Business Spotlight: Delmarva Central Railroad

BY REGINA DONATO

›› The railroad has been a prevalent part of American history for nearly 200 years. Technological innovation, advances in transportation, and expansion westward would have never happened without the existence of railroad lines. Today, freight railroads have become almost forgotten, yet remain an extremely vital part of the supply chain. The Delmarva Central Railroad, a subsidiary of Carload Express that operates 188 miles of rail lines within Delaware, Maryland, and Virginia, helps keep this industry alive within the Delmarva Peninsula.

Through a competitive bidding process that concluded in December 2016, the Delmarva Central Railroad (DCR) was selected to operate an allocated 162 miles of track owned by Norfolk Southern on the Eastern Shore. Subsequent expansions and additional lease agreements followed shortly after, and the railroad currently spans from Porter, DE to as far south as Hallwood, VA.

DCR serves over 50 customers on the Delmarva Peninsula, engaging in bulk transportation for a wide variety of industries. The number one volume of material they transport is aggregate stone. “The Delmarva Peninsula is basically a big, flat, sandy, pancake,” explained Cliff Grunstra, vice president and chief marketing officer. “In order to build roads and houses you need to provide a stone foundation, and railroads are an absolutely fantastic way to bring in that material.”

The second-largest industry by rail volume the DCR serves is—to no surprise—agriculture. The DCR helps provide grains needed to support the poultry industry, as well as ingredients like amino acids, an ingredient for creating chicken feed. “It’s pretty fair to say that the poultry industry on the Delmarva Peninsula would not be what it is today without the railroad,” remarked Grunstra. The railroad also hauls fertilizers, plastic resins, sugar, and imports lumber and building materials into the area.

In many instances, hauling bulk material via rail is cost effective, environmentally friendly, and more efficient than shipping by truck. Transporting freight with trucks typically yields 100 to 150 tons-miles per gallon, while freight rail-roads average roughly 500 ton-miles per gallon, with some specific rail moves obtaining even greater efficiency. For environmentally conscious organizations, shipping by means of rail might be a more attractive option.

Rail transportation can also help clear congestion and reduce wear and tear on highways and roads—which is especially helpful as much of the state is currently affected by major construction projects. On average, one rail car can hold approximately four trucks worth of material. If the DCR operates 30,000 rail cars in a year, they’re effectively eliminating 120,000 loaded trucks from the roads, or roughly 330 loaded trucks every day. Assuming the average truck is 70 feet long, the equivalent of over 4 miles of vehicles are removed from our local roads each day.

The State Chamber awarded the Delmarva Central Railroad the Award of Excellence at the Superstars in Business Luncheon in November 2021 for their vital contributions to the First State and beyond. “At the end of the day, we’re a small local business that is doing our best to grow the local economy and the job pool,” said Grunstra. “We hope to allow for folks to live in and enjoy this beautiful area of the country for years to come by keeping the railroad strong and vibrant.”