CTB Approves Grant to Hershey Chocolate for Truck-to-rail Diversion
The $450,000 Rail Industrial Access Grant From DRPT Will Construct a New Rail Spur at Augusta County Facility
 RICHMOND — The Virginia Department of Rail and Public Transportation (DRPT) announced today that Hershey Chocolate of Virginia Inc. will receive a $450,000 grant through the agency’s Rail Industrial Access Program to support the construction of a new 4,750-foot rail spur at its facility in Augusta County. The Commonwealth Transportation Board (CTB) approved the grant yesterday.
DRPT administers the Rail Industrial Access Program with the goal of promoting truck diversion through grant assistance that connects new or expanding businesses to the freight railroad network. The Hershey Chocolate project will grow capacity for 145 new annual carloads and create 111 new jobs. The new rail spur will divert nearly 1,500 trucks from Virginia highways each year in addition to the 3,995 trucks Hershey is already diverting.
“The Rail Industrial Access grant program has proven again and again its immense value to Virginia’s economy and businesses,” said Jennifer DeBruhl, Director of the Virginia Department of Rail and Public Transportation. “We look forward to seeing the new growth and success of Hershey in Augusta County as the rail spur improves the movement of materials to the facility from the Midwest and the Southern United States.”
As part of the Rail Industrial Access grant, Hershey is responsible for a minimum 30 percent match toward rail costs. It is estimated that total railroad track construction costs will be $5 million and total capital investment in the facility will be $140 million. The grant awarded to Hershey follows a record year for the program with a total of eight projects, 2,895 new jobs, $3.5 million in state funding, and $867 million in private investments.
Since 2017, DRPT freight rail programs have diverted more than 44 million trucks from Virginia highways. Companies that have Rail Industrial Access grants diverted 28,332 of those trucks during fiscal year 2022. By reducing the number of trucks on the road, DRPT is fulfilling its commitment to reducing road congestion and decreasing harmful emissions in Virginia.
Hershey Chocolate is an industry-leading snacks company which has more than 80 brands including Hershey’s, Reese’s, Kit Kat, SkinnyPop, and Jolly Rancher. Its Virginia facility continues to expand and increase capacity — bringing new jobs and economic growth to the region.
About the Virginia Department of Rail and Public Transportation
DRPT’s mission is to improve the mobility of people and goods while expanding transportation choices in the Commonwealth through rail, public transportation, and commuter services. DRPT is committed to ensuring that no person is excluded from participation in or denied the benefits of its services on the basis of race, color, or national origin as protected by Title VI of the Civil Rights. For more information, please visit www.drpt.virginia.gov.
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