How are freight rail improvements funded?
• Generally freight rail improvements are funded from revenues generated by the operating railroad in the course of conducting its business operations. However, there are circumstances in which public benefits may be realized from making a freight rail improvement that is not within the normal capacity of the railroads – therefore a form of public-private partnership may be appropriate. An example of this in Maine is the Industrial Rail Access Program (IRAP), which since its inception in 1997 has provided about $5M in matching funds to develop sidings, switches, and other rail infrastructure needed to enhance freight rail service to Maine businesses.
