March 3, 2025 - TRA Austin -

Lawmakers in Austin heard from members of the Texas Short Line and Regional Railroad Association (TSLRRA) Monday over issues important to the smaller railroads and their customers.

At the top of the list is a $25 million request to legislators from the Texas Department of Transportation, the first time TXDOT has asked for short line funding.

Senators, State Representatives and their staffers heard about the Short Line story of railroaders from all corners of the state, along with members of Texas Rail Advocates.

Legislators and their staff met with short line railroaders in their offices and in the Legislative Center where ice cream was dispensed to show how the short lines carry numerous products used by consumers in everyday life.

The TXDOT "Exceptional Item", or out-of-budget request, would help the 50-some short line railroads in Texas enhance infrastruture that supports their daily operation to hundreds of businesses and industries across the state. These smaller operators carry commodities like lumber, petrochemicals, agriculture products, aggregate and other carloads that keep trucks from beating down state highways.

In modes like rail, maritime, aviation and other non-highway departments, TxDOT does not have a dedicated funding stream and must ask the legislature every session for non-budgeted projects.

At present, these first-mile, last-mile railroads must self fund all their projects or rely on federal grants through the Consolidated Rail Infrastructure and Safety Improvements program by themselves. Many of the smaller branch line railroads do not have the expertise or staff to be able to participate. 

Ross Lane from short line operator Genesee & Wyoming and Joey Evans from TNW Corporation, a Dallas-based short operator with four railroads in Texas, explained to legislative staff how these smaller railroads are good for the Texas economy, bringing jobs to rural areas and are tax paying entities supporting local schools, police and fire departments. 

The $25 million, if approved by the legislature and signed off by Governor Abbott, would make short line railroad projects available for matching federal rail funds, as well as participation from the short lines themselves and other local sources.

The Texas short line railroads play a vital function in serving local industries that ship by rail, handing off their cars to Class 1 railroads like Union Pacific and BNSF Railway to carry their commerce long distance. 

Following the Staggers Act in the 1980''s that deregulated railroads, many Class 1's sold off low-to-no profit short branch lines to local entrepreneurs. Those local railroaders slowly built up branch line services that were, in many cases, sold to them in derelit condition with aging rails and bridges in need of repair. 

There is a backlog of infrastructure work needed to continue to serve present businesses and to attract future industries to ship by rail rather than put more trucks on the state's highways.

Photo credit: Brooks Elliott / CedarAI