(FRANKFORT, Ky.) — Gov. Andy Beshear announced Tuesday that Kentucky will distribute more than $5.6 million in state grants to fund six railway infrastructure improvement projects across seven counties, aimed at boosting commercial rail access, improving safety and creating jobs throughout the state.
The initiative represents the latest effort in what state officials describe as an ongoing commitment to modernizing Kentucky’s rail network and supporting economic development.
“By modernizing our rail network, we’re ensuring trains are safe and efficient while creating new opportunities for communities across the commonwealth,” Beshear said. “Every line we improve and every spur we build means safer travel, stronger businesses and more good-paying jobs for Kentuckians, right here at home.”
The Kentucky Transportation Cabinet (KYTC) will administer the funds through the Kentucky Industrial Access and Safety Improvement (KIASI) program, which allocates $7.5 million annually in matching grants for railroad equipment, construction and facility improvements.
Transportation Secretary Jim Gray emphasized the economic impact of the investments. “Each project is an investment in opportunity and prosperity for Kentuckians,” Gray said. “These funds will ensure safe and efficient movement of goods across Kentucky while strengthening local economies and supporting jobs across our Commonwealth.”
The grants will support construction of two new rail spurs serving industrial parks and manufacturing facilities, culvert replacement on a high-traffic Norfolk Southern line, expansion of storage and loading capacity, and purchase of equipment to enhance efficiency and safety.
Six recipients will share the funding: Eddyville Riverport & Industrial Development Authority ($526,581), Logan Aluminum, Inc. ($1,217,250), Norfolk Southern ($499,000), Novelis Corporation ($1,875,000), Owensboro Riverport Authority ($441,245) and Stainless Steel Acquisition Co. LLC ($1,053,500).
The Logan Aluminum project, receiving the second-largest award, will add 2,100 feet of track to establish rail access to the company’s DC4 casting center in Logan County. The expansion will enable the facility to receive raw materials by rail and transport production volume via rail instead of trucks.
“This investment will enhance the efficiency and reliability of our logistics network, enabling a higher shift to rail, drive continued growth and innovation, and strengthen Kentucky’s leadership in advanced manufacturing and sustainable economic development,” said Logan Aluminum President and CEO Steven Clarke.
The announcement builds on Kentucky’s broader rail improvement strategy, which includes funding through the KIASI and Kentucky Rail Corridor Investment (KRCI) programs, as well as the newly created Kentucky Short-Line Infrastructure Preservation (KSLIP) program. In April, Beshear announced a $3.6 million investment for 12 rail projects through similar state funding programs.
