for the Wisconsin & Southern Railroad Co. with average wages of $35,000 to $40,000 per year with full range of fringe benefits including excellent health care program.
    • Commodities carried by the public railroad system include: Grain, Steel, Oil, Grease, Aggregates, Fertilizer, Lumber, Cardboard, Pulp Board, Papers, Coal, Plastics, Ethanol and food products, chemicals.
    • Rail service to industries in Wisconsin provides a vital transportation resource linking these businesses to thousands of other businesses in national and international markets.
    • Railroads today provide a very high level of customer service to industries in Wisconsin. This efficient service helps industries save thousands of dollars in transportation costs annually. Many of these industries could not operate profitability today without these cost savings.

In order to further facilitate savings to these industries in Wisconsin, it is imperative to improve rail efficiencies by providing larger capacity railcars on the system. This can be accomplished by improving the existing infrastructure to allow for 286,000 lb capacity – the industry standard.

Wisconsin maintains an interconnected, multimodal system of transportation infrastructure that includes a 3,650 mile freight rail system. The state ranks 15th in total railroad miles, according to the Wisconsin Department of Commerce.

The state’s farmers and business owners benefit from excellent access to the North American rail system with regional and short line carriers, linking to customers and suppliers in Canada, Mexico, and major ports on the east, west and Gulf coasts. In Wisconsin, just under 50% of new or expanding industries can be found within a half-mile of a railroad line.

Overall, railroads carry 103 million tons of freight to and from the state, including coal, ores, minerals, grain, and food and paper products. More than nine million tons of rail freight is handled between Wisconsin and Canada alone.

Wisconsin & Southern Railroad
WRRTC’s operator—the Wisconsin & Southern Railroad—serves more than 150 customers along 600 miles of track. Much of this track infrastructure is leased from Wisconsin’s rail transit commissions.

The customers who ship by rail are an important part of the local and state economy. They employ more than 15,000 people.

In 2005, the WSOR handled more than 59,000 rail cars. This equates to more than 216,000 trucks that would otherwise have been added to local roads and highways. Based on information supplied by WisDOT, the reduced truck traffic saves about $12,000,000 each year on highway maintenance. There are also fuel savings, reduced emissions, and local roads may operate more efficiently.

"Competitiveness in our industry dictates investing in our employees and upgrading our infrastructure. The same holds true for our railroads. Investing in our railroads will be crucial in keeping our companies and communities competitive in the 21st century."
Doug Rockett
Pace Industries
— Reedsburg, WI

"Today’s commodity markets are increasingly competitive and efficient; using the larger cars is not so much an issue of added convenience but rather a necessity to compete."
Gary Kramer
Badger State Ethanol
— Monroe, WI

"The State of Wisconsin has worked hard in preserving many rail corridors in the state of Wisconsin over the past years. Preserving the rail corridor is one thing. Making it safe and reliable is another thing. The state now has to take the next step in assisting in upgrading these rail corridors so we as shippers can have a safe and reliable rail system that we can use."
Dan Hartung
Hartung Brothers
— Arena, WI

Member County Development websites

Wisconsin River Rail Transit Commission
719 Pioneer Tower
One University Plaza
Platteville, Wisconsin 53818
608-342-1057
info@wrrtc.org