KEEPING ON TRACK

American railroads are poised for a comeback, revved up ironically by the newly enacted Transportation Equity Act for the 21st Century (TEA-21). Light rail systems may be the latest rage across the United States, and a big winner of TEA-21 funding, but major metropolitan regions are also counting on new federal help to upgrade heavy commuter and high-speed rail lines. Freight lines are also coming back to life as private owners seek new economic value and a competitive edge against the trucking industry. Of more than 200 new start projects listed in TEA-21, 10% are commuter rail. Attention to high-speed rail is also picking up; TEA-21 includes $121.5 million over 6 years for designated high-speed corridors and another $1 billion for maglev research. Reauthorized funding includes $10 million a year for corridor planning and $25 million for technology. Also included in the new legislation is the Transportation Finance and Infrastructure Act (TIFIA), which creates a $10-billion credit enhancement loan program for new projects valued at $100 million and up. High-speed rail projects are the perfect candidates for TIFIA loans because of the long-term payment program.