Eyes on rails: Railroad infrastructure funding moves ahead on 70 projects
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Railroad safety improvements could be on the way after the Biden administration announced Monday that it has awarded more than $1.4B to projects that improve railway safety and boost capacity, with much of the money coming from the 2021 infrastructure law.
"These projects will make American rail safer, more reliable, and more resilient, delivering tangible benefits to dozens of communities where railroads are located, and strengthening supply chains for the entire country," stated Transportation Secretary Pete Buttigieg.
The money is funding 70 different projects across 35 states and Washington, D.C. Railroad safety has become a key concern nationwide this year after a train carrying hazardous chemicals derailed and caught fire in East Palestine, Ohio. Separately, concerns about the age and condition of railcars have been in the public domain. Notably, a package of proposed rail safety reforms has stalled in the Senate where the bill is still awaiting a vote, but the funding for infrastructure funding has already been approved.
The new projects include track upgrades and bridge repairs, in addition to improving the connectivity among railways and making routes less vulnerable to extreme weather. Among the projects is $178.4M to restore passenger service in parts of Alabama, Louisiana and Mississippi along the Gulf of Mexico for the first time since Hurricane Katrina devastated the region in 2005. The grant is anticipated to make it possible to restore passenger service to the Gulf Coast after Amtrak reached an agreement with CSX Corporation (CSX) and Norfolk Southern (NYSE:NSC) railroads last year to clear the way for passenger trains to resume operating on the tracks the freight railroads own.
In another large grant, the Palouse River & Coulee City Railroad in Washington state will get $72.8M to upgrade the track and related infrastructure to allow that rail line to handle modern 286,000-pound railcars. A project in Kentucky will receive $29.5M to make improvements to 280 miles of track and other infrastructure along the Paducah and Louisville Railway, while $23.7M will go to helping upgrade about 42 bridges on 10 different short-line railroads in Tennessee.
"The selected projects will tackle issues facing communities and invest in a 21st century rail network yielding greater benefits â faster and more reliable deliveries of goods, safer communities, cleaner transportation, and more jobs and workforce development opportunities," stated Federal Railroad Administrator Amit Bose.
Related stocks: Norfolk Southern (NSC), Canadian National Railway (CNI), Union Pacific (UNP), CSX Corporation (CSX), Canadian Pacific Kansas City (NYSE:CP), Wabtec (WAB), Berkshire Hathaway (BRK.A), Greenbrier Companies (GBX), Westinghouse Air Brake Technologies (WAB), and Trinity Industries (TRN).

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