YOUNGSTOWN — Youngstown & Southeastern Railroad plans to invest $2.9 million to transform land on the South Side into its Lansingville Rail Park, a site that will be used to centralize its railcar storage-in-transit, or warehousing, operation.

The railroad, a subsidiary of Missouri-based Midwest & Bluegrass Rail, announced the project that includes a multitrack rail yard Monday.

The facility in November received $1.45 million in help from the Ohio Rail Development Commission that, according to commission documents, involves constructing a five-track yard with capacity for 220 cars at a brownfield site on Poland Avenue.

The work, which also includes installation of about 15,000 feet of new track and six turnouts, will allow Youngstown & Southeastern Railroad to “improve capacity, service and logistical efficiency” for the company’s freight customers, a news release states.

Rail commission documents state Youngstown & Southeastern’s warehousing operation is spread over multiple sidings and spurs, and retrieving specific railcars involves mobilizing its crew to find and stage the railcar for interchange.

The company’s interchanges are in Youngstown, but its infrastructure extends south to Columbiana County, about 25 miles, “so the railcar needed may be located many miles away.”

The arrangement uses a lot of crew time and can disrupt service to the railroad’s five online companies, and since Youngstown & Southeastern infrastructure is at or near capacity, “this hampers the ability of the railroad to market itself to prospective customers,” the document states.

Youngstown & Southeastern already has acquired the 70 acres for the site. The Mahoning County Auditor’s Office shows a $3.5 million transaction on Poland Avenue posted Nov. 21.

What’s not used for the yard could be developed into an industrial site with access to two Class I rail networks there and rail switching by Youngstown & Southeastern, the release states.

Youngstown & Southeastern is a Class III short line that conducts freight rail operations in northeast Ohio and southwest Pennsylvania.

“MB Rail is excited to make this investment with the support and encouragement of Lake to

River. Lansingville Rail Park will be a cornerstone of Y&S Railroad’s growth strategy and

commitment to fostering commerce and job creation in the Mahoning Valley for years to come,” Brendan Keener, vice president of commercial development for Midwest & Bluegrass Rail, said in the release.

Lake to River Economic Development is the entity that works on economic development in Mahoning County as well as Trumbull, Columbiana and Ashtabula counties.

“This investment is important to the City of Youngstown’s industrial growth, Sarah Boyarko,

vice president of economic development for Lake to River, said. “With the acquisition of this acreage, we’ll have additional rail services to market as well as a highly competitive development site. We are pleased that this investment was made in our market and look forward to partnering with Midwest & Bluegrass on future opportunities at the Lansingville Rail Park.”