Fay-Penn gets $1.5 million grant for rail project
Fay-Penn Industrial Development Corp. (FIDC) has received a $1.5 million grant for the second phase of track construction for the rail/truck transload facility in Smithfield.
Mike Krajovic, Fay-Penn Economic Development Council president, said the funds will be used to make improvements in the Smithfield rail yard, “to expand operations to accommodate materials coming in to serve the Marcellus Shale industry.”
Krajovic said Fay-Penn is serving as a “pass-through” for the funds, which the Southwestern Pennsylvania Railroad will use to make the improvements. The FIDC owns the rail line and Southwest Pennsylvania Railroad is the short-line operator.
“We applied for the grant. With the budget cuts in Harrisburg, we are very pleased that this project was selected for funding. It was a very competitive process,” Krajovic said.
“My understanding is they (the rail line) would like to get started on this project as soon as possible,” he added.
Krajovic said the railroad company provided some of the technical details for the grant application.
The Capital Budget/Transportation Assistance Program will distribute the grant, which is funded through state capital bond dollars in the general fund budget. The grant will be administered by the state Department of Transportation’s Bureau of Rail Freight, Ports and Waterways.
In making the announcement that the grant was approved, state Sen. Richard A. Kasunic, D-Dunbar, said it is anticipated that the facility will handle upwards of 2,000 rail cars, which should help ease the number of long-haul truckloads traveling on state and local roads.
“I am pleased state dollars are being used to help complete the final phase of this project to install new track and rehabilitate this local facility,” Kasunic said. “This will soon be a transportation distribution hub, largely catering to the growing number of gas drilling enterprises in our region.
“This project will enhance the region’s economic attractiveness while preserving and making local highways safer,” Kasunic said.
He added that 16 grants totaling $23 million were approved for projects around the state today by the State Transportation Commission.