The Commerce Department's Economic Development Administration said it awarded a $2.2 million grant to the city of Davenport, Iowa, to build a new freight rail interchange track and rail spur to serve a new manufacturing facility and other businesses locating in the city's industrial park.

The EDA said grantees expected the project to create more than 500 jobs and spur $78.5 million in private investment.

The rail improvements support manufacturing and logistics industries, and build on other assets in the industrial park, the agency said, including an EDA-funded freight trans-load facility. The project will also "support the necessary infrastructure required for the location of a new manufacturing facility," the announcement said.

Commerce Secretary Wilbur Ross said the project "will ensure that the Davenport region remains economically competitive and will provide hundreds of jobs for local residents."