$54m portion of Bond Act money available for projects.

New York State Department of Transportation Commissioner Thomas J. Madison, Jr. announced the availability of the first two-year portion of a five-year, $135 million Rail and Port Capital Program provided through the $2.9 billion Rebuild and Renew New York Transportation Bond Act passed in November of 2005.

Approximately $54 million in statewide rail and port capital grants will be available over the next two fiscal years to help improve rail service in New York's major trade and passenger travel corridors and improve access and cargo handling capabilities at upstate port facilities.

"We encourage all eligible rail and port operators and programs to take advantage of this funding to maintain a safe, efficient, balanced and environmentally sound multi-modal transportation system," Madison said.

The funds will be allotted to previously identified port, passenger rail and upstate and downstate freight railroad projects. The program will also fund projects that establish or improve intermodal transportation facilities, reduce local highway congestion and benefit the local economy.

Eligible participants will receive program information, guidelines and applications via mail, or may contact the New York State Department of Transportation Grants and Administration Section at [phone]. A separate application process will be used to allocate the last three years of funding, which will be available at a rate of $27 million annually from state fiscal years 2008 through 2010. Applications will be accepted for urban, commuter and intercity passenger rail projects, intermodal terminals and ports in New York State other than those operated by the Metropolitan Transit Authority and the Port Authority of New York and New Jersey.

The $54 million available beginning in 2006 will be divided to provide $15.25 million to upstate freight railroads to help make necessary track improvements and maintain a state of good repair. A portion of this funding will also be used to create or enhance intermodal facilities, which will expand capacity and competition to provide rail-truck intermodal service for New York's businesses at key upstate locations.

Approximately $33.75 million in available funds will be used to fund infrastructure improvements to downstate freight railroads to improve rail line capacity and clearance for heavy rail cars carrying up to 286,000 pounds of freight. These modern rail cars reduce traffic congestion on state roadways and fuel emissions, offering an environmentally clean and cost effective alternative to truck freight movement.

A total of $3 million will be used to preserve and improve passenger rail mainline service along key trade and travel corridors in New York State, including passenger capacity improvements such as expanded parking and high level platforms.

The remaining $2 million will be used to enhance the competitiveness and economic development of upstate New York public ports, including improved access and cargo handling capabilities.