Governor announces $8 million for freight rail projects

It includes almost $2 million in loans for two projects in Northeast Wisconsin
One of the freight rail loans will allow Quincy Recycled Paper to transport recycled fiber by...
One of the freight rail loans will allow Quincy Recycled Paper to transport recycled fiber by rail from a Green Bay warehouse to the new Green Bay Packaging mill and other Wisconsin mills
Published: Sep. 26, 2022 at 3:34 PM CDT
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MADISON, Wis. (WBAY) - Gov. Tony Evers announced almost $2 million in loans for freight rail improvement projects in Northeast Wisconsin, and a total of $8 million in grants and loans for rail projects across Wisconsin.

The state is loaning $1.5 million to improve efficiency at the Rio Creek Feed Mill in Luxemburg in Kewaunee County. Fox Valley & Lake Superior Railroad deliver canola meal, corn gluten, dried distiller grains and soybean meal to the mill. The loan, through the Freight Railroad Infrastructure Improvement Program (FRIIP) will be used to improve conveyance equipment and above-track storage capacity to improve the efficiency of rail car loading and unloading.

McDonald Companies in Green Bay is receiving a $492,791 loan through FRIIP to rebuild 521 feet of spur track that serves a warehouse. That will allow Quincy Recycled Paper, which is McDonald Companies’ tenant, to transport recycled fiber to Green Bay Packaging’s new paper mill as well as other mills in the state.

Gov. Evers wrote in a statement, “Wisconsin’s economy relies on a robust network of roads, ports, and railways, and investing in our state’s transportation infrastructure, including our freight rail network, is a positive investment for the future of industry, our economy, and our entire state.”

The governor also announced a $3 million loan to help build a new agronomy and feed terminal in Stanley in Chippewa County. By 2025, it’s forecast the Canadian National Railway will deliver 650 carloads of potash, gypsum, canola meal, soda, and other feed and commodities to the facility.

DeLong Company at the Port of Milwaukee will get a $1.5 million loan to install conveyance equipment at the new rail grain terminal, receiving dried distiller grains from Iowa and Minnesota.

Wisconsin and Southern Railroad Company is receiving a $1.4 million grant and a $179,725 loan to replace an old timber trestle near Boscobel in Grant County with a steel and concrete structure that accommodates a trail for pedestrians and bicycle traffic and also lengthens a railway spur.

The Freight Railroad Infrastructure Improvement Program is a revolving loan program for improving rail infrastructure and building new facilities served by rail. As loans are repaid, the funds are put towards other projects. FRIIP has awarded $148 million in loans since it was created in 1992.