The Port of Coos Bay has secured nearly $205 million in federal funding to upgrade its rail line, advancing a proposed Oregon container terminal that would rely on trains to move cargo between ships and inland markets.
The $204.8 million award, announced Oct. 19 by Oregon Sens. Jeff Merkley and Ron Wyden and Rep. Val Hoyle, will fund final design and construction of improvements to the Coos Bay Rail Line. The work is intended to increase capacity, improve reliability and prepare the railroad to support the proposed Pacific Coast Intermodal Port, or PCIP.
The funding comes through the U.S. Department of Transportation’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants program. Planned improvements include repairing and replacing track, ties, bridges and tunnels, according to Hoyle’s office.
The 111-mile railroad runs from Coos Bay to near Eugene. Its rehabilitation is a critical component of the broader port development, which would create a deepwater container terminal with a ship-to-rail connection.
It’s the first large construction grant for PCIP, which plans significant improvements to handle container volumes.
Port officials described the award as a major step toward developing another West Coast container gateway.
Kyle Stevens, president of the Oregon International Port of Coos Bay Board of Commissioners, in a statement said the money puts the project “on a path toward constructing the critical rail infrastructure needed to bring a new West Coast container gateway to life.”
The award follows more than $11 million in federal Port Infrastructure Development Program funding announced earlier this year for the Coos Bay rail project, according to the congressional delegation.
The proposed terminal, which would compete for regional business with Portland, Ore., Seattle and Tacoma, Wash., as well as Vancouver and Prince Rupert in western Canada, has a price tag of more than $2 billion and remains years away from opening pending additional funding, permitting and environmental reviews. Development also comes as shifting U.S. tariff and trade policy has seen more headhaul container traffic from Asia routed away from Pacific Northwest hubs and through the British Columbia gateways, for entry into the Midwest U.S. via intermodal rail.
Before the latest award, the project had attracted approximately $70 million in federal funding through four grant programs, along with $160 million from Oregon. NorthPoint Development, the private company slated to operate the container terminal, has invested $25 million, according to local media.
Supporters say the development could generate 2,500 permanent jobs and another 2,500 temporary construction jobs, helping diversify a regional economy affected by the timber industry’s decline. Environmental advocates have raised concerns about dredging and its effects on wildlife, with opponents favoring greater emphasis on industries such as healthcare and tourism.
The project’s next steps include selecting contractors to assist with permitting and review. Proposals are due Oct. 28, followed by environmental reviews and opportunities for public comment.
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