US awards major rail investment to connect Port MacKenzie in Alaska
The US Department of Transportation has announced approximately US$249 million in federal funding for a new railway connection linking Port MacKenzie in Alaska with the Alaska Railroad Corporation’s existing mainline.
The funding, awarded to Alaska Railroad Corporation through the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program, will support the construction of a 32-mile (51.5-kilometre) rail line.
The project is intended to improve freight access between Alaska’s interior and Port MacKenzie, particularly for cargo associated with mineral extraction, energy production and industrial development.
The announcement was made in Palmer, Alaska, by US Transportation Secretary Sean P. Duffy and Federal Railroad Administrator David Fink, alongside state officials and members of Alaska’s congressional delegation.
New connection to support freight transport
The planned railway will establish a direct connection between Port MacKenzie and Alaska Railroad’s mainline, providing an additional transport route for cargo moving between the state’s interior and its maritime infrastructure.
According to the Department of Transportation, the project is expected to reduce the distance required to move freight to the port, while improving rail system performance and reducing transportation delays.
The authorities also anticipate improvements in rail safety and lower shipping times and costs once the connection is operational.
The new infrastructure is intended to support the movement of minerals and energy resources, including cargo associated with potential future industrial developments.
Senator Lisa Murkowski said the connection would help move freight from resource projects while improving transportation safety and efficiency.
Investment builds on wider Alaska infrastructure funding
The Port MacKenzie rail award follows other federal investments in Alaska’s transportation infrastructure.
Earlier in 2026, approximately US$34 million was secured for improvements to Port MacKenzie’s capabilities, according to Congressman Nick Begich.
Separately, the Department of Transportation announced US$28.8 million in funding for rehabilitation of the Hurricane Gulch railway bridge, with the improvements intended to extend the bridge’s operating life and permit higher train speeds.
The Port MacKenzie project forms part of the federal CRISI programme, which supports railway infrastructure improvements focused on safety, efficiency and reliability.
The Department of Transportation has not specified a construction start date or an expected completion date for the new rail connection.
The announced award provides federal funding for the project, while its construction and eventual operational benefits remain subject to implementation.
