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6/12/2023
The state of Michigan and province of Saskatchewan recently awarded grants to help freight railroads pay for infrastructure upgrades.
Michigan Gov. Gretchen Whitmer announced June 9 that a combined $19 million in funding will be awarded to 12 freight-rail projects in the first round of grants issued by the new Michigan Rail Enhancement Grant Program (M-REP).
M-REP grants reimburse up to 70% of project costs associated with railroad track, bridges, grade crossings, rail scales to weigh freight cars on mainline corridors and at rail yards, intermodal facilities and transload facilities. In this round of funding, the grants will leverage about $48 million in other investments in the rail system in Michigan, according to a press release issued by Whitmer's office.
The grants awarded include $5 million for Norfolk Southern Railway to make improvements to an intermodal facility in Detroit and $2.5 million to Mid-Michigan Railroad Inc. for tie and ballast replacement, track surfacing and bridge improvements in Kent County. The complete list of awards can be read here.
"With approximately 3,600 miles of rail corridors in Michigan operated by 29 freight railroads, freight rail keeps our diverse economy rolling,” said Whitmer. "From farmers depending on rail to haul their crops to market to auto manufacturers shipping finished products across North America, rail creates jobs and serves communities across our state."
Meanwhile, the Saskatchewan government on June 8 announced CA$530,000 is awarded this year though its Short Line Railway Improvement Program. The awards will help short lines pay for projects that include track upgrades and expansions, improved crossing surfaces and sight lines, bridge maintenance and track rehabilitation work, according to a provincial government press release.
Grants are determined based on how much track each short line owns. Small networks with less than 80 kilometers of track receive at least CA$25,000. The larger networks receive a proportional amount based on how much track they operate.
Short lines receiving grants include the Great Western Railway, which received CA$129,909; Big Sky Rail, CA$87,035; and Great Sandhills Railway, CA$43,089.
The complete list of awards is available here.