Governor Walker announces freight rail awards totaling over $25 million

March 11, 2011

Governor Scott Walker today announced 11 state awards totaling $25,515,123 that will be used to construct freight rail-related facilities, and preserve and upgrade rail infrastructure as part of overall efforts to support job growth and Wisconsin’s economy.

“Freight rail plays a critical role in Wisconsin’s transportation system, moving some 150 million tons of commodities every year,” Governor Walker said. “These grants and loans will help retain jobs and spur economic growth in many rural communities while strengthening our economy

The Wisconsin Department of Transportation (WisDOT) is administering six loan awards totaling $4,922,452 through the Freight Railroad Infrastructure Improvement Program (FRIIP). 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.

Five grant awards totaling $20,592,671 are being distributed through the state’s Freight Railroad Preservation Program (FRPP). FRPP grants cover up to 80 percent of the cost of projects designed to preserve rail service or rehabilitate fixed facilities on publicly owned rail lines. Award recipients provide the 20 percent local share.

Since the FRIIP program was approved by the state legislature in 1993, WisDOT has provided 99 loans through the program totaling over $100 million. Another $98 million in FRPP grants has been awarded to local governments and railroads since 1993. 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.

Summaries of the loans and grants are attached.

2011 Freight railroad preservation program grant awards
(Some include FRIIP loans)

East Wisconsin Counties Railroad Consortium - (920) 386-3592
127 East Oak Street, Juneau, WI 53039-1329

Milwaukee Property Purchase:  WisDOT will be acquiring 3.61 miles of railroad track and corridor through the city of Milwaukee in Milwaukee County from the Wisconsin & Southern Railroad (WSOR). The line will be acquired to preserve it for railroad use. WisDOT plans to provide 100 percent of the funding for the land, and 80 percent of the value of the track and improvements for a total WisDOT contribution of $2,200,000. The acquisition will include the corridor land and all of the rail, ties, roadbed, bridges and other improvements on the corridor. This line is a central hub to the publicly owned system in southeastern Wisconsin and is a connecting link for several rail lines. The Milwaukee track has been owned by private railroads and used by operators of the public system as part of the connection between the rail line segment between Saukville and Kiel with other segments of the publicly owned system. WSOR was able to acquire the corridor at a time when WisDOT did not have the funds to complete the acquisition. WisDOT now has funds available and plans to complete this important acquisition.

Wisconsin & Southern Railroad Co. - (414) 438-8220
5300 N. 33rd Street, Milwaukee, WI 53209

Bridge Rehabilitation and Replacement: The Wisconsin & Southern Railroad (WSOR) will receive a total of $3,647,149 in grant funds to cover 80 percent of costs for emergency rehabilitation and reconstruction work on system bridges in Rock, Dane and Green County. A WisDOT loan of $455,894 will also be provided to cover 10 percent of the project costs. The remaining 10 percent, $455,894, will be provided by the WSOR. Total project cost will be $4,558,937. These projects have been identified by engineering studies as emergency repairs that are vital to keep state-owned railroad corridors operational. The bridges are located in Lone Rock, Woodman, Zenda, Janesville, Madison, Brodhead, Hanover and Juda, Wisconsin.

Escanaba & Lake Superior Railroad Co. - (906)786-0693
One Larkin Plaza, P.O. Box 217, Wells, MI 49894

Wausaukee to Niagara Track Rehabilitation: The Escanaba & Lake Superior Railroad (E&LS) will receive $4,423,413 in grant funds to cover 80 percent of the costs of track rehabilitation between Wausaukee and Niagara, Wisconsin in Marinette County. WisDOT will provide another $552,926 in the form of a loan to cover one-half of the 20 percent local match. The remaining 10 percent, or $552,926, will be provided by the E&LS.  Total project cost will be $5,529,265.  Repairs will be made to ties, ballast, surfacing, turnout and roadway crossing elements for over 31 miles of corridor. Maintaining and upgrading this infrastructure is key to rail freight and transportation in northeastern Wisconsin for the future. The E&LS’ presence at Pembine and its interchange with Canadian National is critical for maintaining rail service to the east to customers in this portion of northeastern Wisconsin.

Wisconsin & Southern Railroad Co. - (414) 438-8220
5300 N. 33rd Street, Milwaukee, WI 53209

Madison to Milton Phase II Track Rehabilitation: The Wisconsin & Southern Railroad (WSOR) will receive an additional $8,867,515 in grant funds to pay for 80 percent of the total $11,084,393 remaining costs of Phase II rehabilitation work on the Madison to Milton, Wisconsin rail line in Dane and Rock County. WisDOT will also provide WSOR a loan of $1,108,439 to cover 10 percent of the cost of the work. The remaining 10 percent of $1,108,439 will be provided by WSOR and the Wisconsin River Rail Transit Commission (WRRTC). Work to be completed in Phase II will include completion of grade crossing surface renewal, bridge work and installation of new welded rail over the 31 mile corridor. WisDOT also provided grants of $4,000,000 in 2009 and $3,561,500 in 2008 to cover 80 percent of initial phases of the project. The 20 percent local match of $1,712,300 for that work was also provided from a combination of WisDOT loans and fund provided by WSOR and the Wisconsin River Rail Transit Commission (WRRTC). Total cost of the three-year project is $19,645,893. Of that, $15,716,715 is WisDOT grant funds, $1,608,439 is WisDOT loans to WSOR, and $2,320,739 was provided by WSOR and the WRRTC.

Wisconsin & Southern Railroad Co. - (414) 438-8220
5300 N. 33rd Street, Milwaukee, WI 53209

Waukesha Track Rehabilitation: The Wisconsin & Southern Railroad (WSOR) will receive a grant of $1,454,594 to cover 80 percent of the $1,818,243 total cost of rehabilitate 1.8 miles of rail line in the Waukesha area. The remaining 20 percent of $363,649 will be provided by the WSOR.  The project includes the renewal or replacement of ties, rail, ballast, crossings and switches, and bridge rehabilitation.

2011 Freight railroad infrastructure improvement program (FRIIP) loan awards

Zenda Grain LLC - (715) 205-9946
W3725 Builders Ct., P.O. Box 32, Zenda, WI  53195

A $1,746,949 loan is approved to construct extensions to the existing rail spur tracks, a one million bushel capacity grain storage bin and conveying equipment at the company’s Zenda, Wisconsin property. The Zenda Grain LLC facility is located on a rail line served by the Wisconsin and Southern Railroad Company on right of way owned by the State of Wisconsin. Zenda Grain is taking advantage of its location near Chicago grain markets and will be reducing the number of grain trucks traveling on Wisconsin highways. The facility will increase the market for Wisconsin wheat, corn and soy beans and enhance the state’s farming economy.

Millard Grain, LLC - (262) 742-2266
2939 Old Hwy. 140 South, Avalon, WI 53505

A $868,970 loan is approved to construct a rail scale, 466,000 bushel capacity grain storage bin, related conveying equipment and rotary grain samplers at the company’s Avalon, Wisconsin facility. This facility is located on the state-owned railroad right of way. Millard is increasing its ability to sell corn to ethanol producers in Wisconsin with this project. Millard received a FRIIP loan previously and has considerably increased rail shipment since then.

*Duffy Grain - (920) 623-4160
6107 Twin Lane Rd., Marshall, WI  53559

A $189,274 loan is approved to construct a concrete grain rail dump pit and related conveying equipment for unloading incoming railcars carrying a variety of products from grains to bio-fuel components.  Duffy Grain has previously received FRIIP loan funds for this location on the State-owned railroad right of way and has been steadily increasing shipments by rail.

*Since this news release was issued, Duffy Grain has indicated that they have cancelled the project described here, and they have declined this loan.

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