NEW ORLEANS -- Today, U.S. Transportation Ray LaHood, Mayor Mitchell J. Landrieu, Regional Transit Authority Chairwoman Barbara C. Major and a host of other city and state elected officials gathered at the New Orleans Union Passenger Terminal (NOUPT) to officially break ground on theLoyola/Union Passenger Terminal Streetcar Expansion project. The transit system secured a $45 million federal grant for the rail project through the TIGER (Transportation Investment Generating Economic Recovery) competitive grant program, which funds innovative projects with significant economic and environmental benefits for the surrounding community and region.

The 1.5 mile streetcar line will feature four covered stations at Tulane Avenue, Poydras Street, Julia Street and the NOUPT. The existing fleet of the red Canal Street and Riverfront cars will accommodate the service on the line.

The project is expected to improve access to the city’s transit network from the Central Business District and reduce travel time between residential areas, employment centers, and major activity centers. It will also promote and support economic development in the area by allowing improved connectivity between convention, tourism, entertainment, energy, and health care and biosciences facilities and enhance livability for Downtown residents.

Long a proponent of rail projects as economic engines, the Federal Transit Administration backed the development of the Riverfront Streetcar line in 1988, which provided transportation from the Convention Center to the French Market, and the Canal Streetcar line, which, since its 2004 completion, has spurred development from the river to Mid-City. RTA plans to add four more miles of track along North Rampart Street from Canal Street to Press Street.

“The New Orleans Streetcar project will create new jobs, economic opportunities and greater transit choices," Secretary LaHood said. "Not only will it stimulate development along Loyola Avenue, but it will also provide residents greater access to the central business district."

"We are proud to be expanding America's greatest streetcar line," said Mayor Landrieu. "Streetcars are one of the things that make our city unique, and this line will breathe new life into our transportation system. Leveraging this new development, economic and important quality of life projects are already springing up along the Loyola Avenue corridor downtown. And both residents and visitors will have the opportunity to utilize this more efficient and affordable mode of transportation which is why we must continue to invest dollars in infrastructure projects like this."

The benefits of a streetcar line are not lost on investors. Mega-developments already underway include the $243 million renovation of the Hyatt Regency Hotel, which has been shuttered since Katrina, and the $100-million office-sports-entertainment complex in the Benson Tower near the Superdome. The Domain Companies announced the South Market District apartment-retail development, a $185 million "transit-oriented” project utilizing surface parking lots near Loyola Avenue, and a Rouse's Supermarket is scheduled to open in the fall. The Holiday Inn Superdome is working on a major renovation, and other new residential and retail options are sprouting up in anticipation of the expanded biosciences district and the streetcar connection.

"Transportation has always played a vital role in the development of cities around the world," said RTA Board Chairwoman Barbara C. Major. "RTA is committed to ensuring that our residents have safe, efficient and affordable transportation as New Orleans rebuilds in a smarter, more sustainable manner."

Some 51 projects nationwide received TIGER grants; however, rail projects in only three cities, Tucson, Dallas, and New Orleans, were funded. Construction of the streetcar line is scheduled to begin in mid-summer and the grant requires that it be open for service in mid-2012.

For details and updates on the project, visit www.norta.com.