The projects objective is to restore the line to a dependable and viable short line capable of providing and improving freight rail service for customers along the neches subdivision

The Federal Railroad Administration (FRA) awarded Jaguar Transport Holdings, LLC a $19.35 million Project Grant on May 15, 2025, under the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program (CFDA 20.325) to restore freight rail service along the 28.3-mile Neches Subdivision between Rusk and Palestine, Texas. The project will deliver critical infrastructure improvements to address aging rail components, including crosstie replacement, rail and switch upgrades, ballast addition, track surfacing, and grade crossing enhancements. Specific work will remediate rail sections and switches that have exceeded 100 years of service life and are currently limiting the capacity of the Texas and Eastern Railroad (TERR) to provide adequate freight service to regional customers.

With an estimated completion date of July 30, 2028, this restoration project will revitalize rail transportation infrastructure in East Texas and enhance freight rail service reliability for the region. The CRISI program, administered by the FRA, supports projects that improve the safety, efficiency, and reliability of intercity freight and passenger rail systems nationwide, with eligible applicants including railroads of all classes, states, public agencies, and private entities. This award represents a substantial federal investment in regional rail infrastructure modernization and economic development.

The terr cannot provide adequate freight rail service along 28.3 miles of the line between rusk and palestine, texas because of the small rail sections and switches that are up to 122 years old. The improvements will strengthen the terr infrastructure through crosstie replacement, upgrading rail and switches, adding ballast, surfacing track, and completing crossing upgrades. This project will also harden areas that have rail and switches that exceed 100 years of service. This project will revitalize the railroad and transportation options for east texas.