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USDOT's latest Mega, INFRA grant awards boost funding for rail infrastructure projects

2/8/2024
A rendering of the Port of New Orleans’ future Louisiana International Terminal. Last month, the USDOT awarded grants through the Mega and INFRA programs to the LIT construction project. louisianainternationalterminal.com

By Julie Sneider, Senior Editor 

The U.S. Department of Transportation last month doled out federal dollars for transportation infrastructure projects through two grant programs: the National Infrastructure Project Assistance (Mega) and the Infrastructure for Rebuilding America (INFRA) programs. 

More than $4.9 billion worth of grants were awarded to 11 projects through the FY2023-2024 Mega program and 28 projects through FY2023-2024 INFRA program. Several of the grants went to projects that feature freight-rail infrastructure. One of those projects — the Port of New Orleans’ Louisiana International Terminal (LIT) — received grants through both programs. 

Mega, which was created by the Infrastructure Investment and Jobs Act (IIJA) of 2021, provides $5 billion in funding through 2026 and is focused on projects that are large, complex and difficult to fund under traditional grant programs.  

INFRA, for which funding was increased more than 50% by the IIJA, also funds large scale, transformational infrastructure projects designed to improve the safety, efficiency and reliability of the movement of freight and people in and across rural and urban areas. 

The $226.2 million INFRA grant and $73.8 million Mega grant awarded to the Port of New Orleans project will help cover the cost of construction of the LIT on the Gulf Coast. Located in St. Bernard Parish, the project will result in 1,700-feet of wharf, two ramps to connect the wharf to the container yard, an automated stacking crane yard, utilities, storm drainage, all necessary buildings for operations, entry and exit gates, an intermodal rail yard, realignment of the Norfolk Southern Railway line and realignment of St. Bernard Highway, according to USDOT’s fact sheet on the project.  

The $1.8 billion project ranks “strong” for its economic impact, freight movement and job creation, according to the USDOT. The LIT will be a “competitive international terminal alternative to air-draft restricted terminals” located farther inland on the Mississippi River because it will be able to accommodate larger vessels, the fact sheet states. For that reason, the project has support from Midwestern ports. It also is slated to incorporate advanced and modern terminal technology and equipment, as well as climate resiliency into the design. A public-private partnership will deliver the $1.8 billion project. According to Port NOLA, the terminal will provide connections to all Class Is via the New Orleans Public Belt Railroad. 

Currently, the project is in the federal permitting process, expected to be completed in 2025. The terminal’s first phase is slated to open in 2028. 

The Port of New Orleans future Louisiana International Terminal will provide connections to all Class Is via the New Orleans Public Belt Railroad. Port of New Orleans

Mega grant funds awarded 

Following are the other freight-rail-related projects that received Mega grants in this latest round of funding: 

• $283.4 million for the Port of Long Beach Pier B on-dock rail support facility program in California. The project calls for completing the Pier B on-dock rail support facility by expanding the North and South rail yards. The North Yard expansion involves construction of two mainline tracks, five new 10,000-foot receiving and department tracks extending from west of the Dominguez Channel to the Pico Avenue rail corridor, and 26 new storage tracks north of the existing Pier B Yard. The South Yard expansion will add seven 3,000-foot storage tracks, lengthen and rehabilitate seven existing 3,000-storage tracks, construct two new tracks in the Pico Avenue rail corridor, reconfigure tracks near Pier D Street, and construct a new compressed air facility. 

The project will “significantly” improve container on-rail service to and from the ports of Long Beach and Los Angeles, facilitating 20% of container throughput at the ports that moves exclusively by rail, according to the USDOT fact sheet. It also will improve connections between the ports and BNSF Railway Co. and Union Pacific Railroad. 

• $130.5 million for the St. Lucie River Railroad Bridge replacement project in Stuart, Florida. The project calls for replacing the existing 100-year-old Lucie River Railroad Bridge with a new double-track structure that will improve vertical and horizontal navigational clearance. The project is designed to divert freight traffic to rail, which will increase safety for marine traffic and decrease the potential for blocked grade crossings and vehicle collisions. Also, a new and more modern bridge will cost less to operate and maintain, according to the USDOT project fact sheet. 

• $600 million for the Interstate Bridge replacement project between the states of Washington and Oregon. The project calls for updating Interstate 5, which will include a seismically resilient replacement of the bridge over the Columbia River, connecting Vancouver, Washington, and Portland, Oregon. The new structure will include room for additional light-rail service. It will have special lanes for heavy trucks, rail connections and shipping. 

INFRA grant funds awarded 

The following are rail-associated projects receiving INFRA grants in the latest round of awards: 

• $17 million for Alaska Railroad Corp. to replace the aging rail bridge over the Chena River at Fort Wainwright in Fairbanks, Alaska. The new bridge will be shorter in length — by 342 feet — than the existing bridge. It will consist of four spans — two approach spans and two through-plate girder spans — placed on top of the existing piers. The remaining distance over low-lying ground will be replaced with an embankment, reducing the total bridge length by nearly half. The bridge is part of ARRC’s Eielson Branch and links the railroad’s mainline at Fairbanks with Fort Wainwright and Eielson Air Force Base. The project is designed to restore and modernize the bridge by bringing it up to rail industry standards, and help lead to increasing freight transportation by rail. 

• $53.9 million for the San Dieguito Railway Bridge replacement in San Diego. The project will replace the 107-year-old, single-track wooden trestle bridge with a double-track bridge. The track height will be raised by 8 feet to account for higher sea levels. The existing bridge now sits below the 100-year Federal Emergency Management Agency flood elevation.  

• $29.2 million to the Interstate 76 reconstruction and improvements project in Morgan County, Colorado. The project calls for reconstructing I-76 within its existing lane configuration. Included in the work is replacing two bridges on I-76 over BNSF lines.  

• $25 million to the Randall Road grade separation and intersection safety-improvement program in Kane County, Illinois. A grade separation will be built over a CN line and an existing intersection of Hopps Road will be reconstructed next to the grade separation. The project is designed to give emergency vehicles easier access, as the current crossing can block such vehicles from reaching local hospitals or emergency calls. 

• $28 million to the Elko Nevada Rail Corridor enhancement project in Nevada. The project calls for design and construction improvements on the UP Overland route at the Class I’s Elko Yard. Two new power-operated crossovers between existing bi-directional tracks and a new right-hand crossover connection track will be constructed so that trains can be diverted around the yard to accommodate work events taking place in the yard. Other improvements will include new walking surfaces in the yard, upgraded infrastructure, new or enhanced track, and wayside signal infrastructure, including an interface with an existing positive train control system.  

The project applicant, Nevada Department of Transportation, anticipates the project will reduce an average of 2.5 hours of delay per freight train using the UP Overland Corridor, which now handles 14 to 18 freight trains per day. Also, the work will benefit Amtrak by consolidating an Amtrak boarding platform for east- and westbound travelers.