SACO — The city will help finance an extension of a rail line spur that goes to the industrial park.

Casco Bay Transportation is one of a few businesses in the industrial park that utilizes a city-owned railroad spur that extends from the Pan Am rail line to 98 Industrial Park Road.

Casco Bay Transportation, located at 102 Industrial Park Road, would like the line extended 1,100 feet. The company specializes in transporting heavy and over-sized products and has been located in the industrial park for about 18 months, and owner Patrick Bryan said in a letter to the city extending the rail would aid in the growth of his business.

Additionally, the expansion of the rail line would free up city land, as Casco Bay Transportation is currently using city land for offloading from the train, said City Public Works Director Patrick Fox at a city council meeting earlier this month.

The cost to expand the rail line is estimated at $350,000.

Casco Bay Transportation has received a grant from the Maine Department of Transportation to pay for $171,500 of the project.

The city council Monday night voted to contribute $50,000 toward the project, and to also loan Casco Bay Transportation the remaining $128,500 for completion of the project. The loan will be paid back to the city over 10 years with an interest rate of 3 percent.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, Ext. 325 or egotthelf@journaltribune.com.