Monday, March 14, 2005 (Washington, DC) The Riverport Railroad, LLC, a short-line operator located in Northwestern Illinois, is receiving a more than $5.5 million loan from the Federal Railroad Administration (FRA) to rehabilitate rail related infrastructure and facilities that were once part of the Savanna Army Ordnance Depot.

Funding from the Railroad Rehabilitation and Improvement Financing (RRIF) program will be used to improve and consolidate about six miles of existing track to make operations more efficient and install new, heavier track to handle the industry standard 286,000-pound railcars. In addition, yard storage capacity will be increased by 33 percent (from 3,000 to 4,000 railcars) and real estate will be acquired to support its planned business expansion.

Currently, the Riverport Railroad, LLC, primarily provides switching operations for the Burlington Northern Santa Fe Railroad and stores, cleans and maintains empty railcars. The RRIF loan will help the railroad expand its business to include a bulk commodity yard where trainloads of product will be stored until sold; a transload facility where product is stored in on-site warehouses or transferred directly between train and truck; and a marshalling yard where trains up to 110-units long can be stored. In addition, a portion of the funding will be used to remove and relocate about 9.6 miles of track from land owned by the U.S. Fish and Wildlife Service.

FRA Acting Administrator Robert D. Jamison said, “Short line railroads are an integral component of the nation’s rail transportation network, connecting smaller communities and shippers to markets at home and abroad. The funding provided today will aid in the expansion of the local economy and ensure reliable rail access for area shippers.”

The Riverport Railroad, LLC, was created in 1995 to lease and subsequently purchase 68 miles of rail and related assets following closure of the former Savanna Army Ordnance Depot. Its operations commenced in 1999. The railroad currently has eight employees and is owned by Flagship Capital LLC. The railroad serves approximately 30 customers.