Higher cost estimate for QC passenger rail project causes snag

Quad Cities officials say they’ve been told the cost of upgrading tracks to accommodate a long-awaited passenger rail connection between Moline and Chicago is now between $750 million and $800 million – significantly higher than a previous estimate. The figure, they say, is an estimate provided by Iowa Interstate Railroad to the Illinois Department of […]

Quad Cities officials say they’ve been told the cost of upgrading tracks to accommodate a long-awaited passenger rail connection between Moline and Chicago is now between $750 million and $800 million – significantly higher than a previous estimate. The figure, they say, is an estimate provided by Iowa Interstate Railroad to the Illinois Department of Transportation (DOT) and was discussed during a recent meeting between local advocates for passenger rail service and the DOT director, Omer Osman, the Illinois Secretary of Transportation. Iowa Interstate Railroad owns the approximately 50 miles of track from Wyanet to Moline that must be upgraded to accommodate passenger rail traffic, and negotiations between the state and railroad go back several years.

When Illinois approved $225 million for the project in 2019, local officials thought that, when combined with $177 million in federal funds and a previous $45 million state commitment, the funding would be sufficient to launch the service. But now, there is building frustration over the new cost figure and the inability to begin construction on the long-dormant project. Illinois State Sen. Mike Halpin, D-Rock Island, said he believes the Iowa Interstate Railroad’s estimate is inflated and that the railroad “sees an opportunity to get federal and state funding” for a rail line it has not adequately maintained. Iowa Interstate Railroad did not respond to a March 23 request for comment by the Quad Cities Regional Business Journal. But in a March 9 statement on its website, the railroad said: “We have always been and continue to be committed to working with IDOT to bring our 50 miles of freight railroad in line with the higher safety requirements required for passenger railroad infrastructure.” The statement said the railroad was waiting for a response to its latest submission. Mr. Halpin, state Rep. Gregg Johnson and Moline Mayor Sangeetha Rayapati held a news conference in late February calling for Amtrak and the state DOT to ask the federal Surface Transportation Board to intervene to jumpstart the project. It’s been more than 12 years since the federal government approved its grant for the rail project, and the local officials pointed to a federal law giving the STB authority to compel freight railroads to allow passenger rail traffic as a way to get the project started. Neither Amtrak nor IDOT have committed to going to the STB. “We’ve not made that decision. We’re continuing to work closely with the Illinois Department of Transportation and assist them in their efforts,” Marc Magliari, an Amtrak spokesman, said on March 23. The DOT also did not say whether it would support going to the STB. “Work on preliminary engineering as well as environmental analysis and documentation continues in conjunction with our partners on the project. The department is in ongoing negotiations on construction and maintenance agreements needed to proceed and continues to evaluate all options going forward,” the agency said in a written statement to the QCBJ. The DOT added that it “continues to apply for competitive federal grant programs in the hopes of securing additional federal funding.” In a statement in late February published by WHBF-TV, the DOT said the railroad wanted to “pursue a scope of improvements that would be cost-prohibitive to taxpayers.” Local officials are hoping that going to the STB will bear fruit. They point to a 2021 effort by Amtrak that sought an STB order requiring CSX Transportation and Norfolk Southern Railway to allow Amtrak to operate intercity passenger trains between New Orleans and Mobile, Alabama.  Amtrak had operated passenger service in the area for years, but damage from Hurricane Katrina in 2005 suspended it. For several years after that, Amtrak and other partners in the region sought to re-establish the service, but those efforts were stymied. Amtrak eventually went to the STB, saying it had engaged in “good faith negotiations” for five years, but that the parties were too far apart and the federal agency should require the freight railroads to permit the service. In that case, there also were differences on the cost estimates. According to a Washington Post article last year, one of the railroads estimated the capital costs at more than three times the estimate provided by the Federal Railroad Administration. In asking the STB to intervene, Amtrak cited a federal law that says “whenever a rail carrier does not agree to provide, or allow Amtrak to provide, for the operation of additional trains over a rail line of the carrier, Amtrak may apply to the Board for an order requiring the carrier to provide or allow for the operation of the requested trains.” The freight railroads objected, and eventually, the parties went into negotiations. Last year, Amtrak and the railroads reached a settlement, which STB Chairman Martin Oberman said at the time would lead to the resumption of passenger rail service there. The STB case was being closely watched in the industry. The Post article said that it was a test case playing out as Amtrak was trying to expand its footprint across the country. Even the Biden administration weighed in, with the head of the Federal Railroad Administration urging the STB to use its authority so that passenger rail service could go forward. Here in the Quad Cities, civic leaders say they’re eager to support whatever steps are needed to bring the train to the region. In a statement in February, Dave Herrell, president and CEO of Visit Quad Cities, said the organization backs Halpin, Johnson and Rayapati, and that they hope for an agreement between the DOT and railroad, “but if that is not possible, we support other measures and solutions at the federal, state, and local levels to make passenger rail happen for Quad-Citizens and potential visitors.” Rhonda Ludwig, director of government affairs for the Quad Cities Chamber, said the area needs more modes of travel and the service is an attraction as well as a way to improve the area’s workforce. It’s not clear how long the federal government will maintain its funding for the project. In 2019, the Federal Railroad Administration agreed to extend the grant for another five years to give the parties more opportunity to come to a resolution. And according to Ms. Ludwig, Mr. Osman said in the meeting with Quad Cities officials that the DOT was prepared to seek another extension, if necessary, but they would have to show that progress is being made.

QC Chamber launches rail petition drive

The Quad Cities Chamber of Commerce has launched a petition drive asking Quad Citizens to encourage Illinois Gov. JB Pritzker and lawmakers to request the federal Surface Transportation Board to compel Iowa Interstate Railroad to allow a passenger rail connection between Chicago and the Quad Cities. The chamber says the project will have a $25 million annual impact and bring up to 825 jobs to the region. In an interview last month, Rhonda Ludwig, the chamber’s director of government affairs, said the area needs additional modes of transportation and this project will be an attraction and a boost to the area’s workforce. “We can see this as an attraction piece, and also a possibility for workforce,” she said. The federal government awarded a grant in 2010 for the passenger rail connection, and the state also has committed funding, bringing the total to about $400 million. However, progress has stalled for years.