FRA 03-04
Contact: Warren Flatau
Tel.: (202) 493-6024
Thursday, February 12, 2004

Federal Railroad Administrator Announces $4.6 Million Loan to the Stillwater Central Railroad

The Stillwater Central Railroad, Inc. of Stillwater, OK will receive a $4.6 million federal loan from the Federal Railroad Administration to increase the reliability of rail services for regional railroad customers in central Oklahoma. The Railroad Rehabilitation and Improvement Financing (RRIF) direct loan was announced today.

U.S. Secretary of Transportation Norman Y. Mineta stressed the role of regional railroads in growing the nation’s economy. “Moving freight moves the economy. Americans profit from dependable, efficient, and safe transportation as we ship goods throughout America.”

The Stillwater Central Railroad is a short line railroad that operates freight services over approximately 120 miles of rail lines in Oklahoma. It serves well-established bulk commodity companies including the largest gypsum mine in the United States. With a traffic base of 20 shippers, the railroad carried an estimated 17,000 carloads of products in 2003. The 25 year loan will be used to refinance existing debt incurred during the purchase of a rail line from the Burlington Northern Santa Fe Railroad and to buy a locomotive.

Representative Earnest Istook (OK-5th ) said, “Solid transportation infrastructure is essential to keep goods moving and to make our economy grow. This will help a railroad that carries freight through the heart of Oklahoma and through the heart of America.”

The availability of short line freight service is very often an important factor in an area’s ability to maintain and attract new businesses and industry, according to Secretary Mineta. Short line railroads usually carry local freight traffic to and from interchange points with larger railroads. Without short line railroads, additional freight traffic would have to travel by trucks over local roads, or possibly, not move at all, he said.

“The RRIF program enables smaller railroads to make investments that improve their financial and operational performance. This loan will ensure that communities and industries in central Oklahoma preserve vital connections to the nation’s rail network,” said Federal Railroad Administrator Allan Rutter.

The Railroad Rehabilitation and Improvement Financing (RRIF) program was implemented in July 2000 to provide up to $3.5 billion in loans and loan guarantees for railroad improvements at interest rates available to government. It provides 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 available on FRA’s website at www.fra.dot.gov.

Briefing Room