Washington state port wins CRISI grant to expand export grain terminal
11/6/2024
By Jeff Stagl, Managing Editor
When the U.S. Department of Transportation and Federal Railroad Administration announced the winners of Consolidated Rail Infrastructure and Safety Improvements (CRISI) program grants on Oct. 25, dozens of railroads were among the recipients. Some ports made the winners list, too, including one in Kalama, Washington.
The Port of Kalama landed a $26.3 million CRISI grant for a rail expansion project at an adjacent export grain terminal managed by Tacoma Export Marketing Co. (TEMCO), a Cargill Inc./CHS Inc. joint venture. The largest grant ever received by the port, the CRISI funds will help cover the cost to expand rail lines leading to TEMCO’s grain elevator.
“Farmers not just from Washington, but as far east as Wisconsin will be able to get their products to market faster,” said Sen. Maria Cantwell (D-Wash.) in a press release.
The port leases the grain facility to TEMCO, which operates the terminal to export feed grains, soybeans, oilseeds and wheat to Asia-Paci?c markets. The terminal features one berth with a water depth of 40 feet to 45 feet, and currently can load 120,000 bushels of grains per hour and store 6.5 million bushels.
The port is working with TEMCO to expand rail unloading and staging infrastructure at the terminal, which routinely experiences significant delays — at times up to seven hours — due to limited trackage.
The project will help cement Kalama’s status as a top U.S. grain exporter, port officials say. Served by BNSF Railway Co. and Union Pacific Railroad, the port is located along the Columbia River in southwest Washington near Interstate 5, about 30 miles northwest of Portland, Oregon, and 120 miles south of Seattle.
BNSF is involved in the port’s expansion project. On an annual basis, the Class I moves enough grain to supply about 730 million people with a year’s supply of bread. BNSF Railway Co.The port and TEMCO began developing the project in 2018 to enable the terminal to store two loaded and two empty trains at the same time. The expansion will increase grain loading efficiency up to 30%, while boosting market access and controlling costs for Washington farmers, said Port of Kalama Legislative and Public Relations Administrator Dan Polacek in an email.
The project — which involves BNSF — calls for adding 25,000 linear feet of track for staging loaded or unloaded trains. Associated work includes right-of-way acquisition; engineering; mitigation measures; track removal, realignment and small enhancements; and expansion of nearby recreational amenities, said Polacek.
TEMCO's average volumes at the terminal have grown dramatically in the past 11 years, he said. Export volumes shot up from 7.6 million metric tons (MMT) in 2013 to 15.3 MMT in 2021, 14.4 MMT in 2022 and 12.3 MMT in 2023.
“The figures tend to fluctuate with the market, but it's safe to draw an average based off the 2021 to 2023 figures,” said Polacek. “These are anticipated to grow in future years as the expansion project improves both efficiencies and volumes.”
The expansion project is estimated to cost nearly $34 million. The port received a $3.9 million grant from the Freight Mobility Strategic Investment Board for right-of-way acquisition and preliminary design, and will provide a 20% CRISI grant match. TEMCO plans to provide funds for the project — although its contribution has yet to be determined — but BNSF will not allocate any dollars for the work, said Polacek.
Moreover, the track construction plans don’t require the Class I’s blessing, he added.
“BNSF does need to approve any new rail configuration tying into their existing lines,” said Polacek.
The project began in 2023 with right-of-way acquisition and the pending demolition of a now defunct chemical company facility adjacent to TEMCO. Construction is scheduled to be completed in fourth-quarter 2028.
Soybean exports will be the biggest beneficiary of the project, according to the Soy Transportation Coalition (STC). The project will also benefit the broader rail industry by increasing efficiency along the national rail network and mitigating the current logjam at the port, STC officials said in a press release.
Seven soybean farmer organizations associated with the STC have approved $200,000 for pre-engineering, design, analysis and research costs associated with the project. Established in 2007, the STC includes 14 state soybean boards, the American Soybean Association and United Soybean Board. The coalition aims to position the soybean industry to benefit from a transportation system that provides cost effective, reliable and competitive service.
The soybean farmer organizations were motivated to provide funding for the project to increase the viability and competitiveness of the port’s CRISI grant application and enhance U.S. soybean exports, STC officials said.
“The soybean industry is currently experiencing a number of challenges. Increasing the efficiency of one of the nation’s leading soybean export facilities by 25 to 30% is certainly an example of moving the needle,” said STC Executive Director Mike Steenhoek.