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1/27/2025
Kentucky Gov. Andy Beshear earlier this month announced a $6 million in state funding to improve Kentucky’s rail and riverports. Two riverport projects will receive $1 million and four railroad projects will receive $5 million.
The funding comes from two newly created grant programs established by the 2024 General Assembly and approved by Beshear. The Kentucky Transportation Cabinet (KYTC) is responsible for administering the funds, according to a KYTC press release.
The Kentucky Industrial Access and Safety Improvement (KIASI) grant designates $7.5 million each fiscal year for railroad equipment, construction, reconstruction, improvement or rehabilitation of rail facilities or engineering work associated with capital projects. More than $5 million in grant funds were awarded to Logan Aluminum Inc., Norfolk Southern Railway, Owensboro Riverport Authority and Wieland North America Recycling LLC to deliver four improvement projects that will expand rail and connections.
Applicants provide a 50% match for the project.
Wieland received $1.8 million to construct a new industrial rail spur connecting NS rail line to the company's facility. Secondary rack spurs will be installed at the facility for loading and unloading operations.
“This KIASI grant will enhance Kentucky’s industrial rail infrastructure by establishing vital rail connectivity for our recycling facility in Shelbyville, Kentucky, fueling our operations and regional economic growth,” said Marcel Christians, president, of Wieland Recycling North America. “The project supports our sustainability goals by enabling supply chain decarbonization, leveraging rail’s lower emissions in comparison to trucking."
NS obtained a $506,250 grant for a project to stabilize the roadbed and slopes on the Cincinnati, New Orleans and Texas Pacific Railway, one of the highest density segments on the NS network and a critical line connection the Midwest and Southeast, according to the NS grant application.
The Owensboro Riverport Authority obtained $1.2 million in grant funds to create a rail spur loading facility in Daviess County that will enable a large international company to import purified phosphoric acid for the lithium ferro-phosphate battery market.
Logan Aluminum Inc. obtained $1.5 million in funds for a project to add rail track in two rail yards in Logan County.
A second request for KIASI grant proposals is due March 7.
Meanwhile, awards were announced through the Kentucky Public Riverport Construction and Maintenance (KPRCM) program, which invests $7.5 million per fiscal year to improve riverport facilities and infrastructure for new construction, major replacement or repair projects. Earlier this month, two riverport projects totaling $1 million were awarded to Greenup Boyd County Riverport Authority and West Kentucky Regional Riverport Authority.