The US Federal Railroad Administration (FRA) has issued a $967.1m loan to the New York City’s Metropolitan Transportation Authority (MTA) to finance critical safety upgrades.
The loan will facilitate the deployment of positive train control (PTC) on both the Metro-North Railroad (Metro North) and the Long Island Rail Road (LIRR).
Go deeper with GlobalData
PTC is a technology, which is designed to remove the potential for human error that can lead to train-involved accidents.
This is claimed to be the largest loan to date under the Railroad Rehabilitation & Improvement Financing (RRIF) programme, which provides direct federal loans and loan guarantees to finance the acquisition and development of railroad and intermodal facilities and equipment.
MTA will issue a bond to FRA, which will be repaid over 22½ years at a fixed interest rate.
US Transportation Secretary Anthony Foxx said: "This loan will help prevent derailments and ensure the safety of the riding public.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"Continuous investment in rail technology and infrastructure will enable us to meet the growing demand for rail while saving lives."
The FRA said that it gives priority to projects that provide public benefits, including benefits to public safety, the environment and economic development.
The loan will help increase safety for LIRR and Metro-North customers, employees and residents of the communities served by the railroads.
MTA will integrate PTC with existing safety controls that the LIRR and Metro-North currently have in place.
FRA Acting Administrator Sarah Feinberg said: "PTC is the backbone of the next generation of rail safety and we are committed to its full deployment and implementation.
"There are 166 million rides taken on LIRR and Metro-North annually. Installing PTC will further ensure the safety of employees and passengers alike."
