The port authority said the grant was the result of a proposal submitted earlier this year in response to a competitive funding opportunity offered by the Commerce Department. “The award is not part of any federal stimulus program,” the port authority said.
The port will contribute $1.7 million in matching funds to the project.
The 14-mile single-track Blount Island rail system is more than 40 years old. The line, which is owned by port authority, allows CSX to provide cargo moves to and from the terminal. More than 30 percent of Blount Island’s cargo moves by rail.
Together the federal grant and the port’s matching funds will pay for the replacement of more than 19,000 linear feet (3.5 miles) of rail line and more than 12,000 timber ties. Fifteen new turnouts will also be built.
“The new portions of the rail line will follow the same footprint as the existing line,” the port authority said.