Wednesday, February 22, 2012

RRIF loan will finance 30 KCSR locomotives

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Kansas City Southern Railway Company (KCSR) has taken out a $54.6 million Federal Railroad Administration-administered Railroad Rehabilitation and Improvement Financing (RRIF) Program loan to purchase 30 new General Electric ES44AC diesel-electric locomotives.

These Evolution Series locomotives, to be built in GE’s Erie, Pa., plant, “will help KCSR meet increasing economic demand, and are more energy-efficient and produce significantly less carbon emissions than the locomotives they are replacing,” FRA said.

“In addition to energy and environmental benefits, these new locomotives will allow KCSR to create a safer operating environment through improved train handling, more crashworthy cabs, and state-of-the-art train controls, which will promote crew alertness,” FRA said. The locomotives will be deployed throughout KCSR’s system to accommodate the increased demand for shipments of coal, chemicals, grain, sand, stone, gravel, plastics, metals, and automobiles.


“The RRIF program is a model of how we can leverage federal dollars to stimulate private investment and grow the economy,” said Federal Railroad Administrator Joseph C. Szabo. “The program provides steady, affordable financing for major rail construction and expansion projects.”

The FRA’s RRIF program provides direct loans for eligible borrowers to acquire, improve, or rehabilitate rail and rail-related intermodal equipment and facilities. There is currently up to an aggregate of $35 billion available in the RRIF program for these types of projects.