Hitachi Energy will receive a $175,000 grant to support the rehabilitation of 1,000 feet of track at its South Boston facility in Halifax County, Va., through the Virginia Department of Rail and Public Transportation’s (DPRT) Rail Industrial Access program, which “promotes truck diversion by enhancing rail access for businesses.”
DPRT on Feb. 18 reported that the grant is funded through the FY 2025 Industrial, Airport, and Rail Access Fund.
Hitachi Energy, one of the largest manufacturers of power and liquid-filled transformers in the United States, is investing $26 million in the facility, according to DRPT. The rail project, referred to DRPT by Hailfax County Industrial Development, will enable the transport of oversized power and liquid-filled transformers. It is expected to create 100 new jobs and add nearly 50 new railcars annually to the network, avoiding truck shipments. Hitachi Energy is said to be receiving funding from the Commonwealth Opportunity Fund and the Tobacco Region Fund, as well.
“Investing in rail infrastructure is essential for sustaining economic growth and ensuring the efficient movement of goods across the Commonwealth,” said Tiffany Robinson, who was hired last fall as DRPT Director. “By supporting this project, we are enhancing Virginia’s freight capabilities while also reducing the strain on our highway network. DRPT remains committed to fostering rail solutions that benefit both businesses and the communities they serve.”
Rail Industrial Access program-supported projects include engineering, site preparation, track construction, track rehabilitation, track improvement, environmental mitigation, and main line railroad switch installation. Grants require a 30% match from the applicant and include performance-based requirements. The Commonwealth Transportation Board in 2024 approved increasing the maximum grant amount from $450,000 to $750,000.
