RAILROAD ASSISTANCE PROGRAM
STATE RAIL SERVICE IMPROVEMENT FUND
The State Rail Service Improvement Fund (SRSIF) is a component of the state Comprehensive Transportation Program (House Bill 2071) that was signed in law on May 10, 1999. In addition to highway transportation needs, this program also provides funding to meet the needs of Kansas shortline railroads through a lower than the obtainable prime interest rate for a loan. This financial loan program is to assist in the rehabilitation of the railroad tracks and its components, bridges, yards, shops, buildings, and sidings for the shortlines in Kansas.
This program will provide three million dollars per year for eight years beginning in fiscal year 2000. Loans are paid back with a monthly payment, which includes the principle and interest for a ten-year period after the railroad project work is completed. It is anticipated that the State Rail Service Improvement Fund will become self-sufficient at the end of the eight-year period. This loan program is designed to provide an ongoing opportunity for railroads to improve their systems, and enhance service to shippers. This will result in enhanced market competitiveness, attraction of new industry, and expansion of existing business, all of which contributes to local economies for the state.
In the fiscal year 2000 six projects were completed using this SRSIF program. There were two projects in fiscal year 2001, six projects in fiscal year 2002, nine projects in fiscal year 2003, and seven projects in fiscal year 2004.
For a state application call the Kansas Department of Transportation (KDOT), Rail Affairs Unit (785) 296-0343.