New Jersey Invests $27.8 Million in Rail Freight Infrastructure Upgrades

Six Projects Aim to Enhance Safety, Boost Economic Activity, and Support Sustainable Development Goals

The Murphy Administration has announced the allocation of over $27.8 million for six rail freight assistance projects across New Jersey, as part of the FY23 Rail Freight Assistance Program. These grants will enhance safety, boost economic activity, and ensure a more accessible freight rail service for businesses throughout the state. They also support the state's clean energy, congestion mitigation, and sustainable development objectives.

New Jersey Department of Transportation (NJDOT) Commissioner Diane Gutierrez-Scaccetti stated, "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. The projects funded through the Rail Freight Assistance Program provide critical upgrades to our transportation infrastructure."

The six projects, located in six different counties, involve upgrading and rehabilitating ties, rails, and switches of both out-of-service and in-service railroad tracks; installing new rails; constructing a new track connection; and extending siding. The state grants of $27.8 million will be supplemented by an additional $3.2 million from railroad owners and operators, bringing the total investment in these projects to over $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 over $189 million in Rail Freight Assistance Program investment.

Administered by the NJDOT Office of Grants Management, the Rail Freight Assistance Program offers funds for capital improvements that ensure the continuation of economically viable rail freight services in the state. Project selection considers factors such as existing conditions, project type, efficient and responsive freight distribution, and highway congestion mitigation. After project completion, sponsors must continue freight service on the improved line for at least five years.

New Jersey Rail Freight Assistance Program grants typically cover up to 90 percent of the estimated project cost, with the sponsor responsible for the remaining amount. Applications are accepted through the State's online System for Administering Grants Electronically (SAGE).