WASHINGTON — The Federal Railroad Administration (FRA) announced that the Nashville and Eastern Railroad Corporation (NERC) is receiving a $4.6 million loan under the Railroad Rehabilitation and Improvement Financing (RRIF) program.
The NERC will use the loan to purchase fifty new triple hopper railcars and two rehabilitated locomotives.
The locomotives and 25 of the 50 rail cars will be used primarily to serve a major new customer, Lojac Minerals. The NERC will be transporting sand from Lojac’s mine in Monterey, Tenn., to its manufacturing facilities in Lebanon and Hermitage, Tenn., where the sand will be used to produce concrete, concrete blocks, and other building materials.
The increased rail service will lower transportation costs for Lojac, which previously hauled sand by truck, ensuring the manufacturing plants remain economically competitive. The second set of 25 hopper cars will be used for other anticipated traffic increases.
