SHORT LINE RAILROADS ENCOURAGED TO APPLY FOR RRIF LOANS
The United States’ short line railroads are encouraged to apply to the federal government for loans to upgrade track and equipment.
The Railroad Rehabilitation and Improvement Financing (RRIF) program was created by the Transportation Equity Act of the 21st Century (TEA-21). It authorizes the Federal Railroad Administration to provide direct loans or loan guarantees for the purchase, development, improvement or rehabilitation of existing and new intermodal or rail equipment.
“I strongly encourage America’s rail industry, particularly the American Short Line and Regional Railroad Association, to take the lead in helping to educate its members as to the value of the RRIF program,” said Federal Railroad Administrator Allan Rutter.
Mount Hood Railroad, a short line railroad in northwest Oregon, was recently awarded a $2.07-million RRIF loan for track rehabilitation and to buy new equipment.
“Without adequate rail freight lines, Oregon’s farmers and manufacturers cannot get their goods to market,” said Sen. Gordon Smith, R-Ore. “This loan will do a lot to improve our state’s transportation infrastructure.”
“It is imperative that railroad companies continue to apply for funding under the RRIF program,” said Rep. Jack Quinn, R-N.Y., chairman of the House Railroads Subcommittee. “I look forward to more of these loans being approved in order to allow railroads to better complete with other modes of transportation.”
