Begininning January 1, 2025, a grant from the Barge and Rail Usage Grant Program and Fund shall be eligible to international trade facilities that transport containers by barge or rail, rather than by trucks or other motor vehicles on Virginia’s highways. The amount of the award is $25 per 20-foot equivalent unit (TEU), or 16 tons of non-containerized cargo, or one unit of roll-on/roll-off cargo moved by barge or rail.

The grant fund is subject to a distinct appropriation cap each year. For fiscal year 2025, the grant program has a spending cap of $250,000. Application for grant award must be made to, and the grant awards are at the discretion of, the Virginia Port Authority. 

Contacts

Britni Sherrill
Virginia Port Authority
 757.683.2173

Eligibility

The company must be an international trade facility. For purposes of this grant award, “international trade facility” is defined as a company:

  • Doing business in Virginia.
  • Engaged in port-related activities including, but not limited to, warehousing, distribution, freight forwarding and handling, and goods processing.
  • With sole discretion and authority to choose the method used to move cargo originating or terminating in Virginia.
  • Using maritime port facilities located in Virginia.
  • Using barges and rail systems to move cargo containers through port facilities in Virginia rather than trucks or other motor vehicles on Virginia’s highways (see Code of Virginia § 62.1-132.3:6).
  • Cargo qualifying for this grant award must result from a diversion of shipments from Virginia’s highways.

The company entitled to apply for the grant award is the company that:

  • Has increased their barge and rail cargo volume for a calendar year by at leats five percent (5%) above the preceding calendar year's volume.
  • Has ownership of the cargo at some point while it is being transported through Virginia (including upon shipment or on delivery). 
  • Has control over the method used to move the cargo in Virginia. Ownership is determined by the terms of the contract between the two parties and is evidenced by the bill of lading.

Only cargo being shipped through maritime port facilities qualifies for purposes of this grant award. A maritime port facility is the port in Virginia where the cargo is first loaded to or unloaded from a ship or barge. Shipments through inland ports or any other facility where cargo may be reshipped do not qualify for a second grant award.

Only international shipments qualify for the Barge and Rail Usage Grant Program. Shipments to a Virginia port from another state, or domestic exports from Virginia, do not qualify for this grant award.

Process

Full details and guidance will be published as they are made available. 

Resources

Code of Virginia

Full details and guidance will be published as they are made available.

FAQ

Do domestic exports qualify for this grant?

No, only international shipments qualify for the Barge and Rail Usage Grant Program.

What is considered a “maritime port facility”?

A maritime port facility is the port in Virginia where the cargo is first loaded to or unloaded from a ship or barge. Only cargo being shipped through maritime port facilities qualifies for purposes of this grant program.

What is an “LCL”?

A less than container load (LCL) is cargo insufficient in either weight or volume to qualify for the freight rates that apply to a standard shipping container and is therefore combined with cargo owned by other shippers or with cargo intended for at least one other consignee. An LCL does not qualify as a TEU for purposes of this grant.

Where must applications for the tax credit be sent?

All applications must be sent to:
Virginia Port Authority
Grants Program
600 World Trade Center
Norfolk, VA 23510