Project Profile: South Shore Line Double Track Project from Gary to Michigan City, Indiana

The project will result in the construction of 16.9 miles of double track and four new rail bridges, installation of an overhead power system, separation of vehicular traffic along two miles of rail line, upgrades of five stations, elimination of 21 at-grade roadway/track crossings, and addition of 1,447 parking spaces. The double track improvements will allow NICTD to run more trains, including express trains, by restoring a second track on the largely single-track section between Gary and Michigan City. The project is expected to reduce travel times along the full length of the transit line from 100 minutes to 67 minutes. Project funding and financing is being provided through a combination of a Railroad Rehabilitation and Improvement Financing (RRIF) Loan, Federal Transit Administration (FTA) Capital Grant, American Rescue Plan Act grants, and State and local government resources. The project is under construction with project completion and operations expected in late 2024. 

The project is being partially funded by revenues from transit development districts (TDDs), which are similar to tax increment financing (TIF) districts and are the first of their kind in Indiana. While TIF districts capture the incremental differences in property tax revenues, TDDs can capture the incremental growth in both property and income tax revenues. The tax increment is then put toward public investment in the transportation infrastructure.

Another innovation is that the project has attracted an estimated $250 million in development projects, including an $80 million mixed-use development that has been designated as an FTA joint development project. This allows a private developer to undertake a public responsibility, in this case the construction of a train station and garage to NICTD standards.