City of Columbia Utilities awarded $3.2 million grant for railroad improvements

City of Columbia Utilities has been awarded a $3.2 million grant for COLT Railroad infrastructure improvements to support growth for commercial customers in the City of Columbia and the region.

The award from the US Department of Commerce’s Economic Development Administration and the City of Columbia’s $800,000 match will be invested in the commercial freight rail corridor.

The $4 million project will make improvements on 8.35 miles of track over 10 sections. The work will include upgrading the current 90-pound rail with 115-pound rail, replacing defective railroad ties and making surface upgrades.

“These improvements will increase the resiliency and capacity of the railway and will allow the COLT Railroad to handle heavier loads for new and existing commercial customers,” said David Sorrell, director of the City of Columbia Utilities department.

“The project will expand commercial freight opportunities, which will invite private investment in the City.”

Owned and operated by the City of Columbia since 1987, COLT serves as a crucial artery connecting businesses in Boone County with national railroad infrastructure.

COLT has served traditional rail businesses for decades, with several companies reliant upon it for core operations.

Without access to COLT, two existing traditional rail businesses say they would be forced to relocate outside of Boone County to a rail-served site.

These two businesses employ 85 individuals, on average, and reported combined annual sales of nearly $110 million in 2022.

One company is planning to construct a new rail siding and building to increase capacity at their current facility. This new construction, slated to begin in late 2024, is estimated to cost $50 million over a five-year period.