NJDOT announces $27.8 million in Rail Freight Assistance Programme grants

In New Jersey, the Murphy Administration has announced the awarding of six FY23 Rail Freight Assistance Programme grants totalling more than $27.8 million. The grants help support economic activity by preserving and improving the existing freight transportation system and by making freight rail service more widely available for businesses throughout the state. Rail freight improvements support the state’s clean energy, congestion mitigation, and sustainable development goals.

“The Murphy Administration’s targeted investments in New Jersey’s rail transportation network will strengthen our economy and ensure the safe and efficient movement of goods,” Diane Gutierrez-Scaccetti, NJDOT Commissioner, said. “The projects funded through the Rail Freight Assistance programme provide critical upgrades to our transportation infrastructure.”

The six projects receiving funding are located in six counties and include the upgrade and rehabilitation of ties, rails and switches of out-of-service and in-service railroad tracks; installing new rails; constructing a new track connection; and extension of siding. The $27.8 million in state grants will leverage an additional $3.2 million from railroad owners and operators, bringing the total investment in these six projects to more than $31 million.

The Murphy Administration has invested more than $138.6 million in New Jersey’s freight rail services, leveraging an additional $50.4 million from railroad owners and operators, for a total of more than $189 million in Rail Freight Assistance Programme investment.

The Rail Freight Assistance Programme, administered by the NJDOT Office of Grants Management, provides funding for capital improvements that result in the continuation of economically viable rail freight services in the state. Factors considered in the selection of projects include existing condition, type of project, efficient and responsive freight distribution and highway congestion mitigation. Project sponsors are required to continue freight service on the improved line for at least five years after completion of the project.

The New Jersey Rail Freight Assistance Programme grants typically provide funding for up to 90% of the estimated cost of each project while the sponsor is responsible for providing the remaining amount. Application proposals are accepted through SAGE, the State’s on-line System for Administering Grants Electronically.