NCDOT awards grants to improve North Carolina freight rail system

By Staff Report, posted Jan 22, 2026 on BizFayetteville.com

The continuous welded rail project on the continuous welded rail project on the Aberdeen Carolina & Western Railway will upgrade 30 miles of track between Charlotte and Oakboro, enhancing freight service for businesses such as Charlotte Pipe & Foundry’s new $460 million facility. Photo provided by NCDOT.

The N.C. Department of Transportation’s Rail Division is investing $16.3 million to improve freight rail infrastructure on 12 short line railroads and at the Port of Morehead City.

“These projects deliver significant benefits to North Carolina’s freight rail network,” said Jason Orthner, director of NCDOT’s Rail Division, in a press release. “By working closely with our railroad partners, we are strengthening reliability and resiliency, supporting businesses across the state, and reinforcing the rail infrastructure that drives North Carolina’s economy.”

NCDOT’s $16.3 million contribution is funded through the Freight Rail & Rail Crossing Safety Improvement (FRRCSI) program. The program, established in 2014 by the N.C. General Assembly, supports the health, safety and performance of the state’s rail infrastructure while establishing partnerships to meet the growing demand for rail service.

The Rail Division’s grants are matched by investments from participating railroad companies and the N.C. Ports Authority. In total, these partnerships are putting $41.5 million into projects that improve North Carolina’s freight rail network.

"We are grateful to partner with the NCDOT on ACWR’s large-scale infrastructure project, which promotes safe and efficient freight movement in our region,” said Anthony Menzies in a press release. Menzies is CEO of Aberdeen Carolina and Western Railway, a short-line railroad that operates a 150-mile freight corridor between Charlotte and Aberdeen. “The combination of private and NCDOT funds also allowed us to leverage over $8.9 million in matching grants from the Federal Railroad Administration (FRA), which will support economic development across the state.”

The projects will upgrade and improve over 95 miles of railroad track and improve eight railroad bridges and culverts in North Carolina, supporting the increase of freight rail traffic on the statewide railroad network.

The awarded projects include the following:

Aberdeen and Rockfish Railroad: $771,397 for track upgrades and continuity of service on the AR Mainline (Hoke County).
Raleigh & Fayetteville Railroad: $999,586 for rail corridor improvements to the NS and VF lines (Wake and Harnett counties).

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