Governor Doyle announces freight rail loans totaling $9 million

October 29, 2007

Governor Jim Doyle recently announced six state loans totaling $8,957,516 that will be used to construct freight rail-related facilities and upgrade rail infrastructure as part of overall efforts to support job growth and Wisconsin's agricultural economy.

"These loans help businesses and communities grow and become stronger and more stable, and in so doing, they spur economic growth in the state," Governor Doyle said. "The improvements that these loans are funding will help retain jobs in many communities, which in turn will keep millions of dollars in local economies."

A revolving loan program, FRIIP awards are provided to private industries, railroads and local governments to improve rail infrastructure, highway/grade crossings, and to construct new rail-served facilities - with the overall goal to boost economic development and jobs. As FRIIP loans are repaid, the dollars are used to help fund new projects. Most of the work on the recently approved FRIIP loan projects will begin in the fall of 2007.

Since the FRIIP program was approved by the legislature in 1993, WisDOT has provided 85 loans through the program, totaling over $90 million. Twelve freight railroads operate in Wisconsin on a system of over 3,600 route miles of track and handle some 2.5 million rail cars each year.

FRIIP award recipients include:

River Valley Energy
920) 887-1756
C/o United Cooperative
Beaver Dam, WI 53916
A $3,000,000 loan is approved to construct rail yard facilities, and grain ethanol loading and receiving facilities at the new ethanol production facility being developed in Arena, Wisconsin. The River Valley Energy ethanol facility is located on a rail line served by the Wisconsin and Southern Railroad Company, on right of way managed by the Wisconsin River Rail Transit Commission. Shipping by rail is necessary to the viability of the ethanol facility. The facility will increase the market for Wisconsin corn and enhance the farming economy.

AMSOIL, Inc.
(715) 399-6606
925 Tower Avenue
Superior, WI 54880
A $2,154,000 loan will fund construction of a new mainline rail switch, a spur track switch and two parallel spur tracks, and a rail loadout facility serving the AMSOIL synthetic oil production plant in Superior. Burlington Northern Santa Fe Railroad serves the AMSOIL facility. This rail expansion will enable AMSOIL to expand to meet its growing markets and enhance the local economy.


Badger Grain
(262) 882-4222
P.O. Box 600
Darien, WI 53114
With a $256,119 loan, Badger Grain will construct a new elevator leg for loading grain at its Darien facility. The new leg will double the speed at which grain can be loaded onto 25 car trains. This additional speed is needed to handle the expected increased volumes of grain that will move through the facility. The project will increase transportation efficiency and enhance the Wisconsin agricultural economy. Badger is served by Wisconsin & Southern Railroad on right of way managed by the Wisconsin River Rail Transit Commission.

Millard Grain
(262) 742-2266
W6406 County Road A
Elkhorn, WI 53121
A $1,034,510 loan will allow Millard Grain to construct a new 2,000 foot siding at Bardwell Junction that will free up existing sidetrack space near their facility in Avalon that will allow them to load 25 car trains. The funding will also be used to construct a new 250,000-bushel grain storage bin and conveyors, and rehabilitate the spur tracks and rail loadout facility at their Avalon location. This facility is served by the Wisconsin and Southern Railroad and Wisconsin River Rail Transit Commission-owned railroad right of way. The project will increase efficiency of the loading process, reduce labor costs and allow Millard Grain to more reliably meet loading time constraints.

Glacier State Distribution Services, Inc.
(262) 657-0711
7517 60th Street
Kenosha, WI 53144
A $662,887 loan will allow Glacier State Distribution to construct a grain loadout facility and a concrete loading dock, to renovate a potash loadout, and reconstruct spur tracks at its transloading facility in Kenosha. This project will improve transportation efficiency and allow Glacier State to expand its current operations and improve service to its customers. Both Canadian Pacific and Union Pacific railroads serve this facility.

Olsen Brothers Enterprises
(920) 233-2261
2550 Clairville Road
Oshkosh, WI 54904
A $1,850,000 loan to Olsen Brothers Enterprises will help fund a $4.2 million grain facility being constructed in Boscobel. The project will include 1.5 million bushels of grain storage and a rail load-out facility. This facility will increase competition for grain in southwestern Wisconsin and improve transportation efficiency thereby improving the agricultural economy of that portion of the state. The facility is served by the Wisconsin and Southern Railroad on a rail line owned by the Wisconsin River Rail Transit Commission and the State of Wisconsin.

For more information, contact:
Frank Huntington, WisDOT Bureau of Transit, Local Roads, Rails and Harbors
(608) 267-3710, frank.huntington@dot.state.wi.us