Tuesday, December 3, 2002
FRA 9-02
Contact: Robert L.
Gould or Warren Flatau
Telephone: (202) 493-6024
Federal Railroad Administrator Announces Workshop For RRIF Applicants
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 in
advance, to expedite admittance to
the building.
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