$810k state grant will help Peachey Rail Works expand rail operation for ag use

Peachey Rail Works was among 30 grantees announced in a $53 million round of rail freight improvement funding earlier this month.

The Lancaster County-based company, which has a significant presence in downtown Lebanon along the Norfolk Southern track, received $810,000 to construct two additional tracks and install unloading equipment.

Another local grant winner, Allen Distribution, received $722,000 to build three rail sidings at a 625,000-square-foot logistics center connecting to a Norfolk Southern line in Jackson Township.

In a press release about the grants, state Sen. Chris Gebhard (R-48) and state Rep. John Schlegel (R-101) said the Peachey grant will allow for the installation of a modern unloading pit and a conveyer system that will reduce car backlogs and attract new clients.

“This public-private partnership promises to deliver significant benefits to regional commerce, Pennsylvania’s agricultural industry and the commonwealth’s multimodal freight system,” Gebhard and Schlegel said in the release. “Based on the project details and future volume forecasts, we are confident the expansion will pay long-term dividends for freight efficiency and rural economic development.”

Peachey Rail Works uses its Lebanon city terminal to serve a mostly ag client base who move certified organic and feed-grade commodities.

“This grant will allow Peachy Rail Works to better serve our customers throughout Lebanon County, many of whom are agricultural businesses,” said Derek Martin of Peachey Rail Works. “By improving rail logistics, we can help ease transportation challenges for the ag community while also creating new jobs and strengthening the local economy.”

“Pennsylvania’s rail freight network supports family sustaining jobs and connects Pennsylvania communities to the global economy while bolstering local economic development,” PennDOT Secretary Mike Carroll said in the release. “These investments to expand and improve the network will create opportunities for generations of Pennsylvanians to come.”

The grants are funded by state Rail Transportation Assistance and Rail Freight Assistance programs.

Learn more about Peachey’s operations in this video by YouTube channel BulkLoads.