Kentucky, Iowa OK funding for rail infrastructure projects

Kentucky and Iowa state transportation officials yesterday announced the award of $8.9 million in grants and loans to support freight-rail infrastructure projects in their states.

In Kentucky, Gov. Andy Beshear announced the award of $5.6 million in grants for six railway infrastructure improvement projects spanning seven counties. The projects are designed to improve commercial rail access, enhance safety, attract investment and create jobs for Kentuckians, according to a press release from Beshear's office.

The Kentucky Transportation Cabinet distributed the grants through the state's Industrial Access and Safety Improvement program. Funding will go toward construction of two new rail spurs to serve industrial parks and manufacturing facilities, replacement of culverts on a high-density Norfolk Southern Railway line, expansion of on-site storage and loading capacity, and the purchase of new equipment to improve efficiency and safety.

The award recipients and their grant amounts are: Novelis Corp., $1,875,000; Logan Aluminum Inc., $1,217,250; Stainless Steel Acquisition Co. LLC, $1,053,500; Eddyville Riverport and Industrial Development Authority, $526,581; Norfolk Southern Railway, $499,000; and Owensboro Riverport Authority, $441,245.

In Iowa, the state's Transportation Commission approved $3.3 million in funding for four rail infrastructure and related rail development projects under the Railroad Revolving Loan and Grant program. The projects are expected to support the creation and retention of 201 jobs within three years of project completion, commission officials said in a press release.

The four projects and their funding entail a $1,469,000 grant for a new box manufacturing plant in Black Hawk County; two loans in the amount of $830,000 and $256,000 for Floyd Valley Transload rail network improvements in Woodbury County; and a $792,000 loan for the Burlington Junction Railway's Le Mars Transload Yard expansion project in Plymouth County.