Maryland DOT: $22.1B Plan Funds Baltimore Light Rail Upgrade

Maryland DOT invests $1B+ to modernize Baltimore Light Rail, upgrading infrastructure and boosting freight capacity at the Port of Baltimore.

January 26, 2026 8:39 pm

🛑 Key Takeaways:

Maryland’s Department of Transportation has finalized a $22.1 billion capital program for fiscal years 2026-2031.
The plan allocates over $1 billion to modernize Baltimore’s light-rail system, the first major upgrade in 30 years.
Investment includes critical freight infrastructure at the Port of Baltimore, improving intermodal links for CSX and Norfolk Southern.

BALTIMORE, MD – The Maryland Department of Transportation (MDOT) on January 21 released the final version of its $22.1 billion Capital Transportation Program (CTP) for fiscal years 2026-2031. The six-year plan earmarks more than $1 billion for a complete modernization of Baltimore’s light-rail system and funds the rehabilitation of key freight rail-served berths at the Port of Baltimore.

Category	Specification / Detail
Program Name	Capital Transportation Program (CTP)
Total Budget	$22.1 billion
Timeline	Fiscal Years 2026-2031
Key Rail Allocation	>$1 billion for Baltimore Light RailLink modernization
Key Stakeholders	Maryland DOT, CSX, Norfolk Southern Railway
Freight Component	Rehabilitation of Dundalk Marine Terminal Berths 11-13

Operational & Technical Details

The Baltimore light-rail project is the first significant capital investment in the system in three decades. The funding is designated for a complete replacement of the existing vehicle fleet with modern rolling stock. The project scope also includes comprehensive upgrades to stations, signaling systems, and maintenance facilities to improve overall safety and service reliability.

For freight operations, the CTP will fund the rehabilitation of Berths 11-13 at the Port of Baltimore’s Dundalk Marine Terminal. This facility is a critical intermodal point served by both CSX and Norfolk Southern Railway, and the upgrades are intended to maintain and enhance its operational capacity.

Market Impact Analysis

The CTP represents a long-overdue commitment to addressing deferred maintenance on Baltimore’s public transit infrastructure. For suppliers of rolling stock and rail systems, the >$1 billion light-rail modernization creates a significant public tender opportunity in the U.S. market. The investment is expected to improve system reliability, potentially boosting ridership and influencing future transit-oriented development.

Upgrading the Dundalk Marine Terminal berths directly strengthens the Port of Baltimore’s competitive position on the East Coast. By improving infrastructure used by CSX and Norfolk Southern, MDOT is ensuring smoother rail-to-ship and ship-to-rail transfers, which is critical for supply chain efficiency and attracting container volume.