Indiana announced nearly $173 million in federal funding that would allow construction to begin on the expansion of the South Shore rail line to a double track, a long-standing transportation priority for Northwest Indiana.

The $491 million project was designed to speed passenger rail service between Gary and Michigan City while making safety improvements at grade crossings and upgrading five stations.

The Federal Transit Administration and the Northern Indiana Commuter Transportation District signed a Full Funding Grant Agreement, finalizing federal support through the agency’s Capital Investment Grant program.

Funding and planning involved federal, state and local bodies. At the time of the announcement, Indiana had committed nearly $200 million, while participating local partners had committed nearly $120 million.

The 26-mile Double Track Northwest Indiana project called for a second mainline track, work at five stations, nine new platforms and expanded parking capacity. In Michigan City, the plan included separating rail operations from the roadway and closing 21 at-grade crossings.

Project materials anticipated shorter travel times for riders east of Gary and more efficient commuter service toward Chicago. The work was also presented as a companion to the West Lake Corridor project.

Funding partners identified in the announcement included the Federal Transit Administration, Michigan City and LaPorte County, South Bend and St. Joseph County, the Northwest Indiana Regional Development Authority and the Indiana Finance Authority.

Officials described reduced travel times, more frequent service and safety enhancements as central goals for the long-term operation of commuter rail between South Bend and Chicago.