President of the Franklin County Area Development Corporation in Chambersburg, Pennsylvania

Mike Ross is president of the Franklin County Area Development Corporation in Chambersburg in south-central Pennsylvania. The nonprofit works to coordinate economic development in the county, promoting a comprehensive strategy of planned growth and family sustainable employment opportunities. Ross has presided over the FCADC since its start-up in 1986. During that time, the FCADC has facilitated more than 650 projects countywide that resulted in more than $1.4 billion of new investments and the creation or preservation of approximately 40,000 jobs. Before joining the FCADC, Ross worked more than eight years with the Pennsylvania Department of Commerce.

Question:

As part of its Crescent Corridor improvement program, Norfolk Southern plans to build a $95 million intermodal facility in Greencastle, Pa., which is located in Franklin County. What kind of economic impact do you expect this facility to have on Franklin County and the surrounding region?

Answer:

In itself, the $95 million investment to construct that facility will be one of the largest economic investments of any kind we’ve had in the county. The facility will improve our transportation network by allowing us to move cargo more efficiently and in a safer way, and there will be important economic spinoffs. On the day the intermodal terminal was announced, we started to get calls immediately from transportation-related companies and logistics companies that distribute in the Mid-Atlantic and Northeast wanting to know more about it.

We’re part of a regional economy that stretches into Washington County, Md., Berkeley County, W.Va., and Frederick County, Va. We believe this facility is going to stimulate significant job growth in the entire quad-state region over the next decade. There could be a company that locates in Washington County or in Berkeley County as a result of this terminal in Greencastle, and the fact is, a lot our residents travel to these adjacent counties, and vice versa, for employment.

We expect this facility to attract logistics and distribution companies looking to move consumer or industrial products along the Mid-Atlantic up to New England. We’ll also become more attractive to manufacturing companies that need to ship and receive materials and products. It’s going to strengthen our existing logistics and manufacturing sectors, as well. Developers of properties adjoining the intermodal terminal site envision mixed-use developments emerging with distribution/manufacturing, as well as commercial services to support those uses, such as hotels and restaurants.

Question:

Because the Crescent Corridor program is a public-private partnership, Pennsylvania is chipping in public money to help finance improvements that carry public benefits. In addition to the Greencastle facility, Norfolk Southern is expanding intermodal facilities in Harrisburg and Philadelphia as part of the improvements. In your view, how does Pennsylvania benefit from contributing to the corridor program?

Answer:

Pennsylvania has partnered with Norfolk Southern in a very significant way in support of the overall Crescent Corridor, pledging $45 million to date. We believe that the corresponding economic impact in the form of jobs, wage taxes, and related business taxes will more than offset what Pennsylvania has pledged in support of the corridor. The result will be a stronger tax base for local municipalities and school districts.

An independent economic impact analysis Norfolk Southern had done projects that the corridor improvements in Pennsylvania will create 26,000 jobs within 10 years and 41,000 jobs by 2030. It also estimated that Pennsylvania businesses would save around $117 million annually in logistics costs. If the economic impacts are half as good as that we’re all winners. If they equal or exceed those projections it’s a grand slam for us.

This project really is good for America. In my view, this whole project is what the federal stimulus monies should be used for. Infrastructure is the basis for economic growth. You can have the best land in the world, but if it doesn’t have utilities, whether it be gas, water, or transportation, it sits vacant. The investment to improve the Crescent Corridor is clearly a step in the right direction.

Question:

Beyond increased business activity do you see other benefits associated with the Crescent Corridor program?

Answer:

We’re situated right on Interstate 81. When that highway was designed in 1965, they did a great job of projecting traffic for the next 20 years up to 1985. Well, it’s 2010 and we’re 25 years beyond that and our interstate system is at overcapacity. We drive that highway every day, and we’re intimately aware of the number of trucks traveling it. It’s really functioning at a negative level in terms of safety.

So, to the extent that the Crescent Corridor can carry more freight and take trucks off I-81 and some of our other interstates, everybody benefits. It improves the safety, as well as creates a more favorable environmental impact as a result of reduced emissions. Overall, it’s just a good thing.

The location of the Greencastle terminal is located at the Exit 3 interchange on Interstate 81, so trucks going in to load or offload from trains have access right off the interstate and won’t impact the town of Greencastle in any negative way.  Our experience is that Norfolk Southern has done it right. They’ve met with potentially impacted neighbors to explain the project, worked with them to mitigate any real or perceived negative impacts, and made a strong effort to educate the public about the project. We’ve looked at this, and we don’t see any downsides.