Governor Doyle Announces Freight Rail Loans Totaling $9 Million

Governor Jim Doyle recently announced six state loans totaling $8,957,516
that will be used to construct freight rail-related facilities and upgrade
rail infrastructure as part of overall efforts to support job growth and
Wisconsin’s agricultural economy.  

“These loans help businesses and communities grow and become stronger and
more stable, and in so doing, they spur economic growth in the state,”
Governor Doyle said.  “The improvements that these loans are funding will
help retain jobs in many communities, which in turn will keep millions of
dollars in local economies.”

A revolving loan program, FRIIP awards are provided to private industries,
railroads and local governments to improve rail infrastructure,
highway/grade crossings, and to construct new rail-served facilities – with
the overall goal to boost economic development and jobs.  As FRIIP loans are
repaid, the dollars are used to help fund new projects.  Most of the work on
the recently approved FRIIP loan projects will begin in the fall of 2007.  

Since the FRIIP program was approved by the legislature in 1993, WisDOT has
provided 85 loans through the program, totaling over $90 million.  Twelve
freight railroads operate in Wisconsin on a system of over 3,600 route miles
of track and handle some 2.5 million rail cars each year.

FRIIP award recipients include:

River Valley Energy                
(920) 887-1756
C/o United Cooperative
Beaver Dam, WI  53916
A $3,000,000 loan is approved to construct rail yard facilities, and grain
ethanol loading and receiving facilities at the new ethanol production
facility being developed in Arena, Wisconsin.  The River Valley Energy
ethanol facility is located on a rail line served by the Wisconsin and
Southern Railroad Company, on right of way managed by the Wisconsin River
Rail Transit Commission.  Shipping by rail is necessary to the viability of
the ethanol facility.  The facility will increase the market for Wisconsin
corn and enhance the farming economy.

AMSOIL, Inc.                    
(715) 399-6606
925 Tower Avenue
Superior, WI  54880
A $2,154,000 loan will fund construction of a new mainline rail switch, a
spur track switch and two parallel spur tracks, and a rail loadout facility
serving the AMSOIL synthetic oil production plant in Superior.  Burlington
Northern Santa Fe Railroad serves the AMSOIL facility.  This rail expansion
will enable AMSOIL to expand to meet its growing markets and enhance the
local economy.

Badger Grain
(262) 882-4222
P.O. Box 600
Darien, WI  53114
With a $256,119 loan, Badger Grain will construct a new elevator leg for
loading grain at its Darien facility. The new leg will double the speed at
which grain can be loaded onto 25 car trains.  This additional speed is
needed to handle the expected increased volumes of grain that will move
through the facility.  The project will increase transportation efficiency
and enhance the Wisconsin agricultural economy.  Badger is served by
Wisconsin & Southern Railroad on right of way managed by the Wisconsin River
Rail Transit Commission.

Millard Grain                        
(262) 742-2266
W6406 County Road A
Elkhorn, WI  53121
A $1,034,510 loan will allow Millard Grain to construct a new 2,000 foot
siding at Bardwell Junction that will free up existing sidetrack space near
their facility in Avalon that will allow them to load 25 car trains.  The
funding will also be used to construct a new 250,000-bushel grain storage
bin and conveyors, and rehabilitate the spur tracks and rail loadout
facility at their Avalon location.  This facility is served by the Wisconsin
and Southern Railroad and Wisconsin River Rail Transit Commission-owned
railroad right of way.  The project will increase efficiency of the loading
process, reduce labor costs and allow Millard Grain to more reliably meet
loading time constraints.

Glacier State Distribution Services, Inc.            
(262) 657-0711
7517 60th Street
Kenosha, WI  53144
A $662,887 loan will allow Glacier State Distribution to construct a grain
loadout facility and a concrete loading dock, to renovate a potash loadout,
and reconstruct spur tracks at its transloading facility in Kenosha. This
project will improve transportation efficiency and allow Glacier State to
expand its current operations and improve service to its customers.  Both
Canadian Pacific and Union Pacific railroads serve this facility.  

Olsen Brothers Enterprises                    
(920) 233-2261
2550 Clairville Road
Oshkosh, WI 54904
A $1,850,000 loan to Olsen Brothers Enterprises will help fund a $4.2
million grain facility being constructed in Boscobel.  The project will
include 1.5 million bushels of grain storage and a rail load-out facility.
This facility will increase competition for grain in southwestern Wisconsin
and improve transportation efficiency thereby improving the agricultural
economy of that portion of the state.  The facility is served by the
Wisconsin and Southern Railroad on a rail line owned by the Wisconsin River
Rail Transit Commission and the State of Wisconsin.