Struggling Rural Community Pins Hope on Trump OK for Container Terminal Funding
The fate of a new container terminal at the Port of Coos Bay remains up the air as federal grants approved by the Biden administration haven’t been disbursed by the Trump administration.
It will take an estimated $600 million to deepen the Coos Bay shipping channel to accommodate huge container ships, upgrade the railroad connecting Coos Bay with inland trade corridors and lead to the creation of 2,600 construction jobs and 8,000 permanent jobs.
The new port facility will be the first fully ship-to-rail port facility on the West Coast, removing trucks from shipping and providing added port capacity without a corresponding increase in greenhouse gas emissions
The first step is $59 million in public funding. As related by Politico, Coos Bay changed its traditional Democratic stripes in the 2024 presidential election and went for Donald Trump. Now the community hopes Trump remembers.
The idea for another container terminal on the West Coast arose during the Covid pandemic when supply chains were disrupted and the major ports on Long Beach and Los Angeles were overwhelmed. High use of the Panama Canal also has strained supply chains
The Port of Portland container terminal has faced economic challenges but now has new management to resume container shipping that serves Inland Empire exporters. The depth of the Columbia River channel restricts the size of container ships that can reach Portland.
The Port of Coas Bay has direct ocean access, but weak connections to inland trade corridors. In the past, the Port shipped raw logs harvested in Southern Oregon to Pacific Rim countries. The Douglas Fir trees now harvested are mostly used in housing construction in western states.
Oregon Delegation Convinced Biden
President Biden was convinced of the value of a new container terminal in Coos Bay after extensive persuasion by Oregon Senators Ron Wyden and Jeff Merkley and former Oregon Congressman Peter DeFazio. His successor, Congresswoman Val Hoyle, has joined the effort. All are Democrats.
The project received approval for three Department of Transportation grants totaling $59 million for development, design and railroad improvements. Trump officials say reviews of the grants are continuing and should be finalized by the end of April.
“Biden was very vocal about him wanting to get this project done,” Chad Meyer, president of NorthPoint Development, a Missouri-based private development company involved in the port project, told Politico. “Trump Transportation Secretary Sean Duffy’s team, meanwhile, has been 100 percent supportive. Republicans should find it easy to be on board because it’s a public-private partnership.”
NorthPoint is a key bridge to Republican support. House Transportation and Infrastructure Committee Chair Sam Graves, R-Missouri, is friendly with Meyer, telling Politico he invited Meyer and his sons to hunt turkeys. Graves said he’s committed to seeing the project through, and believes it’s something the Trump administration should support.
“I don’t care who the hell supports it, it’s just a good project overall,” Graves told Politico, adding he’s been talking to the White House about it. The fact the Biden administration put some money toward the project, Graves said, should be a nonissue. “The Biden administration funded a lot of transportation projects that we need to continue,” he said.
Bentz Added Support for the Project
The Coos Bay project’s prospects have also received a boost from support from Oregon’s only Republican Member of Congress, Cliff Bentz. He represents timber-producing areas in southwestern Oregon.
“I’ll support them as best I can, because it’s super important for that part of the state,” Bentz said. Details are up in the air at the moment, he added, pointing to the legal battles being waged over Trump’s efforts to slash federal spending.
“That is going to have to sort itself out,” Bentz added. “We’ll have to wait and see who’s in charge of making the decision” before he’ll know how to move forward.
Matching Goals, But Tariff Disruptions
Adding another West Coast container terminal squares with Trump’s stated goal of strengthening supply chains, investing in struggling rural areas and creating blue-collar jobs. Those aspirations don’t exactly square with Trump’s tariffs and the global trade war he has ignited, especially with China.
Goods shipped in containers are more susceptible to price increases associated with tariffs. Trade barriers also lead to countries finding new buyers or sellers for their goods. Trump also has alienated Canada, which could complicate trade patterns and competition. Canada has invested in the Port o Prince Rupert in British Columbia.
“I don’t think that as the United States, we want Canada to be eating our lunch on trade,” Hoyle told Politico. “I do believe that this administration understands the importance of owning our supply chain infrastructure.”
Politico reporter Natalie Fertig said West Coast’s largest ports of Long Beach, Los Angeles, Oakland and Seattle/Tacoma all experienced higher wait times for ships. No other ports between Oakland and Seattle can accommodate higher numbers of the largest container ships.
The Decline of Coos Bay
Coos Bay and its surrounding area have faced economic decline with the loss of lumber mills and other timber-related industry.
“Since the decline of timber, the town has become a popular hub for retirees and tourists, drawn by the quiet and beauty,” Fertig reported. “And Coos Bay and neighboring North Bend are the primary destination in the region for health services and shopping. But an economy built on tourism, lower middle class jobs and retirees poses problems.”
“Now, the revival of this community is in Trump’s hands,” Fertig added. “Local lawmakers, including Democrats, say supporting the project will be delivering on his campaign promises to bring back working jobs for people like the residents of Coos County – who overwhelmingly voted for him.”
