Kansas short-line railroads receive $47M in federal funding

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Two Kansas short-line railroad companies recently received a combined $47 million in Consolidated Rail Infrastructure and Safety Improvements (CRISI) program grants.

The South Kansas & Oklahoma Railroad (SKOL), the Neodesha Subdivision of a subsidiary of Watco, received $31.2 million for approximately 37 miles of track-related improvements along the South Kansas & Oklahoma Railroad track.

The project will allow SKOL to increase load-carrying capacity to meet customer demand. The company as well as the Kansas Department of Transportation will provide a 20 percent match.

Watco will receive $15.7 million to convert eight locomotives into fully battery-powered units. Once operational, the units to be deployed across Watco’s short-line railroads in varying operational and geographic environments.

The project will reduce emissions and maintenance expenses and improve system and service performance. The company is providing a 20 percent match.

“Through public/private partnerships, we are stepping up to take advantage of once-in-a-generation infrastructure funding made available through BIL – resulting in big wins for Kansas,” Gov. Laura Kelly said. “Congratulations to Watco for identifying and advancing short-line railroad projects that will improve operational efficiencies for the benefit of our farmers and rural communities.”

The Federal Railroad Administration awarded $1.4 billion in grants to 70 projects in 35 states and Washington, D.C.