Investment decisions of logistical infrastructure in Stafford County

Abstract

Intermodal freight transportation is the second largest source of revenue for North American Railroads (Rickett 2013). Intermodal transportation is best defined as the “coordinated door to door delivery of freight using two or more modes of transportation”. In the state of Kansas, the majority of intermodal facilities are located in large metropolitan areas, and services a wide variety of products. In rural communities, intermodal facilities are used mainly for the marketing of grain commodities such as wheat, corn, milo and soybeans. The primary objective of this study is to determine the feasibility of the potential investment of a grain intermodal loading facility (referred as shuttle loaders) in the rural community of Stafford County, located in South-central Kansas. A secondary objective will focus on identifying alternative uses for the intermodal facility. Stafford County is a rural community west of Wichita, Kansas with a population of 4284 inhabitants. The largest industry measured as share of employment is Agriculture & Forestry, which contributes 17.6% of total employment for the county (USDA Data, 2016). The motivation for this study is to foster the economic development of the county by attracting public and private investment that will allow for the creation of new jobs and the increase of the tax base of the region. Financial results show little evidence of sufficient grain density to support the investment of a shuttle loader in the proposed area of study.