The City of Chadron, Neb. and the Nebraska Northwest Railroad will soon begin rebuilding its tracks and rail yard thanks to an agreement with the U.S. Department of Transportation for a $4.9 million grant.

The grant from the U.S. Department of Transportation's TIGER II program will be matched by $1.2 million from the City of Chadron.

"Under President Obama's leadership, projects like this one are creating jobs, reinvigorating the economy and building a world-class transportation network that our businesses need in order to compete now and continue to grow in the future," said U.S. Transportation Secretary Ray LaHood.

The project, which will lead to improved freight mobility and safety in the area, includes the replacement of switches, ties, rail and ballast on 7.5 miles of main line track and 1.2 miles within the Chadron Rail Yard. It will rehabilitate an existing car storage track and upgrade 22 timber bridges. When complete, the improved track will allow the railroad to accommodate the standard 286,000-pound cars used by regional construction and building industry and agricultural industry shippers.

"This project will boost our economic competitiveness making it easier and less expensive for businesses to ship their products," said Federal Railroad Administrator Joseph C. Szabo. "This targeted investment will also increase safety for railroad workers and improve railroad reliability through the replacement of aging infrastructure."