Gov. Andy Beshear has announced over $5.6 million in state grants for six Kentucky railway infrastructure improvement projects spanning seven counties. Funds were distributed by the Kentucky Transportation Cabinet (KYTC) through the Kentucky Industrial Access and Safety Improvement (KIASI) program.
The two largest grants go to Logan Aluminum and one of its co-owners, Novelis Corporation. In fact, between them they are receiving over half of the announced grant total.
The KIASI grant program designates $7.5 million each fiscal year in 50/50 grants for railroad equipment, construction, reconstruction, improvement, or rehabilitation of rail facilities or engineering work associated with capital projects.
The recipients of the six awards are:
Novelis Corporation, $1,875,000
Logan Aluminum, Inc., $1,217,250
Stainless Steel Acquisition Co. LLC, $1,053,500
Eddyville Riverport & Industrial Development Authority, $526,581
Norfolk Southern, $499,000
Owensboro Riverport Authority, $441,245
The Logan Aluminum project will add 2,100 feet of track to establish rail access to the DC4 casting center in Logan County. The new access provides the final critical link needed for receipt of inbound raw materials by rail. In addition, the new railroad tracks will connect DC4 with the onsite ingot storage yard, allowing DC4's production volume to be transported onsite via rail instead of trucks.
“Logan Aluminum is honored to receive a KIASI grant supporting the DC4 (Recycling Facility) rail extension. This investment will enhance the efficiency and reliability of our logistics network, enabling a higher shift to rail, drive continued growth and innovation, and strengthen Kentucky’s leadership in advanced manufacturing and sustainable economic development," Logan Aluminum President and CEO Steven Clarke said. "We appreciate the state’s continued commitment to infrastructure improvements that empower manufacturers like Logan Aluminum to continue creating value for our customers, team members, and communities.”
Logan Aluminum is a corporate island operated as a partnership between Novelis and Tri-Arrows Aluminum Inc. Located at Epley Station in North Logan County, it's the largest facility in North America for producing aluminum sheet for beverage cans, supplying a significant portion of the U.S. market.
Novelis will use the funds for rail expansion at its Berea facility.