Few people outside City Hall, the railroad or the industrial park, however, seem to know about the project -- which began in June and is expected to end in October. That's partly because Union Pacific is not required to undergo a public process to repair its own tracks, city officials say.
The project, which began June 8, is estimated to cost between $10 million and $12 million; and is part of a sweeping, $3.6 billion investment in rail infrastructure across 23 states this year, Union Pacific spokeswoman Liisa Stark said. It requires temporary closures of public and private crossings, as well as public roadways in the Benicia port area, according to a project fact sheet.
The bulk of the work consists of replacing five miles of old rails and railroad ties, removing embedded tracks in the intersection of Park Road and Industrial Way, and replacing and re-paving crossing surfaces.
When completed, there will be improved crossings, including concrete pads and new asphalt; an enhanced Park Road-Industrial Way intersection to improve traffic flow; and improved freight train fluidity, railroad officials say.
The rail upgrades correspond with Valero's pending proposal to start shipping up to 70,000 barrels per day of the crude by rail to its Benicia refinery. However, Stark said two projects are unrelated, despite the fact that Valero's crude-by-rail project would dramatically boost local freight shipments.
"It would be happening anyway" regardless of Valero's plans, Stark said. Stark added the track upgrades, contrary to speculation, aren't necessary to handle Valero's anticipated use of up to 100 tank cars per day transporting crude from North American sources -- a lucrative and growing part of the rail industry. Last year, UP shipped 140,000 carloads of crude to refineries, up from 25,000 the previous year, as a result of the U.S. oil-and-shale drilling boom. The company, whose second-quarter earnings rose 10 percent to $1.1 billion this year, also ships coal and materials used in horizontal drilling.
Automotive shipments are also improving, including from the port of Benicia, an auto shipping hub, Stark said.
The buzz in the industrial park, however, is that the track upgrades go hand-in-hand with Valero's plans. Both projects have received mixed response.
"I have talked to numerous people involved with the refinery and UP, and what we're hearing on the street is, 'Why would they be doing this if it wasn't related to Valero?' " said Ed Ruszel of Ruszel Woodworks.
The Bayshore Road business is one of three with driveways crossed by UP tracks. Ruszel said he's worried about train deliveries blocking access to his property -- especially if employees could be trapped during an emergency.
"My main contention is that UP is not required to take out city permits to do this work, so their part in (Valero's) project is not being presented as part of the discussion," Ruszel said.
Ruszel isn't the only one raising concerns. Dave Jenkins of Norcal Trucking says he issued a "cease and desist" letter to Union Pacific after the railroad began laying new track near his building last month, claiming the work encroached on his property. The railroad didn't respond to a request for comment Monday.
For his part, Jenkins said he was alarmed to learn about plans to add rail lines within 50 feet of his propane tanks. The construction has stopped for now, but he said it's unclear how the dispute will be resolved.
Meanwhile, the Planning Commission is scheduled to consider Valero's project on Aug. 8; and city officials say responses to a large volume of public comments are due out Friday.
Contact staff writer Tony Burchyns at tburchyns@timesheraldonline.com or (707) 553-6831. Follow him on Twitter @tonyburchyns.
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