News & Reviews News Wire Northern California short lines receive $31.4 federal loan

Northern California short lines receive $31.4 federal loan

By Trains Staff | January 30, 2024

Sierra Northern, Mendocino Railway land infrastructure improvement funding

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Train with two locomotives on low wooden bridge
A Sierra Northern train on the company’s West Sacramento operation. Sierra Northeran and the Mendocino Railway have received a $31.4 million Railroad Rehabilitation and Improvement Financing loan. Sierra Northern

WASHINGTON — The U.S. Department of Transportation has extended a $31.4 million Railroad Rehabilitation and Improvement Financing loan to the Sierra Northern Railway and Mendocino Railway for infrastructure improvement work, DOT’s Build America Bureau announced on Monday. Funding will finance almost 100% of work including expansion of 6.7 miles of Sierra Northern’s Oakdale Branch for car and locomotive storage; rehabilitation of Mendocino Railway’s Noyo Canyon Tunnel No. 1, and work on 27 bridges and 40 miles of track.

“Sierra’s and Mendocino’s RRIF loan will help modernize the rail line, which will greatly enhance existing freight service and make the railroad more attractive to new freight customers.” Build America Bureau Executive Director Morteza Farajian, Ph.D, said in a press release. “We are pleased that a shortline railroad has been able to take advantage of our low-interest financing and deliver improvements that might not have been possible otherwise.”

The work should be completed in 2027.

“The RRIF loan helps enhance our freight and passenger services in Mendocino County by providing additional jobs, improving safety, lowering emissions, and advancing our regional transportation options,” said Mendocino Railway President Robert Jason Pinoli.

5 thoughts on “Northern California short lines receive $31.4 federal loan

  1. I’ve been waiting for any definite news on Tunnel #1 since 2016. Now we finally have it.

    Interesting to note that what Mendocino Railway’s plans have been set in stone since 2017. Back in February 2019, they applied for a BUILD Grant to do exactly what they plan to do now. They didn’t get it, but it was apparently in the top-third of those sent, and they were encouraged to apply again. Had they received that grant, the tunnel would have been reopened by 2021, and over 30,000 chromated copper arsenate ties installed by Kyle Railways would have been replaced by this year (of course, if they had gotten the grant, COVID would most certainly have disrupted this timetable).

    Now I’m hearing the work on the Skunk will be completed by 2027 (hopefully the tunnel will be on a quicker timetable than the track and bridges).

  2. Nice to hear that the Mendocino rail line is getting rehabbed I doubt there will be any freight traffic on the line since the old NWP line south of Willits is out of service.

  3. Financing 6.7 miles to be rebuilt for car and locomotive storage? That seems like a waste time and of taxpayer money, AGAIN! How many cars do they have to store to pay pack a 15 million dollar loan, assuming the 31 million is divided equally. Give that money to a more demanding or worthwhile project. Mendocino Railway is at least using the money to rebuild the rail line to create more traffic

  4. I’m happy to hear that work will finally start on restoring the Skunk Train. I can’t imagine how any operation could survive for 10 years without use of its main line.

    1. I’m glad to see this too, but given the condition of the forests in coastal Mendocino County and the evolution of the economy in Fort Bragg, I can’t help but wonder what kind of freight business prospects they waved in front of the DOT…

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