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7/14/2008
Rail News: Rail Industry Trends
Two Iowa congressmen introduce bill proposing low-interest federal loans for short lines
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Iowa regionals and short lines dealing with flood-related infrastructure damage might soon be able to tap low-interest federal loans to help pay for repairs.
U.S. Reps. Bruce Braley (D-Iowa) and Dave Loebsack (D-Iowa) recently introduced the Back on Track Act (H.R. 6464), which would improve terms of federal loans used to repair track and bridges in the state's disaster area. Under proposed amendments to the Railroad Rehabilitation and Improvement (RRIF) Program, the Federal Railroad Administration would offer loans with a lower interest rate (1 percent), extended terms (35 years) and eased collateral requirements.
All railroads, regardless of size, would be eligible to apply for the restructured loans.
"The money needed to rebuild our railroad infrastructure will have to be pieced together from numerous sources, and these changes will allow the RRIF loan program to be an important part of that puzzle," said Daniel Sabin, president of the Iowa Northern Railway — which estimates flood-related damage will total $6.4 million, including $5 million to replace a bridge in Waterloo — in a prepared statement.
Other regionals and short lines facing costly flood-related repairs include the Iowa, Chicago & Eastern Railroad Corp., whose Turkey River Bridge in Clayton County needs $4 million worth of work; and Cedar Rapids & Iowa City Railway Co., which needs to fix a Cedar Rapids bridge to the tune of $6 million.
More than one-third of Iowa's railroad network is operated by short lines and the state ranks No. 12 in the United States in total short-line miles.
U.S. Reps. Bruce Braley (D-Iowa) and Dave Loebsack (D-Iowa) recently introduced the Back on Track Act (H.R. 6464), which would improve terms of federal loans used to repair track and bridges in the state's disaster area. Under proposed amendments to the Railroad Rehabilitation and Improvement (RRIF) Program, the Federal Railroad Administration would offer loans with a lower interest rate (1 percent), extended terms (35 years) and eased collateral requirements.
All railroads, regardless of size, would be eligible to apply for the restructured loans.
"The money needed to rebuild our railroad infrastructure will have to be pieced together from numerous sources, and these changes will allow the RRIF loan program to be an important part of that puzzle," said Daniel Sabin, president of the Iowa Northern Railway — which estimates flood-related damage will total $6.4 million, including $5 million to replace a bridge in Waterloo — in a prepared statement.
Other regionals and short lines facing costly flood-related repairs include the Iowa, Chicago & Eastern Railroad Corp., whose Turkey River Bridge in Clayton County needs $4 million worth of work; and Cedar Rapids & Iowa City Railway Co., which needs to fix a Cedar Rapids bridge to the tune of $6 million.
More than one-third of Iowa's railroad network is operated by short lines and the state ranks No. 12 in the United States in total short-line miles.
