Washington, DC — The Federal Railroad Administration this week announced 70 projects across 35 states selected to receive funding through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, a competitive discretionary grant focused on freight and passenger rail infrastructure.

CRISI is for projects that improve the safety, efficiency, and reliability of freight and intercity passenger rail service. It’s the only federal funding for which short line railroads are directly eligible and it is critical for helping them tackle projects like track rehabilitation, the repair or replacement of aging bridges, improving grade crossings, or eliminating bottlenecks.

The Bipartisan Infrastructure Law allocated an additional $1 billion annually for the program, up from $360 million in FY 2021. It also expanded eligibility to include projects that foster rail innovation, reduce emissions, or improve pedestrian safety along railroad tracks.

“For years, the CRISI Program has helped to maintain and modernize America’s freight rail network, and it’s the only federal grant program prioritizing smaller, short line railroads vital to our nation’s economy and regional supply chains. With unprecedented levels of funding through President Biden’s Bipartisan Infrastructure Law, FRA is advancing even more projects and laying the groundwork for further transformation,” said FRA Administrator Amit Bose in a press release.

Takeaways:

  • These are the first CRISI grants awarded at the new $1.4 billion funding level
  • FY22 funding will support 70 projects in 35 states and Washington, D.C.
  • The FRA received 234 eligible applications with requests totaling $6.1 billion for the grants
  • Over $600 million is allocated to freight-railroad projects
  • Around $100 million will go toward funding environmentally friendly locomotive projects

Project highlights:

  • $178.4 million to restore passenger service in parts of Alabama, Louisiana and Mississippi along the Gulf of Mexico for the first time since Hurricane Katrina struck in 2005
  • $72.8 million to the Palouse River & Coulee City Railroad in Washington state to upgrade track and related infrastructure, which will enable the rail line to handle modern 286,000-pound railcars
  • $29.5 million to make improvements to 280 miles of track and other infrastructure along the Paducah and Louisville Railway in Kentucky
  • $23.7 million for upgrading about 42 bridges on 10 different short-line railroads in Tennessee
  • $59 million in New Jersey to help replace Conrail’s Point-No-Point Bridge, a 124-year-old swing bridge that handles 7,000 freight cars a day

Visit our Rail Grant Hub for news and specific details regarding the funding programs available for rail infrastructure.

At the end of June, the Federal Railroad Administration (FRA) announced 63 projects in 32 states receiving funding in the initial round of the Railroad Crossing Elimination (RCE) grant. Over five years, the grant program will provide some $3.5 billion in funding to projects that eliminate or enhance crossings, with an additional $2.5 billion in authorized funding awaiting congressional approval. The long-term benefits of the program for communities far outweigh the cost: this first round allotted $570 million in funding to projects impacting over 400 railroad crossings.

GoRail recently spoke with the FRA about the initial application round, including lessons learned and advice for successful applications. Here are some key takeaways:

Safety is the goal: Strong applications lean into safety data, for example FRA’s five-year incident data. While improving vehicular, pedestrian and freight fluidity is a directive, safety is the top consideration.

Eligibility: Of the 209 total grant submissions, 37 were ineligible for selection. Reasons for disqualification might include an ineligible submitting entity or a project outside of the defined scope (you can find the fine print on our Rail Grant Hub). Additionally, omitting required attachments or all pieces of an application would lead to ineligibility.

Debrief: The FRA offers debriefs by request to all applicants that had an eligible submission, including specific feedback for strengthening future applications. They also offer webinar resources on various application areas, from creating a project narrative to addressing National Environmental Policy Act (NEPA) and environmental considerations.

Understanding the project: Applicants should apply for what they’re ready to do, understanding the lifecycle of their project. For example, take advantage of the planning grant set-aside for early-stage projects.

Narrative clarity: Strong applications must 1) summarize the project up front in a short paragraph, 2) use a unique project name that describes what you intend to accomplish, and 3) have a cohesive narrative in which the supporting pieces are coherently presented and don’t come across as  cobbled together.

Funding clarity: Applications should make the source of their non-federal match clear, ideally by providing documentation. One good way to document is via a resolution passed by a city council, county commission or other such entity indicating local funding commitment. Also, ensure your non-federal funds are truly non-federal.

Fine print: Some projects did not receive funding due to the state reaching the maximum funding allowed. Applicants should review grants awarded in their state to see if this impacted them.

Railroad buy-in: The strongest applications include coordination with the railroads that own the tracks at the crossing in your community. If you don’t know who to call, reach out to your GoRail State Director, who can put you in touch with the right people at the railroad.

Next NOFO: According to FRA, the announcement for the next RCE application period is expected in September or October – so right around the corner. Stay tuned for more information and visit our Rail Grant Hub for resources on rail grants.

The unprecedented supply chain challenges of 2021 and 2022 have abated and the 24/7 freight rail network is as busy as ever, preparing to meet transportation demands for fall harvest and the holiday shopping season. We’ve taken a look at some of the trends currently driving freight rail.

Demand is Down, But Rail Service is Strong

While freight volumes are generally down for trains and trucks so far in 2023—a function of lower consumer demand and excess inventory—railroad performance today is a bright spot for shippers, with data from the U.S. Surface Transportation Board (STB) showing improvements in key service indicators. The percentage of time railroads were on-time or less than 24 hours behind schedule was 91% at the end of August, an 11% increase over the same week the previous year.

“Rail performance is at all-time high levels, and customers are unloading at levels similar to pre-pandemic,” said Schneider CCO Jim Filter during the company’s August 5 earnings call. Railroads have submitted biweekly service and employment reports to the STB since last Spring as part of an effort to achieve new service targets.

Certain markets also continue to surge despite the overall slowdown, thanks in part to expanded or enhanced rail operations. The South Carolina Port Authority announced at the end of August, for example, that port volumes were up year over year. In particular, SC Ports’ two rail-served inland ports handled 55% more rail moves in July 2023 than the previous year.

New service routes from CN and CPKC led to a 34% rise in intermodal volume out of Mexico year over year in July. Schneider Senior Vice President of Intermodal Michael Baumgardt, in an interview with the Journal of Commerce, said he doesn’t anticipate changes to rail service when demand returns.

“The type of service that we’ve been experiencing provides opportunity to go after freight that’s been moving on trucks because it is truly a truck-like service,” said Baumgardt.

Headcounts Rise as Hiring Continues

The railroad workforce has also steadily grown over the last 18 months. As of August, employment at the largest, Class I railroads is up nearly 10% over the start of 2022. Five of six employment categories increased from May to June of this year. In particular, the train and engine staff category, which includes the largest share of employees, logged an 8.6% year over year increase to 52,000 employees.

Workforce capacity is crucial to meeting harvest needs, and railroads are well-positioned this fall. At the 2023 National Grain Car Council Meeting, held in Kansas City in mid-August, CN reported that its Train & Engine (T&E) workforce was at pre-COVID levels and that its retention rate for T&E employees in the U.S. this year is at nearly 96% as hiring continues.

“I’d say the grain companies are cautiously optimistic about rail service levels for the fall and winter. We have seen good rail service in recent months, which hopefully carries into harvest,” said Wade Sobkowich, executive director for the Western Grain Elevator Association, to FreightWaves.

Twelve rail labor unions voted to ratify new contracts in December 2022, solidifying rail workers as among the most highly paid in the U.S. Since then, railroads have reached over 40 agreements extending paid sick leave to employees. The unions representing 78% of all rail craft employees now have paid sick days in addition to the short- and long-term paid sickness benefits that had already been in effect across the industry.

As the world’s top grain producers, U.S. farmers rely on the more than 600 railroads across the U.S. to move their bounty. In fact, about 40% of grain exports move by rail. This feat requires both long- and short-term planning, including the more than $250 billion spent by North American Class I railroads on their networks over the last decade.

Fortunately, railroads are poised and ready with the workforce, network capacity, and reliable infrastructure that is required to move fall harvest.