The Federal Railroad Administration will supply a $6.8 million Railroad Rehabilitation and Improvement Financing loan to the Arkansas and Missouri Railroad.
The U.S. Transportation Department’s Federal Railroad Administration will supply a $6.8 million Railroad Rehabilitation and Improvement Financing (RRIF) loan to the Arkansas and Missouri Railroad (A&M).
The railroad will use the loan to refinance the purchase of three locomotives that improve its operations, enhance safety, and reduce carbon emissions, FRA said.
The RRIF program provides direct federal loans and loan guarantees to finance the acquisition and development of railroad and intermodal facilities and equipment, including positive train control (PTC). FRA gives priority to projects that provide public benefits, including safety, the environment, and economic development. As part of President Obama’s Build America Investment Initiative, DOT has set up the Build America Transportation Investment Center (BATIC) to encourage the use of innovative financing tools such as RRIF.
FRA previously issued an $11 million RRIF loan to A&M in 2003 to buy and rehabilitate track.
FRA assists A&M Railroad with engine purchases
