Port leaders and railroads press for intermodal capacity and short-line investment

Pacific Northwest Regional Infrastructure Accelerator · October 9, 2024

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Summary

Port leaders, Class I and short-line railroad executives told the PNW infrastructure conference that intermodal growth, inland hubs and state tax credits will be essential to keep gateways competitive and to reduce truck trips.

A panel of port leaders and railroad executives told attendees that maintaining and expanding intermodal capacity is central to Pacific Northwest gateway competitiveness.

Don Estabrook, deputy CEO of the Northwest Seaport Alliance, said the gateway handles a broad mix of cargo and that intermodal rail is essential to moving discretionary and bulk goods to the Midwest. "50% of all the cargo that moves through our gateway is moving intermodally," Estabrook said, outlining three business segments: intact container unit trains, domestic transload-to-domestic-container services, and inland rail hubs that load and return equipment closer to agricultural exporters.

Union Pacific and BNSF representatives described heavy private investment but emphasized that public support and state programs help projects move forward. "Union Pacific has invested a little over $725,000,000 in our infrastructure in the Pacific Northwest," Aaron Hunt said, noting that the capital is largely focused on maintaining track, bridges and other assets necessary for reliable service.

Short-line executives urged more attention to deferred maintenance and tools such as state tax credits. Ross Lane of Genesee & Wyoming described rail lines operating at low speeds and volumes that nevertheless serve essential local customers; he urged tax-credit programs and state matching funds to leverage federal discretionary grants.

Panelists also called out community impacts and safety: multiple speakers noted that grade separations and targeted flyovers reduce local crossings and community disruptions. On land use, a rapid-fire 'red/yellow/green' poll found most panelists answering "red" — signaling concern that port industrial lands are increasingly threatened by incompatible development.

The panel closed with an emphasis on joint planning among ports, class I and short-line operators and state DOTs to make strategic investments that preserve freight capacity while enabling passenger service where feasible.

Next steps: panelists encouraged continued stakeholder coordination, expanded state programs to match federal grants, and targeted projects (grade separations, inland hubs) that provide environmental and safety benefits while strengthening gateway freight flows.