(The following story by Jim Offner appeared on the Waterloo and Cedar Falls Courier website on July 12.)
WATERLOO, Iowa — Railroads could get a break on loans to repair flood-damaged bridges in Iowa if a bill proposed by two Iowa congressmen gains congressional approval.
However, the bill wouldn’t be of much use to the owner of the flood-damaged span in downtown Waterloo, which plans to pay for repairs without any outside help.
On Thursday, Bruce Braley and Dave Loebsack, eastern Iowa’s representatives in the U.S. House, introduced an amendment to the 42-year-old Railroad Rehabilitation and Improvement Financing Program, which ensures low-interest loans for railroads to build and repair infrastructure.
The so-called “Back on Track Act” introduced Thursday would cut interest rates on such loans from the current 4.8 percent to 1 percent and decrease the amount of collateral needed for loans to rebuild bridges damaged by recent floods.
The floods of 2008 destroyed at least three railroad bridges in eastern Iowa — the Union Pacific-owned Iowa Northern Bridge in Waterloo; the Cedar River Bridge in Cedar Rapids; and the Iowa, Chicago & Eastern Bridge near Columbus Junction.
However, the bill wouldn’t be of much help to Union Pacific, the Omaha, Neb.-based railroad that owns the bridge in Waterloo that floodwaters washed away, according to UP spokesman Mark Davis.
“That legislation was aimed at the short-line railroads, and we would be replacing our own structures,” he said.
Union Pacific will pay to repair the Waterloo bridge, with construction ideally getting under way in late August, Davis said.
“In this legislation, the aim would be at a regional railroad that owns, say, 20 miles of track, and they could not afford to replace the track that got washed away in the flood,” Davis said. “This legislation would be aimed at assisting that railroad.”
A short-line railroad, Iowa Northern, leases the Waterloo bridge from UP, Davis said.
“But we don’t operate it,” he said. “So, UP is going to be replacing the bridge at our expense, with no loans.”
Braley said the legislation was necessary to keep freight moving across Iowa.
“Rebuilding Iowa’s railroad bridges is essential to getting life back to normal for Iowa residents, producers and businesses,” said Braley, the bill’s co-sponsor. He represents Northeast Iowa, including Waterloo and Cedar Falls. “These bridges connect important Iowa businesses, such as John Deere and ADM (Decatur, Ill.-based grain processor Archer Daniels Midland) to the country, and it is important that we act quickly to restore full access to these facilities. The Back on Track Act will help quickly rebuild Iowa’s railroad bridges so Iowa can continue moving down the road to recovery.”
There was no information on when the House would take up the bill, Braley spokeswoman Nicole Buseman said.
“We’re hoping they take it up in an expedient manner,” she said.
Union Pacific has not yet completed an estimate on repairing the Waterloo bridge, said Davis. Parts of the Waterloo span broke away and floated downriver. After engineers draw up specifications the railroad will seek bids for construction.
The railroad will coordinate repairs with the city of Waterloo and the state Department of Natural Resources.