Ohio Grants $195K for Rail Upgrades at Stellantis, AluChem Plants

Ohio Rail grants $195,000 for rail upgrades, leveraging $390,000 to boost automotive and manufacturing logistics, improving efficiency and shifting freight.

January 28, 2026 6:39 pm

🛑 Key Takeaways:

The Ohio Rail Development Commission (ORDC) has approved $195,000 in grants for two rail spur rehabilitation projects.
The state grants leverage a total private/public investment of $390,000 to upgrade critical industrial rail infrastructure.
These projects directly support Ohio’s automotive and manufacturing sectors by improving logistics efficiency and enabling a shift from truck to rail freight.

COLUMBUS, OH – The Ohio Rail Development Commission (ORDC) on Jan. 22 approved two grants totaling $195,000 to support rail infrastructure projects valued at a combined $390,000. The funding targets upgrades for Watco’s Ann Arbor Railroad serving a Stellantis auto plant in Toledo and for alumina manufacturer AluChem in Jackson.

Category	Toledo Project (Ann Arbor RR)	Jackson Project (AluChem)
Project Type	Grade Crossing Rehabilitation	Rail Spur Reactivation
Total Project Cost	$240,000	$150,000
ORDC Grant Award	$120,000 (50% of cost)	$75,000 (50% of cost)
Key Stakeholders	ORDC, Watco, Stellantis	ORDC, AluChem
Primary Objective	Improve safety and eliminate traffic delays	Increase rail storage capacity
Approval Date	January 22

Operational & Technical Details

The larger grant of $120,000 was awarded to Watco’s Ann Arbor Railroad. The funds will address a deteriorated grade crossing on Chrysler Drive in Toledo. This crossing serves a critical spur line for the Stellantis Jeep manufacturing complex. The rehabilitation is designed to improve safety and operational efficiency, reducing delays for both rail and vehicle traffic. This upgrade anticipates higher rail volume following Stellantis’s plan to begin midsize truck production at the facility in 2028.

In Jackson, the ORDC awarded a $75,000 grant to AluChem. The project will reactivate a second, dormant rail spur at the company’s manufacturing plant. This will add essential on-site railcar storage capacity. The enhancement allows AluChem to handle more inbound and outbound materials via rail, eliminating the need for truck-based shipping for certain products.

Market Impact Analysis

The ORDC’s funding demonstrates a targeted strategy of public-private partnerships to strengthen Ohio’s industrial supply chains. By financing last-mile rail infrastructure, the state enhances the logistical capabilities of key employers like Stellantis and AluChem. The Toledo project is a forward-looking investment to prevent future bottlenecks as automotive production expands. The AluChem project directly supports a modal shift from road to rail, which can lower transport costs and reduce highway congestion. Both projects bolster the competitiveness of Ohio-based manufacturing operations.

FAQ: Quick Facts

What is the total value of these projects?

The two projects have a combined value of $390,000, supported by $195,000 in grants from the Ohio Rail Development Commission.

Which companies will benefit from the rail upgrades?

The primary beneficiaries are Stellantis, which operates the Jeep complex in Toledo, and AluChem, an alumina manufacturer in Jackson.

When is the expected completion date?

The source materials do not specify an expected completion date for either project.