Merchants Bridge rebuild still on track despite failure to get federal aid - Insurance News | InsuranceNewsNet

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July 10, 2018 Newswires
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Merchants Bridge rebuild still on track despite failure to get federal aid

St. Louis Post-Dispatch (MO)

July 10--ST. LOUIS -- Replacement of the 128-year-old Merchants Bridge will go ahead as scheduled, with the railroads that own the span stepping up to fund the full $172 million cost.

The Terminal Railroad Association of St. Louis and area elected officials had sought a federal grant to cover a third of the price but learned last month that their application had been rejected.

The association, in a news release Tuesday, announced it made the "difficult decision" to proceed without the federal aid because of the span's deteriorating condition and "the adverse impact a nonfunctioning bridge would have on the nation's economy."

Asim Raza, a Terminal Railroad executive, added that "timing is a major factor." He said design changes and "an aggressive bid environment" resulted in a reduction to $172 million from what had been expected to be an approximate $220 million price.

Another factor is the price of steel, which has been rising since President Donald Trump announced tariffs on imports . The bids for the bridge were opened in February before the tariffs were imposed.

Raza said the low bidder, Walsh Construction Co. of Chicago, will begin work this fall on the four-year project.

Replacement of the bridge, one of two local spans across the Mississippi River used by railroads, has been designated the metro area's top infrastructure priority by the St. Louis Regional Freightway.

The freightway serves as a booster organization for the area freight industry.

The bridge work, which will be one of the biggest construction projects in the region, will involve 150 direct jobs, the association said. The total increases to 1,100 jobs if suppliers and other companies related to the project are included.

The Terminal Railroad Association is owned by five major freight railroads -- Union Pacific Railroad, CSX Transportation, Canadian National Railway, Norfolk Southern Corp. and the Burlington Northern and Santa Fe Railway.

The association is working with Bank of America Merrill Lynch to finance the project.

"This is an infrastructure project with national importance, and we are enthusiastic about its positive impact on local economic development and job creation," said John Beardslee, an executive with the bank.

The bridge, just north of downtown, was built in 1889 and opened in 1890. Now only one train at a time, traveling 5 mph, can cross the span, because of weight and speed restrictions because of the bridge's condition. The new bridge, Raza said, will be wide enough to accommodate two 315,000-pound locomotives.

When finished, the bridge will help relieve river-crossing bottlenecks. But there will be additional delays during construction as trains at times will be rerouted across the MacArthur Bridge, the other freight span in the downtown area.

___

(c)2018 the St. Louis Post-Dispatch

Visit the St. Louis Post-Dispatch at www.stltoday.com

Distributed by Tribune Content Agency, LLC.

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