Texas & Eastern Completes Phase I Rail Upgrade
The $30 million track project between Palestine and Rusk, Texas, has finished its first phase, with a second phase now underway.
Updated on Nov. 2, 2026 in Transportation
Texas & Eastern Railroad has completed Phase I of a roughly $30 million track infrastructure project rehabilitating the rail corridor between Palestine and Rusk, Texas. The railroad is now advancing Phase II of the project.
Why it matters
The improvements are intended to strengthen rail safety and reliability in eastern Texas. The upgrades also aim to improve the railroad's ability to serve regional freight customers and support truck-to-rail conversion.
Phase I replaced 18 miles of 80-pound rail, installed 14,150 ties, upgraded 17 grade crossings, and replaced switches and switch ties, funded by a $13.4 million CRISI grant. Phase II, backed by $8.54 million in FY2025-2026 CRISI funding, will add about 9,500 feet of track space at the Palestine Depot, and the timeline for its completion has not been provided.
The players
Texas & Eastern Railroad
A Jaguar Transport railroad operating the rehabilitated rail corridor between Palestine and Rusk, Texas, and advancing the project's second phase.
The details
Phase I included ballast installation and track surfacing along with the rail, tie, crossing and switch work. Phase II will add a dedicated transload siding to serve a committed aggregate customer and a new storage spur at the Palestine Depot.
Timeline
fiscal-year 2023-2024: CRISI grant funds Phase I of the project.
FY2025-2026: CRISI funding is awarded for Phase II.
November 2, 2026: Completion of Phase I is announced.
Transportation Outlook
The project is financed through the federal CRISI program, which has funded freight rail safety and capacity upgrades like this Phase I and Phase II work. The improvements position the railroad to serve regional freight customers and support the shift of cargo from trucks to rail.
The track upgrades are intended to improve rail safety and reliability along the Palestine-to-Rusk corridor. Shippers in eastern Texas may see more freight capacity as Phase II adds a transload siding and storage spur.
The takeaway
Upgrades to regional freight rail can improve both safety and the capacity to move goods that might otherwise travel by truck. Phase II will show whether the added siding and storage spur translate into new freight service in eastern Texas.
What happens next
Phase II of the Palestine-to-Rusk rail project is underway, with its transload siding and storage spur at the Palestine Depot still to be completed.
Further reading
For broader context on regional freight infrastructure, see Transportation coverage in Texas.
Source note: This article includes information reported by RailPrime.
