PPIC approves sponsorship for DeLong rail transloading facility PIDP grant application

The Portsmouth Public-Private Investment Commission voted 6-0 March 25 to sponsor a federal Port Infrastructure Development Program (PIDP) grant application from the DeLong Company to expand a CSX rail transloading and intermodal export facility at 1 Harper Avenue.

The DeLong Company is seeking grant support for a multi-phase project to handle containerized exports of grains, oilseeds and, in a later phase, dry distillers grains (DDGs) and soybean meal, company representatives told the commission. Mike DeLong, representing the DeLong Company, said the firm operates a nationwide network and expects the Portsmouth facility to expand East Coast export capacity: "We're a 110 year old, full service, agricultural company ... for the last 15 years, we've been the number 1 containerized exporter of agricultural goods in The US," he said.

Commission staff and DeLong representatives described phase 1 as mainly rail and container-handling infrastructure (about $20–$26 million), including roughly 7,000 feet of new rail and unit-train access (about 90–102 rail cars) and an expected baseline of several thousand carloads. The company told the commission it plans a follow-on phase to add storage and conveying systems needed to handle DDGs and soybean meal; for that phase the presentation cited a project budget figure of about $17,000,000 and said DeLong would provide a 20% match while requesting an 80% PIDP share.

Brian Hendricks, identified as a VAA representative assisting with grant work, outlined post-award procedures and the public sponsor's role: "The award will be given to the public sponsor. At that point, the DeLong company would perform an environmental assessment ... all on their nickel," Hendricks said. He explained that federal grant reimbursement requests must be submitted by the public sponsor and that DeLong typically assumes responsibility for bidding and contract administration with the federal agency's agreement, while the sponsor acts as the pass-through for grant funds.

DeLong representatives said the company has signed a lease with CSX for 25 years and expects to handle primarily soybeans, corn and wheat in phase 1, with DDGs and soybean meal in phase 2. Brandon Bickham, described as DeLong's head of exports, called the Portsmouth site a potential "flagship East Coast facility" that would bring Midwest and regional product to the port for export.

Several commissioners asked for clarification about the city's or commission's financial exposure; staff and DeLong representatives said the PPIC would not provide cash or a funding match but would serve as the public sponsor and pass-through for federal reimbursements, and that DeLong would cover project costs and environmental review. The commission approved a resolution authorizing submission of the PIDP application and related supporting documents and letters of support.

Votes at a glance: The resolution authorizing PPIC to serve as public sponsor for the DeLong Company PIDP application was approved by roll-call vote, 6-0.

The commission asked DeLong and VAA to provide a copy of the board action and a letter of support for inclusion with the application. DeLong representatives said they would follow up with city staff after the meeting.