ROUNDUP: Governor Kelly Invests Over $11 Million to Improve Rail Transportation and Supply Chain
Topeka, KS – Today, Governor Kelly announced an $11.5 million investment in rural railroad improvement projects across Kansas. These grants will be used to make necessary upgrades and repairs on the railways that connect Kansas. These improvements will also benefit Kansas’ vital food supply chain, enabling farmers and ranchers to get their products to consumers faster and keep the shelves stocked around the state and around the country.
Read more about Governor Kelly’s latest transportation and supply chain investments:
Kansas Governor Laura Kelly says she joined Transportation Secretary Julie Lorenz on Thursday, May 26, to announce the state will give $11.5 million in grants to advance 17 railroad improvement projects throughout the Sunflower State.
“Kansas’ railroad industry is vital to the state’s economy and the nation’s supply chain system,” Kelly said. “This $11.5 million investment will modernize our rail network, strengthen our position as a national logistics hub, and enable farmers and ranchers to get their products to market faster.”
Since IKE was founded in 2019, it has awarded nearly $50 million in grants and matching community contributions to 26 improvement projects. Core to IKE is state-local collaboration; each grantee contributes at least 40% of the improvement project funding. With the grantees’ contributions, the total investment in rail improvement projects throughout the state is $19 million.
The projects – the majority of which are in West and South Kansas – will be funded through the Kansas Department of Transportation’s State Rail Service Improvement Fund (SRSIF).
These grant funds, made available to short-line railroads, shippers, and other qualifying entities, will be used for significant track rehabilitation and capacity improvement projects. Funds may also be used for financing and acquisition activities and the purchase of rolling stock.
The projects, involving seven railroads and eight shipper locations, will be funded through the Kansas Department of Transportation’s State Rail Service Improvement fund. Grants range from $28,951 to replace a siding at an Americold Logistics facility to $2.1 million to build a new siding for Monarch Cement in Humboldt.
For Monarch, the project will be centered on the construction of new siding for portions of the South Kansas and Oklahoma rail line that operates nearby its plant, also known as the Watco-SKOL short line railway.
The primary objective of the project is to transition from road to rail transportation for items integral to its primary commodities, including cement mixing.
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The grant funds, made available to short lines, shippers and other qualifying entities, will be used for track rehabilitation and capacity improvement projects. Funds can also be used for financing and acquisition activities and the purchase of rolling stock.