The US Department of Transportation has awarded nearly US$250 million to the Alaska Railroad Corporation for the construction of a new freight rail connection to Port MacKenzie.
The funding was awarded through the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements Grant Programme.
The project will construct approximately 32 miles of railway connecting Port MacKenzie with the Alaska Railroad’s main line.
According to the US Department of Transportation, the new rail connection will support the movement of Alaska’s mineral and energy resources while improving access to the port from the state’s interior.
The infrastructure is expected to reduce freight distances, shipping times and transportation costs. It will also aim to improve rail safety, network performance and service reliability.
US Transportation Secretary Sean P. Duffy said Alaska requires strong infrastructure to transport its natural resources safely and efficiently.
The project is also expected to support mining, energy and industrial development while strengthening freight connections between production areas and Port MacKenzie.
The latest investment follows a US$34 million allocation announced earlier in 2026 to expand the port’s capabilities.
The Federal Railroad Administration also awarded Alaska US$28.8 million in August for the rehabilitation of the Hurricane Gulch bridge in the Matanuska-Susitna Borough. The project will extend the bridge’s operational life and allow train speeds to increase from 10 mph to 25 mph.
