THE FOLLOWING IS FOR INFORMATIONAL PURPOSES ONLY AND IS SUBJECT TO REVISION AND CORRECTION WITHOUT NOTICE. PLEASE CONSULT THE HERR LLC PRIVATE PLACEMENT MEMORANDUM, WHICH IS CONTROLLING AND WHICH IS AVAILABLE UPON REQUEST.
Pacific Charter Financial Services Corporation, with the assistance of Humboldt Eastern Railroad LLC, is seeking to create an "American Gateway" with the construction of the Pacific Northwest Railroad rail lines, docks, and hub terminals.
For a number of years there has been an economic decrease in Humboldt County and the adjacent areas of Northern California due to the decline in the Timber and Fishing Industries. In addition, due to a lack of rail and highways to Humboldt County, very few industrial and manufacturing shippers and their investors have been drawn to the area.
The port of Humboldt Bay currently has little shipping activity. It is a deep water port (35-38 feet) located between San Francisco, California (258 miles south) and Coos Bay, Oregon (180 miles north). Among the docks on the West Coast, Humboldt Bay is the shortest direct route to Asia by two and one-half (2 1/2) days or five (5) days round trip. For this reason, this port has great potential. There has not been rail service to the Port for over 20 years due to destruction of the previous railway line, which followed a North-South route to Napa. There are no plans to rebuild that route.
It is anticipated that the completion of the Pacific Northwest Railroad connection to the national rail network in the Central Valley near the towns of Red Bluff and Gerber will have some effect on population increase in Upstate California, thereby increasing the economic activity in the area. The number of residents currently living in the immediate communities and geographical areas to be served or affected by the Port, Rail and Hub Terminals is estimated at 9 to 11 million. These areas extend from the Gerber switching yards near Red Bluff and include Sacramento north to Medford, Oregon, and the Sierras west to the Pacific Coast.
We believe that the following benefits of a port and rail "land bridge" as proposed by PNR can be expected: