PUCO Approves $405,859 Federal Funding for Ohio Grade Crossing

Ohio Grade Crossing Safety Enhancement

On February 4, the Public Utilities Commission of Ohio (PUCO) approved $405,859 in federal funding for safety upgrades at a grade crossing in Meigs County, Ohio. The project will be executed by Watco Corp.’s subsidiary, the Kanawha River Railroad (KNWA). All installation work at the specified crossing is required to be finished by November 4.

Project Scope and Funding

The project targets the grade crossing at Leading Creek Road in the village of Rutland. The scope of work involves the installation of active warning systems, specifically flashing lights and automated gates. This upgrade will replace the passive warning systems currently in place at the location, materially increasing the crossing’s safety profile for both vehicular traffic and rail operations.

The total project cost of $405,859 is fully covered by federal funds, which PUCO is responsible for administering within the state. This funding mechanism is consistent with the federal Railway-Highway Crossings Program, commonly known as the Section 130 Program. This program allocates funds to states for the express purpose of eliminating hazards at public grade crossings, with a focus on installing active warning devices.

PUCO’s role involves identifying high-risk crossings and directing these federal resources toward targeted safety improvements. The allocation covers all project-related costs, relieving the railroad operator of the direct capital expenditure for this specific safety mandate.

Market and Network Context

Watco Corp. is one of North America’s largest owners and operators of short line and regional railroads. Its subsidiary, the Kanawha River Railroad, operates approximately 309 miles of track in Ohio and West Virginia on a former Norfolk Southern corridor, primarily transporting chemicals, aggregates, and industrial products. This investment enhances safety on a key local route without requiring direct capital outlay from Watco, a typical arrangement for safety projects on regional rail lines.

The project is representative of a national infrastructure strategy that utilizes federal grants to address safety deficits on smaller railroad networks. Short line and regional railroads are critical for first- and last-mile freight movements but often operate with limited capital for non-revenue-generating infrastructure projects. Federally funded programs are therefore essential for systematically upgrading grade crossings to meet modern safety standards, aligning with the Federal Railroad Administration’s objective to reduce crossing-related incidents.

Next Steps

With funding approved, the Kanawha River Railroad is responsible for project execution, including procurement and installation of the new signaling equipment. The project must be fully completed and operational by the November 4 deadline to meet the conditions of the PUCO-administered federal grant.