COLDWATER, MI (WTVB) – The Coldwater City Council approved a resolution on Monday night for the expenditure of $312,000 in Economic Development Funds that would be used to make improvements to a freight rail line which serves Branch and St. Joseph Counties.
The Branch & St. Joseph Counties Rail Users Association was created over three decades ago in order to buy the former Conrail Railroad line. The City of Coldwater is one of four owners in the public-private partnership that was established in 1988.
Coldwater City Manager Keith Baker says in order to address the deteriorating rail line, the R.U.A. has developed a $1.25 million dollar project to upgrade one bridge and all 10.1 miles of the railroad right of way.
The R.U.A. has been approved for a grant from the Michigan Department of Transportation’s Rail Division for 50 percent of the project cost which comes out to $625,000. Both the City of Coldwater and Indiana Northeastern Railroad will each pick up 25 percent of the project’s cost.
Gale Shultz from Indiana Northeastern said the repairs should last at least a decade.
Baker said failure to maintain the rail line will cause companies that rely on shipping by rail to pay higher costs and have their competitiveness reduced. He added the companies currently shipping by rail account for over 165 direct jobs in Branch County. The R.U.A. rail line also supports the operation of the Little River Railroad.
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