Logistics solutions provider OmniTRAX has reported that the Stockton Terminal and Eastern Railroad (STE) has received a grant from the California Transportation Commission to replace and/or restore over 6.4km of track in California’s Stockton.
The grant has been awarded under the Short-Line Railroad Improvement Programme (SLRIP).
SLRIP offers financial support to short-line railroad infrastructure projects for freight mobility improvement, volume thresholds, and for the maintenance of modern rail freight traffic.
The $1.8m grant to the STE will cover 50% of the project expenditure. The balance will be provided by OmniTRAX.
OmniTRAX president Sergio Sabatini said: “The SLRIP grant will greatly enhance our operational efficiency and rail operations in Stockton and preserve and improve transload capacity to meet increased in demand. The project will also significantly reduce costs, emissions and truck travel in the region.
“We appreciate the partnership with the San Joaquin Council of Governments, which is helping us safely connect our communities and maintain a safe, efficient and environmentally friendly supply chain.”
San Joaquin Council of Governments proposed the grant under the Stockton Intermodal Transload and Alternative Fuel project.
OmniTRAX stated that the funds will be used to improve the infrastructure on the STE, enabling it to handle the inflow of alternative diesel fuels, complying with California low carbon fuel standards.
The modernisation project will include the replacement of deteriorating 100-year-old rail, the restoration of old switches for vital connection points, and the renewal of six grade crossing surfaces in the line.
As per the company’s estimation, the restoration work will be completed during the current year.
San Joaquin Council of Governments APCO executive director Andrew T Chesley said: “The Stockton Intermodal Transload and Alternative Fuel project will eliminate 1,302 tons of CO2 emissions and two tons of NOx emissions each year, while dramatically improving the safety and performance of the STE operation.
“Without this project, there would be higher transportation costs for California consumers and more congested corridors on highways and regional arterials throughout San Joaquin County. Our partnership with OmniTRAX and the STE is a great example of what a public-private partnership is designed to accomplish.”
In 2011, STE was acquired by OmniTRAX, the Broe Group’s Transportation affiliate.