Governor Warner Signs Legislation Creating Rail Enhancement Fund

Governor Warner Signs Legislation Creating Rail Enhancement Fund

— First dedicated source of rail funds in Virginia history —

Governor Mark R. Warner today signed legislation creating the Rail Enhancement Fund, the first dedicated revenue stream for investment in rail infrastructure in Virginia's history. The Fund, which will be created on July 1, 2005, will support improvements for inter-city passenger, commuter, and freight rail throughout Virginia.

"People have been talking for years about the critical need for us to re-invest in rail. Today, we are putting money behind the promise with a predictable, stable funding source for improvements to our rail infrastructure," said Governor Warner. "This legislation is an important step in helping to take trucks off the road, and it will provide more transportation options for Virginians as we work toward a more balanced transportation network."

First proposed as part of Governor Warner's Transportation Partnership Act of 2005 and patroned by Delegate Joe May, the Rail Enhancement Fund passed the 2005 General Assembly with broad bipartisan support. The Rail Enhancement Fund will provide $23 million in annual, dedicated funding for passenger or freight rail improvements in Virginia. Use of these funds will require a minimum matching contribution of at least 30 percent, which must come from non-state sources such as railroads, local governments, or regional authorities.

Virginia's rail infrastructure is almost exclusively privately owned. "Seeking new partnerships with the private sector has been an important part of Governor Warner's strategy to address Virginia's transportation future in a more comprehensive fashion," said Secretary of Transportation Pierce Homer. "The Rail Enhancement Fund will be leveraged with private and local resources to deliver a greater return on investment for Virginians."

Projects will be selected by the Commonwealth Transportation Board based upon the recommendations of the Rail Advisory Board, which comes into existence on July 1, 2005, and will consist of nine members appointed by the Governor to four-year terms.

Potential uses of the Rail Enhancement Fund could include:

* Additional track and capacity to take trucks off important interstate corridors including I-95, I-64, and I-81.
* Track and infrastructure improvements to extend Virginia Railway Express service in the I-95 and I-66 corridors.
* Improved intermodal facilities (similar to the Virginia Inland Port) to allow greater freight movements by rail.
* Advancement of passenger rail initiatives such as the proposed Trans-Dominion Express and higher speed rail in the southeastern United States.
* Track and infrastructure improvements to support growing freight movements through the Port of Virginia in Hampton
Roads.

"Virginia is a national leader with the establishment of this innovative fund," said Karen J. Rae, Director of the Department of Rail and Public Transportation. "We also need sustained federal support for rail to achieve a viable national network for freight and passenger traffic."

The bill signing took place at Norfolk International Terminals (NIT) in Norfolk, the largest marine terminal operated by the Virginia Port Authority. Part of the Port of Hampton Roads, NIT and other terminals are expected to see double the current freight traffic in just 10 years. The Port of Hampton Roads transports the highest percentage of freight by rail of all ports on the East Coast.
About rail operations in Virginia

There are 3,400 miles of rail track in Virginia, all of which are privately owned by freight railroads. 71% of freight rail traffic hauled in Virginia is coal. The majority of freight in Virginia is through-traffic, bound for destinations outside the state.

There are currently two passenger railroads in Virginia, VRE and Amtrak, which operate on approximately 616 miles of track. In 2002, these railroads carried 3.8 million passengers.

The Virginia Department of Rail and Public Transportation (DRPT) facilitates the movement of people and goods throughout Virginia. Through rail, public transportation and commuter services, DRPT focuses on congestion relief, economic development and mobility. DRPT's mission is to plan, establish, maintain, improve and promote public transportation services, passenger and freight rail transportation systems, and transportation demand management strategies that provide efficient mobility and transportation choices in the Commonwealth. For more information, visit www.drpt.virginia.gov.

http://www.governor.virginia.gov/Press_Policy/Releases/2005/Jun05/0617.htm