Rep. Jerry Stern (R-Blair) authored legislation to further develop and refine Pennsylvania’ railroad infrastructure; the bill passed the Pennsylvania House of Representatives by a unanimous vote earlier this week.
“Improving our state’s railroad infrastructure system is vitally important to the businesses and consumers who rely on this method of transportation,” said Stern.
In Stern’s 80th Legislative District, the Nittany/Bald Eagle and Everett railroads stand to benefit from the legislation.
One of those railroads, the Nittany & Bald Eagle Railroad was recently named the 2004 Short Line Railroad of the year by Railway Age magazine. The award was presented at the annual meeting of the American Short Line and Regional Railroad Association in St. Louis on April 23.
Ahead of the potential new infrastructure funding through the state, the railroad was already being heralded for its turnaround efforts.
According to Nittany & Bald Eagle Railroad’s parent company (North Shore Railroad), after losing four core customers that provided nearly 8,000 carloads or 50 percent of its business, Nittany/Bald Eagle aggressively marketed its services and expanded operations. Priority was given to the increase of aggregate business.
Last year, NBER was presented with ASLRRA’s marketing award for this business growth. The short line also was selected as one of the top “100 Best Businesses in Central Pennsylvania” by PA Business Central Newspaper.
According to information on the North Shore Railroad web site, efforts to improve track infrastructure has already taken a foothold at the NBER. It made improvements last year, by working with the SEDA-COG JRA and the state. The railroad was able to complete installation of 12 more miles of new continuous welded rail. The five-year total stands at 36 miles. Thousands of new crossites were also installed. Parent North Shore Railroad brought in a full-time track surfacing gang to resurface the entire main line. The railroad now operates as a 40 mph Class III on its 55-mile, 286K compliant main line.
Stern’s bill should help to further future infrastructure efforts for Nittany/Bald Eagle and other qualifying railroads in the state.
The bill is designed to provide low interest loans to second-and third-class railroads and tier customers in addition to establishing a State Railroad Infrastructure Bank Fund to pay for the program.
In a press release from his Harrisburg office, Stern explained the rate at which loans taken from the fund must be repaid is set equal to the prime rate of interest less a half-percentage point.
The release notes second-class railroads are defined as carriers having an annual operating revenue of less than $250 million, but in excess of $20 million. A third-class railroad has annual revenues of $20 million or less.
“The purpose of the Railroad Infrastructure Bank is to enable businesses that are looking to expand and increase operations through the use of short line railroads to accomplish their goals,” said Stern. “Another advantage to the bank is to enable business to use these funds in an efficient and timely manner, instead of going through the drawn-out process of a grant application, since time is of the essence to many businesses when they are considering an expansion.”
The Pennsylvania Department of Transportation is expected to be in charge of administering the program if it is approved by the Senate and signed into law by the governor.
