(The Associated Press circulated the following article on April 29.)
LOS ANGELES — Federal officials accepted a $573 million payment Thursday to close out a loan issued to pay for the Alameda Corridor’s construction, which wasn’t due to be paid off until 2032.
U.S. Transportation Secretary Norm Mineta praised the 20-mile rail line built to streamline cargo traffic between the ports of Los Angeles and Long Beach, and the rail yards near downtown Los Angeles.
“By reducing congestion and eliminating highway rail crossings, (the corridor) cleans the air, makes roads safer … and keeps goods moving,” Mineta said.
The governing authority for the corridor opted to pay off the $400 million loan early to save money.
Though the total payout was higher than the loan amount because of interest incurred, the agency is still saving $65 million by refinancing the debt with low-interest bonds.
The corridor, which opened in 2002, combined 90 miles of branch railroads into one high-speed line, eliminating more than 200 grade crossings and reducing the time for cargo to get from the ports to downtown, Mineta said.