FRANKFORT – On January 17, Gov. Andy Beshear announced a $6 million state investment to enhance Kentucky’s rail and riverports and increase economic opportunities, efficiency and connectivity for Kentucky industries. Two riverport projects will receive $1 million and four railroad projects will receive $5 million.
“Kentucky’s economic winning streak requires continued investments in safe and efficient infrastructure that serve current and future businesses across all modes of transportation,” said Gov. Beshear. “These rail and riverport investments help us support the industries that boost our communities and economy and make sure they have the resources to thrive in Our New Kentucky Home.”
Funding comes from two newly created grant sources established by the 2024 General Assembly and approved by Gov. Beshear. The Kentucky Transportation Cabinet (KYTC) is responsible for administering the funds.
Kentucky Industrial Access and Safety Improvement Awardees
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.
A total of $5,086,877 was awarded to Logan Aluminum Inc., Norfolk Southern Railway, Owensboro Riverport Authority and Wieland North America Recycling LLC to deliver four improvement projects that expand rail and connections. Applicants provide a 50% match for the project. A list of funding awards is available here.
Wieland North America Recyling received approximately $1.8 million to construct a new industrial rail spur connecting the Norfolk Southern existing Class I rail line to Wieland’s facility. Secondary track 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, Wieland Recycling North America. “The project supports our sustainability goals by enabling supply chain decarbonization, leveraging rail’s lower emissions in comparison to trucking. We thank Gov. Beshear and the Kentucky Transportation Cabinet for supporting critical infrastructure projects that foster economic development and strengthen the commonwealth’s manufacturing sector.”
The Cabinet for Economic Development collaborates with KYTC to select KIASI grant awardees.
“Economic development projects require teamwork across all elements of government, education and community,” said Cabinet for Economic Development Secretary Jeff Noel. “These announcements and the multitude of other projects bringing new jobs to our state announced over the past five years are a testament that when you work together, great things happen. Infrastructure, placemaking, workforce and site availability are the keys to attracting great jobs with great wages. None of this occurs without seamless collaboration, showing Team Kentucky is getting things done.”
A second request for proposals is due by March 7, and interested industries may learn how to apply by visiting the KIASI Program website.
Kentucky Public Riverport Construction and Maintenance Awardees
Kentucky Public Riverport Construction and Maintenance (KPRCM) funding invests $7.5 million per fiscal year to improve riverport facilities and infrastructure for new construction, major replacement or repair projects. Two riverport projects totaling $1 million were awarded to Greenup Boyd County Riverport Authority and West Kentucky Regional Riverport Authority.
Greenup Boyd County Riverport Authority received $750,000 to replace aging equipment with a new material handler, skid steer and backhoe to help offload and move goods more efficiently.
West Kentucky Regional Riverport Authority received $250,000 to fund archaeological activities for a proposed 19-acre inland riverport in the Fort Jefferson area.
“Quality transportation systems and economic development go hand-in-glove to enhance the quality of life for Kentuckians,” said KYTC Secretary Jim Gray. “We’re excited for this first round of funding to flow to local industries and look forward to even more investments to come this year.”
This is the second round of KPRCM grants to be announced since 2024, bringing the total of awards to $6 million. In August 2024, the Governor announced a $5 million investment for eight riverport projects.
These two investments come on the heels of a November 2024 Gov. Beshear announcement of $7.5 million for 8 railway projects through the Kentucky Short Line Infrastructure Preservation (KSLIP) program.
