Worcester Business Journal

www.wbjournal.com April 27, 2015 • Worcester Business Journal 9 M ore than two years after Grafton selectmen sued to prevent the Grafton and Upton Railroad from delivering and installing four 80,000-gallon propane tanks at a planned North Grafton trans- loading facility, the dispute continues. The propane transloading center at the northern end of the line is nearly complete after the federal Surface Transportation Board, which has juris- diction over railroad service issues, ruled in favor of Grafton & Upton's plans in September. But fearing that the propane facility could pose a safety threat to the sur- rounding North Grafton neighborhood and nearby North Grafton Elementary School, the town appealed that decision in the First Circuit Court of Appeals in Boston. The town and the railroad are now awaiting a hearing date. Meanwhile, U.S. Rep. James McGovern filed a brief ear- lier this month in support of the town's appeal. It will be an uphill battle, he said, as the Surface Transportation Board is rarely, if ever, overruled. But in an April 16 interview, McGovern said he got involved because, while federal laws dat- ing back to the late 1800s say railroad operations preempt local zoning laws, town officials and residents should have a say. McGovern said it would be the largest propane transloading center in the state and would create significant traffic from large trucks coming and going. After reviewing the site of the propane transloading center, McGovern said he can understand residents' concerns because it's sited so close to homes and the school, which is attended by students from kindergarten through second grade. He attended a meeting in January in which residents posed questions to the State Fire Marshal's office about the safety of the site. McGovern said offi- cials couldn't answer all of them. So McGovern wondered, "Given the world we live in, what if someone did something terrible, or what if there was an accident?" Seeking to build on rail line's success On the other side of the dispute is Jon Delli Priscoli, who has transformed the Grafton and Upton Railroad from a nearly inactive line in 2009 to a bustling route that fills the gap for major rail operator CSX between Grafton and Milford. When he took over the Grafton and Upton, Delli Priscoli said he faced a lot of deferred maintenance, and the rail- road was delivering products for just two accounts. By investing "multimil- lions" into the track infrastructure and purchasing land along the track to build transloading stations in Upton, Hopedale and Grafton, Delli Priscoli has increased rail activity by adding custom- ers in Upton and Hopedale. He's also planning to upgrade track on the line's last leg, from Hopedale to Milford. In the old days, railroads delivered goods directly to businesses located along the lines. Today, Delli Priscoli explained, running a railroad is largely a logistics business. In Upton, the compa- ny delivers a variety of liquids for indus- trial users, as well as wood pellets for heating. In Hopedale, Grafton and Upton delivers sheetrock, drywall, soil and forest products. Once these prod- ucts arrive, they're loaded onto trucks and brought to customers. One product for which there's large demand today, according to Priscoli, is propane. More companies with large fuel needs are choosing it because it's viewed as a cleaner and cheaper fuel, Delli Priscoli said, and that's why he has built the North Grafton facility, which has a 320,000-gallon capacity. "Demand is very, very strong for this service so we are building a state-of-the- art facility that is being built to the high- est standards," Delli Priscoli said. Situated on 10 acres of land, the pro- pane transloading center is not a storage facility, according to Delli Priscoli, but its four tanks hold enough propane to keep pace with the demand from trucks that arrive to load up the fuel and deliver it to end users. He noted that the Propane Gas Association of New England has submitted an amicus brief supporting the railroad's plans to open the facility. Regarding safety concerns from resi- dents and town officials, which have been aired at numerous public meetings, Delli Priscoli said propane and other potentially hazardous materials are being loaded and transported at numer- 803$&45&3t8&45:"3.065)t'3".*/()".t.*-'03% Accounting and Tax Services | Business Consulting Services | Business Transition / Exit Planning Financial Services and Retirement Planning It's Tough to See !ings Clearly !ese Days Knowledge, experience, and expertise to help you see more clearly. S&G's best practice business solutions provide greater profitability today and greater business value tomorrow. $BMM3POBME.BTJFMMPBU UPTFUVQBOPPCMJHBUJPONFFUJOH Services Delivered with Fanatical Customer Focus... Guaranteed! tXXXTHMMQDPN B O S T O N BU S I N E S S J O U R N A L L A R GE ST A C C OU NT I N G F I R M DS # 44 B O S T O N BU S I N E S S J O U R N A L L A R G E ST AC C O U NT I N G F I R M S # 44 BY EMILY MICUCCI Worcester Business Journal Staff Writer The Grafton and Upton Railroad line begins in North Grafton, where its propane transloading facility is nearly complete. North Grafton West Upton Milford Hopedale CSX interchange CSX interchange 495 90 146 CSX Mainline Graffton & Upton railroad McGovern joins Grafton bid to halt rail line's propane hub >> Continued on Page 20

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