US Transportation Secretary Ray LaHood announced Wednesday that work can now begin on the Appalachian Regional Short-Line Rail project with the signing of a $12.9 million American Recovery and Reinvestment Act grant. The signing took place Wednesday between the US Department of Transportation and the Kentucky Transportation Cabinet.
The project will improve infrastructure on five short-line railroads running through Kentucky, West Virginia and Tennessee, benefiting several economically distressed counties.
The project will also rehabilitate hundreds of miles of track on five unconnected short-line railroads in the three states and includes grade crossing, bridge and tunnel improvements. Once complete, the improvements will speed up delivery time, allowing goods to reach their markets more quickly and at less cost.
"This project is about increasing efficiency to boost economic competiveness and make it easier for businesses to ship their products," said Federal Highway Administrator Victor Mendez. "It's also about making better use of all transportation modes through targeted investment."
The project is expected to encourage shippers to shift the transport of hazardous commodities and chemicals from truck to rail, increasing safety and reducing fuel consumption and emissions.
Tennessee also is receiving $2.8 million and West Virginia $1.7 million - bringing to $17.5 million the total grant for this project, awarded under the Recovery Act's TIGER (Transportation Investment Generating Economic Recovery) program.