The FREIGHT Program

The Department of Rail and Public Transportation (DRPT) in Virginia administers three rail grant programs aimed at enhancing the state's transportation network. These programs are the Freight Rail Enhancement to Increase Goods and Highway Throughput (FREIGHT) Program, the Shortline Railway Preservation and Development Fund (RPF), and the Industrial Access Railroad Tracks (RIA) Program. The primary objective of these programs is to create a competitive multimodal network that offers transportation choices, increases network resilience, fosters economic growth, and improves access for all users. This approach ensures that the rail network capacity meets demand, reduces highway system strain, provides access points for Virginia businesses, and maintains safe and efficient railroad infrastructure. The FREIGHT program is funded by the Commonwealth Rail Fund with an approximate annual budget of $8 million. It focuses on rail network capacity improvements, including mainline, siding, crossover, yards, terminals, storage tracks, and rail facilities. Eligible recipients include freight rail operators, the Virginia Port Authority, local and regional governments, non-profit organizations, and private companies. The Rail Preservation Fund, also with an $8 million annual budget, supports the state of good repair for Virginia's shortline railroads. Eligible projects include track and bridge improvements to meet Class 2 Track Safety Standards and safety enhancements like crossing signalization. The RIA program, with a $5.5 million budget, aims to connect new or growing businesses to the rail network, funding engineering, site preparation, track construction, and environmental mitigation. Applications for the FREIGHT and RPF programs open on December 1 and close on February 1, aligning with DRPT's annual grant cycle. The Rail Industrial Access program accepts applications year-round to accommodate Virginia's dynamic business environment. The application process involves eligibility evaluation, scoring based on specific criteria, and recommendations to the Commonwealth Transportation Board (CTB) for approval. DRPT uses the WebGrants system for application submission, evaluation, and management. The CTB's decisions are incorporated into the Six-Year Improvement Program (SYIP), and applicants are notified of the outcomes. Eligibility varies across the programs. For FREIGHT, eligible projects include right-of-way acquisition, signaling, engineering, and design, but exclude operating expenses and passenger rail subsidies. Rail Preservation projects focus on track and bridge improvements, excluding operating expenses and maintenance. RIA projects must involve constructing or improving tracks directly associated with revenue carloads, with certain exclusions like utility relocation and operations. Each project is subject to a Grant Agreement outlining terms and conditions, and DRPT retains an ownership interest in project improvements to ensure they remain in service. DRPT oversees project execution, requiring grantees to manage projects and submit claims for reimbursement. Claims must include detailed documentation and adhere to Virginia's procurement and accounting guidelines. Upon project completion, grantees must maintain infrastructure and report annual network activity, such as rail carloads. Performance reporting is required for varying durations depending on the program, with contingent interest retained by DRPT to ensure long-term project benefits. For more information, interested parties can visit the DRPT website or contact them via email at drptpr@drpt.virginia.gov.