Economic development, Freight Rail Infrastructure Improvement Program

Freight Rail Infrastructure Improvement Program (FRIIP) loans are awarded to private industries, railroads, and local governments to improve rail infrastructure and to construct new rail-served facilities. The overall goal is to boost economic development and jobs, and increase the use of rail service.

FRIIP provides funding for the following types of railroad projects.

Connect an industry to the national railroad system - Examples include construction of industrial spur tracks to various industries, and a pipeline from an ethanol plant to a nearby railhead.
Make improvements to enhance transportation efficiency, safety and intermodal freight movement - Recent projects include grain and fertilizer storage/handling facilities, warehousing facilities to provide rail access and improved loading and delivery products, and transloading facilities.
Accomplish line rehabilitation - FRIIP funds have been used to fund rehabilitation projects on privately owned rail lines and rail facilities, and projects that are needed to provide increased efficiencies and benefits that are beyond the basic level of service.
Complete rail-related projects in a timeframe that would not otherwise be possible

FRIIP's role in economic development

The program helps fund rail-related projects for existing businesses wanting to expand and new start-up businesses. The projects improve transportation efficiency and cost savings, much of which is realized by rail users and their customers. Projects are subjected to a benefit/cost analysis, and must create positive benefits. Other benefits include highway maintenance cost savings as a result of diversion of traffic to rail transportation.

Eligibility and availability of funds

Typically, these are low interest or no-interest loans that can be made to units of government, railroads or directly to businesses, and must be repaid within a 10-year period. Since the program began in 1993, WisDOT has provided 70 FRIIP loans totaling $70 million. Previously, funding for FRIIP came from a combination of segregated transportation fund revenues and loan repayments. Currently, FRIIP funding is entirely provided through the repayment of loans. The funding level is $8.5 million for the biennium.

Case studies

Columbus, WI - Duffy Grain, Inc.'s new grain storage bin and loading facility (pictured top right) - A $603,780 loan for side tracks enables business to ship by rail providing freight savings to area farmers. The transportation improvement will help to preserve highway capacity by reducing the need to ship grain by truck.
Orfordville, WI - Farm City Elevator, Inc. received a $470,000 loan to construct a 322,00-bushel grain bin. The facility will allow the company to make better use of its existing rail siding.
Johnson Creek, WI - Didion Milling, Inc. received a $1.6 million loan to construct a 5,200-foot rail spur that will handle 108 railcars, six switches, dry bulk, feed storage, liquid storage and load out facilities. The plant will process locally grown soybeans for oil and meal.

For more information, including an application, see WisDOT's FRIIP Web page, or contact Frank Huntington, Bureau of Railroads and Harbors, (608) 267-3710

Didion Milling in Johnson Creek

Apply for funds or get more information about the FRIIP

Related information:

Freight Rail Preservation Program (FRPP)

Railroad crossing improvements