A $26 million federal grant will assist the Port of Kalama develop capability at a neighborhood grain-export operation, doubtlessly decreasing railroad site visitors and rising native output of grains, oilseeds and wheat to markets round Asia.
The transfer is simply the most recent in a greater than six-decade sample of enlargement for TEMCO, which is able to acquire about 5 miles of monitor from the mission. That can permit the power to retailer 4 trains concurrently, two loaded and two empty.
“The Port of Kalama’s TEMCO Rail Expansion Project represents yet another example of when the public and private sectors come together for the greater good of the community,” mentioned Ted Sprague, president of the Cowlitz Financial Growth Council.
TEMCO is a joint operation between agricultural giants CHS and Cargill. The plant employs 125 individuals, agriculture commerce publication Feed and Grain reported final month.
The power exported half of the port’s 2023 output of 12.3 million metric tons, in line with port spokesman Dan Polacek.
That’s a very important determine as a result of the port is the second-largest agricultural exporter on the West Coast, receiving greater than 100,000 railcars of grain alone every year, resulting in exports of about 15 million tons.
These exports are vital to the native financial system as a result of the port and its roughly 40 tenants are answerable for a bit of greater than 40 p.c of Cowlitz County’s $7.1 billion gross home product. (GDP is a helpful financial measure that represents the overall market worth of products and companies produced inside an space throughout a 12 months.)
The Federal Railroad Affiliation grant to Kalama was introduced in late October by U.S. Sens. Maria Cantwell and Patty Murray, each Washington Democrats, together with about $90 million for different initiatives across the state.
“These new replacement tracks are going to help the Port of Kalama transport even more goods, including grain, from rail to ship, faster than ever by allowing it to store empty trains at the port,” Murray mentioned in a press release.
She emphasised the funding got here from the Biden administration’s Bipartisan Infrastructure Legislation.
Cantwell mentioned the mission will improve the port’s grain terminal effectivity by 25 p.c to 30 p.c, permitting farmers from across the nation to get their merchandise to markets quicker.
Polacek, of the port, mentioned the elevated effectivity from the development might drive further hiring by TEMCO for grain dealing with, transportation and transport operations.
“The economic ripple effect could also extend to local businesses, like equipment suppliers and service providers, further stimulating job growth in the region,” he mentioned.
TEMCO Kalama Plant Supervisor Tom Rodman declined to remark for this story, saying he wanted company approval first.
Cities round Cowlitz County have lengthy relied on industrial and manufacturing jobs to help their populations, particularly after the timber business collapsed.
In its absence, the county’s location-based commerce assets — a railroad mainline, interstate freeway and main river with deepwater ports — have helped immensely, Sprague mentioned.
Whereas solely about half as many Kalama residents have a school diploma in contrast with the speed for the U.S. at massive, the town’s median family earnings is about 25 p.c larger. That will replicate the presence of commerce and industrial jobs within the metropolis, in addition to a bigger inhabitants of retirees.
The mission is anticipated to price $33 million. Along with the federal cash, the port secured a $3.9 million grant from the Washington State Freight Mobility Strategic Funding Board.
The rest might be paid for by each the port and TEMCO. Polacek mentioned he didn’t know the breakdown.
The mission follows an identical enlargement in 2013. The port expects building to begin in 2027.
A contractor to construct the mission might be chosen by a proper public works course of, with the Port of Kalama serving as mission supervisor, Polacek mentioned.
Editor’s be aware: This story was up to date to make clear the supply of the tonnage exported.