Growth in store for Port of Coos Bay and its short line
3/11/2022
By Jeff Stagl, Managing Editor
The Oregon International Port of Coos Bay is pursuing two major initiatives that promise to spur volume growth for both the southwest Oregon maritime facility and its short line, Coos Bay Rail Line Inc. (CBRL).
One of the largest port districts along Oregon's coastline, the Port of Coos Bay in late 2021 entered into a purchase agreement with CDC Inc. to acquire nearby land that formerly was the site of a Georgia-Pacific lumber mill.
The more than century-old port assumed ownership of the 162-acre property on Jan. 13 and plans to redevelop the site to handle various cargo transported by ocean, rail and truck for domestic and international markets. Offering access to a wharf, yard footprint and trackage, the site will be rebranded as Terminal One.
A $4.5 million federal grant and $4 million in state grants will help fund improvements to wharf and rail infrastructure, including track upgrades for CBRL. Track at the site can only handle a maximum of 12 rail cars, so the port plans to increase that capacity, says Margaret Barber, the port’s director of external affairs and business development.
Environmental, permitting, engineering and design work must be completed prior to starting construction. The project’s first phase might be completed by mid-2023, enabling the port to handle a limited amount of cargo at the site, says Barber.
The port aims to serve as a facilitator for the harbor’s maritime industry, and as an economic development and transportation advocacy organization for the state. Port officials currently are fielding calls and emails from companies interested in moving cargo through the new maritime facility to avoid congestion and inefficiencies experienced at other West Coast ports.
“We are getting inquiries from all over the world. We were limited before in having the capabilities to generate such interest,” says Barber.
There is a lot of timber production in the region, which bodes well for gains in exported goods as the port grows. The timber market wasn’t as heavily impacted by the pandemic as other sectors, especially since a spike in new housing boosted lumber demand and an explosion in e-commerce — and the boxes needed to accommodate all that online shopping — propelled cardboard usage, says Barber.
“The timber industry is going strong. We are seeing a lot of logs, lumber and woodchip exports,” she says.
That market strength combined with trucking constraints — such as a major driver shortage — is generating significant volume gains for CBRL. In January, the short line — which predominantly serves the local forest products and dairy industries — registered a 31.5% year-over-year jump in carloads.
The port owns and operates CBRL, which manages a 134‐mile line from Danebo Junction to Coquille, Oregon, and interchanges with Union Pacific Railroad. The line includes nine tunnels, three swing‐span bridges, more than 150 water crossings and more than 40 grade crossings.
In late 2018, the port assumed operations of its 134-mile short line, which interchanges with Union Pacific Railroad. Oregon International Port of Coos BayIn November 2018, the port assumed the line’s operations from ARG Trans, a third-party firm that formerly operated the line as the Coos Bay Rail Link. The port has since invested tens of millions of dollars to upgrade more than three dozen timber bridges, repair a swing-span bridge and improve other infrastructure, says Barber. A $20 million federal Better Utilizing Investments to Leverage Development, or BUILD, program grant and $5 million state grant are covering a major portion of bridge project costs.
“Since we took over the line, we have gained more control of its day-to-day management,” says Barber. “We have reduced the run time from end to end by two hours.”
The port also has obtained a $10 million federal Port Infrastructure Development Program grant to replace ties and ballast, which will help further reduce CBRL’s run time, she says.
Additional infrastructure improvements for the short line could be in the offing soon if the port’s first container facility planned with partner NorthPoint Development comes to fruition. Late last year, the port entered into a memorandum of understanding with the development firm to construct a multimodal container facility on its North Spit property.
Land in the North Spit area is the chosen site for the port’s first-ever container facility. Oregon International Port of Coos BayThe North Spit rail spur will be extended to the project site. In addition, sidings will need to be lengthened and tunnels retrofitted to accommodate double-stack container trains.
“One reason why we don’t handle any containers is because we only have single-stack capacity,” says Barber.
The cost to improve rail infrastructure and build the facility — which is projected to handle more than 1 million 40-foot containers annually — is estimated at $1 billion. Northpoint Development plans to call the facility an “eco-port,” with 99.5% of containers moved by trains, says Barber.
Currently, the majority of Oregon’s containerized imports and exports are moved by trucks, which increases delivery and product costs, and creates more roadway congestion and greenhouse-gas emissions, Northpoint Development officials believe. Using CBRL to transport containers instead of trucks will reduce overall emissions up to 75%, they estimate.
Meanwhile, the port continues work with the U.S. Army Corps of Engineers and other regulatory agencies to deepen and widen its channel from 37 feet to 45 feet. The project would enable the port to remain competitive in the global marketplace as ocean carriers continue to employ larger ships, says Barber.
Plus, the port then could become more of an attractive modal option than building or widening more roads in the region.
“Why add a sixth lane to a highway when we can be that sixth lane,” says Barber.