United Group Insurance

Des Moines to get $15.6 railroad facility

News

December 17th, 2018 by Ric Hanson

DES MOINES, Iowa (AP) — Des Moines officials say a long-awaited $15.6 million railroad facility is set to be built soon and will aid central Iowa’s economy. The Des Moines Register reports that an $11.2 million federal grant for the project was awarded last week to the Des Moines Area Metropolitan Planning Organization. Local officials say the facility will create a more robust rail system and lower shipping costs.
Also known as a railport, the facility will enable materials to be transferred from semitrailers to trains, which ship products at a lower cost.

A University of Northern Iowa study says the facility could have a $4.8 million annual economic impact and create 50 new jobs. The transload facility will be built on the city’s southeast side next year. A facility operator will be selected in January.