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Rail News: Financials

CTA receives $255 million TIFIA loan to buy new rail cars

U.S. Transportation Secretary Anthony Foxx this week announced the closing of a $255 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan to the Chicago Transit Authority (CTA) to buy 490 new rail cars.

A rendering of a 7000-series rail car
Source: Chicago Transit Authority
The new units will replace nearly one third of CTA's aging fleet, U.S. Department of Transportation (USDOT) officials said in a press release. In addition to improving reliability and passenger comfort, the new rail cars are expected to help reduce energy and maintenance costs.

Last month, the CTA awarded a $1.3 billion contract to CSR Sifang America JV for 846 of the new 7000-series cars.

The department previously provided CTA with $199 million in TIFIA loans for a track upgrade project and a bus and rail terminal rehabilitation. In addition, the USDOT has closed on a $120 TIFIA loan that will enable the agency to upgrade Blue Line tracks and stations between Chicago's downtown Loop and O'Hare International Airport.

Under the TIFIA program, the USDOT provides secured direct loans, lines of credit and loan guarantees to public and private applicants for eligible surface transportation projects, including those related to transit and passenger rail, certain freight and port facilities, and highways.

Contact Progressive Railroading editorial staff.

More News from 4/1/2016