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    1. Rail
    2. Infrastructure

    Metra begins exploring financing to supplement capital budget to replace aging bridges

    Jan. 23, 2025
    The agency owns 446 bridges, of which 80 percent of them are at least more than 75 years old and have surpassed their functional lifespan and are increasingly expensive to repair and maintain.
    Related To: Metra
    Metra
    The Milwaukee West Line Fox River bridge,
    The Milwaukee West Line Fox River bridge,

    Metra is beginning to explore financing to supplement its capital budget to replace aging bridges across the Chicago region. The agency notes Metra trains cross 926 bridges every weekday, with 446 owned by the agency and the rest owned by freight railroads. Of the 446 bridges owned by Metra, the agency says 50 percent are more than 100 years old and another 30 percent are more than 75 years old, which is the typical service life of a steel bridge. According to the agency, the older bridges are currently safe but have surpassed their functional lifespan and are increasingly expensive to repair and maintain. 

    “There is no way around it – these bridges must be replaced or rehabilitated, and they must be replaced soon, before our operations are impacted,” said Metra Executive Director and CEO Jim Derwinski. “Because this need is so urgent, we believe we must explore all our options, including financing, to address it.” 

    Metra receives funding from local, state and federal sources for capital needs such as bridges, but its needs are far greater than available funding. During the development of its current five-year capital plan (2025-2029), Metra identified $5.4 billion in needs against $2.1 billion in available funding. 

    The agency says it has the authority to issue revenue bonds but is instead considering borrowing an estimated $230 million from the federal Railroad Rehabilitation & Improvement Financing (RRIF) program, which offers lower interest rates, a longer repayment period, no pre-payment penalty and more flexible amortization—meaning interest does not accrue until proceeds are drawn, and repayment is deferrable for five years after substantial project completion. Repayment, estimated at about $15 million to $20 million a year, would come from Metra’s normal operating fund sources, primarily fares and regional sales taxes. 

    According to Metra, the money would be used to complete funding for a major project to replace 11 bridges on the UP North Line between Fullerton and Addison on the North Side of Chicago. It would also be used to rebuild the bridge over Grand Avenue on the Milwaukee District lines in Chicago; rebuild the bridge over the North Branch of the Chicago River on the Milwaukee District North (MD-N) Line in Northbrook; expand the bridge over North Branch of the Chicago River on the MD-N in Rondout; rehabilitate the bridge over Hickory Creek on the Rock Island Line between Mokena and New Lenox; and rebuild the bridge over 96th Ave. on the Rock Island Line in Mokena. Metra notes those bridges were selected because the design process is or soon will be completed. 

    The agency expects the process for applying for and closing a RRIF loan to take about a year. The first steps, expected to take about three months, are to submit and finalize a letter of interest with the U.S. Department of Transportation’s Build America Bureau (BAB) and initiate an underwriting review. Metra staff would then return to update the Board of Directors Finance Committee before the next step of engaging BAB advisors.