UDOT INFRA Northwest Quadrant Project Narrative

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INFRA Discretionary Grant

Northwest Quadrant
Freight Mobility Project
A multi-component project to support efficient
and safe freight and vehicle transportation in
a regionally, nationally, and internationally
important economic center.

Salt Lake City, Utah


November 2, 2017
Cover Page
Project Name Northwest Quadrant Freight Mobility Project
Was an INFRA application for this project submitted previously? Yes
If yes, what was the name of the project in the previous 2016 FASTLANE: 5600 West Freight Access and
application? Roadway Improvement Project
2017 TIGER: 700 South Railroad Overpass
Previously Incurred Project Cost $5,000,000 (Salt Lake Garfield and Western Railway
Company [SLGW] expenditures)
Future Eligible Project Cost $129,975,487
Total Project Cost $134,975,487
INFRA Request $45,418,228
Total Federal Funding (including INFRA) $90,918,228
Are matching funds restricted to a specific project component? If Yes. See Section IV for details.
so, which one?
Is the project or a portion of the project currently located on the Yes
National Highway Freight Network?
Is the project or a portion of the project located on the National Yes
Highway System? • Yes, rail component removes trucks from I-80
• Does the project add capacity to the Interstate system? • No
• Is the project in a national scenic area?
Do the project components include a railway-highway grade Yes, two crossings
crossing or grade separation project? 834431W (5600 West)
• If so, please include the grade crossing ID. 834433K (700 South)
Do the project components include an intermodal or freight rail Yes
project, or freight project within the boundaries of a public or
private freight rail, water (including ports), or intermodal facility?
If answered yes to either of the two component questions above, $30,303,697
how much of requested INFRA funds will be spent on each of
these project components?
State(s) in which project is located Utah
Small or large project Large
Urbanized Area in which project is located, if applicable Salt Lake City–West Valley City Urbanized Area
Population of Urbanized Area 1,021,243 (2010 Census)
Is the project currently programmed in the: 5600 West Railroad Crossing and Widening:
• TIP – Yes • TIP
• STIP – Yes • STIP
• MPO Long Range Transportation Plan – Yes • WFRC Transportation Plan 2015–2040
• State Long Range Transportation Plan – Yes • Utah’s Unified Transportation Plan 2015–2040
• State Freight Plan? – Yes • Utah Freight Plan 2015
If selected, would you be interested in participating in a new Yes
environmental review and permitting approach?

Cover Page i
Contents
COVER PAGE ................................................................................................................................... I
CONTENTS ...................................................................................................................................... II
I. PROJECT SUMMARY ............................................................................................................1
II. PROJECT LOCATION ............................................................................................................4
III. PROJECT PARTIES ...............................................................................................................6
IV. GRANT FUNDS, SOURCES AND USES OF PROJECT FUNDS ..................................................7
V. MERIT CRITERIA AND OTHER REVIEW CRITERIA ............................................................9
V.1 Support for National or Regional Economic Vitality ........................................................................ 9
V.2 Leveraging of Federal Funding ....................................................................................................... 13
V.3 Potential for Innovation .................................................................................................................. 14
V.4 Performance and Accountability ..................................................................................................... 14

VI. PROJECT READINESS .........................................................................................................14


VI.1 Technical Feasibility ....................................................................................................................... 15
VI.2 Project Schedule.............................................................................................................................. 15
VI.3 Required Approvals ........................................................................................................................ 16
VI.4 Assessment of Project Risks and Mitigation Strategies .................................................................. 17

VII. LARGE/SMALL PROJECT REQUIREMENTS .......................................................................18


VII.1 National or Regional Economic, Mobility, and Safety Benefits ..................................................... 18
VII.2 Cost Effectiveness ........................................................................................................................... 19
VII.3 Contribution to the Goals of 23 U.S.C. 150 .................................................................................... 23
VII.4 Preliminary Engineering ................................................................................................................. 23
VII.5 Funding or Financing Sources and Contingency Amounts ............................................................. 24
VII.6 Financial Assistance........................................................................................................................ 24
VII.7 Start of Construction ....................................................................................................................... 24

NOTES ............................................................................................................................................25

Contents ii
List of Tables
Table 1. Proposed Funding Mix .................................................................................................................................... 7
Table 2. Detailed 5600 West Project Budget Estimate .................................................................................................. 8
Table 3. Detailed 700 South Project Budget Estimate ................................................................................................... 8
Table 4. Detailed West Interchange Project Budget Estimate ....................................................................................... 9
Table 5. 5600 West Project Component Schedule....................................................................................................... 15
Table 6. 700 South Project Component Schedule ....................................................................................................... 15
Table 7. West Interchange Project Component Schedule ............................................................................................ 16
Table 8. Overall Results of the Benefit-Cost Analysis ................................................................................................ 19
Table 9. Overall Results of the Benefit-Cost Analysis for the 5600 West Roadway and Grade-Separation
Improvements ................................................................................................................................................ 19
Table 10. Summary Benefits for 5600 West Roadway and Grade-Separation Improvements .................................... 20
Table 11. Overall Results of the Benefit-Cost Analysis for the 700 South Grade-Separation Improvement .............. 21
Table 12. Summary Benefits for the 700 South Grade-Separation Improvement ....................................................... 21
Table 13. Overall Results of the Benefit-Cost Analysis for the West Interchange Improvement ............................... 22
Table 14: Summary Benefits for the West Interchange Improvement......................................................................... 22

List of Figures
Figure 1. Northwest Quadrant Context Map.................................................................................................................. 1
Figure 2. Project Area Needs and Goals ........................................................................................................................ 2
Figure 3. Rail Crossing on 700 South ............................................................................................................................ 3
Figure 4. SLGW Simplified Daily Process .................................................................................................................... 3
Figure 5. Project Location ............................................................................................................................................. 5
Figure 6. Utah's Freight Connections to the West ....................................................................................................... 11
Figure 7. Crash Locations on 5600 W. ........................................................................................................................ 11

List of Appendices

Appendix A: Funding Commitment Letter Appendix G: Rail Crossing Information


udot.utah.gov/go/nwqfreightappendixa udot.utah.gov/go/nwqfreightappendixg

Appendix B: Project Map Appendix H: Salt Lake City 700 South Railroad
udot.utah.gov/go/nwqfreightappendixb Overpass 2017 TIGER Grant Application
udot.utah.gov/go/nwqfreightappendixh
Appendix C: UDOT Concept Report
udot.utah.gov/go/nwqfreightappendixc Appendix I: Salt Lake, Garfield and Western Railway
Company Report
Appendix D: Wage Rate Certification
udot.utah.gov/go/nwqfreightappendixd
udot.utah.gov/go/nwqfreightappendixi

Appendix E: Letters of Support Appendix J: Economic Benefits of Utah’s Unified Plan


udot.utah.gov/go/nwqfreightappendixe udot.utah.gov/go/nwqfreightappendixj

Appendix F: Benefit-Cost Analysis Technical Memo Appendix K: Freight Mobility in Utah


udot.utah.gov/go/nwqfreightappendixf udot.utah.gov/go/nwqfreightappendixk

Contents iii
I. Project Summary
The Northwest Quadrant Freight Mobility Project will provide additional roadway capacity, two
new roadway/rail grade separations, and new unit-train capacity (trains with 120+ cars) to
support efficient and safe freight and vehicle transportation in a regionally, nationally, and
internationally important economic and freight center in the western United States.
The Northwest Quadrant (Figure 1) is
Figure 1. Northwest Quadrant Context Map
an area of Salt Lake City, Utah, and is
the “Commerce Crossroads of the
West.” This area is home to one of the
largest concentrations of warehouse
and distribution centers and major
truck terminals in the Intermountain
West as well as the region’s largest
intermodal center and over 70 million
square feet of warehouse and
distribution, and manufacturing
businesses.
The Northwest Quadrant is bisected
by Interstate 80 (I-80), one of the
nation’s most important corridors for
interstate commerce, and is a few
miles from Interstate 15 (I-15), a north-south facility that functions as the southern leg of I-80
from a freight perspective. The Northwest Quadrant is also the home of the Salt Lake City
International Airport; home of a regional Delta airlines hub.
The past expansion of warehouse and distribution centers in the Northwest Quadrant is driving
the need to improve the existing transportation infrastructure. Both 700 South and 5600 West,
important facilities in the Northwest Quadrant, are narrow, two-lane roads that weren’t designed
for high-volume truck use. The at-grade rail crossings at 5600 West and 700 South cause
significant delay for freight trucks and passenger vehicles. With continued growth in the area,
it’s expected that Union Pacific Railroad (UP) will expand its trackage across 5600 West to meet
market demand. Without grade-separated crossings, 5600 West and 700 South will experience
increasing congestion and safety risks, which will increase freight dock-to-dock times.
Despite these transportation challenges, the Northwest Quadrant’s 3,600 developable acres and
proximity to a variety of transportation modes (air, rail, and road) make it a choice location for
future business. Amazon, Stadler, UPS, Post Consumer Brands, and the Utah State Prison have
all recently made significant commitments to the Northwest Quadrant, and the area is favorably
positioned for the development of an inland port.
To support the existing and future transportation needs of the Northwest Quadrant as well as
regional and national economic growth, UDOT is partnering with Salt Lake City and the Salt
Lake Garfield and Western Railway Company (SLGW) to improve transportation infrastructure
in the Northwest Quadrant. This INFRA Discretionary Grant Application has three project
components—the 5600 West Project, 700 South Project, and West Interchange Project—which

Project Summary 1
are discussed in more detail below. See Figure 2 for an “Since 2006, Utah’s trucking
overview of all project locations and primary needs, and see industry has consistently listed the
Sections V and VII for discussions of the project benefits. segment of 5600 West/State Route
5600 West Project. The Salt Lake City Intermodal 172 in question as the #1 highway
freight mobility problem on Utah’s
Terminal (SLCIT), owned by UP, is situated on the east
highway network. Upgrading this
side of 5600 West between I-80 and State Route 201. State key roadway segment will greatly
Route 201 and 5600 West are both designated Critical improve freight flow and traffic
Urban Freight Corridors. As part of this project, 5600 West safety on one of Utah’s busiest and
will be widened to five lanes with 10-foot shoulders, which most important National Highway
will support future transit and active transportation Freight Network highways.”
components.
—Daniel B. Kuhn, UDOT Railroad
Directly west of the SLCIT, the three mainline tracks that and Freight Planner
serve the terminal cross 5600 West. Trains block this at-
grade crossing about 30 times per day, causing up to
30 minutes of delay per train and backups of up to 500 vehicles extending north to I-80 and south
to State Route 201. 1 About 25% to 35% of these vehicles are time-sensitive trucks from the
area’s many warehouses and truck terminals.
As part of the Northwest Quadrant Freight Mobility Project, a
new grade separation will be built on 5600 West to span the
mainline tracks that serve the SLCIT. The grade separation
will improve mobility by completely eliminating the 8 hours
of daily delay at this crossing, and the roadway widening will increase the average automobile
speed on 5600 West from 9 miles per hour (mph) to 47 mph in 2038 during the peak period.

Figure 2. Project Area Needs and Goals

Project Summary 2
700 South Project. 700 South is one of three arterials connecting the Northwest Quadrant and
the rest of Salt Lake City. Trucks access the SLCIT on the north side via 700 South, and UP’s
rail line has an at-grade crossing on 700 South (see Figure 3).
The close proximity of the 700 South crossing
(600 feet) to the SLCIT results in frequent train
crossings, delaying traffic between 10 and 40
minutes depending on the train’s length and
speed. Other times, trains will stop before
completely crossing the road, blocking the road
for over 40 minutes. Salt Lake City is proposing
to construct a grade-separated crossing to replace
the existing skewed at-grade UP crossing on 700
South at 4900 West and eliminate approximately
3.3 hours of daily delay.
West Interchange Project. SLGW, a short-line Figure 3. Rail Crossing on 700 South
railroad, plans to construct a new interchange on
the west end of the SLGW short line to UP’s main line. This area parallels I-80 and crosses
underneath 5600 West at an existing grade separation. The new interchange will allow SLGW to
increase the number of rail cars from its current capacity of 60 per train to about 120 per train,
which is referred to as “unit train” capacity. SLGW’s car count has grown consistently at an
average rate of 33.14% per year over the last 5 years. SLGW estimates that, by the end of 2017,
a total of 6,000 cars will have entered through its existing interchange, a significant increase
from 3,775 cars in 2016.
Adding unit train capacity by constructing the new SLGW interchange will remove about 90% of
the delay that this growth will cause at the 900 West Interchange, growth that would also block
traffic on 800 West, 900 West, and 1000 West and at three additional rail crossings in downtown
Salt Lake City (see Appendix G for rail crossing information).
Figure 4 illustrates a typical day at SLGW’s rail yard. Building the West Interchange between
5600 West and 7200 West will eliminate residential and traffic disruptions, improve safety at
grade crossings, and eliminate late-hour noise pollution near SLGW’s rail yard in downtown Salt
Lake City. These improvements will improve freight movement in the Northwest Quadrant and
in Utah and will support Salt Lake City’s priority to develop an inland port. 2

Figure 4. SLGW Simplified Daily Process

About 1.5–2.5 hrs of SLGW builds trains; trains About 1.5–2.5 hrs of
residential disruption as leave yard and deliver residential disruption as
UP and BNSF drop cars at goods and commodities to SLGW trains return to yard
SLGW yard and building customers along a 16-mile and trains are broken
trains is initiated down for UP and BNSF to
track pick up

Project Summary 3
II. Project Location
The Northwest Quadrant Freight Mobility Project is located in Salt Lake City, Utah, in the Salt
Lake City–West Valley City Urbanized Area within ZIP code 84104 at latitude 40.752°,
longitude –112.025° (decimal degrees). The project is located in Salt Lake City’s Northwest
Quadrant, a 28,000-acre area with an unmatched potential for future development. The area
currently has about 70 million square feet of warehouse, distribution, and manufacturing
businesses, an average of 12,000 to 15,000 truck movements a day, and 3,600 developable acres.
The freight mobility project will traverse the southern half of the Northwest Quadrant (Figure 5).
The Northwest Quadrant includes the SLCIT and is close to three of Utah’s National Highway
Freight Network (NHFN) highways (I-80, I-15, and I-215), two designated Critical Urban
Freight Corridors (5600 West and State Route 201), and the Salt Lake City International Airport.
Salt Lake City is the “Crossroads of the West” for truck transport.
Salt Lake City Intermodal Terminal (SLCIT). The
SLCIT is the only intermodal rail freight terminal in
the Intermountain West. The SLCIT provides nearby
highway access to markets throughout Utah and
surrounding states and has direct rail service to the
Ports of Los Angeles/Long Beach in southern
California, the Port of Oakland in northern California,
and major Midwest and Gulf Coast terminals in
Chicago, Kansas City, St. Louis, Memphis, and
Houston.
The intersection of I-80 and I-15 in Utah is the
Most of the freight carried by UP’s intermodal trains “Crossroads of the West” for truck transport.
is passing through Utah to or from West Coast
seaports or midwestern or eastern cities, and most of the inbound freight from the West Coast
consists of manufactured goods from Asia. The SLCIT also serves the Salt Lake City Foreign
Trade Zone, which is located on 55 acres adjacent to the SLCIT.
Shipments from as far away as Montana, Idaho, and Wyoming are trucked to and from UP
intermodal trains at the SLCIT. The SLCIT is also about 5 miles from the Salt Lake City
International Airport’s north cargo terminals. Trucks from the SLCIT can access the airport via
5600 West and I-80.
Salt Lake City International Airport. The Salt Lake City International Airport is directly
adjacent to the Northwest Quadrant on the northeast side, further supporting freight distribution
in this economic center. The airport, which serves as a regional hub for Delta Air Lines, is the
25th-busiest airport in North America and the 85th-busiest in the world in terms of passenger
numbers. 3 Air freight services provided by the airport connect shippers within hours of national
and international destinations. There are over 20 cargo carriers at the Salt Lake City International
Airport, and they handled over 353 million pounds of cargo and over 30 million pounds of mail
in 2016. 4 According to Salt Lake City, over the past 10 years, air cargo volumes at the airport
have grown at an annual average rate of 9%. 5

Project Location 4
Figure 5. Project Location

1 New UPS regional package operations facility 6 Post Consumer Brands distribution center
2 O’Reilly Auto Parts distribution center 7 Bishops Central Storehouse
3 Sephora distribution center 8 New Amazon facility
4 Costco distribution center 9 New Stadler facility
5 RC Willey distribution center

Project Location 5
III. Project Parties
The Northwest Quadrant Freight Mobility Project
enjoys broad support from a number of private Broad Support from Private and Public
and public entities. Letters of support are Entities
provided in Appendix E. UDOT is serving as the • Salt Lake City
primary sponsor of this application and is acting
• Salt Lake County
in cooperation with Salt Lake City and SLGW.
• Union Pacific Railroad
Salt Lake City has a particular interest in this • Salt Lake Garfield & Western Railway
project since it will be located in the Northwest Company
Quadrant, an area for which the City recently • Salt Lake Chamber of Commerce
adopted a Master Plan. Key policies in the • Utah Congressional Representative Chris
Northwest Quadrant Master Plan that align with Stewart
this project include: • Utah Governor Gary Herbert
• Support the construction of bridges over the • Utah Governor’s Office of Economic
main UP line to reduce conflicts with streets. Development
• Utah Governor’s Office of Energy
• Ensure freeway access to the Northwest Development
Quadrant with interchanges from I-80 • Utah Transit Authority
• Provide a network of streets based on a • Utah Trucking Association
roadway typology that accounts for • Wasatch Front Regional Council
multimodal travel, including large trucks, • Economic Development Corporation Utah
transit, automobiles, bicycles, and pedestrians. • World Trade Center Utah

Project Parties 6
IV. Grant Funds, Sources and Uses of Project Funds
UDOT, Salt Lake City, and SLGW are seeking $45.4 million from this INFRA Discretionary
Grant for the Northwest Quadrant Freight Mobility Project. The INFRA funding would make up
35% of the total project cost of $129.9 million. If UDOT, Salt Lake City, and SLGW are
awarded the full $45.4-million INFRA grant, UDOT would contribute $25.6 million, Salt Lake
City would contribute $4.3 million, and SLGW would contribute $9.16 million in non-Federal
funds. See Appendix A for funding commitment letters.
The entirety of the UDOT match would come from UDOT’s Transportation Investment Fund
(TIF), a state funding source that is established by Utah state code. The remaining $45.5 million
for 5600 West would come from FAST Act National Highway Freight Program (NHFP) funding.
Salt Lake City would provide a match from its Capital Improvement Plan fund, and SLGW
match would be a private investment for the respective project elements (Table 1).

Table 1. Proposed Funding Mix


Percent of
Description Funding Source Amount Total
Federal $45,500,000 51%
5600 West State match TIF 25,600,000 29
INFRA Discretionary Grant 17,771,000 20
Project subtotal 88,871,000 100
Local match (Salt Lake City Capital) 4,300,000 23
700 South
INFRA discretionary grant 14,000,000 77
Project subtotal 18,300,000 100
Private 9,157,259 40
West Interchange
INFRA Discretionary Grant 13,647,228 60
Project subtotal 22,804,487 100
Project total 129,975,487 100
INFRA grant ask 45,418,228 35
Federal funding total (INFRA and FAST Act NHFP) 90,918,228 70

Availability and Commitment of Committed and Expected Funding Sources and Uses of
Project Funds for Future Eligible Project Costs. See Appendix A for funding commitment
letters.
Federal Funds Already Provided and Required Matches. The FAST Act NHFP funding would
provide $45.5 million of Federal funding for this project, while the State of Utah would provide
$25.6 million as shown in Table 1 above, the requested INFRA funds equal 35% of the future
eligible project costs for the combined project. When combined with the FAST Act NHFP
funding, Federal funding represents 70% of future eligible project costs.
Detailed Project Budget. Detailed project budget estimates for each project component are
provided in Tables 2, 3, and 4. Contingency amounts vary by project and are detailed in the tables
that follow.

Grant Funds, Sources and Uses of Project Funds 7


Amount of Requested INFRA Funds. All $45.4 million of the requested INFRA funds would
be spent directly on highway, bridge, rail interchange, and grade-separation project components.
In addition, the capacity, mobility, and safety enhancements from the project will support
increased economic activity and economic competitiveness in Utah.

Table 2. Detailed 5600 West Project Budget Estimate


In 2015 dollars projected for 2019 construction

Cost Share Distribution


Total Cost Non-Federal Source: INFRA Grant Federal
Project Element of Element State of Utah (29%) (20%) (51%)
Construction Costs
Roadway and drainage $38,505,496 $11,166,594 $7,701,099 $19,637,803
Traffic and safety 325,970 94,531 65,194 166,245
Structures 13,282,347 3,851,881 2,656,469 6,773,997
Environmental 216,363 62,745 43,273 110,345
Intelligent transportation systems (ITS) 565,920 164,117 113,184 288,619
Public involvement 25,013 7,254 5,003 12,757
Items not estimated (20%) 10,584,221 3,069,424 2,116,844 5,397,953
Subtotal 63,505,330 18,416,546 12,701,066 32,387,718
Additional Costs
Preliminary engineering 5,127,651 1,487,019 1,025,530 2,615,102
Construction engineering 6,409,564 1,858,774 1,281,913 3,268,878
Right-of-way 2,751,434 797,916 550,287 1,403,231
Utilities 4,252,216 1,233,143 850,443 2,168,630
Incentives 590,308 171,189 118,062 301,057
Aesthetics 476,498 138,184 95,300 243,014
Change order contingency (9%) 5,758,000 1,669,820 1,151,600 2,936,580
Subtotal 25,365,670 7,356,045 5,073,134 12,936,492
TOTAL PROJECT COST 88,871,000 25,772,590 17,774,200 45,324,211
Source: Concept Report (Appendix C)

Table 3. Detailed 700 South Project Budget Estimate


Cost Share Distribution
Total Cost Salt Lake City INFRA Grant
Project Element of Element Investment (23%) (77%)
Construction Costs
Roadway and structure construction $12,548,406 $3,326,480 $9,221,926
Utilities 1,873,800 496,729 1,377,071
Right-of-way 244,200 64,735 179,465
Design and construction management 2,199,960 583,191 1,616,769
Contingency (15%) 2,183,634 578,864 1,604,770
Subtotal 19,050,000 5,050,000 14,000,000
UPRR credit (750,000) (750,000)
TOTAL PROJECT COST 18,300,000 4,300,000 14,000,000
Source: Salt Lake City 700 South 2016 TIGER Grant Application (Appendix H)

Grant Funds, Sources and Uses of Project Funds 8


Table 4. Detailed West Interchange Project Budget Estimate
Cost Share Distribution
Total Cost SLGW Investment INFRA Grant
Project Element of Element (40%) (60%)
Construction Costs
Fill and Dirt work $1,450,000 $200,584 $1,249,416
Canal Crossing/Bridge 408,000 56,440 351,560
Mobilization and Staging 39,400 5,450 33,950
Turnout Switches, Crossings 1,260,248 174,335 1,085,913
UP Mainline Switches (2) 2,000,000 276,667 1,723,333
Security & Technology 588,355 81,389 506,966
Administrative/Consulting 175,000 24,208 150,792
Project Management 250,000 34,583 215,417
Construct Track - Materials Plus Labor 7,831,777 1,083,398 6,748,379
Environmental Assessment Fees 70,000 9,683 60,317
Consulting and Permitting 175,000 24,208 150,792
Contingency (7%) 1,590,400 220,006 1,370,394
Subtotal 15,838,180 2,190,952 13,647,228
Right-of-way/property acquisition 6,966,307 6,966,307
Subtotal 6,966,307 6,966,307
TOTAL PROJECT COST 22,804,487 9,157,259 13,647,228
Source: Salt Lake, Garfield and Western Railway Company 5600 West – 7200 West Interchange
Improvement INFRA – 2017 Request (Appendix I)

V. Merit Criteria and Other Review Criteria


V.1 Support for National or Regional Economic Vitality
V.1.1 Sustain and Advance National and Regional Economic
Development
Freight transportation plays a major role in supporting Utah’s economy, and Utah’s freight
transportation system plays a critical role in fostering economic vitality and competitiveness in
regional and global markets (see Appendix K). Businesses are drawn to the Northwest Quadrant
for its easily accessible and centralized hub of intermodal transportation infrastructure (airport,
rail, and road). Amazon, Stadler, UPS, Post Consumer Brands, and the Utah State Prison have all
recently made significant commitments to the Northwest Quadrant, committing a total of
$1.1 billion and planning to create about 4,825 new jobs. 6,7,8,9,10
The Northwest Quadrant is a focus of Salt Lake City’s Economic Implementation Plan, which is
designed to attract new businesses to the location. 11 The State of Utah and Salt Lake City also
recognize the Northwest Quadrant as an ideal location for an inland port. 12 While it’s impossible
to tie the development of one, or even three, transportation projects to increases in economic
vitality, it’s widely accepted that good transportation does encourage and enable economic
growth.

Merit Criteria and Other Review Criteria 9


A study conducted by the Economic Development
Research Group investigated the projected economic
impact of Utah’s Unified Transportation Plan (Unified
Plan), in which the 5600 West Project is listed, and
found that funding the entire plan will result in nearly
183,000 new jobs for the state of Utah. Of the projected
new job total, 17,000 jobs will be created by enhanced
access to markets by existing Utah firms, and over
19,000 jobs will be created by new businesses attracted
to Utah because of improved transportation conditions.
Most of the monetized savings to system users in the
report are attributed to well-maintained infrastructure,
reduced congestion, and increased system reliability
(see Appendix J). The Northwest Quadrant Freight
Mobility Project will provide these same transportation
benefits, supporting the state economy in the future.
Investing in the Northwest Quadrant Freight Mobility
Project will improve the transportation in a growing
economic center by mitigating the transportation issues
of today (see the discussion of individual project
components in Section I), setting up the area to
adequately handle planned growth, and enhancing the Northwest Quadrant’s future potential by
increasing its attractiveness to new business investments and relocations.

V.1.2 Improve Connections to the Nation’s Transportation Network


to Support the Movement of Freight and People
A primary benefit of the Northwest Quadrant Freight Mobility Project is improving connectivity
between rail and truck transport. Its multimodal service combines the best of highway, rail,
pipeline, and air, both regionally and nationally. Local freight movement is equally important to
the state, reliably delivering goods and services to the residents and businesses that call Utah
home. Freight transportation also plays a major role in supporting Utah’s economy (Figure 6).
5600 West. The 5600 West widening and grade-separation project will enhance access to the
SLCIT and the Salt Lake City Foreign Trade Zone and will eliminate 8-hours of daily delay
caused by the at-grade rail crossing. This project will allow UP and the SLCIT to increase
capacity without imposing further inefficiencies on intermodal connections in the future.
700 South. The 700 South rail crossing is an active intersection that supports the SLCIT. Trucks
with routes along 700 South are delayed by passing trains by an average of 5 to 20 minutes per
train. The 700 South grade-separation project will eliminate 3.3-hours of daily delay, increase the
logistical efficiency of haul routes, increase the reliability of the movement of goods, enable
access to local businesses, and provide the infrastructure necessary to support future
development in the Northwest Quadrant. See Appendix H.
West Interchange. SLGW’s West Interchange Project will allow the Class I railroads to focus on
line-haul operations, which improves efficiency of the overall freight system. See Appendix I.

Merit Criteria and Other Review Criteria 10


Figure 6. Utah's Freight Connections to the West

V.1.3 Improve Interactions between Roadway Users, Reducing the


Likelihood of Derailments or High-Consequence Events
The Northwest Quadrant Freight Mobility Project will construct two grade separations over the
tracks that serve the SLCIT, thereby eliminating train-vehicle collisions because the 5600 West
and 700 South crossings will no longer put traffic in front of trains. In addition, moving
locomotive switching from downtown Salt Lake City to the location of the West Interchange
Project site will reduce vehicle-rail conflicts. The project will enhance the resiliency of 5600
West—a designated Critical Urban Freight Corridor—and 700 South by eliminating traffic
impacts from a derailment, hazardous material spill, or other incident on the rail line.

V.1.4 Reduce Traffic Fatalities and Serious


Injuries on the Surface Transportation
System
The Northwest Quadrant Freight Mobility Project will prevent traffic
fatalities and serious injuries by separating rail and vehicle transport.
5600 West. Between 2010 and 2017, there were 274 crashes on 5600
West in the project area, six of which were severe. Congestion on
5600 West is also a safety issue—during extreme traffic backups, the
line of vehicles can queue all the way to I-80, preventing traffic
exiting the interstate from clearing the exit ramps. By eliminating up
to 30 train crossings per day at the at-grade crossing, the 5600 West
project will remove the potential for vehicle-train collisions and
improve safety. Additionally, the project will contribute to the safety
of cyclists and pedestrians by adding a 10-foot shoulder that can
accommodate bicycles and future transit, and providing a grade-
separated crossing over the UP tracks. Figure 7. Crash
Locations on 5600
W.

Merit Criteria and Other Review Criteria 11


700 South. The proposed roadway improvement and grade-separated crossing would significantly
reduce the potential for crashes at the 700 South crossing due to the improved pavement
condition, better sight distance, lack of interaction between vehicles and trains, and the proposed
separated barrier for a shared bicycle/pedestrian path.
West Interchange. With the construction of the West Interchange and increased unit train and
transload capacity, transloading will occur in the less-congested staging area west of 5600 West
and not at the downtown Salt Lake City (900 West) location, thereby minimizing crossing
impacts and safety-related issues due to rail-vehicle conflicts in an urban setting.

V.1.5 Ensure or Restore the Good Condition of Infrastructure That


Supports Commerce and Economic Growth
The Northwest Quadrant Freight Mobility Project will renew freight infrastructure in the area.
The partners recognize that continued maintenance and improvement of infrastructure is integral
to support the projected economic growth in the Northwest Quadrant.
5600 West. The 5600 West at-grade rail crossing is currently in reasonably good condition.
However, truck traffic–induced subsidence of the concrete crossing pads on all three tracks has
caused pronounced bumps in the surrounding asphalt pavement. Empty trailers of passing trucks
have become airborne when driving over these bumps at speeds in excess of 40 mph. Because of
continuing geotechnical issues with this crossing, most traffic slows to about 25 to 30 mph when
passing over the tracks, further increasing the delay on this important commuting and freight
corridor.
700 South. The deteriorating condition of 700 South and the rail crossing pose a considerable
safety hazard and restrict economic growth. Industrial traffic is known to use longer, alternate
routes to avoid 700 South due to poor pavement conditions and increased travel time. This puts
added strain and congestion on adjacent infrastructure that wasn’t designed for high-volume
truck use. See Appendix H for more information.

V.1.6 Reduce Congestion and Bottlenecks in the Freight Supply Chain


With planned growth in the Northwest Quadrant and its potential for future expansions, freight
transportation demands in the area are expected to increase. The Northwest Quadrant Freight
Mobility Project will allow the area to expand to meet market demands. Without the project,
dock-to-dock time for freight is expected to increase due to the SLCIT’s present inability to
expand and increased congestion on the roadways as more businesses move to the area.
5600 West. 5600 West is a designated Critical Urban
Freight Corridor. A typical 135-car stack train
departing the west end of the SLCIT causes up to
30 minutes of delay at the 5600 West at-grade
crossing and a backup of up to 500 vehicles, of which
25% to 35% are time-sensitive trucks from the area’s
warehouses and truck terminals, which increases dock-to-dock time for freight transport. The
5600 West grade separation will eliminate this delay, which equates to a travel time savings of
about $182.6 million (discounted at 7%) over 20 years, by replacing the existing at-grade
crossing with a grade-separated bridge to eliminate the 480 minutes (8 hours) of vehicle delay

Merit Criteria and Other Review Criteria 12


each day. The travel time savings of the 5600 West grade-separation component is the most
significant monetized benefit of the entire project.
700 South. Trucks with routes along 700 South are delayed by passing trains an average of
5 to 20 minutes per train up to 16 times per day. The 700 South grade separation will eliminate
this delay, which equates to a travel time savings of $10.3 million (discounted at 7%) over
20 years. See Section VII and Appendix H.
West Interchange. With the construction of the West Interchange, SLGW will be able to relocate
its train-switching movements from the 900 West interchange to the west of 5600 West,
removing the need to delay traffic in downtown Salt Lake City at six railroad crossings. This
relocation will not entirely remove delay from these locations, but it will significantly reduce the
amount of time that trains block intersections by about 90%, thereby improving conditions for
the traveling public and residents of this area. The project will result in a travel time savings of
$13.1 million (discounted at 7%) over 20 years. The West Interchange project will also allow for
increased unit train capacity—a benefit to the SLCIT, UP, and freight movement. See Section
VII and Appendix I.

V.1.7 Connect People to Essential Services Such as Employment


Centers
Many of the state’s largest trucking and transport companies, warehouses, and distribution
centers have facilities along State Route 201 or between California Avenue and State Route 201
in the Northwest Quadrant. These companies include Godfrey Trucking, Peterbilt, Old
Dominion, UPS, FedEx, OnTrac, Core-Mark International, Cintas, Post Consumer Brands,
Overstock.com, Kenworth, Propak Logistics, and Exel Global Logistics. The Northwest
Quadrant Freight Mobility Project will provide people with a reliable connection to this
important employment center, and the widened roadway along 5600 West will eventually
accommodate high-capacity transit and active transportation connections.

V.2 Leveraging of Federal Funding


UDOT, Salt Lake City, and SLGW are working together in partnership on the Northwest
Quadrant Freight Mobility Project and are seeking $45.4 million from this INFRA Discretionary
Grant. The INFRA funding would make up 35% of the total project cost of $129.9 million. See
Appendix A for the funding commitment letters. Table 1 on page 7 lists the funding sources for
this project.
5600 West. There are no fiscal constraints associated with UDOT’s non-Federal financial
commitment. UDOT has committed funds from UDOT’s TIF.
700 South. There are no fiscal constraints or restrictions associated with Salt Lake City’s non-
Federal financial commitment. Salt Lake City has set aside the funding for this specific project
with approval from the mayor and city council.
West Interchange. SLGW is committed to a non-Federal capital investment match of about
40% of the $22,804,487 project request. The private capital investment is estimated to be
$9,157,259. Although preliminary work can’t be counted toward a non-Federal match, SLGW
has already invested over $5 million toward the purchase of specialized equipment associated
with the West Interchange build-out.

Merit Criteria and Other Review Criteria 13


V.3 Potential for Innovation
In an effort to meet Utah’s transportation demands, UDOT looks to new and innovative methods
to meet its vision of “Keeping Utah Moving.” UDOT’s core mission is “innovating
transportation solutions that strengthen Utah’s economy and enhance quality of life.”
Innovative Contracting Techniques. UDOT is one of the nation’s top users of innovative
contracting. UDOT’s innovative contracting methods—such as design-build and construction
manager/general contractor (CMGC)—factor in user costs, encourage innovation and speed, and
seek a balance point for everyone, including the contractor and the general public.
Innovative Construction Techniques. Accelerated
bridge construction (ABC) involves using various
methods during project planning, design, contracting,
and construction to significantly reduce the time to
construct a bridge compared to traditional cast-in-
place methods. UDOT is one of the forerunners in
embracing ABC techniques. UDOT started using
ABC elements in 1997 and has now used ABC
methods and elements in over 200 settings.
Streamlined Environmental Reviews and
Permitting. UDOT is willing to participate in a streamlined environmental review and
permitting process. UDOT will also consider Enhanced Environmental Outcomes and
Performance (EEOP) elements that add value-and-performance based environmental benefits.
Specifically, they will consider enhanced storm water measures and alternative modes
accommodation. Accelerating the project’s delivery will benefit the existing businesses in the
Northwest Quadrant that will be affected by the travel delays caused by construction activities.
Safety and Technology. SLGW will use the following innovative safety and technology
components as part of the West Interchange Project: automatic equipment identification system,
automated inbound/outbound inventory system, and cybersecurity elements.

V.4 Performance and Accountability


UDOT is committed to performance management and has recently formed a Performance
Management group within its Program Development Division. The goals of the Performance
Management Group are to review, revise, and create performance measures; set goals; evaluate
roles; report on performance; and support transparency. UDOT has long published an annual
report on performance measures; this new effort takes performance and accountability within the
department further. SLGW is committed to following accountability measures: standing weekly
project updates, monthly federal compliance reporting, and safety compliance reporting.

VI. Project Readiness


The Northwest Quadrant Freight Mobility Project is large in scope but will have an abbreviated
timeline compared to other projects of similar size and scope because the project is confined
predominantly to the existing right-of-way footprint on 5600 West and 700 South, and UDOT
and Salt Lake City will use time-saving techniques in the planning, design, and construction

Project Readiness 14
phases. The following sections discuss the technical feasibility of the project, present a project
schedule, and describe the required environmental permits and reviews.

VI.1 Technical Feasibility


Each project component of the Northwest Quadrant Freight Mobility Project has completed
preliminary design and engineering activities supporting much of the information referenced in
this grant proposal.
5600 West. See Appendix C: UDOT Concept Report for technical feasibility and project details.
700 South. See the 700 South Structure Feasibility Study hosted on Salt Lake City’s website.
Also, see Appendix H for information submitted in a previous TIGER grant application.
West Interchange. For project details, see Appendix I: Salt Lake, Garfield and Western Railway
Company Report.

VI.2 Project Schedule


The schedules for the Northwest Quadrant Freight Mobility Project components are discussed
below.
5600 West. The 5600 West project components will be completed in 2020. This schedule
assumes that INFRA funding is received in the fall of 2018, 9 months of right-of-way acquisition
and no condemnations, and 13 months for construction. See Table 5.

Table 5. 5600 West Project Component Schedule

700 South. The 700 South project component will be completed in 2020 (see Table 6). Important
stakeholders such as Rocky Mountain Power, UP, and Salt Lake City Public Utilities have been
included in the design process so far, and coordination of impacts will continue. A complete
roadway and structure plans package will be approved late 2019.

Table 6. 700 South Project Component Schedule

Project Readiness 15
West Interchange. The West Interchange Project component will be completed in 2019 (see Table
7). For a more detailed discussion of schedule, see Appendix I.

Table 7. West Interchange Project Component Schedule

VI.3 Required Approvals


VI.3.1 Environmental Permits and Reviews
VI.3.1.1 NEPA Status of the Project
5600 West. FHWA and UDOT have a valid NEPA Assignment Memorandum of Understanding
(MOU) for NEPA documents, which will enable UDOT to streamline the environmental process
for this project.
700 South. Environmental requirements, including the NEPA process, will be completed by the
end of 2018. See Appendix H.
West Interchange. SLGW has initiated the environmental documentation process for the West
Interchange.

VI.3.1.2 Reviews, Approvals, and Permits by Other Agencies


5600 West. For a description of potentially required approvals and permits, see the Concept
Report in Appendix C.
700 South. A wetland delineation, cultural resource assessment, and threatened and endangered
species clearances have been completed for the project location.
West Interchange. The SLGW has initiated the environmental documentation process for the
West Interchange.

VI.3.1.3 Environmental Studies or Other Documents


UDOT expects to complete a CE for the Northwest Quadrant Freight Mobility Project.

VI.3.1.4 Discussions with USDOT Modal Administration Field or


Headquarters Office
5600 West. FHWA and UDOT have a valid NEPA Assignment MOU for CEs.

Project Readiness 16
700 South. 700 South isn’t a state route and therefore wouldn’t require oversight or approvals by
the UDOT or FHWA. 700 South improvements are included in Salt Lake City’s capital
improvement plans.

VI.3.1.5 Public Engagement to Date


5600 West. Over the last decade, UDOT has conducted extensive outreach and analysis with
regional partners, the Utah Trucking Association, and the Freight Mobility Group regarding
safety, freight bottlenecks, and potential capacity improvements on both NHFN routes and non-
NHFN routes, including 5600 West, important to the freight industry.
700 South. Public engagement has occurred in the past 4 years, including multiple one-on-one
meetings with adjacent property owners and large stakeholders. Risks and impacts identified in
these discussions were considered and evaluated in the Structure Feasibility Report.

VI.3.2 State and Local Approvals


5600 West. The project is included in the Wasatch
Front Regional Council’s RTP, the TIP, and the
STIP. 13,14,15
700 South. The planning process for the reconstruction
of 700 South involved coordination with local
businesses and stakeholders. Rocky Mountain Power
and UP were consulted regularly.
West Interchange. SLGW’s Board of Directors has
identified and solidified a number of partnerships
necessary for a successful outcome for the interchange
build-out. Letters of project support are included in
Appendix E.

VI.3.3 Federal Transportation


Requirements Affecting State and Local Planning
5600 West. In 2007, Utah became the first State in the nation to compile statewide and regional
transportation plans into one document: the Unified Plan. The plan’s development included
statewide coordination among urban and rural planning entities, stakeholders such as the Utah
Trucking Industry, and the general public.
700 South. The partners are in the process of amending the RTP to include the project elements.
It is anticipated the amendment will happen in the spring, early summer of 2018. The project
elements are part the city’s transportation master plan.

VI.4 Assessment of Project Risks and Mitigation Strategies


5600 West. UDOT has not identified any risks associated with procurement delays, uncommitted
local match, or lack of legislative approval that would affect the likelihood of successful project
start and completion. UDOT’s risk assessment can be found in Appendix C.

Project Readiness 17
700 South. Minimal risks are associated with the grade separated crossing project. To mitigate the
risk of delay due to right-of-way acquisitions Salt Lake City has already identified and initiated
discussions with the owners.
West Interchange. SLGW has not identified any risks that would affect the likelihood of
successful project start and completion.

VII. Large/Small Project Requirements


The Northwest Quadrant Freight Mobility Project is a large project with significant benefits to
the state of Utah, both monetized and qualitative in its positioning Salt Lake City to grow a
national and internationally important freight distribution center. See Appendix F for the
complete Benefit-Cost Analysis report.

VII.1 National or Regional Economic, Mobility, and


Safety Benefits
VII.1.1 National Benefits
Sustain and Advance National and Regional Economic Development. The Northwest
Quadrant Freight Mobility Project supports interstate commerce by improving freight
transportation system. Freight transportation plays a major role in supporting Utah’s economy,
and Utah’s freight transportation system plays a critical role in fostering economic vitality and
competitiveness in regional and global markets. See Section V.1.1.
Improve Connections to the Nation’s Transportation Network to Support the Movement of
Freight and People. A primary benefit of the project is improving connectivity between rail and
truck transport. See Section V.1.2.
Reduce Congestion and Bottlenecks in the Freight Supply Chain. The project will allow the
area to expand to meet market demands. Without the project, dock-to-dock time for freight is
expected to increase due to SLCIT’s present inability to expand across 5600 West.
See Section V.1.6.

VII.1.2 Regional Benefits


Reduce the Likelihood of High-Consequence Events. The project will enhance the resiliency
of 5600 West—a designated Critical Urban Freight Corridor—and 700 South by eliminating
traffic impacts from a derailment, hazardous material spill, or other incident on the rail line.
See Section V.1.3.
Connect People to Essential Services Such as Employment Centers. The project will provide
people with a reliable connection to an important employment center, and the widened roadway
along 5600 West will eventually accommodate high-capacity transit and active transportation
connections. See Section V.1.7.
Reduce Traffic Fatalities and Serious Injuries on the Surface Transportation System.
The project will prevent traffic fatalities and serious injuries by separating rail and vehicle
transport. See Section V.1.4.

Large/Small Project Requirements 18


VII.2 Cost Effectiveness
Overall, for the entire project, with a 7% discount rate, the
estimated total benefits amount to $225.4 million and the net
present value amounts to $124.3 million, for a benefit-cost ratio of
2.22. With a 3% real discount rate, the net present value of the
entire project would increase to $294.4 million, for a benefit-cost
ratio of 3.53. It is important to note that this Benefit-Cost Analysis does not fully capture the
economic benefit of enhancing the Northwest Quadrant’s future potential by increasing its
attractiveness to new business investments and relocations. See Appendix F and Table 8.

Table 8. Overall Results of the Benefit-Cost Analysis


In millions of 2016 dollars

Discount Rate
Project Evaluation
Metric 7% 3%
Total discounted benefits $225.4 $410.8
Total discounted costs
Capital/construction costs $101.1 $116.4
Incremental O&M costs $0.4 $0.6
Net present value $124.3 $294.4
Benefit-cost ratio (ratio) 2.23 3.53

5600 West. The tables below summarize the benefit-cost analysis findings for both the roadway-
widening and grade-separation components of the 5600 West component of the overall project.
Annual costs and benefits are computed over the lifecycle of the project (2 years of construction
and 20 years of operations).
Table 9 shows that, considering all monetized benefits and costs for the road widening and grade
separation combined, the estimated internal rate of return for the 5600 West component of the
overall project is 19.6%. At a 7% real discount rate, the initial investment of $67.8 million (in
undiscounted 2016 dollars) will result in $195.4 million in total benefits, a net present value of
$127.6 million, and a benefit-cost
ratio of 2.88. With a 3% real Table 9. Overall Results of the Benefit-Cost Analysis
discount rate, the total benefits for the 5600 West Roadway and Grade-Separation
would increase to $410.8 million Improvements
for a net present value of In millions of 2016 dollars
$294.4 million and a benefit-cost Discount Rate
ratio of 4.54. Project Evaluation
Metric 7% 3%
Table 10 identifies both quantified
Total discounted benefits $195.40 $358.20
and qualitative benefits for the
Total discounted costs $67.82 $78.91
5600 West component. Table 10
Net present value $127.57 $279.29
demonstrates that the vast
Benefit-cost ratio 2.88 4.54
majority of quantified benefits
Internal rate of return (%) 19.6%
(discounted at 7%) are travel time
Payback period (years) 8.0 6.9
savings.

Large/Small Project Requirements 19


Table 10. Summary Benefits for 5600 West Roadway and Grade-Separation
Improvements
Summary
of Results
Current Status or (Millions of
Baseline Population 2016$
and Problems To Be Changes to Baseline/ Affected by Discounted at
Addressed Alternatives Type of Impacts Impacts Economic Benefits 7%)
5600 West is a busy The 5600 West Improvement in Auto users, truck Travel time savings $182.6
roadway heavily used by Freight Access and average speeds operators,
freight trucks (32% share Roadway and travel times businesses
of total vehicle traffic). Improvement Project shipping or
Traffic is forecasted to will widen the road receiving freight
grow at about and will construct a Vehicle operating Auto users, truck Vehicle operating $11.9
2.6% annually. This can grade-separated rail costs impacts operators cost savings to
be expected to increase crossing over three highway users
congestion on this facility UP tracks.
over time, reduce Improved Auto users, truck Lower chances of Qualitative
average speeds, and reliability of operators, bottlenecks and impact: general
increase travel delays. In highway travel businesses congestion; improvement in
addition, the existing at- shipping or improved reliability driving
grade crossing on receiving freight conditions;
5600 West just west of greater
the SLCIT is blocked reliability.
about 30 times a day by Advancement of Rail operators, • Improvement in Qualitative
trains arriving or regional economic businesses rail operations impact: general
departing from the development; shipping or and access to operational
terminal and switching improved receiving freight intermodal yard improvement
locomotives. Each of transportation • Improved access
these movements creates connections to businesses
delays to vehicles that located along the
have to wait for trains to route and in
pass and then for the vicinity
queue in front to clear.
• Improved
logistics
operations to
businesses
shipping and
receiving freight
Cost savings to Federal and state Highway O&M cost $0.02
public agencies (various) savings
governments
Safety benefits Auto users, truck Accident cost Cost savings
operators, citizens savings; reduction small (small
of Utah in accident risk historical
accident rate);
accident risks
virtually
eliminated
Reduced Local citizens Emissions costs $0.9
emissions savings

Large/Small Project Requirements 20


700 South. For the 700 South grade- Table 11. Overall Results of the Benefit-Cost
separation project, considering all Analysis for the 700 South Grade-Separation
monetized benefits and costs, the Improvement
In millions of 2016 dollars
estimated internal rate of return of the
project is 4.25%. With a 7% real Discount Rate
discount rate, the initial capital Project Evaluation
Metric 7% 3%
investment valued at $15 million would
result in $10.9 million in total benefits, Total discounted benefits $10.9 $19.4
(negative) –$3.5 million in net present Total discounted costs $14.4 $16.9
value, and a benefit-cost ratio of 0.75. Net present value –$3.5 $2.4
With a 3% real discount rate, the Net Benefit-cost ratio 0.75 1.15
Present Value of this project bundle Internal rate of return (%) 4.25%
would increase to (positive) $2.4 Payback period (years) 20+ 18
million, for a benefit-cost ratio of 1.15
(Table 11). Table 12 identifies both quantified and qualitative project benefits according to long-
term outcomes.

Table 12. Summary Benefits for the 700 South Grade-Separation Improvement
Summary
of Results
Current Status or (Millions of
Baseline Changes to Population 2016$
and Problems To Be Baseline/ Affected by Discounted at
Addressed Alternatives Type of Impacts Impacts Economic Benefits 7%)
700 South is a road The proposed Improvement in Auto users, truck Travel time savings $11.0
frequently used by trucks grade average speeds and operators,
(38% of truck traffic separation, a travel times businesses
share). The 700 South viaduct over UP shipping or
crossing with UP tracks at tracks, will receiving freight
4900 West is located eliminate Vehicle operating Auto users, truck Vehicle operating $0.6
close to the SLCIT. highway-rail costs impacts operators cost savings to
Frequent train movement highway users
movements through this conflicts and
crossing delay traffic delays due trains Improved reliability of Auto users, truck Lower chances of Qualitative
between 10 and passing the road. highway travel operators, bottlenecks and impact: general
40 minutes per event. businesses congestion; improvement in
The new
shipping or improved reliability driving
In addition, this crossing structure will
receiving freight conditions;
is narrow with tight also meet
greater
horizontal reverse curves, AASHTO
reliability.
making it challenging for standards for
the large trucks. horizontal Advancement of Rail operators; Improved logistics Qualitative
curves, vertical regional economic businesses operations to impact: general
profiles, and development; shipping or businesses shipping operational
stopping sight improved receiving freight and receiving improvement
distances. transportation freight
connections
Safety benefits Auto users, truck Accident cost Cost savings
operators, citizens savings; reduction small (small
of Utah in accident risk historical
accident rate);
accident risks
virtually
eliminated
Reduced emissions Local citizens Emissions costs $0.1
savings

Large/Small Project Requirements 21


West Interchange. For the SLWG West Table 13. Overall Results of the Benefit-Cost
Interchange project, considering all Analysis for the West Interchange Improvement
monetized benefits and costs, the In millions of 2016 dollars
estimated internal rate of return of the Discount Rate
project is 7.1%. With a 7% real discount Project Evaluation
rate, the initial capital investment Metric 7% 3%
valued at $19.3 million would result in Total discounted benefits $19.5 $33.9
$19.5 million in total benefits, $0.21 Total discounted costs $19.3 $21.2
million in net present value, and a Net present value $0.2 $12.7
benefit-cost ratio of about 1.01. With a Benefit/cost ratio 1.01 1.60
3% real discount rate, the net present Internal rate of return (%) 7.10%
value of this project bundle would Payback period (years) 19.9 15.6
increase to $12.7 million, for a benefit-
cost ratio of 1.60 (Table 13). Table 14 identifies both quantified and qualitative project benefits
according to long-term outcomes. See Appendix F for more information regarding the Benefit-
Cost Analysis for all project elements.

Table 14: Summary Benefits for the West Interchange Improvement


Summary
of Results
Current Status or (Millions of
Baseline Population 2016$
and Problems To Be Changes to Baseline Affected by Discounted at
Addressed / Alternatives Type of Impacts Impacts Economic Benefits 7%)
The first- and last-mile SLGW proposes to Improvement in Auto users, truck Travel time savings $13.13
services available construct a new average speeds operators,
through SLGW’s short- interchange on its and travel times businesses
line system serves westernmost end to shipping or
customers nationally and the UP mainline. This receiving freight
particularly Utah-based new interchange will Vehicle operating Auto users, truck Vehicle operating $0.9
customers including allow an increase in cost impacts operators cost savings to
industries exporting unit train capacity highway users
energy products, and allow greater
industrial equipment, future westward Improved Auto users, truck Lower chances of Qualitative
building supplies, growth. reliability of operators, bottlenecks and impact: general
manufacturing, and other highway travel businesses congestion; improvement in
The project will also
consumer goods and shipping or improved reliability driving
mitigate significant
agricultural products. receiving freight conditions;
safety and back-
greater
The current line that up/delay issues at 900
reliability
connects the existing West near 700 South
short-line rail interchange in downtown Salt Advancement of Rail operators; Improvement in rail Qualitative
begins at 900 West at the Lake City through regional economic businesses operations impact: general
700 South crossing near grade separations of development; shipping or operational
downtown Salt Lake City. six at-grade rail improved receiving freight improvement
It passes through several crossings. transportation
at-grade crossings with connections
highways that become Safety benefits Auto users, truck Accident cost $2.6
blocked several times operators, citizens savings; reduction
each day, causing of Utah in accident risk
significant delays to
Reduced Local citizens Emissions costs $0.02
commuter and
emissions savings
commercial traffic.
Residual value of Federal and state Residual value of $2.9
infrastructure (various) infrastructure
governments

Large/Small Project Requirements 22


VII.3 Contribution to the Goals of 23 U.S.C. 150
The Northwest Quadrant Freight Mobility Project meets the following goals listed under 23
U.S.C. 150 (see Section V for more information). Tables 10, 12, and 14 illustrate the monetized
economic benefits of the project.
Safety. At-grade highway-rail crossings are known to be areas prone to collisions between trains
and highway vehicles. They can cause fatalities or serious injuries to vehicle occupants and, train
passengers as well as cause vehicle and rail equipment damage. With grade separation, these
accidents can be virtually eliminated. See Section V.1.4.
Infrastructure Condition. The Northwest Quadrant Freight Mobility Project will renew freight
infrastructure in the area. The partners recognize that continued maintenance and improvement
of infrastructure is integral to support the projected economic growth in the Northwest Quadrant.
See Section V.1.5.
Congestion Reduction. The project is expected to have significant travel time savings and to
significantly reduce congestion on the existing freight transportation system, thereby
encouraging economic growth for Utah. See Sections V.1.1, V.1.2, and V.1.6.
System Reliability. The project will provide trucks traveling on 5600 West to or from the area’s
warehouses and distribution centers with a more reliable transit time because there will no longer
be unpredictable delays at the at-grade crossings. See Sections V.1.3 and V.1.6.
Freight Movement and Economic Vitality. Investing in the Northwest Quadrant Freight
Mobility Project will improve the transportation in a growing economic center by mitigating the
transportation issues of today (see the discussion of individual project components in Section I),
setting up the area to adequately handle planned growth, and enhancing the Northwest
Quadrant’s future potential by increasing its attractiveness to new business investments and
relocations. See section V.1.1 and V.1.2.
Environmental Sustainability. The project will reduce environmental emissions by increasing
the average travel speed of trucks and automobiles, eliminating vehicle idling at railroad
crossings, and reducing the number of trucks on the transportation system by increasing rail
capacity.
Reduce Project Delivery Delays. UDOT is one of the nation’s top users of innovative
contracting. See Section V.3.

VII.4 Preliminary Engineering


All components of the Northwest Quadrant Freight Mobility Project are based on preliminary
engineering. See the following documents for the more information regarding the individual
project components. These documents detail key design elements, utility conflicts, right-of-way
acquisition needs, project phasing, and refined project cost estimates.
5600 West. See Appendix C: UDOT Concept Report for technical feasibility and project details.
700 South. See the 700 South Structure Feasibility Study hosted on Salt Lake City’s website.
Also, see Appendix H for information submitted in a previous TIGER grant application.

Large/Small Project Requirements 23


West Interchange. For project details, see Appendix I: Salt Lake, Garfield and Western Railway
Company Report.

VII.5 Funding or Financing Sources and Contingency Amounts


UDOT, Salt Lake City, and SLGW are seeking $45.4 million from this INFRA Discretionary
Grant for the Northwest Quadrant Freight Mobility Project. The INFRA funding would make up
35% of the total project cost of $129.9 million. If UDOT is awarded the full $45.4-million
INFRA grant, UDOT would contribute $25.6 million, Salt Lake City would contribute $4.3
million, and SLGW would contribute $9.16 million in non-Federal funds. The entirety of the
UDOT match would come from UDOT’s TIF. The remaining $45.4 million for 5600 West
would come from FAST Act NHFP funding. Salt Lake City would provide a match from its
Capital Improvement Plan fund, and the SLGW match would be a private investment for the
respective project elements.
See Appendix A for funding commitment letters. Table 2 lists the funding sources for this
project. Tables 3, 4, and 5 detail project costs including contingency amounts.

VII.6 Financial Assistance


The Northwest Quadrant Freight Mobility Project is a high-priority project for UDOT, Salt Lake
City, and SLGW. If not awarded an INFRA grant, the 700 South and West Interchange project
components will be delayed until sufficient funding is found. The 5600 West project component
will be constructed as TIF funds are obligated.

VII.7 Start of Construction


All project components of the Northwest Quadrant Freight Mobility Project will be ready to start
in the fall of 2018, with construction completed in the fall of 2020. Please see Section VI.2 for
the project schedule.

Large/Small Project Requirements 24


Notes
1
Natalie Gochnour, Kem C. Gardner Policy Institute at the University of Utah, Salt Lake Inland Port Market
Assessment (August 2016), gardner.utah.edu/wp-content/uploads/2016/10/IP-Brief-PRESS2.pdf, p. 2
2
See Note 1
3
Salt Lake City International Airport, “SLC Fast Facts,” https://www.slcairport.com/about-the-airport/airport-
overview/fast-facts/
4
Salt Lake City International Airport, “2016 Air Traffic Statistics,”
https://www.slcairport.com/assets/pdfDocuments/Air-Traffic-Statistics/2016CY-Summary.pdf
5
Salt Lake City, “Economic Development – Research: Transportation,” http://www.slcgov.com/economic-
development/transportation
6
Deseret News, “Amazon to build distribution center in northwest quadrant, bring 1,500 jobs,”
https://www.deseretnews.com/article/865684283/Amazon-to-build-distribution-center-in-northwest-quadrant-
bring-1500-jobs.html
7
Deseret News, “Utah State Prison relocation: What you need to know,”
https://www.deseretnews.com/article/765675915/Utah-State-Prison-relocation-Everything-you-need-to-
know.html
8
Salt Lake Tribune, “Stadler breaks ground on railcar manufacturing plant expected to employ 1,000 in west Salt
Lake City,” http://www.sltrib.com/news/business/2017/10/13/stadler-breaks-ground-on-railcar-manufacturing-
plant-expected-to-employ-1000-in-west-salt-lake-city/
9
Economic Development Corporation of Utah, “UPS,” https://edcutah.org/recent-wins/ups
10
Enterprise Utah’s Business Journal, “901,000-sqaure-foot Post cereal distribution center comes to SLC,”
https://slenterprise.com/index.php/news/latest-news/464-901-000-square-foot-post-cereal-distribution-center-
comes-to-slc
11
Salt Lake City Government, “NWQuad: Economic Implementation Plan,” http://www.slcgov.com/economic-
development/nwquad-economic-implementation-plan
12
Salt Lake Tribune (Archive), “Inland port could make Utah a freight hub, business leaders say,”
http://archive.sltrib.com/article.php?id=4831450&itype=CMSID
13
Utah Department of Transportation, “Utah’s Unified Plan,” http://www.utahunifiedplan.org/
14
Utah Department of Transportation, “Statewide Transportation Improvement Plan,”
https://www.udot.utah.gov/main/f?p=100:pg:0:::1:T,V:40,
15
Wasatch Front Regional Council (WFRC), “Regional Transportation Plan,”
http://www.wfrc.org/new_wfrc/index.php/regional-transportation-plan/currently-adopted-plan

Notes 25

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