WASHINGTON, D.C. — Federal Railroad Administrator Allan Rutter today announced that the Federal Railroad Administration (FRA) plans to conduct a first of its kind workshop designed to educate the freight rail industry about the value of the Railroad Rehabilitation and Improvement Finance (RRIF) program. The workshop will be held on Friday, December 6 in Washington, D.C.
“This is a terrific program, one that offers freight railroads of all shapes and sizes along with municipalities throughout the country added financial flexibility in improving rail infrastructure,” said Rutter. “While a few applications are currently under review, the industry has yet to take full advantage of the program. This workshop is designed to take the mystery out of the application process and encourage greater participation,” he continued.
The RRIF Program is provided for in Section 7203 of the Transportation Equity Act for the 21st Century (TEA-21). It authorizes the Federal Railroad Administration to provide direct loans or loan guarantees for the acquisition, improvement or rehabilitation of existing or new intermodal or rail equipment facilities; including track, bridges, yards, buildings and shops; or to refinance outstanding debt incurred for those purposes. Eligible borrowers include railroads, state and local governments, government-sponsored authorities and corporations. Detailed information about the program is contained in the final rule published in the July 6, 2000 Federal Register and available on FRA’s website at www.fra.dot.gov.
In September 2002, the FRA approved one of the first loans under the program; a $2.1 direct loan to Oregon’s Mt. Hood Railroad for track rehabilitation and rail equipment acquisition as well as the refinancing of past debt used for capital expenditures and equipment purchases.
Rutter added, “I strongly encourage America’s rail industry, particularly the American Short Line and Regional Railroad Association, along with the Association of American Railroads to join us in this educational effort and help spread the word to its respective membership about the value of this innovative financing program.”
The workshop, entitled How To Prepare an Application for Railroad Rehabilitation and Improvement Financing, will be held from 10:30am until 4:30pm in Room 2230 of the U.S. Department of Transportation headquarters building at 400 7th St., SW, Washington, D.C. 20590. Those wishing to participate in the no-cost workshop are encouraged to contact Ms. Linda Woodfolk at 202-493-6376 or linda.woodfolk@fra.dot.gov