The U.S. Department of Transportation will loan up to $35.9 million to the Port of Longview in Cowlitz County, Wash., for the first phase of its Industrial Rail Corridor Expansion project.
Officials said the project will enhance efficiency, safety and economic opportunity. The money will be used to leverage improvements to the Transportation Infrastructure Finance and Innovation (TIFIA) program. That program recently expanded to allow borrowers to have the ability to finance up to 49 percent of an eligible project through low-interest, flexible, long-term loans.
“Getting great American products where they need to go is an essential part of what we do at the Department of Transportation. This expansion of the Port of Longview will strengthen our export capacity, improve safety, and unleash the region’s rural economy,” Transportation Secretary Sean P. Duffy said. “From our roads and bridges to our rail networks and maritime sector, America is building again thanks to President Trump.”
Officials said the Port of Longview expansion will double its freight capacity and eliminate congestion from its current two-track system. The project will allow trains to move seamlessly and reduce cost delays. Officials said the project will also drive economic growth by attracting more private investment and increasing export capacity for commodities. The project is expected to generate an estimated $2.8 billion in activity annually, and $66 million in tax revenue annually.
“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 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.”
Phase 1 of the project will consist of the extension of existing tracks, construction of six new 8,500-foot tracks, and a new six-track embankment to allow for future expansion.