Chicago’s Metra is  exploring financing options to supplement their capital budget and tackle one of their most pressing needs, replacing scores of aging bridges. 

The decision comes as the company is faced with a massive infrastructure backlog and a lack of adequate funding.

Bridges and Metra

Metra trains cross 926 bridges every weekday, and Metra owns 446 of those bridges. 

At least half of the bridges Metra owns are more than 100 years old, with another 30% being more than 75 years old, which is the typical service life of a steel bridge.

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, and they must be replaced soon, before our operations are impacted,” said Metra Executive Director/CEO Jim Derwinski. “Because this need is so urgent, we believe we must explore all our options, including financing, to address it.”

Needed Funding

Metra receives funding from local, state, and federal sources for capital needs such as bridges, however their needs are far greater than currently available funding.

During the development of its current five-year capital plan (2025-2029) Metra identified $5.4 billion in needs while only $2.1 billion is available in funding.

While Metra has the authority to issue revenue bonds, it is considering borrowing an estimated $230 million from the federal Railroad Rehabilitation & Improvement Financing (RRIF) program instead.

The program offers lower interest rates, a longer repayment period, no pre-payment penalty, and more flexible amortization. 

Repayment is estimated at about $15 million to $20 million a year and would come from Metra’s normal operating fund sources, primarily fares and regional sales taxes.

The money would be used to complete funding for a major project to replace 11 bridges on the UP North Line between Fullerton and Addision 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 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 96^th Avenue on the Rock Island Line in Mokena.

What’s Next?

The bridges were selected because the design process is or soon will be completed.

Metra 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 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.