Governor Hochul Awards $101 Million in Rail and Port Infrastructure Grants Across New York State

Governor Kathy Hochul has announced $101 million in state funding to 25 freight rail and port infrastructure projects across New York, modernizing critical trade corridors while reducing greenhouse gas emissions and supporting manufacturing jobs. The awards support track rehabilitation, bridge replacement, capacity expansion, and port facility modernization under the state's Passenger and Freight Rail Assistance Program (PFRAP).

Program Scope and Goals

The Passenger and Freight Rail Assistance Program funds projects that enhance the safe movement of freight goods and support economic development across the state. The $101 million investment focuses on:

• Track and bridge rehabilitation to improve safety and reliability
• Yard, terminal and siding construction for capacity expansion
• At-grade crossing improvements for safer rail-vehicle interactions
• Wharf, dock and bulkhead upgrades at port facilities
• Cleaner rail equipment procurement to reduce greenhouse gas emissions
• Capacity enhancements at freight yards and seaport facilities

Governor Hochul stated, "New York's freight rail network is vital to our economy, and these investments represent a downpayment on a greener, safer and more productive state. Investing in key freight infrastructure is a step forward in reducing New York's emissions while modernizing our rail system."

Regional Breakdown of Awards

Rochester and Finger Lakes Region – $20.4 Million

The Finger Lakes region, including Rochester and surrounding counties, receives the largest share of funding for multiple critical projects:

• Rochester & Southern Railroad: $5.96 million to replace the Oatka Creek Bridge and ties on the main line, enhancing infrastructure and economic competitiveness
• Rochester & Southern Railroad: $3.08 million to replace the Spring Creek Bridge with new substructure and superstructure, plus tie replacement and grade crossing rehabilitation
• Waterloo grain facility connection: $1.77 million to connect a grain facility to the Finger Lakes Railway, reducing truck traffic and supporting agricultural viability
• Wyoming Transfer Station: $3.32 million to construct additional rail spurs, pads, switches and driveways, increasing capacity and supporting growth
• Arcade and Attica Railroad: $1.73 million for necessary upgrades and replacements to prevent closure
• Jaguar Tubulars New Rail Facility: $4.56 million to construct a coil steel loading facility, increasing job growth and reducing highway truck traffic

Impact for Rochester area: These projects support manufacturing, agriculture, and freight movement efficiency in Central and Western New York, reducing emissions while maintaining competitive transportation access.

Western New York (Buffalo Area) – $17.7 Million

Buffalo and Erie County receive substantial funding for rail corridor improvements and new freight access:

• Welded Tube USA Rail Spur: $4.39 million for new rail spur construction supporting Welded Tube USA operations
• Buffalo Southern Railroad Track Improvement: $1.75 million to restore five miles of corridor on the Buffalo Southern Railroad Main Line
• Falls Road Railroad: $3.65 million to replace aging rail on mainline and construct new sidings
• South Buffalo Railway/UFP Facility: $3.28 million to establish direct rail access at the Lackawanna UFP facility with three new spurs, reducing truck traffic
• Buffalo & Pittsburgh Railroad: $4.68 million to replace over 21,000 feet of rail, repair four bridges, and rehabilitate turnouts between Buffalo and Pennsylvania

Impact for Buffalo region: These infrastructure upgrades support manufacturing and distribution operations while reducing greenhouse gas emissions from truck transportation.

New York City Port and Freight Infrastructure – $40 Million

New York City receives the largest single allocation for major port modernization:

• Hunts Point Marine Terminal: $10 million for fully electrified maritime hub development with electric cargo handling equipment charging and shore power infrastructure
• Red Hook Container Terminal Pier 10: $10 million for rehabilitation and functional life extension of critical waterfront infrastructure
• LIRR Fresh Pond Yard Bridge: $10 million to replace outdated structure with modern loading and clearance standards
• LIRR English Kills Bridge: $10 million to rehabilitate to modern standards, supporting freight rail movement to key Brooklyn yards

Impact for NYC: Port electrification reduces emissions while supporting hundreds of waterfront jobs and container terminal operations.

Central New York (Syracuse Region) – $3.7 Million

Central New York receives $3.73 million for the New York, Susquehanna and Western Railway to construct 5,280 feet of new track and two turnouts for a serving yard track in Onondaga County, supporting regional rail traffic growth and the Syracuse Interchange with CSX.

Mohawk Valley – $5.4 Million

Mohawk Valley region projects include:

• Mohawk Adirondack & Northern Railroad: $3.03 million to upgrade yard ladders in Utica Yard with new heavier rail
• Leatherstocking Railway expansion: $673k for facility expansion and interchange improvements at Cooperstown Junction
• Sangerfield Rail Efficiency: $1.66 million to enhance infrastructure for grain and feed loading, improving market access

North Country – $7.3 Million

North Country receives funding for Ogdensburg Bridge and Port Authority to replace approximately 10 miles of rail, upgrade crossings, and continue bridge rehabilitation ($5.66 million), plus St. Lawrence IDA track rehabilitation and transloading improvements ($1.62 million).

Capital Region (Albany/Saratoga Area) – $6.5 Million

Capital Region projects include Pan Am Southern rail rehabilitation, Corinth & Hudson Railway upgrades, Albany Port Railroad equipment modernization, and Hudson Line Passive Crossing safety improvements.

Economic and Environmental Benefits

These freight rail investments support broader state economic goals:

• Manufacturing competitiveness: Efficient rail access reduces shipping costs and timelines for manufacturers
• Agricultural viability: Grain and agricultural commodity rail connections improve farmer market access and margins
• Job creation: Construction and operations jobs for rail and port workers
• Emissions reduction: Freight rail is more fuel-efficient than truck transportation, with projects reducing NOx, PM, and CO2 emissions
• Road congestion relief: Diverting freight to rail reduces truck traffic and highway wear
• Port modernization: Electric infrastructure and facility upgrades support clean cargo handling

Construction Project Categories

Eligible project activities funded under this program include:

• Track and bridge rehabilitation and replacement
• Yard, terminal, and siding construction and capacity expansion
• Elimination of clearance obstructions for modern railcars
• Wharf, dock, and bulkhead construction and reconstruction
• Dredging for port access
• At-grade crossing resurfacing and safety improvements
• Material handling equipment storage facilities
• Wayside detectors and safety monitoring equipment

Why This Matters for Construction and Development

This $101 million investment creates significant opportunities for construction, engineering, and project management firms throughout New York State. The projects span multiple regions, support manufacturing and agricultural sectors, and represent immediate construction activity.

For Upstate New York specifically: Rochester, Buffalo, Syracuse, and surrounding regions benefit from nearly $50 million in direct infrastructure funding, supporting manufacturing competitiveness, agricultural export efficiency, and regional economic growth.

Next Steps

Winning projects were selected through a competitive solicitation process and evaluated based on benefit-cost analysis, regional economic development alignment, safety enhancements, compatibility with other investments, and climate resilience. Construction timelines vary by project scope, with funding disbursement tied to project readiness and milestone achievement.

Industry Insight: Westside Construction Group brings 30+ years of experience managing complex rail and infrastructure projects across Upstate New York. WCG understands the importance of reliable freight infrastructure for regional manufacturing and economic development. For consultation on rail-adjacent construction or infrastructure projects: (585) 440-0304 or www.buildwcg.com