Additional monies approved for port; rail line not funded

The Port of Eastport received some good news and some bad news on February 17, with the announcement that $2 million in federal Recovery Act funding was approved to provide additional monies for the port's bulk conveyor system project. However, the application for $57 million for bringing a rail line from Calais to Perry for the port was not funded.

Concerning the rail funding announcement, Port Director Chris Gardner says he's disappointed, but "we're not done yet. There are other avenues we can pursue." He notes, "Once we have the bulk conveyor equipment and markets, it will greatly strengthen our application for rail funds in the future." Both the conveyor system and the rail project are aimed at loading bulk cargoes such as wood chips and pellets, and the Eastport Port Authority already has been receiving inquiries from companies about shipping both products. Gardner expects that additional federal stimulus funding for infrastructure improvements will be available in the future. "I feel confident there will be other opportunities for infrastructure improvements."

Gardner points out that the state had sought $34 million for the state's three ports and Maine Department of Transportation projects under the Recovery Act's TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grant Program, but only $14 million was approved. He says the Port of Eastport was fortunate that the $2 million for the conveyor system were not among the funds that were cut. In addition to the funding for Eastport, the International Marine Terminal in Portland received $5 million to improve access to the pier, cargo-handling capability and the building of a new berth for large cruise ships at the recently completed Ocean Gateway terminal. Searsport received $7 million for the purchase of a port crane for the dry cargo pier at Mack Point. Gardner extends the port's appreciation to the state's congressional delegation and the governor's office for supporting the funding for Eastport.

In announcing the funding, Senators Olympia Snowe and Susan Collins commented, "This was an extremely competitive grant process. According to the U.S. Department of Transportation, applications from 50 states totaling $57 billion were received, and applicants competed for just $1.5 billion in TIGER grant funds." Governor John Baldacci stated in a release, "Maine's port strategy project will dramatically improve Maine's economic competitiveness while creating jobs and business activity for those living in the economically stressed areas of coastal Maine." Congressman Mike Michaud commented, "Whether it's shipping forest products or new wind turbine components, we'll need increased port capacity to move Maine's economy forward. These investments will create jobs for Mainers in the short term through port improvement work and in the long term by ensuring that our businesses have the infrastructure to ship our products around the world."

The $2 million in federal funds for Eastport will be used in conjunction with $4.5 million in state bond funds for a warehouse, conveyor system and storage pad for handling bulk cargoes. The additional funding for Eastport "will dovetail nicely with the $4.5 million in the transportation bond," says Gardner. "It alleviates some of our borrowing needs and keeps our exposure down." Construction may begin within 30 days, and the port authority is hoping that the project can be completed by this November.

With the additional $2 million for the project, Gardner says that the port authority may need to borrow only $1 million from a bank instead of $2 million. At its meeting on February 18, the port authority board agreed to use The First bank for establishing a line of credit up to $1 million for contingency costs associated with the project.

The board also approved the signing of a contract with the engineering firm CES Inc. for engineering, project management and permitting for the bulk conveyor system for $234,000. The costs were reduced because now all of the conveyor system will be located outside the new warehouse.

Companies express interest

Gardner and Federal Marine Terminals Manager Skip Rogers met recently with a company that is proposing a minimum tonnage contract for exporting wood chips for a period of three to five years. The Canadian company is currently shipping through Canadian ports but is seeking to use the Port of Eastport to reach its volume demands, Gardner says. "They're putting pressure on to finish the conveyor system this year," he noted. "They have an immediate need."

Discussions concerning the shipment of wood pellets are continuing. Three companies have expressed interest, including a manufacturer in Texas, a brokerage firm in England and Fulghum Fibres, which has a wood-chipping facility in Baileyville. "Smart investments in the right areas attract business, and this illustrates that," the port director points out.

In other action, the port authority board approved pledging $5,000 for the fishermen's memorial in Lubec.