(The following story by Daniel McCoy appeared on the Wichita Business Journal website on March 17, 2009.)
WICHITA, Kan. — The Kansas Department of Transportation has set aside $3 million for short-line railroad projects. The funds will come from the $378 million the state receives for transportation from the American Recovery and Reinvestment Act of 2009.
“Short-line railroads are important to our state’s economy,” Secretary of Transportation Deb Miller, said in a written statement.
“They move a variety of goods between our local markets and the national railroad system — connecting many communities to national and global markets. Since the intent of the ARRA is to promote economic development, it seems only fitting that we support our short-line rail system.”
John Maddox, freight and rail program manager for KDOT, says the short rails are not owned or operated by the state. They are typically controlled by a parent company, often one that owns short rails in multiple states. They account for about 41 percent of the state’s 4,780 miles of railroads and transport 14.5 million tons of freight a year, according to KDOT.
Applications for the funds must be received by 5 p.m., March 23. After evaluating each applications, KDOT will announce the selected projects on March 30. These projects must be let to construction in 2009 and be completed within three years.
KDOT will recall the funds project applicants if they’re unable to meet deadlines and requirements. These funds may then be used on other projects or returned to the federal government.
As for what projects will receive funding, Maddox says it’s too soon to tell.
“We don’t really know at this point,” he says. “It all depends on the applications and the projected costs (of the projects).
Maddox adds that the $3 million is the only money allocated for rail transportation from the stimulus funds.