
...and has found work in textile factories, ironworks and mines. However two people have come to your attention with two ways of applying this technology to improve transportation.
The first way comes from a fellow who wants to build a large factory to build a large number of these...

...paddlewheel steamboats for the rivers. Such boats could go both up and down the rivers easily. The two monarchs had spent a fair amount of time developing an extensive network of navigation canals (more than 10,000 km of which have been dug) which the steamboats could use just as as old fashioned cow pulled barges do so right now. They can also work on the coastline. Even so there are many places in your kingdom where it is not economical to build canals.
The second comes from a fellow who owns a coal mine, which has a pair of these machines puffing about hauling cars full of coal about.

He plans on building a factory to produce large numbers of these vehicles, as well as building new and improved locomotives, as well as the mass production of rails and rolling stock. He says that said rail network can carry goods quickly. However, this would mean building a new and expansive system of infrastructure from scratch.
You have enough money set aside to fund the proposal for a largescale shipyard building steamboats or a steamworks and rail foundry. If you decide to compromise and build two smaller scale versions of each, the result will be two facilities which will have 30% of the output that focusing on one area will do. Without your patronage, the railway guy or the steamboat guy will work on their own on their project, but will be lucky to achieve a tenth of what they would otherwise be able to achieve with royal patronage in the next twenty years while their efforts at developing new and better machines will be severely compromised and lag.
Which do you choose?
Zor