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It didn't take the state of Iowa long to step up to the plate and provide funding for short lines that were hit hard by June's floods. Last week, The Iowa Department of Transportation and Iowa Railway Finance Authority announced plans to provide $4 million in emergency funding from the Rail Revolving Loan and Grant Program for seven regionals and short lines.

The state will provide the funds as 15-year, interest-free loans, with the start of repayments deferred until Jan. 1, 2011.

"More than 400 miles of rail were damaged as a result of flooding, and it is important that we do whatever we can to fully restore rail service as quickly as possible," said Gov. Chet Culver in a prepared statement.

The state will provide $1.4 million to the Iowa, Chicago & Eastern Railroad Corp.; $772,000 to Iowa Interstate Railroad Ltd.; $681,000 to Iowa Northern Railway Co.; $554,000 to Keokuk Junction Railway Co.; $320,000 to Cedar Rapids and Iowa City Railway Co.; $184,000 to Iowa River Railroad; and $71,000 to Burlington Junction Railway.

Iowa Northern estimates flood damage repairs will cost a total of $6.4 million.

"The loan ... will greatly enhance our ability to more quickly repair the washouts and other track damage the company suffered in the floods," said T. Scott Bannister, the 163-mile short line's vice president, general counsel and secretary. "We can accomplish the repairs more efficiently using both our own employees and contractors."