WASHINGTON – The Federal Railroad Administration announced recently a $54.6 million loan to Kansas City Southern Railway Co. (KCSR) for the purchase of 30 new General Electric ES44AC locomotives. The diesel-electric locomotives, to be built in Erie, PA, are more energy-efficient and produce significantly less carbon emissions than the locomotives they are replacing.
The locomotives, which will be funded by the FRA’s Rehabilitation and Improvement Financing Program, will be deployed throughout KCSR’s system to accommodate increased demand for shipments of coal, chemicals, grain, sand, stone, gravel, plastics, metals, and automobiles.
RRIF 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.