Study shows northwest Illinois rail expansion costs would outpace ticket revenue

[May 23, 2022] By Scot Bertram | The Center Square contributor

(The Center Square) – The price tag on expanding passenger rail service in northwest Illinois could reach $380 million.

That’s according to a new feasibility study prepared by Quandel Consultants looking at establishing service between Rockford and Dubuque, Iowa, with stops in Freeport and Galena. The route also would connect to pending service from Chicago to Rockford, which could begin in 2025.

The report projects construction costs between $281 million and $380 million to get the line up and going. Ongoing annual operating and maintenance expenses are estimated at up to $9.7 million. That compares to expected annual ticket revenue of between $2.8 million and $3.5 million.

“I don't find that the constituents in northwest Illinois that this is anywhere close to the priority list,” said State Rep. Andrew Chesney, R-Freeport, who represents the area. “We want to fix our current infrastructure, roads and bridges, and sidewalks.”

The study operates under the assumption of two round-trip trains daily between Rockford and Dubuque, with estimated ridership at around 75 people each way.

“I don't suspect this is a demand, or at least a high demand,” Chesney said. “I think that the cost sharing would be a big concern as well as implementation. Dubuque, of course, wants this, but they're not willing to foot most of the bill.”

The study states the line would require replacement of 88 miles of mainline rail and 40% of existing ties on mainline track, among other improvements needed like building stations and support facilities to support the route.

“We celebrate in Illinois when we get an improvement to our credit rating that still ranks 50th out of 50,” Chesney said. “Our biggest issue that we have in northwest Illinois is funding our current infrastructure and our current responsibilities.”

It’s estimated that about 600 jobs would be needed for between two and three years of construction along the route, with 34 total long-term jobs created by the project. Twenty would be in the Rockford/Dubuque region on the line.

“If the best guess is they're going to lose money, I think most reasonable people would say that should be a non-starter,” Chesney said. “Then you couple that with the [lack of] appetite to bring on more projects that are unrelated to properly funding our police and addressing a big EMS [shortage] here in the region.”

Authors of the study make a case for “increased tourism” and “local economic activity,” but provide no hard numbers as to the impact on the region.

The report concludes by outlining various funding opportunities, including $66 billion in funds for rail projects that were outlined in last year’s federal Infrastructure Investment and Jobs Act. It’s also recommended that advocates begin a more advanced study to help generate a Preliminary Service Development Plan for the project.