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A Freight Plan for the NYMTC Region<br />

• <strong>New</strong> <strong>York</strong> State’s Multimodal Program and Industrial Access Program – The<br />

Multimodal program was enacted in 1996 with an authorization of $350 million over<br />

four years. This fund has been primarily used for small projects of $1 million or less.<br />

For example, the fund recently provided one million dollars to the Noco Energy<br />

Corporation to expand its rail terminal in Towanda, <strong>New</strong> <strong>York</strong>. The Industrial Access<br />

Program provides no interest loans for road or rail access to industrial or commercial<br />

sites. One of the criteria for project selection is employment generation.<br />

Other proposals to improve public funding of <strong>freight</strong> projects have been advanced over<br />

the last few years, including special <strong>regional</strong> infrastructure banks for <strong>freight</strong> projects that<br />

have benefits beyond a single state, and tax credit bonds to finance a competitive or<br />

formula-driven list of projects.<br />

• 7.4 Recommendations<br />

The foregoing analysis has demonstrated the need for setting priorities and making<br />

choices within and across funding categories and modes – highways and rail, passenger<br />

and <strong>freight</strong>. It is highly unlikely that all of the major transportation investments currently<br />

being studied in the region will be funded in the next round of Federal transportation<br />

authorization, or beyond in the coming decades. This study has attempted to identify<br />

projects that would be most beneficial to <strong>freight</strong> movement in the region, and to chart a<br />

path forward for decision-makers. If the region cannot agree upon a shared agenda for<br />

transportation investment, it will lose out in the competition with other regions for<br />

earmarked projects and other funding sources.<br />

Other initiatives can be taken at the state and local levels:<br />

• Freight infrastructure needs require dedicated sources. <strong>New</strong> <strong>York</strong> State should<br />

consider refinancing its Local Rail Assistance Program along the lines of programs in<br />

Pennsylvania, Michigan, and Illinois.<br />

• Public/private or joint funding may have applicability in the construction and<br />

operation of rail <strong>freight</strong> yards, intermodal facilities, and highway facilities. Public/<br />

private funding has been used for projects such as those shown in Table 7.1. This type<br />

of financial arrangement helps maximize the amount of funding that could be available<br />

for a project. A report by the Federal Highway Administration titled Funding and<br />

Institutional Options for Freight Infrastructure Improvements, stresses that “project<br />

partnership formation is essential in developing major <strong>freight</strong> infrastructure projects.”<br />

Decision-makers should examine opportunities in zoning and tax incentives to<br />

encourage developers to become financially involved in the construction of warehousing<br />

and distribution facilities.<br />

Cambridge Systematics, Inc. 7-8

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