Port of Grays Harbor outlines multiyear expansion, cites $175 million private investment and major rail work

Port of Grays Harbor officials told the Aberdeen City Council on June 25, 2025, that a multiyear expansion centered on a new crush facility and Terminal 4 upgrades will involve a large private investment and significant port-funded rail and dock work.

Kayla Dunlap, director of government and public affairs at the Port of Grays Harbor, said the private partner AGP plans about $175,000,000 in investment and the port will invest roughly $60,000,000 in related infrastructure, including new rail and dock upgrades. "AGP's piece ... is about $175,000,000 investment," Dunlap said during a presentation to the council.

The expansion centers on Terminal 4 (T4), where port staff plan to resurface the dock, add a new fender system and install stormwater collection and treatment systems that the port said the terminal previously lacked. Dunlap said the port is also filling a nearby laydown area that is about 70% complete and expected to be finished by July; that area will support operations at T4 when the new trackage is in place.

Why it matters: port officials said the work will double export capacity when fully operational and create longshore, rail and waterside jobs tied to increased commodity handling. Officials also described the project as multimodal, emphasizing truck, rail and vessel connections, and said the port's three terminals and pilot services account for more than 80% of operating revenues.

Key details presented

- Investment: Dunlap described the project as a partnership: AGP roughly $175,000,000; the port roughly $60,000,000 in infrastructure spending, chiefly rail improvements. "The majority of it is rail," Dunlap said, and the port described adding roughly 47,000 meters of rail, which the presentation said equals about nine miles.

- Terminal upgrades: T4 work includes dock resurfacing, a modern fender system and new stormwater treatment. Port staff said Terminal 4B will include modern unloading gear and two simultaneous discharge spouts.

- Marina and other assets: Dunlap also reviewed port-owned assets including an airport runway, industrial properties with about 120 tenants, Westport marina and park assets such as Ferns Landing and Sterling Landing. The port described the marina infrastructure as 40–60 years old and in need of phased modernization.

- Cargo mix and jobs: The port highlighted recent diversification—liquid bulk, soy meal and oil, methanol and wood chips—and said new facilities will serve renewable-fuels feedstock markets. Dunlap said a proposed pulp facility (described in the presentation as a $230,000,000 project) that would bring about 55–60 jobs is currently held up in litigation.

Questions from council and staff responses

Council members asked whether the rail work and other infrastructure would keep pace with the terminal projects and whether Terminal 3 site hazards must be remediated before permits issue. Dunlap told the council she could only speak to port property rail work and said the port expects key trackage to be in place by the end of the year; she also said the port expects the full facility that would use the trackage to be ready in roughly the second quarter of 2026.

On Terminal 3, Dunlap said, "They wouldn't be getting permits if that wasn't being addressed," indicating remediation would be part of the permitting process.

Port staffing and operations

Dunlap said the port directly employs three full-time pilots and is training a fourth to replace a pilot who must retire next November under licensing rules. The port said training and pilot licensing are part of preparing for increased vessel traffic when the expansion is operational.

Funding and next steps

Dunlap said the port is pursuing federal funding, including an Economic Development Administration (EDA) grant for an initial phase, and will pursue other federal sources during the year. She described the overall expansion as a decade-long effort that will proceed in phases and that the port and private partners are already working on site preparation and contract work.

Public and council reaction

Council members and the public asked about construction timelines, contractor hiring and local hiring. Port staff noted several local contractors are working on the project and estimated heavy local employment on the rail and fill work. Dunlap and other port staff emphasized that environmental review, grant approvals and pending litigation on some private projects were dependencies that could affect schedules.

The port presentation concluded with a commitment to continue permitting, environmental work and grant applications while advancing on-site infrastructure work that staff said is already under way.