North rail connection project
2020 rural county public facility fund application WASHINGTON’S WORKING PORT Port of Longview is the first operating port on the Federally maintained, 43’ deep-draft Columbia River shipping channel in Southwest Washington State, USA.
Located just 66 river miles from the Pacific Ocean, vessels can sail to and from the Port to the Pacific on just one tide–saving both time and money.
Three breakbulk berths, combined with mobile harbor cranes, on-dock rail and ample storage, allow the Port to accommodate a wide range of cargo handling needs.
Through long-range planning and strategic investments, the Port of Longview has developed an internal rail system that connects you to direct savings. Combined with dual rail service by both BNSF and Union Pacific, our rail system is your ideal cargo connector. DIRECT TO RAIL, DIRECT SAVINGS The Port boasts 1,200 feet of on dock rail, allowing you to move cargo directly to or from the vessel in one step. Three rail lines adjacent to the bull rail provide seamless intermodal connections without having to leave the dock. CONNECT DIRECTLY TO THE MAINLINE Over 15 miles of internal rail connect all corners of the Port with both Class 1 mainline railroads. The Port’s private Industrial Rail Corridor links internal rail with mainline connections without disruption and provides superior service to rail dependent customers.
JOBS TAX REVENUE LOCAL SPENDING 19,203 $34.1 million $2.8 Billion In calendar year 2018, 19,203 A total of $34.1 million of state and local tax In 2018, marine cargo activity at jobs in the Longview region revenue was generated by maritime activity at the Port of Longview generated and the Pacific Northwest the Port of Longview in calendar year 2018. In a total of $2.8 billion of total were in some way related to addition, $32.1 million of state and local taxes economic activity in the region. maritime activity at the Port of were created due to the economic activity of the Longview marine terminals. related users of the cargo moving via the Port of Longview.
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 2 CONTENTS 3 APPLICANT
4 PROJECT ELIGIBILITY
5 PROJECT BUDGET ESTIMATES
6 FUNDS REQUESTED
7 PROJECT SUMMARY
10 PROJECT GOALS
11 PROJECT TIMELINE
APPENDIX PROJECT IMAGES
project applicant PROJECT TITLE TELEPHONE North Rail Connection Project 360-425-3305 APPLICANT E-MAIL Port of Longview [email protected] CONTACT PERSON FEDERAL TAX I.D.: Chris Wills 91-60020
TITLE CAPITAL FACILITIES PLAN WHERE PROJECT IS LISTED Environmental Manager Port of Longview Comprehensive Scheme of Harbor Improvements LOCAL SPENDING MAILING ADDRESS 10 Port Way, Longview, WA 98632 Port of Longview 2020 Capital Improvement Plan
SIGNATURE OF AUTHORIZED OFFICIAL
2/28/2020 DATE
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 3 project eligibility
Money collected under RCW 82.14.370 shall be used on public facilities and for economic development purposes.
Select the type of public facility that applies to your project:
Bridge Natural gas Buildings
Road Structures Earth stabilization
Railroad Electricity Port facilities
Sanitary sewer facility Storm sewer facility Telecommunications infrastructure
Water facility Commercial infrastructure Transportation infrastructure
Economic Development Office
Is the project currently listed in one or more of the following plans (check all that apply)?
Comprehensive Economic Development Strategy Report
County’s Capital Facilities Plan
Your agency comprehensive or capital facilities plan
Other; please specify
Port of Longview 2020 Capital Improvement Plan
Port of Longview Comprehensive Scheme of Harbor Improvements by Resolution 2020-1, Feb. 26, 2020
Port of Longview Integrated Planning Grant: Redevelopment Strategies, April 2019
Port of Longview Strategic Plan: Lease Marine Terminals
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 4 project budget estimates
What is the estimated budget for this project? Indicate whether the budget is based on preliminary estimates, engineers’ estimates, feasibility studies or public bids; include administration, design and construction costs.
total project costs based on $ 4.4 million engineer’s estimate
AMOUNT SOURCE STATUS DATE AMOUNT
FEDERAL X X X X
STATE X X X X
LOCAL/ PUBLIC PORT COMMITTED 1/1/2020 $ 3.9 MILLION
PRIVATE * SEE BELOW COMMITTED X X
TOTAL RESOURCES $ 3.9 MILLION * NOTE Construction of the North Rail Connection was part of a larger lease negotiation with a Port tenant. The Port of Longview committed to constructing the Project, and in turn, the tenant agreed to:
• Increase their annual guaranteed tonnage • Pay a per rail car maintenance fee • Extend the term of their lease by five years and added additional extensions (thereby extending the period to collect leasehold excise tax) • Pay for the Berth 2 Fendering project
The negotiated deal leveraged private investment that will generate long-term benefits in the form of jobs, revenue to the Port and taxes generated for public services.
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 5 funds requested
AMOUNT REQUESTED: $500,000 GRANT The Board has developed a self-sustaining program to make funds available for economic development even after the County is no longer eligible to receive the sales tax rebate. Therefore, the Board of Commissioners will give favorable attention to projects that propose to treat County funds as a short-term loan.
Amount of request that will be treated as a loan $ 0
If a loan is proposed, please provide the following details: State Investment Board interest rate will be applied • term of loan (in years) ______• # of payments ______• date payments would start ______
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 6 project summary
SUMMARY The North Rail Connection Project (Project) is a critical link in the Port of Longview’s (Port) rail system, connecting the Industrial Rail Corridor from the mainline to the internal rail network that serves the Port’s marine terminals and industrial tenants. The completion of the Project will eliminate an existing rail bottleneck and increase overall rail capacity, including improving the flow of cargo movements and creating railcar storage necessary for staging inbound/outbound rail traffic.
Since the completion of the Industrial Rail Corridor in 2004, cargo volumes through the Port have soared nearly 600%, from 1.4 to 9.5 million metric tons. With nearly 12,000 railcars moving throughout the Ports rail system annually, the Project is a high priority necessary to accommodate existing business and attract growth.
Overall, the Project will add 4,960’ of new track and realign an existing 1,540’ of track to complete the link between the two more efficient areas in the system. Project components include: • Realigning existing track from International Way to Switch Alley • Adding one new full line from International Way to Switch Alley • Extending existing siding to a full line from International Way to Switch Alley • Adjusting rail curves at the northwest corner into Switch Alley to meet industry standards • Rerouting existing stormwater ditch for better flow/ alignment
Following the success of the Industrial Rail Corridor, this Project was identified as an ancillary project that would maximize the benefits of prior infrastructure investments. As new projects came online and tonnage volumes increased, the Projects was added to the Port’s five-year Capital Improvement Plan (2016) and Comprehensive Scheme of Harbor Improvements (2020). Additionally, the value of this project was solidified through a Department of Ecology Integrated Planning study that identified this Project as significant in the overall growth of the Port.
Project design and engineering in process and permit applications will be submitted in March. It is anticipated that the Port will break ground on this $4.4 million project in Summer 2020, with completion slated for late 2021.
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NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 7 project summary CONTINUED
A. TYPE, SIZE, LOCATION AND USE OF PUBLIC FACILITY.
The Project is a rail expansion along the northern Port property line, between International Way and the intersection of Paper Way and North Tie Road (Figure 1). Over approximately three acres, 1,540’ of rail will be realigned to meet current industry standards, 4,960’ of new rail will be added for increased cargo capacity and the stormwater conveyance system will be realigned. The stormwater portion of the project includes adding approximately 1,100 yards of clean fill material and installation of manholes and drainage pipe. Additionally, approximately 1,100 feet of road surface and a rail crossing will be repaved.
B. INDICATE WHY THE RURAL COUNTY PUBLIC FACILITY FUNDS ARE NECESSARY FOR THE PROJECT TO SUCCEED.
Rural County Public Facility funds will allow the Port to construct this vital section of rail infrastructure and begin reaping economic benefits for the entire community, in the form of jobs, revenue to local business and tax revenue generated for public services throughout the county, almost immediately.
The expeditious completion of this project is critical to capitalizing on market opportunities presently before the Port, which will generate both short- and long-term economic benefits for the community.
C. IS THE PROJECT READY TO PROCEED? IF THE PROJECT IS NOT READY TO PROCEED, DESCRIBE WHAT MUST BE COMPLETED BEFORE THE PROJECT IS READY AND ESTIMATE A START DATE.
The Project is scheduled to break ground in the Summer 2020. Permitting for this project is actively under way and is expected to be fully completed by May 2020. The Port anticipates that permits will be obtained, materials procured and Port labor secured to meet the Project construction schedule.
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NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 8 project summary CONTINUED
D. IF APPLICABLE, LIST ALL PERMITS AND ENVIRONMENTAL REVIEWS REQUIRED AND GIVE THEIR CURRENT STATUS (APPLIED FOR, PERMIT ISSUED, ETC.) PERMITTING FOR THIS PROJECT
Permit required for this project are as follows:
Jurisdiction Permit Type Date Submitted Date Issued (Anticipated) (Anticipated) Cowlitz County Fill & Grade Permit 3/20/2020 4/30/2020
Cowlitz County Stormwater Design 3/20/2020 4/30/2020
Washington State Department National Pollutant Discharge 4/1/2020 5/1/2020 of Ecology Elimination Systems (NPDES) General Stormwater permit Army Corps of Engineers Jurisdictional Determination 3/15/2020 4/15/2020
Port of Longview SEPA 3/15/2020 3/30/2020
E. ESTIMATE THE DATE FOR PROJECT COMPLETION.
Project completion is estimated by December 2021.
F. DOES THIS PROPOSED PROJECT DUPLICATE EXISTING CAPACITY IN THE COMMUNITY-EITHER PUBLIC OR PRIVATE?
The North Rail Connection project will increase existing capacity both at the Port and improve capacity issues related to Port rail within the Longview Switching yard, which serves the industrial area of Longview. The Project will not duplicate local public or private capacity.
Presently, the Port is at 70% to 80% rail capacity with little ability to handle new cargo or accommodate existing customers’ scheduled growth.
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 9 project goals
Describe how your public facility project meets the goals identified in R.C.W. 82.14.370, as amended, namely financing of public facilities serving economic develop purposes in rural counties. “Economic development purposes” is defined in the statute as “those purposes that facilitate the creation or retention of businesses and jobs in a county.” Check and discuss any or all that apply, specifically:
Promote the ongoing operation of business in rural distressed areas; Promote the expansion of existing business in rural distressed areas;
The Port’s commitment to construct the North Rail Connection In recent years, the Port of Longview has seen a significant Project has encouraged the existing tenant at Bridgeview uptick in direct-to-rail cargo handling services. Utilizing the Terminal to extend its terminal lease and increase its annual Port’s on-dock rail system, customers that frequently trucked tonnage through the facility. Already, this action has extended cargo out of the Port are now capitalizing on the efficiency of the collection of leasehold excise tax and the number of jobs rail transport. Discharging cargo from vessel directly to rail cars at the facility that will be required to handled increased cargo allows customers a more efficient and cost saving option, one volumes. limited to very few Pacific Northwest ports like Longview.
Attract new businesses to rural distressed areas; Assist in the development of new businesses from within rural distressed areas;
The Port of Longview competes heavily with other ports to The Port’s ability to attract new business to the local attract cargo. Aside from other Columbia River ports, the Port community is contingent on its ability to handle the cargo more competes with facilities all along the United States west coast efficiently and cost effectively than the competition. The North and Gulf of Mexico for business. As business development Rail Connection project will provide just that – an asset that representatives travel both internationally and domestically increases marketability against the competition. to meet with prospects, available rail capacity continues to be among customer’s top priorities when selecting a port.
Provide family wage jobs to the citizens of rural distressed areas; Specifically identify the number and type of family wage jobs that will be created or retained as a result of your project: Construction # of jobs: 15 Permanent full time # of jobs: 42 new, preservation of additional 78 existing jobs* Permanent part time # of jobs: 0 Seasonal # of jobs: 0
* Types of jobs include administrative, terminal operations, tug, rail, maintenance and like. Additionally, this Project will increase marketability of property that will attract new job-creating tenants and cargoes. Estimated based on committed tonnage increase. Promote the development of communities of excellence in rural distressed areas;
Ports in Washington State were established for the economic the primary function of the Port to conduct business on behalf benefit of their communities. As a municipal corporation, it is of and for the benefit of the citizens of its district.
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 10 project timeline
PRELIMINARY ENGINEERING REPORT FEBRUARY 2020
ENVIRONMENTAL REVIEW(S) MARCH 2020
ALL REQUIRED PERMITS OBTAINED MAY 2020
LAND/RIGHT-OF-WAY ACQUISITION JUNE 2020
PREPARE BID DOCUMENTS N/A
AWARD CONSTRUCTION CONTRACT(S) N/A
BEGIN CONSTRUCTION – SHOVEL READY JUNE 2020
PROJECT OPERATIONAL DECEMBER 2021
NORTH RAIL CONNECTION PROJECT | PORT OF LONGVIEW 11 SPOUT
NTS 0 1" 2" NORTH RAIL CONNECTION 2019PORTRAIL PAPER WAY STORMWATER RELOCATION G1 A ------OF 3 14 MAR 2019 AERIAL PLAN 1 NTS 0 1" 2" NORTH RAIL CONNECTION 2019PORTRAIL PAPER WAY STORMWATER RELOCATION G2 A ------OF 3 14 MAR 2019 PLAN 2 PROJECT AREA IN YELLOW PROJECT AREA IN YELLOW