Federal Grant Upgrades 30 Miles of NC Freight Rail
Shippers on the Aberdeen Carolina & Western line in Montgomery and Stanly counties should plan around the track work.
Updated on Nov. 3, 2026 in Transportation
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Should federal taxpayer money fund private freight railroad upgrades?
The US Department of Transportation awarded Aberdeen Carolina & Western Railway Co. a $19.9 million grant to modernize about 30 miles of rail in Montgomery and Stanly counties, North Carolina. The railroad, whose largest customers include Perdue Farms and Mountaire Farms, is working with the state on a $41 million rail infrastructure project.
Why it matters
The existing track was laid in the early to mid-1900s, and replacing it addresses aging infrastructure that serves major poultry and agricultural shippers in the region. Federal funding through the Rail Infrastructure and Safety Improvements (CRISI) Program lowers the capital burden on the railroad, which contributes 52% of the non-federal match alongside the North Carolina Department of Transportation.
The $19.9 million federal grant supports a $41 million total rail infrastructure investment covering about 30 miles of track in Montgomery and Stanly counties. The railroad and the North Carolina Department of Transportation together contribute 52% of the non-federal match.
The players
Aberdeen Carolina & Western Railway Co.
A short-line freight railroad serving central North Carolina, whose largest customers include Perdue Farms and Mountaire Farms.
US Department of Transportation
The federal agency that administers the CRISI Program and awards rail infrastructure grants to railroads and states.
North Carolina Department of Transportation
The state agency that contributes to the non-federal match and oversees transportation infrastructure across North Carolina.
The details
The grant flows through the CRISI Program, which the US Department of Transportation administers to fund rail safety and infrastructure improvements. The project replaces existing rail with approximately 30 miles of continuous welded rail, a track format that reduces joints and maintenance points compared with older jointed rail. For shippers that depend on the line, the upgrade targets the reliability of freight movement through two North Carolina counties.
Timeline
Oct. 28, 2026: Aberdeen Carolina & Western Railway Co. announced the grant and the rail modernization project.
Market Landscape
Federal CRISI grants are a recurring source of capital for short-line railroads that carry regional freight but lack the balance sheets to fund major track replacement alone. This award follows that pattern, pairing federal money with state and private investment in the non-federal match.
Manufacturers and agricultural shippers in Montgomery and Stanly counties should monitor construction schedules, since track work can affect delivery windows during the upgrade. Operators who rely on rail freight should ask their carriers when the new track will be in service and whether any interim service changes apply.
The takeaway
Track modernization of this scale typically carries construction-period disruptions, so shippers should ask the railroad for its schedule and plan around any service windows. Companies that depend on the line should also watch for updates on completion timing from the railroad and NCDOT.
Further reading
For related coverage, see Transportation on We are Main Street, which tracks freight, rail, and logistics developments affecting North Carolina operators.
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Should federal taxpayer money fund private freight railroad upgrades?
