US Transportation Secretary Sean P. Duffy has announced a loan of up to 35.9 million USD for Phase 1 of the Port of Longview’s Industrial Rail Corridor Expansion project.
The project in Cowlitz County, Washington, is set to receive funds from the Build America Bureau and will leverage recently announced improvements to the Transportation Infrastructure Finance and Innovation Act (TIFIA) programme, which expanded borrowers’ ability to finance up to 49% of eligible project costs through long-term loans.
Transportation Secretary Sean P. Duffy, said: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.
The project will double freight capacity through the corridor, as well as aim to eliminate congestion from the current two-track system, enabling trains to move seamlessly and reduce delays.
It is also expected to generate an estimated 2.8 billion USD in annual activity and 66 million USD in tax revenues.
Build America Bureau Executive Director Morteza Farajian, Ph.D., said: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.
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 first phase of the project is set to consist of the extension of existing tracks, the installation of six new 8,500-foot tracks and the addition of a new, six-track embankment for future expansion, as well as new crew access roads and other supporting infrastructure.
