Laredo Lands $58M Rail Grade Separation Grant to Boost Border Freight Flow

Key Details The Texas Transportation Commission awarded $58.51 million to Laredo for a major rail grade separation project at Santa Maria Boulevard. This represents the largest single grant from the inaugural Texas Off-System Rail Grade Separation State Fund Program, a $250 million initiative created to address rail crossings that frequently cause freight bottlenecks. Why It Matters The Santa Maria project will separate Canadian Pacific Kansas City Limited freight trains from roadway traffic, eliminating at-grade crossings in one of Laredo's busiest corridors. This improvement will reduce congestion, enhance safety, and accelerate freight movement through this critical cross-border hub. Bigger Picture Laredo already moves over 213,000 rail cars annually from Mexico and handles $354 billion in two-way trade. Rail accounts for approximately 11.7 percent of total U.S.-Mexico freight value, making grade separation investments essential for maintaining competitiveness. Program Overview This first funding round distributed $160.4 million across five projects in Amarillo, Houston, Laredo, and San Antonio. The program is holding roughly $90 million in reserve to pursue matching federal funds, potentially stretching state dollars further.