Georgia Public Service Commission Rules in Favor of Sandersville Railroad

Staff Report From Georgia CEO

Friday, September 6th, 2024

The Georgia Public Service Commission (PSC) today voted 5-0 to adopt an April 2024 initial decision by a PSC Hearing Officer allowing the Sandersville Railroad to begin condemnation proceedings for 200-foot-wide strips of land necessary for the construction of the Hanson Spur.

The spur enables Heidelberg Materials to expand its plant to a location further away from neighboring residents, and together the spur and plant expansion will be the largest privately funded construction project in Hancock County history. Poised to generate over $1.5 million in annual economic benefits to Sparta and Hancock County, the spur will open new channels of trade for middle Georgia businesses. It will also provide regional businesses and industries the ability to ship to and from local origin on CSX Transportation's rail network. In addition to Heidelberg Materials, four other companies in the agriculture, timber, and asphalt industries will ship their products and reach new markets using the spur. The spur will also be available to other receivers and shippers in the region.

In April 2023, the owners of several parcels who chose not to negotiate with Sandersville Railroad challenged the use of eminent domain to build the spur.

After four days of hearings in November of 2023, the PSC's Hearing Officer issued a decision in favor of Sandersville Railroad. The decision recognizes the importance of preserving the rights of state-chartered railroads to build and maintain infrastructure that supports free enterprise and robust trade. Today, the Georgia PSC confirmed Sandersville's ability to use eminent domain to acquire property for this vital route of commerce. The full PSC's final vote secures the future of the Hanson Spur and its potential to drive economic growth in the region through the expansion of trade routes.

"Although we do not take the use of eminent domain lightly, without it we would not have roads, airports, electrical lines, gas lines, or a host of other infrastructure that allows our communities to thrive," said Ben Tarbutton III, president of Sandersville Railroad. "We are grateful for the PSC's decision, which not only supports the Hanson Spur project but also upholds the vital role of railroads in Georgia's economic future. It is important for railroads and a variety of other utilities to have certainty when it comes to their ability to provide for our state's and nation's infrastructure."

"The Hanson Spur will provide new market access for local businesses, farmers, and loggers, and we look forward to working with the community to bring these benefits to Hancock County," Tarbutton added.

Sandersville Railroad has taken extensive measures to balance its spur with the well-being and quality of life of neighboring residents. Most homes are more than 1,000 feet away from the line, and Sandersville Railroad will install at-grade crossings for all property crossed by the spur. Where the rail is closer to homes, Sandersville Railroad will install 20-foot-tall earthen berms with trees planted on top. And the railroad will compensate all property owners with court-determined just and adequate compensation for any property it acquires via eminent domain.

When complete, the line will immediately generate 12 jobs with pay and benefits of approximately $90,000 or more, and over time more jobs are expected to follow. Confirmed shippers on the spur include Heidelberg Materials, Pittman Construction, Veal Farms Transload, Revive Millings, and Southern Chips. These rail shipments will substantially reduce local tractor-trailer traffic.

The Hanson Spur is a key component of Hancock County's long-term growth infrastructure, aligning with the community's comprehensive plan that recommends the expansion of rail and creation of opportunities for new industry.

"This is a generational opportunity for our community. The Hanson Spur—along with the new State Route 15 bypass just a few hundred yards away from it—will create many jobs over time. In the near future, this project will reduce harmful truck traffic on our roads and make Hancock County a viable destination for new businesses," says Mayor Allen Haywood of Sparta, who is also the director of the Sparta-Hancock Development Authority. "The Hanson Spur provides a great opportunity to build a better future for Sparta and Hancock County."