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Expanded Rail Service on Track to Enhance Virginia’s Economy, Reduce Congestion

05/05/2021

VRE


By Frank Dillow

       Railroads, once the backbone of Virginia’s transportation network, may once again define its future. After years of planning and regional negotiations, extensive improvements in rail transportation are on their way. Northern Virginia’s residential and commercial Realtors® alike will soon begin seeing the impact on communities throughout the region.

     The plan envisions a network of all-day commuter and intercity train service, removing an estimated 6 million cars and trucks per day from the congested I-95 corridor and extending the boundaries of a reasonable commute to Northern Virginia from Richmond to Baltimore. Retailers and restaurants will be more desirable at the railway stations along the line and perhaps most importantly, warehouses can expand their operations along the I-95 corridor, taking advantage of the rail capacity to more efficiently and reliably deliver their cargoes without adding to traffic congestion.

        Under terms of an agreement worked out between Virginia, Amtrak, CSX Transportation and Virginia Railway Express (VRE), work will soon begin launching Virginia’s $3.7 billion investment for what Governor Ralph Northam calls a “once in a generation opportunity.”   

     The agreements provide for Virginia to acquire existing railroad track and right of way between Alexandria and Fredericksburg, allowing tracking improvements for increased passenger and freight service.

     Virginia will also construct and own an additional two-track bridge dedicated to passenger and commuter rail over the Potomac River into Washington, DC at a cost of $1.9 billion. The new bridge will parallel the current 116-year-old Long Bridge, owned and operated by CSX, currently operating at 98% capacity with about 76 freight, VRE and Amtrak trains crossing every workday. The only rail connection between Virginia and Washington, DC or Maryland, it carries all current passenger and freight rail traffic on the east coast and has been a bottleneck for increased rail service for many years. The next closest rail bridge across the Potomac is at Harpers Ferry. Construction is expected to begin within two years and be in service by 2030. The current bridge will remain in place, dedicated to freight traffic.

    In addition, Virginia will construct a new stand-alone bicycle and pedestrian bridge connecting Crystal City to the DC waterfront. Planned railway station improvements in Crystal City and Alexandria will accommodate the anticipated growth from the development of Amazon’s nearby headquarter facilities.

      The Virginia project, along with its Maryland and DC counterparts, is part of a regional plan that will open rail service up and down the east coast, increasing both VRE and Amtrak service while laying the foundation for a Southeast High Speed Rail Corridor. As part of the agreement Amtrak will also contribute $944 million toward improvements in Virginia.

          VRE, which has carried commuters from Fredericksburg and Manassas into Washington, DC and back since 1992, also plans to contribute $200 million to the project over the next ten years, along with $800 million in service improvements. VRE will nearly double its current weekday service to Fredericksburg while adding weekend service and late-night service on Fridays. The VRE line to Manassas, which currently runs eight roundtrips per workday will add an additional roundtrip this year and three more by 2026.

       The expanded rail service will also increase access to the Port of Virginia in Norfolk, further reinforcing Virginia’s role as a major east coast port and transit hub. Since 2017 the Port of Virginia has been the east coast’s leading rail port with more than 34% of its cargo arriving and departing on track. Port authorities are looking to increase that to 40 percent by 2022.

      One of the few deep-water ports that can accommodate the new generation of super-sized ships coming to the east coast directly from Asia through the recently expanded Panama Canal, the Port of Virginia doesn’t want to be just another east coast port where containers are dropped off, but rather a rail-driven gateway that provides service all the way to the Midwest.           

    The expanded rail service would also facilitate local opportunities like the new 533,624-square-foot warehouse distribution center planned by DHL Corporation alongside I-95 in Stafford. The facility is expected to create 600 new jobs, while generating $1 million in new local tax revenues serving customers from Washington, DC to Richmond. Unfortunately, it is also expected to add 1800 more vehicles each day to an already busy traffic corridor.    

      The population of Virginia is expected to grow from 8.5 million to 10 million over the next 25 years, with 20% of that growth expected in Northern Virginia, compounding congestion problems and putting more pressure on the transportation network. A recent study of I-95 found that adding just one lane in each direction for 50 miles would cost $12.5 billion, and by the time construction was completed in 10 years, the corridor would be just as congested as it is today.

    These projections are what led Virginia officials to consider expanding rail service, a solution that can provide the needed capacity at one-third of the cost. Increased passenger rail service will meet the increasing demand not only among Virginians, but also throughout the eastern seaboard.

 “We cannot pave our way out of congestion,” Northam said.

Frank Dillow is a past chair of NVAR’s Realtor® Commercial Council, an NVAR instructor, and a senior commercial broker in Long & Foster‘s Commercial Division. He can be reached at francis.dillow@ longandfoster.com.

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