Portion of $5.6 million grant funding to support Logan County railway project

FRANKFORT, Ky. – On Tuesday,  Gov. Andy Beshear announced more than $5.6 million in state grants are set to benefit six Kentucky railway projects in seven counties.

According to a release by the governor’s office, these projects will “improve commercial rail access, enhance safety, attract investment and create jobs for Kentuckians.”

“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.”

Officials say the funds were distributed by the Kentucky Transportation Cabinet from the Kentucky Industrial Access and Safety Improvement program.

The KIASI grant program designates $7.5 million every fiscal year in 50/50 grants, officials say, which go to railroad equipment, construction, reconstruction and more.

“Each project is an investment in opportunity and prosperity for Kentuckians,” transportation secretary Jim Gray said. “These funds will ensure safe and efficient movement of goods across Kentucky while strengthening local economies and supporting jobs across our Commonwealth.”

Funding will support two new rail spurs for industrial parks and manufacturing facilities, replacement of culverts on a high-density Norfolk Southern line, expansion of on-site storage and loading capacity and purchase of new equipment to improve efficiency and safety.

According to the release, the recipients of the six awards are:

• 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.
• Stainless Steel Acquisition Co. LLC: $1,053,500.

The Logan Aluminum project will add 2,100 feet of track to provide rail access to the DC4 casting center in Logan County, officials say. This access will provide a needed link for receiving inbound raw materials. In addition, the new tracks will connect DC4 with the onsite ingot storage yard, allowing DC4 to transport production volume onsite using rail instead of trucks.

“Logan Aluminum is honored to receive a KIASI grant supporting the DC4 (Recycling Facility) rail extension. 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,” Logan Aluminum President and CEO Steven Clarke said. “We appreciate the state’s continued commitment to infrastructure improvements that empower manufacturers like Logan Aluminum to continue creating value for our customers, team members, and communities.”

The announcement is part of a continuing Team Kentucky commitment to rail safety and infrastructure improvement.