Governor Laura Kelly Announces $11.5 Million Investment to Improve Rail Network Across Rural Kansas

State Rail Service Improvement Fund Grants
State Rail Service Improvement Fund Grants

Governor Laura Kelly joined Transportation Secretary Julie Lorenz May 26 to announce the State of Kansas is giving $11.5 million in grants to advance 17 railroad improvement projects across Kansas.

The projects – the majority of which are in western and southern Kansas – will be funded through the Kansas Department of Transportation's State Rail Service Improvement Fund (SRSIF). Governor Kelly shared the list of SRSIF's spring 2022 grantees during an event at the Monarch Cement Company in Humboldt, the largest grantee this cycle.

"Kansas' railroad industry is vital to the state's economy and the nation's supply chain system," Governor Laura 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."

SRSIF is part of the Eisenhower Legacy Transportation Program (IKE). 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 percent of the improvement project funding. With the grantees' contributions, the total investment in rail improvement projects throughout the state is $19 million.

"Combining state and private funds to improve local infrastructure is a core principle of IKE: leveraging partnerships," Secretary Julie Lorenz said. "By placing emphasis on right-sized, practical improvements, together we are effectively addressing critical infrastructure needs for agriculture and manufacturing in Kansas."

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.

Below are the projects receiving funding from the SRSIF for fiscal year 2022:

Project Sponsor

Project

Award

Kansas and Oklahoma Railroad

Replace rail on .5 mile of curves

$112,595

Kansas and Oklahoma Railroad

Upgrade 51 bridges to 286K

$955,500

Cimarron Valley Railroad

Major rehabilitation

$1,048,872

South Kansas and Oklahoma Railroad

Replace 9 switches in Winfield Yard

$380,803

South Kansas and Oklahoma Railroad

Major rehabilitation/286K

$619,564

Americold Logistics

Siding replacement

$28,951

Kansas and Oklahoma Railroad Priority

Replace 4 switches from 90# to 115# rail

$182,119

Garden City Western

Rehabilitation

$307,513

Scoular Grain Goodland

Siding extension

$361,644

ADM

Construction of new 2-mile loop track

$90,000

MKC Elevator

Construction of 120-car loop track

$1,625,169

Dei-Fan Logistics

New siding construction

$642,526

Bestifor Farms

Siding rehabilitation & expansion

$664,756

Monarch Cement

Construction of new siding

$2,100,000

Midland Marketing Cooperative

Siding rehabilitation

$231,015

KYLE

Rail replacement

$1,440,000

New Century AirCenter Railroad

Major rehabilitation/286K

$849,900

(Information courtesy Office of the Governor.)