Gov. Beshear announces $5.6 million in rail grants to boost Kentucky’s economy, safety 

By News Reporter Gabby Cedano

Governor Andy Beshear announced that the state is awarding over $5.6 million in grants to support six rail infrastructure projects across seven counties in Kentucky. These investments are designed to improve commercial rail access, enhance safety, attract business investments and generate new jobs for Kentuckians.

Beshear says upgrading Kentucky’s rail system not only makes travel safer and more efficient, but it also opens doors for economic growth in communities throughout the commonwealth. 

The funding comes from the Kentucky Transportation Cabinet’s (KYTC) Kentucky Industrial Access and Safety Improvement (KIASI) program, which provides matching grants up to $7.5 million annually for projects involving rail construction, rehabilitation or equipment upgrades.

Cabinet Secretary Jim Gray says the projects are critical to ensuring goods move safely and efficiently across the state, while also supporting local economies and employment opportunities.

The grants will support a range of projects, including the building of two new rail spurs to serve industrial and manufacturing sites, replacing culverts on a heavily trafficked Norfolk Southern line, expanding storage, loading capabilities and purchasing equipment to improve both safety and operational efficiency.

Among the recipients are the Eddyville Riverport & Industrial Development Authority, which secured $526,581 and Logan Aluminum, Inc., which received $1,217,250 to fund 2,100 feet of new track. 

Logan Aluminum’s project will create a rail link to its DC4 casting center in Logan County, shifting the transport of raw materials and finished products from trucks to the rail. Steven Clarke, President and CEO of Logan Aluminum, says the grant helps them improve the reliability and efficiency of their supply chain, supporting growth and innovation while reinforcing Kentucky’s position as a leader in advanced manufacturing and sustainable development.