KDOT sets aside $3M for short-line rail

Wednesday, March 18, 2009

The Kansas Department of Transportation has set aside $3 million in federal stimulus funds for short-line railroad projects.

Funds from the American Recovery and Reinvestment Act of 2009 allow states to devote a portion of their highway funding to railroad needs. KDOT, which is slated to receive $378 million from the recently enacted federal stimulus package, is currently soliciting applications from short-line railroads and port authorities for projects to help address economic development opportunities throughout Kansas, a KDOT statement said.

Short-line rail accounts for about 41 percent -- or 1,930 miles -- of the nearly 4,780 miles of rail across the state. Short-line railroads transport about 14.5 million tons of freight in Kansas each year, the statement said.

"Short-line railroads are important to our state's economy," KDOT Secretary Deb Miller said. "They move a variety of goods between our local markets and the national railroad system -- connecting many communities to national and global markets. Since the intent of the ARRA is to promote economic development, it seems only fitting that we support our short-line rail system."

The short-line funds are intended for construction projects that provide new or improved service to shippers and improved operating efficiency for the railroads, such as siding or spur extension improvements. Applications will be evaluated on a variety of criteria including, but not limited to, economic impact and job creation/retention, project purpose, project cost, and completeness of application. Priority will be given to projects that show clear economic development opportunities, the KDOT statement said.

According to KDOT, all applications must be submitted by 5 p.m. March 23. KDOT plans to announce selected projects on March 30.

The selected projects must be let to construction by the end of the year and completed within three years. KDOT expects to receive more project requests than it can fund. If a project is selected and the applicant is unable to meet the deadlines and requirements, KDOT will recall the funds and use the money for other projects in the state. Otherwise, the money would have to be returned to the federal government for distribution to other states, the KDOT statement said.

More information about short-line railroad funding is available on the KDOT Web site, www.ksdot.org/EconomicStimulus.asp.