MONTGOMERY — Gov. Kay Ivey has announced a $1 million grant to help a Madison County rail system upgrade and continue serving industrial clients in north Alabama.
Funds from the Appalachian Regional Commission will assist the Huntsville and Madison County Railroad Authority in its plans to upgrade its rail services and improve the transportation of raw materials and finished products to and from existing and future industries.
“The Huntsville and Madison County Railroad Authority has been an important short-line railroad that for years has dutifully served multiple industries,” Gov. Ivey said. “I am pleased to announce this funding for the upgrades that will help the rail system continue providing vital service for area industries for years to come.”
ARC funds will help the rail service replace the Aldridge Creek bridge. The bridge is along HMCR’s 13.3-mile route from Huntsville to the Norton community near the Tennessee River. A concrete bridge will replace the existing wood bridge and enhance rail safety while also enabling rail cars to transport larger loads.
Restoration of services to Saint-Gobain Industrial will be one major benefit of the new bridge. With the decrease of permitted cargo tonnage over the bridge because of its age and condition, Saint-Gobain has had to rely on truck transportation to bring in sand – a major component of the company’s operation.
Overall, HMCR provides rail service for about 10 industries, and rail authority officials say there is the potential to attract additional industrial clients with the improvements.
The self-funded, nonprofit railroad, created to support industrial developments in north Alabama, will also install more than 10,000 new cross ties and make improvements at its rail yard as part of its total upgrade.
The Alabama Department of Economic and Community Affairs is administering the ARC grant.
“With the economic boom that Huntsville and Madison County are currently experiencing, the Huntsville and Madison County Railroad Authority figures prominently into that growth equation,” ADECA Director Kenneth Boswell said. “ADECA and Gov. Ivey are thankful to the Appalachian Regional Commission for funding this project that will continue to produce many economic benefits for north Alabama.”
Gov. Ivey notified John Peek, general manager of the Huntsville and Madison County Railroad Authority, that the grant had been approved.
ARC is an economic development agency of the federal government and 13 state governments. The agency’s mission is to innovate, partner, and invest to build community capacity and strengthen economic growth in Appalachia to help the region achieve socioeconomic parity with the nation. Thirty-seven Alabama counties, including Madison County, are part of the ARC region and eligible for funds.
ADECA manages a range of programs that support law enforcement, economic development, recreation, energy conservation and water resource management.
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