FRA 08-02
Wednesday, September 25, 2002
Contact: Robert L. Gould
Warren Flatau
Tel.: (202) 493-6024
Federal Railroad Administrator Announces $2.07
Million RRIF Loan To Oregon-Based Mount Hood Railroad
Federal Railroad
Administrator Allan Rutter today announced 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.
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