NATCHEZ - This Mississippi River town stands to lose more than its major employer when International Paper's mill here closes in June.
Natchez and many other towns could forfeit their railroad lifeline.
Natchez officials say rail is essential not only in their bids to fill the economic void IP will leave, but also in keeping much of this city's existing industry alive.
Canadian National Railway Co., which provides rail service to much of central and western Mississippi, is studying the effect the paper mill's closure will have on two of its routes, the 65-mile branch line from Brookhaven to Natchez, and the more significant 180-mile section of the Grenada District line from Memphis to Canton, said spokesman Jack Burke. The Grenada District line is one of two north-south CN routes from Memphis to Jackson.
The company will determine whether the all or part of each of those routes will remain open, be sold to another rail operator or close completely, Burke said.
Losing rail service "would be very, very serious," for Mississippi River Corp. in Adams County, said George Matthews, the company's vice president.
The recycled pulp manufacturer, which employs more than 100 workers, relies on trains to ship in raw material and to ship finished products to paper plants, Matthews said.
"The only other option would be by truck, and in many cases that would not be a good option for logistical reasons and for cost considerations," Matthews said.
Matthews' company ships about 200 rail cars a month, which he acknowledges is just a fraction of IP's rail use. "I think they're going to do whatever they can do," he said of Canadian National.
To the north in Grenada, Mayor Mike Hyneman said the city recently purchased a 1,200-acre industrial park near Interstate 55.
"One of the reasons we purchased it was because of the availability of rail," he said. "We're planning on that being a major selling point."
The railroad's Grenada District serves communities along Interstate 55, including Senatobia, Batesville, Grenada, Sawyer, Winona and Pickens. A Nissan plant, to open May 27 in Canton, has secured that line from Canton south, he said.
Burke would not give specifics, but said the IP mill in Natchez, which had employed more than 600 workers, accounts for about half of the business on the Grenada line and more than that on the Brookhaven-Natchez line. Burke did not say how long the CN study would take.
"If another company under a different cost structure can provide the service, it's favorable to us that we are out from under from what would be a loss," he said. "That's a favorable solution to all involved."
CN would need federal approval to either close or sell a line. The state owns one 20-mile section of rail. Shortline operators run about 645 miles of rail. Larger, Class I operators, such as CN, run on about 1,939 miles, according to the Mississippi Department of Transportation.
Those in the economic development and rail industries say it's fairly common for rail routes to be expanded, sold or abandoned.
Robert Rohrlack Jr., executive director of the Mississippi Development Authority, said his office is working community leaders, rail consultants, economic development professionals, MDOT and state legislators to try and keep the lines open.
"We are taking a very proactive stance to have these rails stay in place and in business," he said. "We need to keep those lines."
The quality of a city's work force and intermodal transportation - including rails, highways, ports and airports - are the two key indicators of its ability to attract new industry, said Jay Moon, president of Mississippi Manufacturers Association.
In Georgia, officials say rail service was a key to landing a Daimler-Chrysler plant near Savannah.
Rail service is a key selling point for Cheyenne, Wyo., which is currently one of two final locations under consideration for a glass manufacturing plant that would employ about 150 people, said Den Constantino, director of business and industry for the Wyoming Business Council.
Constantino said rail is vital to his state's economy, particularly the mining industry, however a lack of rail service hasn't stopped some communities from attracting industries.
"Rail isn't the end all in the world," he said. "It's a matter of the kind of industries they try to target."
As an example, he said Brunton, a surveying and outdoor equipment manufacturer located in Riverton, Wyo., a town of about 9,130, doesn't need a railroad.
Brunton relies mostly on UPS and FedEx - through a regional airport and highway system - to ship its products, he said.
In southwest Mississippi, it would take much realigning to eliminate rail service from the economic development plan, said Mike Ferdinand, executive director of the Natchez-Adams County Economic Development Authority.
Industry here is centered largely around the paper and hardwood industries, which both need rail to survive, he said. The rail also plays more subtle role in other key industries such as tourism, office operations such as call centers, and manufacturers that use the city's port, Ferdinand said.
"If you pull out rail, that's a critical part of our transportation network that we promote," he said.
In March, Tessenderlo Davison Chemicals, based in Ruston, La., was ready to close on an Adams County facility it plans to use for chemical storage and mixing. That decision has been delayed because CN can't guarantee rail service after IP closes, said Steve Nathanson, the company's vice president and general manager.
"We ship via barge, truck and rail, and without rail that facility is of little value to us," he said.
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