The U.S. Department of Transportation’s Build America Bureau is loaning up to $35.9 million for Phase 1 of the Port of Longview’s Industrial Rail Corridor Expansion project in Washington state that is slated to double freight capacity.
The project will leverage USDOT’s recently announced improvements to the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, which expanded borrowers’ ability to finance up to 49% of eligible project costs through “low-interest, flexible, long-term loans,” the Department reported Sept. 25. These loans, it noted, “help accelerate project delivery, save taxpayer dollars, and facilitate private investment.”
Operating since 1921, the Cowlitz County-based Port of Longview has eight marine terminals and waterfront industrial property spanning 835 acres on the deep-draft Columbia River, 66 miles from the Pacific Ocean in rural southwest Washington state. The original Industrial Rail Corridor, completed in 2004, connected the Port directly to main line rail service, provided by the Longview Switching Company, a joint venture of BNSF and Union Pacific (UP).
Phase 1 of the Port’s multi-year expansion project comprises the extension of existing tracks, construction of six new 8,500-foot tracks, and the addition of a new six-track embankment to allow for future expansion, according to the USDOT. New crew access roads and other supporting infrastructure will also improve safety, it said. Additionally, the improvements will support the redevelopment of the Berth 4 Grain Complex, a future revitalization project planned by the Port.
According to the USDOT, the project will “eliminate congestion from the overburdened two-track system,” and “drive economic growth by attracting more private investment and increasing export capacity for commodities such as grain and timber, as well as generating an estimated $2.8 billion in annual activity and $66 million in tax revenues, which are crucial for the rural area’s rapidly transitioning economy.” This will also help meet growing domestic and international market demands, the USDOT said.
In addition to the loan, the project is being funded through a combination of federal, state, and local funds that have already been committed, respectively, $18.6 million, $9 million, and $9.7 million. The total estimated project cost is $73.3 million. Construction began earlier this year, and substantial completion is expected in 2028.
“Embracing innovative financing by utilizing TIFIA has enabled the Port of Longview to expedite delivery of these critical upgrades and open the door to new commercial opportunities and economic development that might not have been possible otherwise,” Build America Bureau Executive Director Morteza Farajian, Ph.D, said. “Additionally, because this project is located in a rural area, they were able to take advantage of our Rural Projects Initiative and borrow at half of the already low U.S. Treasury interest rate, unlocking even more value and millions of dollars in savings.”
“The Port is grateful to the USDOT for its support through the TIFIA loan, which will advance our Industrial Rail Corridor Expansion Project and strengthen the Port’s role in regional economic growth,” Port of Longview CEO Dan Stahl commented.
Separately, the Port of Benton in Washington state recently achieved Class I track status for its Southern Connection, a 16-mile short line rail network that spans from the UP main line near the Columbia Center Mall in Kennewick to the north end of the Horn Rapids Industrial Park in Richland.
