Iowa commission OKs grants, loans for rail improvement projects

The Iowa Transportation Commission this week approved $3.9 million in funding for four rail infrastructure and related development projects under the state's Railroad Revolving Loan and Grant (RRLG) program.

The projects that received grants or loans are expected to support the creation and retention of 208 jobs within three years of project completion, Iowa Department of Transportation officials said in a press release.

The state's Office of Rail Transportation administers the RRLG program, which provides financial assistance to projects that will create jobs, spur economic activity and improve the rail transportation system.

The assistance can fall under one of three categories: targeted job creation, which involves rail projects that provide immediate, direct job opportunities; rail network improvement, which entails projects that support existing rail lines and service or improve industrial access when no direct job creation is involved; and rail port planning and development, which concerns planning studies related to rail port facilities.

This year, under the targeted job creation category, the commission approved a $2.1 million grant for a Trinity Rail project in Butler County, and a $1.3 million loan and $360,000 grant for an Agri Trading project in Woodbury County.

Under the rail port development study category, the commission approved an $80,000 grant for the Ottumwa/Burlington Junction Railway port relocation study and a $32,000 grant for the Sioux City 27 Flags study.