Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.




railPrime
View Current Digital Issue »


RAIL EMPLOYMENT & NOTICES



Rail News Home Rail Industry Trends

1/26/2009



Rail News: Rail Industry Trends

Seneca Group to serve FRA as RRIF program financial advisor


advertisement

The Federal Railroad Administration (FRA) has contracted Seneca Group L.L.C. to serve as a financial advisor for the Railroad Rehabilitation and Improvement Financing (RRIF) program.

Under the five-year contract, Seneca will be responsible for providing financial assessment services to assist the FRA in determining the creditworthiness of RRIF loan applicants. The company will analyze the financial viability of a project; the financial condition of the borrower and other relevant parties; the past performance and likely future ability of an applicant to meet all repayment obligations; and project risks, including an applicant's revenue and expense forecasts, and project costs.

The RRIF program authorizes the FRA to provide direct loans and loan guarantees up to $35 billion, with $7 billion set aside for regionals and short lines. Loans can be used to acquire, improve or rehabilitate intermodal or rail equipment or facilities, including track, components of track, bridges, yards, buildings and shops; refinance outstanding debt incurred for those purposes; and develop or establish new intermodal or rail facilities.
 
Direct loans can fund up to 100 percent of a railroad project, with repayment periods up to 35 years and interest rates equal to the government’s cost of borrowing. Eligible applicants include railroads, state and local governments, government-sponsored authorities and corporations, joint ventures that include at least one railroad, and limited option freight shippers who intend to construct a new rail connection.

Since the program began in 2002, the FRA has issued 22 RRIF loans totaling more than $750 million.


Contact Progressive Railroading editorial staff.

More News from 1/26/2009