WASHINGTON, D.C. — Federal Railroad Administrator Allan Rutter announced on September 25 the award of a $2.07 million Railroad Rehabilitation and Improvement Financing (RRIF) loan to Mount Hood Railroad, a short line railroad based in northwest Oregon.
Rep. Jack Quinn (30th-NY), Chairman of the House Railroads Subcommittee, said, “I’m delighted that the Federal Railroad Administration approved this loan for the Mount Hood Railroad. It is imperative that railroad companies continue to apply for funding under the RRIF program. I look forward to more of these loans being approved in order to allow railroads to better compete with other modes of transportation.”
“Transportation issues are crucial to Oregon’s economic development and quality of life,” said Sen. Gordon Smith (R-Ore.), ranking member on the Surface Transportation and Merchant Marine Subcommittee of the Senate Commerce, Science and Transportation Committee. He added, “Without adequate rail freight lines, Oregon’ farmers and manufacturers cannot get their goods to market. This loan will do a lot to improve our state’s transportation infrastructure.”
“This latest RRIF loan is a terrific example of what Congressman Quinn, Senator Smith and their colleagues envisioned when they pushed so hard for passage of this innovative financing program,” said Rutter. “While we continue to negotiate with other prospective applicants, 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.”
“I’m delighted that the Federal Railroad Administration has approved this loan for Mount Hood Railroad,” said Rep. Greg Walden (R-Ore.). “Given the dependence of the local economy on its transportation infrastructure, this loan will reap tremendous dividends for the people of Hood River. Without the ability to transport the world-class fruit grown in the Columbia Gorge or carry tourists to this beautiful part of the country, Hood River’s economy would suffer. I’m grateful for the support Administrator Rutter gave to this loan request, and I look forward to working with the Federal Railroad Administration in the future to ensure that the financial needs of Mount Hood Railroad are met.”
Mount Hood Railroad operates a 22-mile line extending from the city of Hood River on the Columbia River to Parkdale, OR. Acquired from Union Pacific Railroad in 1987, the Mount Hood Railroad provides both freight and scenic passenger services. The 25-year RRIF loan, totaling $2,070,000, will be used for track rehabilitation, the purchase of rail equipment and refinancing of past debt used for capital expenditures and equipment purchase.
“The RRIF program is an extremely important option that is now available to all railroads, particularly short line operations such as the Mount Hood,” said Fred Duckwall, chairman of the board of Mount Hood Railroad. “As a result, a greater partnership now exists between the U.S. Department of Transportation, the Federal Railroad Administration and the Oregon Department of Transportation that I believe will ultimately benefit the state’s short line industry and the customers it serves.”
Several noteworthy public policy benefits to be achieved through the multi-million dollar loan include improved railroad operating safety as a result of the track and bridge rehabilitation, enhanced energy efficiency and environmental quality by ensuring the continued use of rail to move regional freight traffic, sustained economic development in the Hood River County area, continued competitive access to international markets via the Union Pacific Railroad, and preservation of rail service to the rural community of Mount Hood.
The RRIF Program is incorporated 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, development, improvement or rehabilitation of existing or new intermodal or rail equipment facilities. Eligible borrowers include railroads, state and local governments and government sponsored authorities. Detailed information about the program is in the final rule in the July 6, 2000 Federal Register and on FRA’s website at www.fra.dot.gov.