(erielack) Barilla to build pasta plant in Avon

[Wdburt1_@_aol.com]

Answering David Green:

LAL policy is to decline to give out individual customers' traffic figures, 
much less projections.  We also try to avoid appearing to speak for our 
customers.  

Accordingly, my comments below will be based on what Barilla's president 
disclosed at Friday's press conference and on what I feel we can legitimately add 
to that.

The presence of a short line railroad with multiple Class I railroad 
connections and a good safety record, independent and locally-managed, yet large 
enough to have a diversified revenue base, management depth, and equipment and 
track maintenance resources, was a factor in Avon's being chosen.

"Feeling at home" in Avon was much emphasized.  Part of that is that LAL is 
already habituated to the service requirements of food manufacturers.  In Avon 
and Lakeville we provide Sweeteners Plus, ADM, Frank Perdue, Kraft General 
Foods, and Howlett Farms with some of the most intensive rail service available 
anywhere.

The Avon wye was sold to the owners of the Barilla site several years ago and 
will not be used to build track.

LAL was already planning to add some trackage in Lakeville Yard this summer.  
The portion of that project that was to be completed "eventually" will be 
accelerated so we can free up Avon track capacity for Avon cars.

Trains will be longer and/or more frequent.

Unrelated to Barilla, we are expecting to complete installation of welded 
rail between Lakeville and Avon, and at least substantially complete an upgrade 
to CWR between Avon and Henrietta this summer.  The projects include 
significant tie renewals.  The $4.2 million program is being funded by the company and 
grants from New York State DOT.

WDB


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