U.S. DOT Awards Grant for Gulf Coast Service

The U.S. Department of Transportation on Friday announced that it will award a $4.36 million grant to the Southern Rail Commission to help restore intercity rail service between New Orleans and Mobile, Alabama.

The service, expected to be two round trips per day, will use tracks formerly served by Amtrak’s Sunset Limited until August 2005 when it was suspended in the wake of damage caused by Hurricane Katrina.

The grant is being made through the federal Restoration and Enhancement program and is intended to help pay operating expenses for the first year of service.

The states of Louisiana and Mississippi have committed $1.4 million toward the service while another $33 million federal grant award to get the service started was awarded through the Consolidated Rail Infrastructure and Safety Improvements program for infrastructure and capital improvements.

However, Alabama officials have yet to agree to provide any funding for the service.

SRC officials said they hope Alabama state officials will support the passenger rail restoration by providing matching funds during the next grant cycle.

“I look forward to working with my fellow commissioners and Alabama state leadership to provide the necessary support to leverage additional federal operating funds to make Gulf Coast Rail a reality,” said Wiley Blankenship, an SRC member from Alabama.

Another stumbling block that must be overcome is reaching an agreement with host railroad CSX on the infrastructure work that is needed before passenger trains can resume using the route.

Likewise, an operating agreement with CSX also needs to be negotiated.

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