The Iowa Department of Transportation approved more than $950,000 in funding to support a rail-expansion project by Pattison Sand Co., according to the Telegraph Herald. The company will receive a $700,482 loan and $252,000 grant through the DOT’s Railroad Revolving Loan and Grant Program.
The funds will help the company create a spur track at its Clayton, Iowa, plant, allowing it to load railcars without disrupting the main rail line.
Laura Hutzell, of the Iowa DOT, said the funding supports the second phase of the five-phase rail project. This phase includes the creation of 3,300 ft. of track and 78 additional railcar spots.
Hutzell said the grant funding is contingent on Pattison’s creation of 21 jobs that pay at least $21.02 per hour.
The project must be completed within the next three years, and the jobs must be maintained for three years after the completion date.
“It will eliminate the rail bottleneck, which frequently occurred, allowing rail traffic to flow more smoothly and safely through the area,” said company spokesperson Ellie Wynthein. “It will also enable us to move more of our product via rail, taking pressure off local roads.”