Friday, May 29, 2015

A&M refinances locomotives with RRIF loan

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Arkansas & Missouri SD70AC3 locomotives Arkansas & Missouri SD70AC3 locomotives A&M

In 2013, the Arkansas & Missouri Railroad (A&M) substantially improved its locomotive fleet by acquiring three EMD SD70AC3 road units. The Federal Railroad Administration (FRA) on May 29, 2015 issued a $6.8 million Railroad Rehabilitation and Improvement Financing (RRIF) loan to the A&M for refinancing the locomotives.

Refinancing the purchase of these locomotives “will improve the A&M’s operations, enhance safety, and reduce carbon emissionsm” FRA said, pointing to the GROW AMERICA Act, “which will strengthen the RRIF program by reducing the cost of obtaining a loan and making the program more accessible.”

The RRIF program provides direct federal loans and loan guarantees to finance the acquisition and development of railroad and intermodal facilities and equipment, including positive train control (PTC). The FRA said it “gives priority to projects that provide public benefits, including benefits to public safety, the environment, and economic development. As part of the President’s Build America Investment Initiative, the U.S. Department of Transportation has established the Build America Transportation Investment Center (BATIC) to encourage the use of innovative financing tools such as RRIF.

 FRA has significantly decreased the time it takes to process RRIF loans and we look forward to closing additional loans later this year.”

FRA also issued an $11 million RRIF loan to A&M in 2003 to purchase and rehabilitate track. 

FRA says it has issued 35 RRIF loans totaling nearly $2.7 billion to date.

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