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KDOT to have up to $5,000,000 Available for Railroad Rehabilitation

05 Jun KDOT to have up to $5,000,000 Available for Railroad Rehabilitation

Posted at 14:47h in Industry News by
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Effective July 1, 2019, the Kansas Department of Transportation (KDOT) will have up to $5,000,000 available through the State Rail Service Improvement Fund (SRSIF) for railroad rehabilitation, capacity improvement and construction projects. Qualified entities that can make an application include:  any Class II or III (short line) railroad, as defined in 49 C.F.R., part 1201 holding a certificate of public convenience from the Surface Transportation Board; local unit of government (city or county) in coordination with the serving railroad; and shippers in coordination with the serving railroad.  The SRISF program can also be used for rail line and rail equipment acquisition assistance.

The SRSIF is a loan/grant/applicant match program.  Of the total project cost, 40% is in the form of a loan, 30% is a reimbursable grant and the applicant is responsible for a 30% match.  Project categories include: major rail line rehabilitation; capacity enhancement; and economic development.  The loan portion of the funding has a ten-year repayment structure, with an interest rate of 2%.  A benefit-cost analysis will be conducted on all applications.  The resulting benefit-cost ratio must be at least one (1.0) for the project to qualify for potential funding.  Qualifying projects will be ranked based on:  benefit-cost ratio; completeness of application; improved operating efficiencies; increased car loadings; improved service to customers/new customers; job creation (if economic development application); inclusion of required serving railroad Memorandum of Understanding; and geographic distribution.  It is possible that all qualifying projects may not be funded should the project costs of all qualifying projects exceed the amount of funds available.

The SRSIF application form can be accessed from the KDOT webpage https://www.ksdot.org/Assets/wwwksdotorg/bureaus/burRail/Rail/Documents/railapp2020.pdf Please complete and return your application and any supporting documents to john.maddox@ks.gov no later than July 15, 2019.  Guidelines for each of the SRSIF programs are attached.  It is anticipated that project award announcements will be made no later than August 16, 2019.

If you have any questions, please contact Eddie Dawson at eddie.dawson@ks.gov or 785.296.3219.

Major Railroad Rehabilitation Program Guidelines

Railroad Capacity Improvement Program Guidelines

  • The program is for the purpose of facilitating capacity improvements, through new track construction, on railroads in Kansas.
  • Qualified entities include any Class II or Class III railroad, as defined in 49 C.F.R., part 1201, holding a certificate of public convenience from the Surface Transportation Board, port authority established in accordance with Kansas law, and any governmental unit or Kansas shipper in coordination with the serving railroad.
  • Qualified entities will submit a Capacity Improvement project application to the Kansas Department of Transportation, Freight and Rail Unit.
  • The ratio of benefits to costs (benefit-cost analysis) for any project shall be greater than one (1.0).
  • The qualified entity shall demonstrate that it is financially sound and capable of fulfilling all obligations created by the agreement to perform the project.
  • If the qualified entity is a governmental unit or Kansas shipper, a letter of agreement from the serving railroad acknowledging project coordination with the qualified entity is required.  If the serving railroad operates with trackage rights there will also need to be coordination with the rail line owner.
  • The qualified entity shall demonstrate that operations will be made more efficient by raising the minimum operating speeds from FRA class one (up to 10 mph) to FRA class two (10-25 mph), OR from FRA class two (10-25 mph) to FRA class three (25-39 mph).
  • The qualified entity shall demonstrate that the project for which funding is sought will result in road or highway maintenance costs savings for state and local government entities.
  • The qualified entity shall demonstrate the commitment of capital, or the guarantee of a set amount of rail traffic by local shippers, government entities or other interested parties, to the qualified entity for the continued operation of rail service for which funding is sought.
  • Term of the agreement is 10 years from the project Notice of Acceptance date.
  • The qualified entity agrees not to abandon improved line (project) during the 10 years following the project Notice of Acceptance date.
  • The loan portion of the agreement includes a promissory note and lien on the segment of rail line where the project was completed.
  • Construction will meet FRA and AREMA Guidelines.
  • A minimum of five carloads of 2” to 3” granite ballast per mile (a depth approximately 4”) are to be installed on all projects.
  • If a project includes mainline rail installation and/or replacement, a minimum of 112 pound rail is required.
  • An adequate amount of Other Track Material (OTM) including, but not limited to, spikes, bolts, anchors, joint bars, and tie plates are to be installed on all major rehabilitation projects to complement the installation of required new crossties and granite ballast.  Federal Railroad Administration (FRA) minimum track classification standards apply to all projects.
  • If project is to accommodate 286,000 pound railcars crossties must be 18 inches on center.
  • A final track inspection will be conducted by a third party FRA qualified track inspector.

Economic Development Program Guidelines

  • The program is for the purpose of facilitating economic development opportunities through enhanced or new rail service for shippers located on railroads in Kansas.
  • Qualified entities include any Class I, Class II or Class III railroad, as defined in 49 C.F.R., part 1201, holding a certificate of public convenience from the Surface Transportation Board, port authority established in accordance with Kansas law, and any governmental unit or Kansas shipper in coordination with the serving railroad.
  • If the qualified entity is a port authority, governmental unit or Kansas shipper, a letter of agreement from the serving railroad acknowledging project coordination with the qualified entity is required.  If the serving railroad operates with trackage rights there will also need to be coordination with the rail line owner.
  • The ratio of benefits to costs (benefit-cost analysis) for any project shall be greater than one (1.0).
  • The qualified entity shall demonstrate that it is financially sound and capable of fulfilling all obligations created by the agreement to perform the project.
  • The qualified entity shall demonstrate that operations will be made more efficient by raising the minimum operating speeds from FRA class one (up to 10 mph) to FRA class two (10-25 mph), OR from FRA class two (10-25 mph) to FRA class three (25-39 mph).
  • The qualified entity shall demonstrate that the project for which funding is sought will result in road or highway maintenance costs savings for state and local government entities.
  • The qualified entity shall demonstrate the commitment of capital, or the guarantee of a set amount of rail traffic by local shippers, government entities or other interested parties, to the qualified entity, or serving railroad, for the continued operation of rail service for which funding is sought.
  • Term of the agreement is 10 years from the project Notice of Acceptance date.
  • The qualified entity agrees not to abandon improved line (project) during the 10 years following the project Notice of Acceptance date.
  • The loan portion of the agreement includes a promissory note and lien on the segment of rail line where the project was completed.
  • A minimum of 2,640 new crossties per mile will be installed on all projects.
  • A minimum of five carloads of 2” to 3” granite ballast per mile (a depth approximately 4”) are to be installed on all projects.
  • An adequate amount of Other Track Material (OTM) including, but not limited to, spikes, bolts, anchors, joint bars, and tie plates are to be installed on all major rehabilitation projects to complement the installation of required new crossties and granite ballast.  Federal Railroad Administration (FRA) minimum track classification standards apply to all projects.
  • If a project includes mainline rail installation and/or replacement, a minimum of 112 pound rail is required.
  • If a project involves new construction the project will meet FRA and AREMA Guidelines.
  • A final project inspection will be conducted by a third party FRA qualified rail inspector.


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