Amtrak received a grant for improvements to launch service between New Orleans and Mobile, Ala., nearly two decades after Hurricane Katrina destroyed the rail infrastructure.
The Transportation Department awarded Amtrak a $178.4 million grant for track and signal work, crossing upgrades and station improvements that are required to start taking people between New Orleans and Mobile, Ala., as early as next year. The project is among dozens nationwide to receive a government boost Monday from a federal rail program.
On the Gulf Coast, the federal grant will cover most of the improvements the railroads agreed to in the deal, which railroads said would ensure passenger operations don’t harm freight operations. Negotiations to restore the service stalled for years, leading to intervention from a federal board that forced the railroads into mediation last year and resulted in the settlement last fall. The case highlighted hostility between the railroads, as well as the challenges Amtrak faces to expand its footprint. Amtrak operates mostly on tracks owned by other railroads, although the process to secure use can take years — even as federal law requires railroads to prioritize passenger travel.
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