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Last week, Pennsylvania Gov. Edward Rendell voiced support for CSX Corp.’s National Gateway project. He pledged the state will back a Norfolk Southern Railway-related gateway project, as well.

Pennsylvania will provide $10 million for the $46 million second phase of the Northwest Gateway Project, which calls for relocating a portion of NS’ yard in Dillerville to Manheim Township, said Rendell in a prepared statement. The monies will come from the state’s Redevelopment Assistance Capital Program.

The portion of the yard situated on the northern edge of Franklin & Marshall College’s campus will be relocated to an abandoned dump site and the remainder will be remodeled. The project will free up land, enabling the college and Lancaster General Hospital to expand. The college plans to use some of the 30-acre site develop a new athletics campus and expand academic facilities.

After the yard is relocated, the college and hospital will demolish structures and existing rail lines. Work is scheduled to begin in spring 2009.

“This is a prime example of a public-private partnership that will stimulate economic growth and reconnect the eastern and western sections of the city that have been divided for more than a century,” said Rendell. “The project will also enable Norfolk Southern to better serve its growing Lancaster County customer base.”