HomeAg NewsSoybean Farmers Partner with Port of Kalama to Increase Export Competitiveness

Soybean Farmers Partner with Port of Kalama to Increase Export Competitiveness

This past Friday, October 25th, the Federal Railroad Administration (FRA) announced the Port of Kalama (Kalama, Washington) was awarded $26,323,386 from the U.S. Department of Transportation’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program for the rail expansion project at the TEMCO soybean and grain export terminal.

The Port of Kalama and TEMCO (“Tacoma Export Marketing Company” – a joint venture by Cargill and CHS) are in the process of expanding the rail unloading and staging infrastructure at the terminal.  The facility routinely experiences significant delays due to their 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 project at the Port of Kalama and TEMCO will result in an expansion of 25,000 linear feet of rail track that will be used to stage loaded or unloaded trains so that the actual unloading infrastructure is free and available to operate, when needed.  The port estimates that this investment will increase efficiency by 25-30% – especially during October thru 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.

The below listed 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.  Investing $200,000 to help realize a $26 million grant is clearly a great example of this.

  • United Soybean Board
  • Soy Transportation Coalition
  • Iowa Soybean Association
  • Kansas Soybean Commission
  • Nebraska Soybean Board
  • North Dakota Soybean Council
  • South Dakota Soybean Research and Promotion Council

“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, North Dakota, 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.”

There were two motivations for soybean farmer organizations to provide funding for this project: 1.) To provide meaningful investment to a project that will enhance U.S. soybean exports and 2.) For the Port of Kalama and TEMCO to be able to highlight the funding commitment from farmer organizations, which would enhance the viability and competitiveness of their grant application.  Soybean farmers have a long history of seeing their funding leveraged – thereby helping accelerate project completion and increasing its scale and scope.  The investment by soybean farmers for the Port of Kalama project is another example of this.

“The soybean industry is currently experiencing a number of challenges,” explains 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.”

- Advertisment -

Latest News