During recent meetings when the Red Line has been re-introduced as a viable rail project from downtown Charlotte to points north of the city, Paul Morris has used his own version of the "three Rs."

The North Carolina Department of Transportation's deputy secretary of transit calls what is now known as the Red Line Regional Rail Project "reformed, restructured and recast" in every way. All of which has led to a fourth "R" — revival — which is mostly, if not exclusively, because of the high level of interest in the project demonstrated by N.C. Secretary of Transportation Gene Conti.

So exactly why is the state's chief transportation officer so interested in what was a local commuter rail project? It's because of the biggest "R" of all ... revenue.

After the 2010 Urban Land Institute panel report was released, one that highlighted the potential economic development impact that would accompany the 25-mile then-exclusively commuter rail project from Mount Mourne to Charlotte, the resulting momentum rolled all the way to Raleigh. The project meshed nicely with the secretary's initiative to take advantage of the growing focus on the Southeast by global logistics interests and the role regional rail projects, such as the Red Line, could play in the evolving business of shipping freight.

Answering questions about the viability of the freight element, Morris told elected officials from municipalities and both Mecklenburg and Iredell counties at a Red Line summit last Tuesday that state officials want North Carolina to be a major player in worldwide freight. The Red Line, he said, is among those projects perfectly positioned to take advantage of this evolving strategic shift. Regional rail will provide easier access to freight mobility to and from North Carolina and South Carolina shipping ports.

"North Carolina has acknowledged the rapidly changing freight industry, largely defined by the consolidation and centralizing of freight movement globally," said Morris. "The Southeast is strategically positioned to be the U.S. access point into the Northeast and across the country. From a shipping standpoint, it is more efficient to move things over ocean and, when you get to land, more efficient to go by rail versus by truck.

The Governor's Logistics Task Force is working to position North Carolina ports and inland ports to be a competitor in that arena," he continued. "We are rapidly finding ourselves competing against Virginia, South Carolina and Florida for that position."

Partnering with the Charlotte Area Transit System (CATS), Norfolk Southern Railroad and local jurisdictions is seen by state officials as a logical step toward that end. The rail bed already exists — although in its current state incapable of handing either faster-moving commuter rail or heavier freight use than it currently accommodates — and jurisdictions along the corridor have been planning for a transit corridor for more than a decade. Along with at least 10 passenger stations, two locations have been identified as logical locations for "freight villages," several large, multi-use developments are already planned or are under way, and other developers are waiting for the rail to get the green light to begin projects of their own.

Morris said the state envisions the Red Line serving a key role in the overall goal of receiving freight from, and shipping it to points in, the Northeast and Midwest as raw materials, components and finished goods are moved through the area to and from coastal ports via rail. That capacity is anticipated to increase local manufacturing activity with the infrastructure in place to better serve it.

It's all part of the new thinking in global logistics, Morris said, as industry begins to reconsider how it conducts business to better economize and reduce its environmental impact. This shift includes the introduction of "freight villages," which can best be described as office condos on a freight yard scale. The freight villages offer storage and transfer capability, not too unlike a truck terminal, on an as-needed basis. They can be accessed either directly from the main line or via rail spur to convenient, and locally acceptable, locations.

"Much of the distribution has migrated from entrepreneurial and individualized business because rising costs and the demand for ready access to rail and road capacity has forced them to collaborate and create the freight village concept," said Morris. "They may bring in materials by container in bulk, repackage them and send them out to customers. It's like a business office suite arrangement. They are looking to share cost of a freight rail spur or siding where they can stage multiple operations and not just have an acre by acre field of parking that is left vacant multiple times of the year.

"They can gain access to intermodal facilities that are being redeveloped in Charlotte for purposes of gaining access to global markets," continued Morris. "Other parts in the country are ahead of North Carolina, but because we have a lot of short lines like the Red Line (currently the Norfolk and Southern "O" line spur), they can serve that kind of purpose."

The recommended business model of the Red Line Regional Rail would suggest that its primary users — those who develop the land into a higher use that the existence of the infrastructure provides — effectively pay for it through the concept of value capture. Special assessment districts and tax increment financing on redevelopment spurred by the rail corridor would cover half of the capital costs — $226 million — after the state and CATS together pay for the other half, as well as ongoing operations and maintenance costs.

All of which requires some level of cooperation from Norfolk Southern, which controls the right-of-way on which the Red Line would travel. A previous agreement with CATS calls for the transit system to pay a $22 million fee to the railroad for use of the rail bed. Adding the enhanced freight element to the deal could prove to be a game changer.

Negotiating with the railroad regarding its role in the project, Morris told the group last week, will be his job.

"(Norfolk and Southern) has not actively participated by design," said Morris. "We will not go to them until there is a complete draft proposal for them to evaluate."

That process should be completed within the first 90 days of 2012. At that point, Morris said, he will explore options with the railroad, some of which extend well beyond it being simply a passive participant.

"They have previously prepared a term sheet, which is an agreement on the previous version of the project," said Morris of railroad officials. "They have indicated to me that, corporately, they have moved off the piecemeal approach to that agreement and are now interested in competing for a (finance, design, build, operate) turnkey approach."

About that, Morris said, he isn't sure where discussions will lead, but it will be largely affected by the outcome of the next 90 days, during which time the proposal will be refined through the participation of all local jurisdictions along the corridor.

Only then can the Red Line take another critical step toward another "R," reality.