US freight projects get smallest bite of TIGER grant funding

U.S. freight projects this year received their lowest share ever from the Transportation Investment Generating Economic Recovery, or TIGER, federal grant program, according to a Washington D.C.-based group representing freight interests.

U.S. Transportation Secretary Anthony Foxx announced on July 29 roughly $138 million in federal grant money awarded to freight-related projects nationwide - just a fraction of the total $500 million that was available.

The projects that were awarded grant dollars include both urban and rural freight rail improvements on the East and West Coasts, upgrades to port terminals in the Pacific Northwest, as well as highway and rail projects benefitting both freight and passenger transportation. But, the news left some in the freight industry feeling “shortchanged.”

The $138 million awarded this year constitutes only 27 percent of the total $500 million that was available in this eighth round of the Department of Transportation’s TIGER grant program. That’s according to the Coalition for America’s Gateways and Trade Corridors.

“Here’s the takeaway: At $138 million, the amount of funding going toward freight-related projects is only 27 percent of the awards. In prior years, the range has gone from as much as 53 percent to 33 percent, but never dropped as low as 27 percent,” CAGTC President Leslie Blakey told JOC.com Friday.

Moreover, Blakey added, that $138 million goes toward only 12 projects, when in previous years the number of projects benefitting from federal dollars ranged from 17 to 25.

Last year, projects aimed at improving freight movement received a little more than two-fifths of the available TIGER grant funding, according to the coalition. In that same round of funding, five ports received roughly $44.3 million in TIGER grants, around 9 percent of total funding.

“In number and amount of funding freight has fallen really low. We’re not very happy that freight is getting shortchanged so much in this round of TIGER,” Blakey said.

It’s hard to say why so few projects benefitted from so few dollars this year. DOT does not release the list of applicants for TIGER grants.

There is, however, one hypothesis.

“One thing that was different this year and may have had some effect is there was the FASTLANE grant awards and that is a new grant program,” said Blakey.

Earlier this month, DOT announced the first-ever recipients of money through its FASTLANE grant program, a new program targeting transportation infrastructure established under the most recent highway bill, the FAST Actpassed in late 2015. The Georgia Ports Authority and the Massachusetts Ports Authority were both recipients of part of the nearly $800 million sum doled out just weeks ago. However, like TIGER, it wasn’t just freight-related projects that were allowed to apply and win grant money through the FASTLANE program, Blakey pointed out.

“DOT encouraged freight projects to apply both for FASTLANE and for TIGER,” she said, adding that she hoped the federal agency did not shortchange freight-related projects simply because those projects could now apply for aid under two different programs.

Projects awarded federal dollars this round of TIGER grants include:

The Portland Marine Terminal Freight and Jobs Access Project, which was awarded $7.3 million toward its total $19.6 million cost. That projects includes the construction of a grade separation over what the DOT called a “busy” marine terminal rail lead as well as the construction of road, intersection and multimodal improvements to increase access and connectivity between the port and the highway system in Washington state.

“The project will relieve shipment delays caused by the current at-grade rail crossing,” the DOT said in its officialfact sheet released Friday. “The project will also produce travel time savings for trains accessing the port.”

A rural freight rail project on the North and South Carolina border that was awarded $9.8 million toward its $17.6 million cost. The project will help rehabilitate rail lines between Mullins and Conway South Carolina, and Chadbourn, North Carolina, operated by the R.J. Corman Railroad Company, one of CSX Transportation’s shortline partners.

“This rail infrastructure project will facilitate more efficient freight movement in and out of this rural region,” DOT said in a statement. “The improvements will allow trains to travel at speeds of up to 25 miles per hour - a significant improvement from the current 5-10 mph limits - thereby increasing efficiency of train service and reducing costs to shippers.”

The project, billed as the Moving the Carolinas Forward initiative, will include freight rail rehabilitation for lines between Mullins and Chadbourn, as well as a connection between Conway and Chadbourn. According to DOT, the work will replace more than 8 miles of existing rail, install more than 50,000 ties, surface roughly 75 miles of track and upgrade more than two dozen at-grade rail crossings.

The Port of Everett South Terminal Modernization Project, which was awarded $10 million toward its $55.5 million cost. The project will help modernize the South Terminal at Washington state’s third-largest container terminal.

According to DOT, work includes strengthening more than 500 feet of dock, creating a modern berth capable of handling roll-on, roll-off and intermodal cargo and upgrading high voltage power systems. The money will also go toward constructing new rail sidings to increase on-site rail car storage at the facility.

“This project is necessary for the port to meet the heavier containers being used to transport the airplane parts for the new Boeing 777X program and other breakbulk export cargoes that utilize port facilities,” the port said in a statement. “The wharf strengthening is needed for the intermodal transfer of goods from ship to shore, and the rail infrastructure is needed to stage the cargo for transport to the inland states without creating congestion on theBNSF mainline to the Midwest.”

The Little Rock Port Authority Growth Initiative, which was awarded $6.2 million toward its total cost of $10.3 million. According to DOT, the  grant constructs improvements to the Little Rock slackwater harbor area, including a new dock with direct dock-to-rail capability and adds rail storage at the operation on the Arkansas River.

“The project increases port capacity, which facilitates the removal of an estimated 50,000 annual large cargo trucks from national highways. It also enhances safety by reducing truck traffic on highways,” the DOT said.

The grant money issued this year also goes toward other projects, including highway projects in Colorado and Minnesota, rail bridge improvements in Mississippi, as well as port modernization efforts at the Port of Albany and in Guam and the U.S. Virgin Islands.

A non-freight related project that should have some positive impact on the BNSF intermodal network was also awarded money. The Redlands Passenger Rail Project was awarded some $8.7 million towards its total cost of $262 million. The money will help fund construction of rail lines connecting cities in San Bernardino County to the existing San Bernardino Transit Center and upgrades to the existing rail corridor that has reached the end of its useful life. The grant will also help replace existing railroad tracks and track bed, reconstruct and rehabilitate existing bridge structures, construct new station platforms and train layover facility, as well as improve at-grade roadway crossings, pedestrian access improvements and acquisition of rail vehicles.

And although that work has no direct effect on freight rail, it will have a less obvious and indirect impact on BNSF’s network in the area, DOT added.

“In addition to passenger benefits, the rail corridor enhancements will allow for significantly increased speeds for BNSF freight trains currently using the rail line,” according to DOT.

Despite the inherent benefits to freight-related infrastructure all of the TIGER projects will have, industry insiders like CAGTC’s Blakey were still left feeling as though the industry had been stiffed - and with little explanation as to why.

“We call on DOT to explain why they’re undervaluing freight projects in this,” Blakey told JOC.com. “Because, honestly, we don’t know.”

Source: Journal of Commerce