The US State of Alaska will get a $25.8m grant of federal stimulus money to overhaul its existing rail services.

The modernisation plan involves improving power supplies at the Seward Depot and installing safety devices and a collision avoidance system.

The money will also be spent on the construction of a second set of tracks at the Fairbanks Intermodal Facility, realignment of track at Nenana, general track rehabilitation and safety fencing at the Ship Creek Intermodal Facility in Anchorage, writes the Associated Press.