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Labor and management urge Congress to include capital grants for
freight and passenger railroad projects in $100 Billion Economic Stimulus (10/29/08)

RAILCET cites “ready-to-go” rail projects that would immediately help grow U.S. economy

WASHINGTON, DC (October 29, 2008) – In today’s Congressional testimony The Railroad Cooperation and Education Trust (RAILCET), with support from labor and management, joined The National Railroad Construction and Maintenance Association (NRC) in requesting that the Economic Stimulus Package contain provisions to fund capital grants for freight and passenger railroad projects that are in the public’s interest. The groups’ main focus is to make funds available for rail transit projects, commuter rail projects and Class II and Class III freight railroad projects.

“Our nation’s infrastructure goes hand-in-hand with our economic viability and vitality,” said RAILCET chairman, John Penn. “These rail projects would create a sustainable, safe infrastructure which would help this country grow economically, resulting in immediate, real job creation. Ultimately, this provides an important, direct benefit to our laborers, operators and rail contractors.”

Section 22301 of Public Law 110-140 permits capital grants in the public interest to Class II and III railroads that rehabilitate, preserve, and improve railroad track infrastructure and facilitate the greater use of railroad transportation. If granted, this money would benefit the railroads, construction companies that perform the work, supply companies providing materials such as steel, ties, ballast, and heavy equipment. Moreover, it would provide an essential benefit to the thousands of small shippers who would then use the improved track infrastructure. Without it, rail network access to mostly rural communities would be cut.

The NRC and RAILCET recommend that the Stimulus include $100 million in general funds over two years, to fill the authorization from the Energy Act of 2008-09. To meet the objectives of a true stimulus, the groups’ suggest that only projects be made eligible which can be initiated within 180 days and substantially completed within the 2009 calendar year.

The Railroad Cooperation and Education Trust is an organization of railroad labor and management that promotes cooperation in all disciplines of railroad contracting. This includes formulas to “win the bid” for railroad maintenance and construction projects in a highly competitive environment and the promotion of railroad infrastructure legislation in Congress and the state legislatures that furthers the railroad construction business climate. RAILCET members understand the importance of job well-done, completed safely, on time and on budget.

For more information please visit our website, www.railcet.net