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U.S.Department of Transportation
Office of Public Affairs
Washington, D.C.
www.dot.gov/affairs/briefing.htm
News |
Federal Railroad Administrator Announces $233 Million
Loan To Dakota, Minnesota & Eastern Railroad
Contact: Warren Flatau
Telephone: (202) 493-6024
Wednesday, January 07, 2004 ()
Regional railroad customers in Iowa, Minnesota and South Dakota will enjoy better access to international markets and expanded economic benefits thanks to a $233 million federal loan announced today by the Federal Railroad Administration. The Railroad Rehabilitation and Improvement Financing (RRIF) direct loan was provided to Dakota, Minnesota & Eastern Railroad (DM&E) and its subsidiary Iowa, Chicago & Eastern Railroad (IC&E), both headquartered in Sioux Falls, SD.
U.S. Secretary of Transportation Norman Y. Mineta stressed the vital role of regional railroads in the American economy, “President Bush is committed to growing the economy and the RRIF program provides targeted innovative finance opportunities that yield significant economic benefits.”
The DM&E and IC&E serve a large area in eight North Central states and are a major component of the freight transportation systems of Iowa, Minnesota and South Dakota. The DM&E is an 1,103-mile regional railroad that currently serves 130 companies. The IC&E is a wholly owned subsidiary of the DM&E that serves approximately 750 companies on a 1,403-mile system.
The $233,601,000 RRIF loan will be used to refinance existing debt for rail line acquisition and track rehabilitation: $194,212,457; improve rail lines between Wolsey, SD and Tracy, MN: $24,369,900; improve rail bridges between Wolsey, SD and Springfield, MN: $5,855,000; and rehabilitate tracks from Owatonna, MN to Mason City, IA and from Lawler, IA to Calmar, IA: $9,163,643.
Companies dependent on the railroads generate an estimated $6.5 to $7.0 billion in annual sales. Planned improvements to DM&E/IC&E infrastructure will also help assure safe rail operations, and ensure that significant amounts of freight traffic continue to be carried by rail transportation.
The RRIF Program provides 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 on FRA’s website at www.fra.dot.gov.
