HomeMy WebLinkAboutRES 24-127RESOLUTION NO.24-127
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to approve letters of support for
the Port of Beaumont's PIDP Grant Application — Main Street Terminal 2 Rail, Dock, and Shed
Project.
The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
2024.
PASSED BY THE CITY COUNCIL of the City of Beauont this the 21st day of May,
- Mayor Roy West —
TEXAS
May 21, 2024
The Honorable Randy Weber
107 Cannon House Office Building
United States House of Representatives
Washington, D.C. 20515
Subject: Pork of Beaumont CPF Request- Low Line and Main Street Terminal 2 Rail Project
Dear Congressman Weber:
On behalf of the City of Beaumont, I am writing to express support for the Port of Beaumont's
Community Project Funding request for the $10 million Low Line and Main Street Terminal 2
Rail project.
The proposed project will enhance system connectivity by bringing the Port of Beaumont's
inoperable Low Line Rail infrastructure into service and constructing 13 new tracks to Iiiil,, Main
Street Terminal 2 to Main Street Terminal 1, the primary terminal used by the United States
military. The project will create opportunities for the Port to market assets within the terminal,
which will create jobs and promote economic growth in our region.
The terminal improvement project will support the continued growth of one of Beauniont's
greatest economic assets- the Port of Beaumont. As the largest strategic military port in the U.S.
and the T" largest in terms of tonnage, the Port supports more than 67,000 jobs and has a direct
impact on the economic success of our region. The Port of Beaumont regularly demonstrates their
ability to bring large infrastructure projects to life, and this relatively small project will make a
tremendous impact on our community, providing an underutilized terminal with the upgrades
needed to support high -paying jobs and sustainable growth.
The City of Beaumont supports funding this critical project, Should you have any questions, or
require additional information, I can be reached directly at kennetb.williamsLy)beaumonttexas.gov.
Sincerely,
Kenneth Williams,
City Manager
City of Beaumont
A
Ir ,R 1".
TEXAS
May 21, 2024
Maritime Administration
Office of Port Infrastructure Development
1200 New Jersey Avenue SE
Washington, DC 20590
Subject: Port of Beaumont PIDP Grant Application- Main Street Terminal 2 Rail, Dock and
Shed Project
To Whom It May Concern:
On behalf of the City of Beaumont, I am writing to express support for the Port of Beaumont's
Port Infrastructure Development Program application for the Main Street Terminal 2 project. The
terminal reconstruction project includes demolition of the existing terminal and reconstruction of
new rail, dock, and shed infrastructure that has the potential to support over 300 new direct,
indirect, induced, and related user jobs.
The Main Street Terminal 2 project addresses regional and national challenges in the nation's
transportation system by facilitating intermodal interchange, transfer, and access into and out of
the Port of Beaumont. The project will not only benefit the region, but also the cities and nations
receiving cargo from or sending cargo to the Port annually, including 30 nations around the world.
The project will also alleviate intercity vehicular traffic congestion while maximizing current rail
throughput, adding 15% more general cargo handling capacity that will directly benefit the U.S.
military, and increasing efficiencies in the unultimodal transportation of goods between the
waterway and railway.
The terminal improvement project will support the continued growth of one of Beau mont's
greatest economic assets- the Pont of Beaumont. As the largest strategic military port in the U.S.
and the 711, largest in terms of tonnage, the Port supports more than 67,000 jobs and has a direct
impact on the economic success of our region. The Port of Beaumont regularly demonstrates their
ability to bring large infrastructure projects to life, and this project will make a tremendous impact
on our community, providing an underutilized terminal with the -upgrades needed to support high -
paying jobs and sustainable growth.
I fully support funding this critical project. Should you have any questions, or require additional
information, I can be reached directly at kei-rieth,williams a,beaun-onttexas.gov.
Sincerely,
Kenneth Williams,
City Manager
City of Beaumont
U.S. Representative Randy Weber (TX-] 4)
Fiscal Year 2025 Appropriations
Community Project Funding (CPF) Request Form
USDOT I Consolidated Rail Infrastructure and Safety Improvements
Request Details
Project Title: Port of Beaumont Low Line Rail Restoration Project
Entity Requesting Funds: Port of Beaumont Navigation District of Jefferson County, Texas
Website: www.pobtx.com
Primary Point of Contact:
David C. Fisher, Poet Director & CEO
dcf Lib lobtx.coni
409-835-5367
1225 Main Street, Beaumont, TX 77707
Project Priority: Top
Short Description:
The proposed project will enhance system comiectivity by bringing the Port of Beaumont's
inoperable Low Line Rail infrastructure, which was destroyed in 2017 as result of Hurricane
Harvey, into service. The project will link to the primary terminal used by the United States
military at the Port of Beaumont.
Total Project Cost and Requested Amount:
The Port of Beaumont has the fiinds committed to meet cost -share requirements.
Federal Funding History
No federal funding has been provided for the Low Line Rail project. The Port of Beaumont
requested and was denied FEMA support following Hurricane Harvey due to challenges
associated with building the site back to its original condition. In 2017, Hurricane Harvey created
an 80-foot hole in the Neches River, adjacent to the Low Line Rail, which degraded the integrity
of the bank that was stabilizing the rail infrastructure. As a condition of fiinding, FEMA required
the Pont of Beaumont to fill the hole with material to build the site back to its pre -hurricane
condition. Unfortunately, filling the hole with material was not a viable solution, as the material
would continue to erode, unless stabilized by a bulkhead. Due to the proposed bulkhead being a
new addition to the area surrounding the low line rail, FEMA funding was denied.
Additional Costs: No additional costs, above what has been noted, are anticipated.
Statement of Commitment:
As the nonfederal applicant, the Port of Beaumont offers the folion,ing statement of connnitrnent
for consideration:
1. The Port of Beaumont will commit $2,000,000 as part of the overall non-federal match,
which constitutes 20% of the total project cost.
2. Funds will be provided from the Port of Beaumont's operating revenues. Said hinds will
be dedicated to the costs associated with construction of the proposed project.
Sources of funding for the full share of the cost of the project if amount received is less than
amount requested:
As the non-federal applicant, the Port of Beaumont offers the follo�t4ng statement for
consider-ation:
The Port of Beaumont will bear responsibility for all costs associated with the proposed project,
above and beyond the amount of federal fiends received as part of this Community Project
Funding Request. Should the Port receive only a fraction of the requested funds, the project will
proceed without waiting for additional funding sources.
Project Description-1,000characterinaximmm
The project will enhance system connectivity by bringing the Port of Beaumont's inoperable
Low Line Rail into service. The project has two focus areas;
1. Low Line Bulkhead- The bank surrounding the Port's inoperable Low Line Rail, which eroded
as a result of Hurricane Harvey damage, will be stabilized by constructing a bulkhead to prevent
future erosion.
On the west side of the railroad bridge, the bulkhead will be approximately 160 ft long. On the
east side of the bridge, the bulkhead will be approximately 430 ft long. Each retaining wall will
be joined to the bulkhead to prevent water intrusion during fixture flooding events.
2. Rail Reconstruction- 700 ft of rail that was rendered inoperable in 2017 will be repaired to
provide access to the Port's Main Street Terminals 1 and 2. MST 1 will be the primary terminal
used by the U.S. Military. Restoring service to the Low Line track erillances the Port's ability to
respond to the needs of the U.S. military and other conunercial customers.
PRE•)
HARV
POST
Project Status
Detailed engineering design is approximately 98% complete. The project is in the plamling and
envirom-rental review phase.
Estimated Start Date: January 2025
Estimated Completion Date: August 2025
Project Planning
The project is not included in the state rail plan.
The project is not included in the grade crossing action plan.
Project Value
Valuable Use of Taxpayer Funds
Project Value
The Low Line Rail project will create a rail track grade separation, allowing nail cars to enter and
exit the Port for switching purposes, without crossing the Sunset Route, which is one of the
busiest mainline tracks in Texas. This ensures the consistent movement of goods is maintained
along the route and provides additional rail switching capacity that benefits Pori operations, and
District 14, directly. If movement along the Sunset Route is interrupted, a ripple effect is felt
throughout the supply chain that disrupts the 40+ trains per day that cross the track. If regularly
occurring interruptions take place, the increased costs associated with inefficiencies are
ultimately passed down to the taxpayer. The grade separation also provides a safety benefit for
trains entering and existing Port facilities.
Community Impact
The proposed project is in a Historically Disadvantaged Community, less than 1,000 feet from
Opportunity Zone for Census Block Group 482450117002152. Approximately 20.4% of the City
of Beaumont lives in poverty and 15.8% of the MSA. The Beaumont -Port Arthur MSA, in which
the project is located, has one of the highest unennployment rates in the United States, ranking
356 out of 389, according to Bureau of Labor Statistics data, Projects like this, that support well -
paying union jobs, are critical to the health of the Southeast Texas workforce.
Priority for Texas' 10 District
National Impact
The proposed Low Line Rail project will support the readiness efforts of the U.S. Military. As
the largest strategic military outload port in the United States and headquarters of the 842" d
Transportation Battalion, Port of Beaumont rail infrastructure is critical to the movement of
military equipment to and from Port facilities. The Low Line Rail directly connects to the
primary terminal used for the movement of military equipment at the Port of Beaumont.
Currently, the Port of Beaumont has a significantly reduced capability of switching 90-foot
military Tail cars to the primary terminal used by the 842nd Transportation Battalion, but with
construction of the Low Line project, switching capacity will increase by 300%. This will have a
direct impact on national security and readiness efforts, by tripling the amount of cargo that can
be moved, and decreasing the amount of time in which it can be moved, by 300%.
In addition to national security benefits, this small project lays the groundwork for construction
of a $150 million terminal reconstruction project (MST 2) that will modernize outdated
infrastructure with the addition of a new dock, shed and rail. Without improvements to the Low
Line Rail, which is not currently accessible, benefits to potential customers interested in MST 2
will not be fully realized due to switching limitations. The proposed terminal being supported by
the Low Line Rail has the potential to increase general cargo handling capacity at the Port of
Beaumont by 25% and support an additional 1,800 direct, indirect, induced and related user jobs,
based on numbers extrapolated from a 2018 Port of Beaumont Economic Iinpact Study. The
existing Main Street Terminal 2 will also benefit from the Low Line improvenn.ents and will
realize a 1,000% increase in railcar switching capacity upon construction of the Low Line Rail
Project.
The Low Line project will directly impact the Southeast Texas workforce, cargo movement at
new and existing terminals throughout the Port; and District 14 as a whole.
T E X A S
May 21, 2024
Maritime Administration
Office of Port Infrastructure Development
1200 New Jersey Avenue SE
Washington, DC 20590
Subject: Port ofBcaumont PIDP Grant Application- Main Street Terminal 2 Rail, Dock and
Shed Project
To Whom It May Concern:
On behalf of the City of Beaumont, I am writing to express support for the Port of Beaumont's
Port Infrastructure Development Program application for the Main Street Terminal 2 project. The
terminal reconstruction project includes demolition of the existing terminal and reconstruction of
new rail, dock, and shed infrastructure that has the potential to support over 300 new direct,
indirect, induced, and related usa jobs.
The Main Street Terminal 2 project addresses regional and national challenges in the nation's
transportation system by facilitating intermodal interchange, transfer, and access into and out of
the Port of Beaumont. The project will not only benefit the region, but also the cities and nations
receiving cargo from or sending cargo to the Port annually, including 30 nations around the world.
The project will also alleviate intercity vehicular traffic congestion while maximizing current rail
throughput, adding 15% more general cargo handling capacity that will directly benefit the U.S.
military, and increasing efficiencies in the multimodal transportation of goods between the
waterway and railway.
The terminal improvement project will support the continued growth of one of Beaumont's
greatest economic assets- the Port of Beaumont. As the largest strategic military port in the U.S.
and the 7"' largest in terms of tonnage, the Port supports more than 67,000 jobs and has a direct
impact on the economic success of our region. The Port of Beaumont regularly demonstrates their
ability to bring large infrastructure projects to Iife, and this project will make a tremendous impact
on our community, providing an underutilized terminal with the upgrades needed to support high -
paying jobs and sustainable growth.
I fully support funding this critical project. Should you have any questions, or require additional
information, I can be reached directly at kenneth.williarns(c�beaumonttexas.gov.
Sincerely,
w)
Kenneth Williams,
City Manager
City of Beaumont
TEXAS
May 21, 2024
The Honorable Randy Weber
107 Cannon House Office Building
United States House of Representatives
Washington, D.C. 20515
Subject: Port of Beaumont CPF Request- Low Line and Maid Street Terminal 2 Rail Project
Dear Congressman Weber:
On behalf of the City of Beaumont, I am writing to express support for the Port of Beaumont's
Community Project Funding request for the $10 million Low Line and Main Street Terminal 2
Rail project.
The proposed project will enhance system connectivity by bringing the Port of Beaumont's
inoperable Low Line Rail infrastructure into service and constructing 13 new tracks to link Main
Street Terminal 2 to Main Street Terminal 1, the primary terminal used by the United States
military. The project will create opportunities for the Port to market assets within the terminal,
which will create jobs and promote economic growth in our region.
The terminal improvement project will support the continued growth of one of Beaumont's
greatest economic assets- the Port of Beaumont. As the largest strategic military port in the U.S.
and the Tut largest in terms of tonnage, the Port supports more than 67,000 jobs and has a direct
impact on the economic success of our region. The Port of Beaumont regularly demonstrates their
ability to bring large infrastructure projects to life, and this relatively small project will make a
tremendous impact on our community, providing an underutilized terminal with the upgrades
needed to support high -paying jobs and sustainable growth.
The City of Beaumont supports fianding this critical project. Should you have any questions, or
require additional information, I can be reached directly at keiuieth.WilliamsLbbeautnonttexas.gov.
Si acerel , t
e
s
Kelmeth Williams,
City Manager
City of Beaumont