The South Shore commuter railroad has rounded up the last money needed to purchase 14 double-decker rail cars.
The Indiana Department of Transportation will kick in $3 million for the $48 million purchase, Gov. Mitch Daniels announced Tuesday.
"Mass transit will play a large role in Indiana's future, and the South Shore's recent growth shows its potential," Daniels said.
The governor has been under pressure from House Democrats to increase spending on mass transit. Democrats say the governor has been too focused on building more roads and has not given adequate consideration to alternatives.
The 14 cars will help the South Shore meet its goal of being able to handle 20,000 daily riders on a regular basis, according to Gerald Hanas, South Shore general manager. The railroad currently carries about 14,000 riders on weekdays.
"This is the final piece of the financial puzzle, so it's extremely good news for us," Hanas said of the INDOT grant. "We're pleased the governor and Department of Transportation recognize commuter rail is an important part of the mix here in Northwest Indiana."
The Northwest Indiana Regional Development Authority is kicking in $17.5 million for the rail cars. The Northern Indiana Commuter Transportation District, the South Shore's operator, will borrow up to $33 million to pay for the cars.
Some of the funds will go to create a debt reserve of $6 million.
"The South Shore railroad is an important engine for economic development in Northwest Indiana," said Tim Sanders, RDA executive director. "The new rail cars are much needed to help relieve overcrowding on the South Shore."
South Shore ridership increased to 4.2 million last year, which was its highest ridership in 50 years.
The 14 new cars should be delivered in late 2008 and in service by early 2009.
The double-decker cars are being purchased from Sumitomo Corp. of America and Nippon Sharyo Ltd., of Japan. The car bodies will be manufactured in Japan and final assembly will be done at Super Steel's plant in Milwaukee.
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