$54 million in federal money heading to Port of Tacoma. Here is what it will pay for

The Port of Tacoma is receiving a federal grant giving it a sizable boost to its Husky Terminal expansion project. On Tuesday the offices of U.S. Sen. Maria Cantwell and U.S. Sen. Patty Murray announced the more than $54 million federal grant awarded to the Northwest Seaport Alliance, the cargo operating partnership of the ports of Seattle and Tacoma.

The grant was awarded through the U.S. Department of Transportation’s Maritime Administration’s Port Infrastructure Development Program and will support the first phase of the Husky Terminal expansion at the Port of Tacoma.

“This funding will double the capacity of the Port of Tacoma Husky Terminal for ultra-large ships and triple capacity for refrigerated containers, so that Washington state producers can export more apples, potatoes, seafood, and other products from the Port of Tacoma to markets across the globe,” Cantwell said in a statement. “This project is good for farmers, great for the environment, and will boost competitiveness of Washington’s ports and farmers.”

As chair of the Senate Committee on Commerce, Science and Transportation, Cantwell worked to include a record $2.25 billion for the PIDP program in the Bipartisan Infrastructure Law. In September 2021, Cantwell led a call to boost funding for the program to help address the ongoing issues with port congestion.

Murray, chair of the Senate Appropriations Committee, also touted the funding announcement. Murray’s office noted that she secured significant funding for PIDP through the Bipartisan Infrastructure Law — which she helped pass assistant majority leader— and through annual government funding bills which she helped author as a senior appropriator.

“The Port of Tacoma is a juggernaut for economic activity in the Pacific Northwest, supporting over 42,000 jobs and generating nearly $3 billion in economic activity each year,” Murray said in a statement. “When we invest in our ports, we are investing in a stronger economy for Washington state.”

The port project will reconfigure its terminal yard to allow working two ultra-large ships instead of just one, install 40 racks for refrigerated containers and relocate the North Intermodal Yard Tower and other support structures for more efficient terminal truck routes.

Cantwell’s office said the improvements “triple the port’s refrigerated container capacity. This will support Washington state exporters who ship price- and time-sensitive refrigerated agricultural and seafood products.”

Cantwell’s office noted, “There is unmet terminal handling capacity demand for some of Washington state’s top export commodities like apples and frozen french fries, as well as seafood, beef, pork, and dairy products.”

The project also will install upgraded power infrastructure in an efforts to move away from diesel-powered cargo handling equipment.

Cantwell wrote a letter of support for the Port of Tacoma to U.S. Department of Transportation Secretary Pete Buttigieg in June. Washington state received the single largest award of any state among the 41 PIDP awards announced Tuesday, according to Cantwell’s office.

Murray also wrote a letter in support of the project in April to Rear Adm. Ann C. Phillips, U.S. Navy (Ret.), administrator of the U.S. Maritime Administration with the U.S. Department of Transportation.

U.S. Rep. Derek Kilmer, who represents the state’s 6th Congressional District, also engaged directly with Secretary Buttigieg, supporting the NWSA’s application. “This is a big deal – and it’s a testament to the steps we’re taking to grow the economy and build a sustainable future,” Kilmer said Tuesday.

“Here’s what this $54 million grant means,” he added. “It means that the Port of Tacoma can keep leading the way in creating jobs and reducing emissions. It means we can expand this important terminal without the cost being solely borne by local taxpayers. It means our region can better compete in the 21st-century economy. And thanks to the bipartisan Infrastructure Law, it means that the Port of Tacoma will be at the forefront of trade and in shipping Washington state products all over the world.”

Port of Tacoma Commission President and NWSA co-chair Deanna Keller thanked the Washington delegation Tuesday and said in a statement that the award “will enable us to begin a series of critical improvements at Husky Terminal in our South Harbor to enhance our gateway’s ability to compete.

“By densifying the terminal and expanding its refrigerated cargo capacity, we will be able to help Washington agricultural exporters increase their volume in international markets and improve service for importers,” Keller said.

Work to expand the terminal’s capabilities has been an ongoing process for years. In 2016, Northwest Seaport Alliance managing members approved $141 million worth of construction and cranes to dock two of the largest container ships simultaneously at the terminal.

“This project builds on those prior investments by improving the terminal yard which, today, cannot handle the large discharges of cargo that would be associated with first stop calls of ultra-large ships,” NWSA said in its grant application, calling it a “major liability” given competition from Canada’s ports. This phase’s total project cost was listed at $125.9 million in its application, with $69.3 million in nonfederal funding to also support the total cost.