Virginia Budget Directs $27 Million to Southwest Virginia Transportation Projects

SOUTHWEST VIRGINIA — Two long-planned transportation projects in Southwest Virginia are set to receive a combined $27 million through the state’s new budget agreement.

The first-year funding includes $20 million for an inland port at the Oak Park Center for Business and Industry in Washington County. Budget documents say the money will support project planning, design and site development, moving the proposed freight facility closer to construction.

The proposed inland port would allow shipping containers and other freight to move between trains and trucks without first traveling to a coastal terminal. Supporters believe the facility could reduce transportation barriers for regional manufacturers, distributors and other businesses while providing a stronger connection to domestic and international markets.

Virginia’s earlier feasibility work identified Oak Park as the preferred location in the Mount Rogers and Bristol region. The site is within one mile of Interstate 81 at Exit 13 and sits beside a high-capacity railroad that already carries intermodal freight connected to the Port of Virginia. The study also found that the surrounding area contains the region’s highest concentration of existing freight demand.

The budget does not fund the entire inland-port project. Instead, the $20 million is intended to complete more of the engineering and site-readiness work needed before the facility can become operational. A construction schedule and opening date were not included in the budget materials.

Another $7 million is designated for the Route 460 Phase IIA Finish Grade Project in Buchanan County, part of the broader Coalfields Expressway effort. The appropriation is included in fiscal year 2027, which begins July 1.

The Coalfields Expressway, also designated as U.S. Route 121, is a long-term highway project intended to improve travel, safety and access across Virginia’s coalfield communities. Plans ultimately call for the corridor to connect U.S. 23 in Virginia with Interstates 64 and 77 in West Virginia, creating stronger links to markets in Kentucky, Tennessee and beyond.

Several sections near Breaks Interstate Park, Southern Gap and Grundy have already opened or remain under development. The Phase IIA project involves approximately four miles of the Route 460 Connector corridor, where plans have called for an additional travel lane.

Although the two projects serve different parts of Southwest Virginia, both are being positioned as long-term economic-development investments. The inland port is focused on rail and freight logistics in the Interstate 81 corridor, while the Coalfields Expressway is intended to improve highway access for residents, employers, industrial sites and visitors in far Southwest Virginia.

The new funding represents progress rather than completion. Additional planning, contracting and construction work will be required before either project reaches its full proposed scope.