Railroad Wins $19.9M Grant to Modernize NC Rail

The federal grant funds upgrades to about 30 miles of track in Montgomery and Stanly counties, North Carolina.

Updated on Nov. 3, 2026 in Transportation

Isometric editorial illustration of two parallel rail sections on gravel ballast, one new and one weathered, receding toward pine trees under a flat horizon. — The federal government awarded Aberdeen Carolina & Western Railway Co. a $19.9 million grant to modernize about 30 miles of track in Montgomery and Stanly counties, North Carolina. AI Illustration. Upload story photo >

Live Poll

Should federal taxpayer money fund private freight railroad upgrades?

The U.S. Department of Transportation awarded Aberdeen Carolina & Western Railway Co. a $19.9 million grant through the Rail Infrastructure and Safety Improvements (CRISI) Program. The project will modernize about 30 miles of rail in Montgomery and Stanly counties.

Why it matters

The existing rail was laid in the early to mid-1900s, and the railroad counts Perdue Farms and Mountaire Farms among its largest customers. The upgrade targets the infrastructure that serves these shippers across the region.

The $19.9 million federal grant makes up part of a $41 million total investment in the rail infrastructure. The railroad and the North Carolina Department of Transportation together contribute 52% of the non-federal match, and the construction timeline has not been disclosed.

The players

U.S. Department of Transportation

The federal department that administers the CRISI Program and awarded the grant to the railroad.

Aberdeen Carolina & Western Railway Co.

A North Carolina freight railroad whose customers include Perdue Farms and Mountaire Farms.

North Carolina Department of Transportation

The state agency that is contributing to the non-federal match for the rail modernization project.

The details

The grant is awarded through the CRISI Program, which the U.S. Department of Transportation administers. The project replaces existing rail with approximately 30 miles of continuous welded rail in Montgomery and Stanly counties.

Oct. 28, 2026: Aberdeen Carolina & Western Railway Co. announced the grant and project.

Roadmap

The award is a direct funding action under the federal CRISI Program, which channels federal dollars into freight rail infrastructure upgrades. The project fits a pattern of federal support for aging short-line rail networks that carry agricultural and industrial freight.

Shippers that rely on the rail line, including agricultural and poultry operations, may see benefits if the upgrades improve reliability and capacity. The stub does not indicate any change to rates or service schedules for customers.

The takeaway

Federal grants like this one can shift the cost of maintaining aging freight infrastructure away from local operators. Watch for construction schedules and any service changes that affect shippers along the line.