SEMO Port expanding, upgrading its rail system

More than $2.78 million in improvements are either in progress or scheduled to be completed this year at the SEMO Port with funding from state and federal grants.

As the port continues to ship out more tons of cargo, upgrades to its railway and roadways are needed.

"We're looking to handle more traffic in the future and try to get ahead of the game," said Dan Overbey, executive director.

The bulk of the funds, $1.95 million, will go toward expanding and upgrading railroad infrastructure at the port.

The volume of products being shipped by rail at SEMO Port has grown significantly over the years. The port steadily moves corn, soybeans, ethanol, steel, cement and rock, among other products, Overbey said.

In its first year of rail service, 1995, only 12 rail cars carried goods to and from the port. By 2000, 1,696 rail cars passed in or out. That number rose by 2005 to 2,389 cars. Last year, more than 4,100 cars carried goods to or from the port.

Work continues on projects such as entrance improvements and street paving at the SEMO Port on Monday, July 18, 2011. (Kristin Eberts)

The port's main railroad track is often underwater during flooding because of a four-foot dip in elevation, so a second main track is needed to keep rail traffic operating even during high water, Overbey said.

The second main track project is funded by a $802,961 grant from the Missouri Department of Transportation's Waterways Program. It does not require matching funds from the port, Overbey said.

Work started on that project last fall but hasn't been able to proceed this summer due to high water.

Contracts have been awarded to Big River Resources of Cape Girardeau and Ironhorse Railroad Contractors of Red Bud, Ill.

When the new section of track is completed, the old track built by Missouri Pacific and bought by the port in 1994 will be used for rail-car storage, Overbey said.

A $1.49 million grant from the U.S. Department of Commerce's Economic Development Administration will fund a section of new track, repairs to existing tracks and bank stabilization efforts. That grant requires a 20 percent match of $373,500 from the port.

A contract for site preparation for three new short tracks at the north end of the port has been awarded to C.E. Contracting of Ste. Genevieve, Mo. The initial work is expected to cost about $180,000 and will begin later this month, Overbey said.

Bids will be solicited soon for the construction of new railroad spurs and improvements to a six-mile section of the port's track, including replacing 2,400 railroad ties. That phase of the project is expected to cost about $1.15 million.

As part of the same Department of Commerce grant, about $535,000 will be spent on bank stabilization efforts at the site of a former dredge basin. That contract was recently awarded to Beussink Excavating of Jackson, but work can't begin until river levels recede, Overbey said. Eventually the site will be filled in and converted to an industrial site where a new business could locate, he said.

Federal highway funding through the Delta Regional Transportation Development program are helping to pay for stabilization work at the dredge basin site. A $735,000 grant is also paying for paving work on 700 feet of Rushing Road and paving several entrances off Nash Road. The grant requires a $183,750 match from the port. Fronabarger Concreters of Oak Ridge was awarded the contract for these projects, which are now underway.

Rushing Road will be a two-lane road with a holding lane, with additional space for waiting trucks.

"We have a lot of trucks that show up all at once during harvest season. This will help traffic flow during that time," Overbey said.

Breaking the large grants into several smaller projects that local contractors can more easily handle has helped keep local workers employed and brought in lower bids, Overbey said.

"The taxpayer gets more for their money that way," he said.

Rethinking strategies

Mitch Robinson, executive director of Cape Girardeau Area Magnet, said the port's truck, rail and barge modes of transportation make it an important asset to businesses looking to locate in the area.

Between 20 and 30 percent of businesses considering locating in the area are interested in railway and port access, he said.

As gas prices remain high, some companies are also rethinking their shipping strategies, he said.

"Rail is very cost-effective for businesses that can handle the time issue. They trade price for time," Robinson said.

While a truck may get cargo to a location in a day, that same cargo may take a week to reach the same destination by rail, Overbey said.

One advantage the port's railway offers is its connection with both Union Pacific at Scott City and BNSF in Cape Girardeau.

"Businesses have the ability to shop what rate is best for their product and that's a huge advantage," Robinson said.

Along with seeing its rail cargo increase, the total tonnage shipped through SEMO Port by rail, barge and truck is increasing every year, Overbey said.

Last year 1,234,000 tons were shipped in or out of the port by barge, truck and rail car, according to Overbey. That's a 17 percent increase from five years ago and a 37 percent increase over the past 10 years.

While the port continues to seek other grants to help finance improvements, its most immediate concern is to find funds for dredging this fall now that the U.S. Army Corps of Engineers is no longer providing that service.

"The board's got us set up with a line of credit, where we could borrow money for it if we have to, but we'd rather put our money into growing the port," Overbey said.

mmiller@semissourian.com

388-3646

Pertinent address:

10 Bill Bess Drive, Scott City, MO