The Maryland Department of Transportation (MDOT) has issued a Request for Information (RFI) as it explores a Public-Private Partnership (P3) to operate, maintain, and improve approximately 92 miles of freight rail corridors on Maryland’s Eastern Shore. This anticipated 40-year lease aims to modernize infrastructure, enhance efficiency, and support economic growth in the region.
Project Goals:
- Ensure safe and reliable freight rail service
- Attract new customers and increase carload volume
- Reduce or eliminate state subsidies
- Provide property management services
- Generate revenue to fund improvements
- Shift operational risk and responsibility to the private sector
MDOT is particularly focused on transferring financial responsibility for infrastructure improvements and ongoing maintenance to a private partner. The selected partner will retain revenue from rail operations and property usage while being responsible for planning and capital investments necessary to sustain freight rail service. They must also secure regulatory approvals from the Surface Transportation Board (STB) and comply with all Federal Railroad Administration (FRA) and Maryland DLLR safety regulations.
Currently, MDOT oversees the rail corridors under a contract set to expire on December 31, 2025. The infrastructure varies in condition, with some sections requiring significant capital investment to maintain service, while others have been rail-banked for potential future use.
Procurement Process & Key Dates:
MDOT plans to use a competitive procurement process, likely involving:
- Request for Qualification (RFQ) followed by a Request for Proposal (RFP) for shortlisted teams (no more than four).
- One-on-one meeting requests due by April 9, 2025
- RFI responses due by April 14, 2025
- One-on-one meetings scheduled for April 14-25, 2025
- RFQ release expected in May 2025
- Target operating start date: January 1, 2026
For more details, review the full RFI at http://www.mdot.maryland.gov/freightrailp3. Direct inquiries and responses to [email protected] by April 14, 2025.