Media Contact: Naitore Djigbenou
502.782.4829
Naitore.Djigbenou@ky.gov
Allen Blair
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Allen.Blair@ky.gov
FRANKFORT, Ky. (Jan. 8, 2026) – Today, Gov. Andy Beshear awarded nearly $3 million in grant funds to railroads and local governments to finance nine projects for industrial access and railway infrastructure improvement in seven counties across Kentucky. Projects will address rail line expansion and access road construction, as well as signal and lighting upgrades at public crossings, all of which will boost safety for motorists, attract new business and support economic activity.
“In our New Kentucky Home, we’re building a transportation system that works for families, businesses and communities,” said Gov. Beshear. “These investments focus on vital railway safety and connectivity upgrades that will help keep everyone safe while continuing to boost Kentucky’s booming economy.”
Funds were awarded through two grant programs administered by the Kentucky Transportation Cabinet. The Kentucky Rail Crossing Improvement (KRCI) program covers up to 80% of eligible project costs to improve safety and traffic flow at public rail crossings by adding or upgrading warning devices. The Kentucky Industrial Access and Safety Improvements (KIASI) program, operated in collaboration with the Cabinet for Economic Development, provides 50% matching funds for projects that strengthen rail connectivity, improve service to existing industries, enhance on-time performance, and support economic development and new investment.
“Reliable rail infrastructure keeps people moving and commerce flowing,” said Transportation Secretary Jim Gray. “These investments provide peace of mind, enhance economic activity and improve safety for all Kentuckians.”
The two KIASI projects, totaling nearly $1.4 million, will rehabilitate and reactivate 6,400 feet of track in Jefferson County; and the Owensboro Riverport Authority will benefit from paving 26,500 square feet of asphalt for an access road, and pouring 41,700 square feet of concrete for an area designated for storage, as well as loading and unloading railcars.
The Owensboro Riverport, whose mission is to provide efficient, reliable multimodal access that supports economic growth across the region and the Commonwealth, received $1.12 million to construct an access road and an additional storage and loading area for trucks.
“Through the leadership of our Governor and legislators, this KIASI Grant program is helping ports and industries statewide expand rail capacity for current and future growth,” said Brian Wright, President and CEO of the Owensboro Riverport Authority. “The Owensboro Riverport Authority is honored to receive this grant and looks forward to continuing to support industrial growth and job creation in western Kentucky.”
The rail crossing improvement (KRCI) grants, totaling $1.6 million, were awarded to three private railroad companies – Paducah and Louisville Railway, Norfolk Southern and R.J. Corman – and the Bourbon County fiscal court for projects in Central and Western Kentucky. Improvements range from signal and light enhancements at crossings to adding raised curb medians with delineators to improve traffic flow.
Paducah and Louisville Railway was awarded a total of $776,831 in funding to enhance safety and reliability at three key crossings in Hardin and Grayson Counties.
“These upgrades will not only help protect motorists and rail crews but also strengthen the infrastructure that supports Kentucky’s economy – improving efficiency for freight movement, reducing delays, and strengthening Kentucky’s connection to national and global markets,” said Tom Greene, President and CEO of Paducah & Louisville Railway. “By investing in modern technology and contributing our own matching funds, P&L remains committed to ensuring safe, efficient rail service that helps drive growth, attract industry, and keep Kentucky competitive. P&L is grateful to Gov. Beshear and the General Assembly for their continued support of the KRCI program.”
The grant announcements are part of an ongoing Team Kentucky commitment to rail safety and infrastructure improvement through three grant programs.
Since first taking office, the Beshear administration has awarded a total of $10.2 million in KRCI funds and $13.6 million in KIASI funds.
In August 2025, the Governor also announced a $7.5 million investment for six rail projects through the Kentucky Shortline Improvement Projects (KSLIP) program funds, which prioritizes applications based on criteria like enhancements to existing rail lines, retaining existing or attracting new rail-served industries, and project readiness. Applicants provide a 50% match for the project.