Soybean farmers help Port of Kalama get $26.3M grant

A rail extension project at the Port of Kalama, Wash., has been awarded a $26.3 million grant from the Federal Railroad Administration (FRA) Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program.

When complete, the project will add over 25,000 linear feet of tracks to the Port of Kalama rail system, increasing the efficiency of direct loading of grain from rail to ship by an estimated 25-30% in the direct loading of grain from rail to ship. The additional rail capacity will enable continuous ship loading without the need to reposition inbound rail cars, which currently causes a 7-hour delay in the loading process. The project will also relieve congestion on the larger national rail system.

The expansion is being undertaken by the Port of Kalama and terminal operator TEMCO (Tacoma Export Marketing Company) a joint venture by Cargill and CHS. The facility routinely experiences significant delays due to the limited trackage. Once a train is unloaded, it can often remain stationary due to the railroads (both BNSF and Union Pacific serve the facility) not being able to quickly collect and dispatch it elsewhere. This results in loaded trains having to be held out of the facility and delayed until the empty train is moved.

The port estimates that the expansion will especially increase efficiency during October through January, which is the key export window for soybeans. Soybeans will be the biggest beneficiary of this project. The project will also benefit the broader rail industry as it will increase the efficiency along the network by mitigating the current logjam at Kalama.

A number of soybean farmer organizations approved $200,000 to be utilized for pre-engineering, design, analysis, and research costs associated with the project.

“Farmers are rightfully attracted to opportunities to invest funding if it can be leveraged to help achieve a greater outcome,” says the Soy Transportation Coalition. “Investing $200,000 to help realize a $26 million grant is clearly a great example of this. “

“One of the most effective ways to improve the competitiveness of U.S. soybean exports is to improve the transportation system that connects farmers with our international customers,” says Chris Brossart, a soybean farmer from Wolford, N.D, and chairman of the Soy Transportation Coalition. “The investment at the Port of Kalama will increase the efficiency of one of our country’s leading soybean export terminals by 25-30%. I am proud of my fellow soybean farmers for supporting this important project.”

“The soybean industry is currently experiencing a number of challenges,” says Mike Steenhoek, executive director of the Soy Transportation Coalition. “During periods of stress and uncertainty, the natural temptation is to retreat from investing in our future. I am proud to work for farmer leaders who think differently…that during such times it is imperative to pursue strategic opportunities to tangibly move the needle. Increasing the efficiency of one of the nation’s leading soybean export facilities by 25-30% is certainly an example of moving the needle. We sincerely appreciate the Port of Kalama and TEMCO for investing in the competitiveness of the U.S. soybean farmer. It has been a pleasure working with them toward this common goal.”

“Port Commissioners and staff have worked for years to secure grant funds for this project,” says Randy Sweet, Port of Kalama Commission president. “We’d like to acknowledge and thank the Soy Transportation Coalition and its many American farmers for their support and contribution to this project.”