New DOT Grants Boost Freight Rail Network

Parts of the U.S. freight rail network will get improved track infrastructure and signal systems from nearly $1 billion in the latest round of federal grants to expand the intercity passenger rail system.

The Department of Transportation said $2.5 billion in new grant awards, mostly out of the DOT's fiscal 2010 budget, will go into 54 construction and planning projects.

In all, 32 states submitted 132 applications for projects totaling $8.8 billion. DOT Secretary Ray LaHood said "states understand that high-speed rail represents a unique opportunity to create jobs, revitalize our manufacturing base, spur economic development and provide people with an environmentally friendly transportation option."

By The Numbers: U.S. Rail Cargo.

Florida and California received the largest awards for their planned bullet train corridors. Those grants totaled $1.5 billion, but DOT Undersecretary for Policy Roy Kienitz said most of the other $1 billion goes into tracks shared with major freight railroads.

Kienitz said that money helps freight operations as well as passenger service. "In order to run good quality, high speed rail on freight tracks you need upgraded signaling systems, more sidings for passing, sometimes double or triple tracking - basic infrastructure, communications, stuff like that," he said. "Those are all things that benefit the railroad" as well as improve passenger train speeds.

He said the negotiations over grant implementing contracts with freight railroads include discussion of "the physical design of that stuff. And they want to make sure that it's helping them in addition to helping us."

The DOT's new freight-related grants include $150 million for Michigan to try to buy and upgrade 135 miles of low-speed track owned by Norfolk Southern Railway, between Kalamazoo and Dearborn in the longer Chicago-Detroit corridor.

Another $230 million grant would go for freight-owned infrastructure upgrades so Amtrak can start a new passenger service from Chicago to Iowa City, Iowa. Work on 131 miles of track would allow train speeds to reach 79 mph.