U.S. announces 2.45-bln-dollar loan to Amtrak for Northeast Corridor upgrades

U.S. federal officials on Friday announced a 2.45-billion-U.S.-dollar loan to Amtrak for purchasing new trainsets and upgrading track and platforms on the so-called Northeast Corridor between Washington, D.C. and Boston.

U.S. Vice President Joe Biden and Deputy Secretary of Transportation Victor Mendez made the announcement at a railroad station in Wilmington, Delaware, marking the largest single loan in the Department of Transportation's history, the White House said in a statement.

With this loan, Amtrak will purchase 28 new trainsets for the Acela service on the Northeast Corridor with approximately 40 percent more seats than currently offered on Acela trainsets, the White House said.

The first prototype of the new trainset will be ready in 2019, with the first trainset entering revenue service in 2021, according to Amtrak.

The new trainset will operate along the Washington-New York-Boston Northeast Corridor initially at speeds up to 160 mph (mile per hour) and will be capable of speeds up to 186 mph, the company said.

"These trainsets and the modernization and improvement of infrastructure will provide our customers with the mobility and experience of the future," said Amtrak president and chief executive officer Joe Boardman.

The loan will also be used to provide necessary track upgrades between the New Carrolton and Baltimore stations, and perform station and platform improvements at four of the busiest stations in the Northeast Corridor to improve passenger experience and public safety.

"This loan is a key step to providing investments needed to help keep high speed trains moving throughout the region, and to help all commuters in the Northeast Corridor," Biden said in a statement. Endit