A CP train at Nahant yard in Davenport.
A CP train at Nahant yard in Davenport - Mar 2022 Gary Krambeck.
QUAD CITY TIMES
Davenport Iowa USA
Davenport Strikes Deal With CP for Up to US$10 Million
2 August 2022

Davenport Iowa USA - Davenport could come away with as much as US$10 million from Canadian Pacific (CP) as the rail company seeks to merge with Kansas City Southern (KCS), a move that's expected to triple train traffic downtown.
 
Davenport aldermen will vote on the agreement next week.
 
It includes US$8 million for infrastructure upgrades to combat noise and safety concerns, such as pedestrian access to the riverfront, and creating a "quiet zone" from Marquette Street to Mound Street.
 
An added US$2 million would go toward a bridge near a waste water treatment plant near Credit Island for pedestrian and vehicle traffic to travel over the railway and avoid being stopped by trains.
 
CP and riverfront cities have been in negotiations for months as the rail company undergoes an approval process by the Surface Transportation Board (STB) to merge with KCS.
 
The merger would create the first single-company rail line connecting the U.S., Mexico, and Canada and is valued at roughly US$31 billion.
 
Trains making the continental journey under the new route would have to pass through Iowa Mississippi River towns, including the Iowa Quad-Cities.
 
That is expected to triple the number of trains.
 
Davenport leaders have expressed fear that the increased volume would impact access to its Water Pollution Control Plant, and the riverfront, as well as be noisy for downtown visitors and residents.
 
Cities, including Davenport, have been negotiating directly with CP for help in upgrading infrastructure.
 
The bulk of the money, the US$8 million at Davenport's discretion, will be used for "a quiet zone, pedestrian access to riverfront amenities, and grant matches," Davenport Chief Strategy Officer Sarah Ott wrote in an email.
 
"Staff will create a recommendation based on engineering feasibility and access needs. There is not a time limit on these funds," Ott wrote.
 
The deal would also put US$2 million toward an overpass near the Water Pollution Control Plant at South Concord Street and West River Drive to avoid long delays near CO's switching yard.
 
But the project specific money hinges on whether the city can secure additional grant funding.
 
"City facilities, residents, and businesses are often blocked by trains when visiting this area due to the proximity of the switching/storage yard, With the increase in train traffic, this will become more prevalent. An overpass will increase efficiency for traffic and provide access to emergency response vehicles if needed," Ott wrote in an email.
 
Staff haven't identified specific grants to apply for, Ott said, and the the choice will depend on availability and timing of applications.
 
Signing the agreement prevents the city from opposing the merger in front of the STB or seeking other mitigation measures.
 
But in a council memo, City Attorney Tom Warner wrote that CP's "investment is substantially more than what the STB would require."
 
"The City and CP have developed a good working relationship over the past several years, and that is borne out by this agreement and CP's commitment to investing in our community, and being willing to proactively address some potential concerns that may arise from their pending acquisition," the memo reads.
 
Bettendorf reached a US$3 million agreement with CP earlier this summer.
 
The city expects to use roughly half of it to create "quiet zones" from 12th Street through 35th Street, which could include installing four flashing lights and gates at most railroad crossings, or installing medians to prevent vehicles from going around the gates.
 
With those added safety measures, trains wouldn't have to blow their horns.
 
The merger between CP and KCS, if approved, isn't expected to be fully completed until 2027, when train traffic would be fully ramped up.
 
Davenport is moving slowly forward with a plan for a US$6 million riverfront "regional destination play area" to attract more visitors and add a quality-of-life amenity to downtown Davenport.
 
Some aldermen have expressed hesitancy with moving forward with the COVID-19 relief dollars funded project while negotiations with the railroad were pending.
 
CP casts the merger as an economic boost to the area, including creating about 100 jobs in the Quad-Cities.
 
Rail company officials also claim the merger will lead to reducing 1.5 million tons of greenhouse gas emissions within five years because of improved efficiency.
 
Sarah Watson.

*1. Suitable news image inserted.
(likely no image with original article)
*2. Original news image replaced.
(usually because it's been seen before)
News quoted by OKthePK website under
provisions in Section 29 of the Canadian
Copyright Modernization Act.