A major expansion and upgrade of a storage and export facility at the Port of Grays Harbor is on track after a leading agribusiness cleared the way for the project to move ahead.

Ag Processing Inc. of Omaha, Nebraska, and the Port of Grays Harbor will spend roughly $240 million to $250 million to build additional storage at the existing AGP export facility at Terminal 2, as well as a new state-of-the-art ship loader at Terminal 4 and related improvements. AGP will contribute about $200 million toward the project.

The Ag Processing’s Board of Directors approved the expansion and upgrade project on March 17. Ag Processing is a soybean processor and refiner, which also markets soybean meal, refined soybean oil and biodiesel.

The expansion project — fueled by growing demand from the Southeast Asia soymeal market — will allow AGP to load multiple ships up to and including Panamax-sized vessels. Terminal 2 and Terminal 4 are both deep-water berths with easy access to the open ocean.

“AGP has developed a very strong relationship with the Port of Grays Harbor leadership team. We look forward to continuing and expanding our relationship as we move forward with this project,” said AGP Board of Directors Chairman Lowell Wilson in a statement on March 22.

“The project approved by the AGP Board will greatly increase railcar unloading speed, ship loading capacities, and add redundancy.”

In conjunction with the expansion, the Port of Grays Harbor will need to expand rail capabilities within the marine terminal complex to handle an increase in volume, as well as address surface traffic impacts to the community.

The Port of Grays Harbor is expected to contribute about $50 million, which will include money from state and federal sources. The Port of Grays Harbor is expected to submit a federal grant application to help support infrastructure improvements.

“For 20 years, AGP has been an excellent partner with the Port of Grays Harbor and this major expansion and investment will further strengthen them as a leader in soybean meal exports,” said Port of Grays Harbor Commission President Tom Quigg in a statement on March 22.

“Upon completion, this project will improve efficiency for AGP and its members, create additional freight capacity within our marine terminal complex and generate family-wage jobs for our local community.”

The expansion and upgrade should be good to go in 2025. But that timeline could be affected by certain variables, such as negotiations with local, state, and federal agencies and the Port of Grays Harbor regarding economic development incentives, lease terms, infrastructure improvements and regulatory considerations.

When completed, the project should provide a significant boost to the local economy.

“The Port’s strategic location and access to rail have once again presented us with an incredible opportunity with a committed, strong private partner willing to further invest in our community,” said Port of Grays Harbor Executive Director Gary Nelson in a statement on March 22.

“We are committed to developing the infrastructure to support AGP’s growth and look forward to working with our local, tribe, state, and federal partners to make this happen.”