U.S. Transportation Secretary Sean P. Duffy has announced a loan of up to $35.9 million from the Build America Bureau to the Port of Longview in Cowlitz County, Washington, for Phase 1 of the Port’s Industrial Rail Corridor Expansion project.
The project will leverage Secretary Duffy’s recently announced improvements to the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, which expanded borrowers’ ability to finance up to 49 percent of eligible project costs through low-interest, flexible, long-term loans. These loans help accelerate project delivery, save taxpayer dollars, and facilitate private investment.
“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,” said Transportation Secretary Sean P. Duffy. “From our roads and bridges to our rail networks and maritime sector, America is building again thanks to President Trump.”
The Port of Longview project will double freight capacity through the corridor and eliminate congestion from the overburdened two-track system, enabling trains to move seamlessly and reducing costly delays. It will also 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.
“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,” said Build America Bureau Executive Director Morteza Farajian, Ph.D. “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 U.S. Department of Transportation 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,” said Dan Stahl, CEO of the Port of Longview.
Phase 1 of the project will consist of 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. New crew access roads and other supporting infrastructure will also enhance safety. Additionally, the improvements will support the redevelopment of the historic Berth 4 Grain Complex, a future revitalization project planned by the Port.