Semo Port Loop Project on track to finish in 2023

The Southeast Missouri Regional Port Authority already receives and ships to 37 states and 30 countries, but in a couple of years, a new project could stretch the port's impact even further.

Semo Port aims to add two new loop tracks and a terminal by 2023.

The loop tracks would allow the port to handle larger unit trains and load or unload more at a single time, according to executive director Cary Harbison.

Each loop will measure 2 miles long. When construction is complete, the terminal will add an additional 6 miles of track to the single-port railroad, making it 100-plus-pound-unit car trains more efficiently.

Semo Port Railroad (SE) will connect the Loop Tracks Terminal with the two major western rail systems, the BNSF Railway and the Union Pacific Railroad, along with the Mississippi River.

Some aspects of the $33 million project may cost more than anticipated, Harbison said. A national increase in the cost of construction supplies shot up the cost of some needed materials.

The cost of geotextile fabric the project needs to maintain soil stability rose 25%.

Steel is at its highest benchmark price since 2008, according to Reuters. The project is currently under budget, but Harbison said he fears it may not continue to stay that way as the cost of steel continues to rise.

"We're nervous, but we're hoping that we're under budget enough to overcome some of those cost increases," Harbison said.

The port also anticipates a slight increase in rail pricing after a contractor's rail supplier faced a small fire and explosion at its plant.

Harbison does not foresee the setbacks pushing back the targeted completion date of 2023.

"We've got two full years to get the entire project done," Harbison said. "We will not delay the end date if we can help it."

Before the project received funding, leaders of the port told the Southeast Missourian they planned to seek a grant from the Missouri Department of Transportation that would fund 60% of the cost. They envisioned another $6.6 million would come from a 30-year federal loan.

In 2018, U.S. Sen. Roy Blunt and U.S. Rep. Jason Smith announced a $19.8 million grant for the port through the Department of Transportation's Better Utilizing Investments to Leverage Development (BUILD) Grant Program.

The grant funded 60% of the loop track project. The other 40% will come from a combination of out-of-pocket money and bonds, Harbison said.

The Semo Port is a huge economic driver for the region, according to Harbison. It currently handles about 1 million barge tons of product a year. Port businesses ship out another 300,000 to 400,000 tons of product annually via truck and rail.

The port, located in Scott City, midway between St. Louis and Memphis, Tennessee, receives and ships across the country and globally.

As the project helps the port move more quickly, the port will become even more vital, Harbison said.