Thursday, May 28 2015
Washington -- The Federal Railroad Administration (FRA) issued a $6.8 million Railroad Rehabilitation and Improvement Financing (RRIF) loan to the Arkansas and Missouri Railroad (A&M). A&M will use the loan to refinance the purchase of three locomotives that improves the company’s operations, enhances safety, and reduces carbon emissions.
“Expanding financing opportunities for railroads will create jobs, grow the economy, and improve the quality of our rail infrastructure,” said U.S. Transportation Secretary Anthony Foxx. “The GROW AMERICA Act will strengthen the RRIF program by reducing the cost of obtaining a loan and making the program more accessible.”
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). The FRA gives priority to projects that provide public benefits, including benefits to public safety, the environment, and economic development. As part of the President’s Build America Investment Initiative, the U.S. Department of Transportation has established the Build America Transportation Investment Center (BATIC) to encourage the use of innovative financing tools such as RRIF.
FRA also issued an $11 million RRIF loan to A&M in 2003 to purchase and rehabilitate track, which significantly improved the safety and efficiency of their operations.
“RRIF is a vital tool for railroads,” said Acting Federal Railroad Administrator Sarah Feinberg. “FRA has significantly decreased the time it takes to process RRIF loans and we look forward to closing additional loans later this year.”
To date, FRA has issued 35 RRIF loans totaling nearly $2.7 billion. Click HERE (external link) for more information on FRA’s RRIF Program.