Short line railroads seek changes to federal loans Associated Press 12:30 AM CDT, July 14, 2008 DES MOINES, Iowa - Operators of short line railroads are hopeful that a proposed low-interest loan program introduced by two Iowa congressmen will receive approval. Legislation introduced by Reps. Bruce Braley and Dave Loebsack would significantly improve the terms of federal loans used to repair tracks in disaster areas. Loans are authorized under the Railroad Rehabilitation and Improvement Program but the proposed amendments would lower interest rates to 1 percent, extend the loan term to 35 years and ease collateral requirements. All railroads, regardless of their size would be eligible to apply for the restructured loans. "The money needed to rebuild our railroad infrastructure will have to be pieced together from numerous sources, and these changes will allow the RRIF loan program to be an important part of that puzzle," Iowa Northern Railroad President Daniel Sabin said in a statement. Iowa Northern estimates its flood-related damages at $6.4 million including $5 million to replace its railroad bridge in Waterloo. Three short line railroads in Iowa have reported substantial bridge damage from flooding: --Iowa Northern's bridge at Waterloo estimated at $5 million --Iowa, Chicago & Eastern's Turkey River Bridge in Clayton County estimated at $4 million --Cedar Rapids & Iowa City's bridge in Cedar Rapids estimated at $6 million. Over one third of Iowa's total railroad network is operated by short line railroads. It ranks number 12 among all the 50 states in total short line miles. Short lines operate in areas no longer served by the large Class I railroads. They serve thousands of individual shippers connected to the national railroad network. "In the last three years we have invested over $3 million in equipment and infrastructure in order to ship and receive by rail," said William Manweiler, a grain merchandiser for the Dunkerton Co-op. "Due to the railroad bridge failure in Waterloo, the detour mileage for our grain to move from Dunkerton, to Cedar Rapids processors alone is approximately 180 additional route miles." He said the short line connection is vital to the cooperatives ability to ship efficiently and cost effectively. ------ On the Net: American Short Line & Regional Railroad Association: http://www.aslrra.org
