Savage Services, a Utah-based leader in logistics and transportation, has been awarded a $10 million loan from the Authority Infrastructure Bank (AIB) to support a transformative rail expansion project in Tooele County. This initiative aligns with the Utah Inland Port Authority’s (UIPA) focus on enhancing rail infrastructure to drive economic growth and sustainability across the state. The funding was approved during UIPA’s Board Meeting on Monday, January 9.
About the AIB Program
The AIB is a state-administered fund offering low-interest loans to private entities, approved through a rigorous three-step process involving the UIPA Loan Committee, UIPA Board, and Utah’s Legislative Executive Appropriations Committee. These loans are offered at rates 0.5% above Utah’s AAA bond rates, with terms negotiated in collaboration with UIPA. The program prioritizes rail infrastructure projects to advance Utah’s logistics capabilities.
Project Overview
The AIB loan will fund the rehabilitation of six miles of existing rail and the construction of five miles of new track, providing a direct rail connection for the Lakeview Business Park to the intermodal rail network. This project will transform the business park into a multimodal logistics hub, offering sustainable and efficient transportation options for businesses.
- Loan Terms: $10 million over 10 years at an interest rate of 3.45%.
- Total Project Investment: $25 million, including $15 million from Savage’s own capital.
Economic and Environmental Benefits
The rail expansion is set to deliver substantial benefits to Tooele County and the surrounding region:
- Reduced Truck Traffic: The project will eliminate approximately 5,000 truck trips annually in its first year of operation, reducing road congestion and wear.
- Environmental Impact: Over 20 years, the project is expected to eliminate 20 million truck miles, significantly decreasing emissions and supporting Utah’s air quality goals.
- Economic Development: By incorporating rail options, the Lakeview Business Park becomes a more attractive location for businesses, fostering economic growth in the region.
Savage’s Commitment to Utah and Rail Innovation
“This is a milestone in U.S. rail history,” said Andy Pierucci, head of government affairs with Savage.“This is the first new railroad built in the U.S. in 82 years and the first in Utah in 110 years. Without this program, the business park would have been truck-served only. This rail expansion underscores Savage’s commitment to sustainability and innovation.”
Perucci also highlighted the extensive review process the project underwent, receiving approval from the Surface Transportation Board (STB) after a five-year evaluation that included environmental assessments. The STB has praised the project as a model for future rail development.
UIPA’s Vision for the Future
“This project exemplifies what the Authority Infrastructure Bank was created to achieve—taking trucks off the road, improving air quality, and fostering a more sustainable logistics system in Utah,” said Ben Hart, executive director with UIPA. “It’s a game-changer for our state.”
Hart emphasized the broader implications of the project, noting that initiatives like this demonstrate how public-private partnerships can reshape Utah’s logistics landscape, benefiting both the economy and the environment.
A Collaborative Milestone
While this loan did not require collateral, future loans may include collateral considerations as part of the evolving program.
As construction begins, the Tooele County rail expansion project is set to become a cornerstone of Utah’s logistics strategy, creating a lasting impact on the state’s economy, infrastructure, and environmental sustainability.
Published: 01/10/25
Author: Kaitlin Felsted