Weyerhaeuser endorsement of SR432 rail plan boosts Port of Longview’s lumber prospects

Weyerhaeuser’s endorsement of $350 million SR432 (Oregon Way/Industrial Way) rail corridor could significantly boost the project’s approval chances. This is big news for the Port of Longview as clearing up congestion stands to improve opportunity for log exports. Weyerhaeuser Co. announced that it now endorses plans for the Oregon Way/Industrial Way rail corridor (Project SR 432) that will see new highway overpasses and rail lines ease congestion at the Port of Longview and the Longview Industrial Zone. It was welcome news to the port.

The company had previously refused to support the $350 million plan due to concerns about the initial design of the project. However, Longview port spokesperson, Ashley Helenberg, told AJOT that with the support of the lumber giant the project now has a much better chance of gaining the necessary approvals. While Weyerhaeuser’s approval was good news, it did not come with any additional funding. Even though log exports through the port declined by roughly 20% last year due to the high U.S. dollar; logs still remain a major piece of traffic for Longview. In 2014 the port experienced an 11% increase in traffic due to large exports of corn and soybeans and the addition of scrap metal exports to the traffic mix. Increased traffic at the port began several years ago with the Columbia River channel deepening, lock rehabilitation and jetty improvement. Longview now exports over 60% of northwest timber as well as exporting grain, corn, calcined coke, soya meal, bentonite clay, potash and soda ash. Imports and exports include scrap metal, pulp and paper products and construction materials.

Helenberg said the rail corridor project, if it goes ahead, will facilitate increased log movements through the port. “First of all,” she said, “there’s very small margins on logs. The only other option if this region’s timber wasn’t moving through [the port of] Longview, it would most likely move through Olympia. And, by the time you move it up there you’ve lost your competitive advantage, and you’re not making money anymore.” She said the SR432 project includes a rail line that goes across a major intersection with a variety of industries that are planning to establish plants at the end. Several of these would be serviced by unit trains, which would block the log trucks without the proposed reconfiguration. But, a compromise proposal has now been reached with the company. Helenberg said that is a relief because the port handles a lot of Washington State timber, including logs from the State of Oregon. “Right now we’re waiting for the State Legislature to approve the transportation package,” she said. “We’re hopeful that, with Weyerhaeuser’s support, the 432 Project will prevail.” While log exports to Asia dropped off last year, Helenberg said the port believes the downturn has now hit bottom and they’re expecting log traffic to increase.

“Part of our original master plan was to increase rail capacity at the port,” she said. “The port purchased, at the end of the corridor, 285 acres of undeveloped property, which is one of the last remaining pieces on the West Coast. So we have a vested interest in ensuring that we not only continue to move the cargo currently flowing through the port and serving our existing customers but that we can develop it for the benefit of our community with the space, the deep draft access and the rail access that these developments are searching for. According to the U.S. Forest Service, Pacific Northwest Station in Portland, Oregon, exports of West Coast logs dropped by 13% in 2014 compared to 2013 representing roughly 1,706 million board feet. The value of log exports dropped by seven percent to $1,310 million. In its March report, the agency blamed the drop in demand from China in the second half of the year as the primary reason for the decrease in exports. Xiaoping Zhou, economist, said that other regions of the U.S. fared better than the West Coast, namely Norfolk, New York and Savannah.