Rail Industrial Access Program

The Rail Industrial Access Program is administered by the North Carolina Department of Transportation Rail Division as part of the broader Freight Rail and Rail Crossing Safety Improvement program. Established under state statute, the program is designed as an economic development tool to enhance freight rail infrastructure and improve connectivity between industrial sites and the rail network. The program specifically targets companies that are considering locating or expanding operations in North Carolina and require rail access to support logistics and distribution needs. By offering state-supported funding, the program aims to make North Carolina more competitive in attracting and retaining industrial investment. The primary purpose of the program is to support the construction or rehabilitation of railroad spur tracks and related infrastructure that enable efficient freight movement. Funding is intended to modernize and expand rail capabilities, ensuring that industries can transport goods effectively while reducing reliance on highway transportation. Eligible project activities include engineering and design, site preparation such as grading and drainage, track construction, installation of switches, and grade crossings and signaling systems. However, certain costs are explicitly excluded, including utility relocation, right-of-way acquisition, unloading facilities, buildings, and mobile equipment. The program operates as a reimbursement-based matching grant, meaning that recipients must first incur eligible expenses and then request reimbursement from the state. Funding is contingent upon prior approval of the application and confirmation that matching funds are secured from private or local sources. Typically, the program provides up to 50 percent of total eligible project costs, with a defined maximum funding cap per project. This cost-sharing structure ensures that both public and private stakeholders have a vested interest in the success and completion of the project. Eligibility for the program is broad and includes local governments, community development organizations, railroad companies, and private industries. Applicants must demonstrate that their project will contribute to economic development through job creation, capital investment, and increased rail utilization. Projects are evaluated based on several criteria, including total capital investment, projected job creation, the economic tier of the county in which the project is located, and anticipated rail traffic. Projects that do not demonstrate significant economic impact or that are only considering locations within the state without interstate competition are generally not eligible. The application process is conducted through the North Carolina Enterprise Business System grant portal, and applicants must be registered as vendors prior to submission. Applications may be submitted on a rolling basis as funding allows, and applicants are encouraged to coordinate with the Rail Division prior to submission to confirm eligibility and prepare required documentation. Early engagement is recommended to address environmental review requirements, project readiness, and supporting materials necessary for evaluation. Once submitted, applications undergo a formal evaluation, scoring, and ranking process. Projects that meet minimum scoring thresholds are recommended for approval and must then receive final authorization from the North Carolina Department of Transportation Rail Division and the Board of Transportation. Approved projects enter into a legal agreement governing implementation, including timelines, compliance requirements, and performance expectations. Following award, projects must proceed through design, environmental review, and construction phases, with a typical timeline allowing for notice to proceed within several months of application and completion within approximately 18 months after agreement execution. After construction, a closeout period is required for final review and reimbursement. Recipients must maintain the infrastructure and meet performance commitments, including job creation and rail usage, for a specified period following project completion. The program operates on an ongoing basis without a fixed annual deadline, allowing flexibility for applicants to align submissions with business development timelines.

Engage early with Rail Division; prioritize shovel ready projects; demonstrate strong economic impact including jobs and investment