Soy Transportation: Progress Amid Pressure

There were definite successes in transportation infrastructure investments during the past year. On the other hand, transportation challenges included low water on the Mississippi River, geopolitical issues at the Suez Canal and drought restricting Panama Canal transits, according to Mike Steenhoek, the executive director of the Soy Transportation Coalition, adding that positive steps were taken in financial support of infrastructure development.

“We are pleased that we have seen some meaningful investment in our supply chain overall, and then also with some specific projects,” said Steenhoek.

The specific projects mentioned by Steenhoek include a significant investment in a primary Pacific Northwest export terminal at the Port of Kalama.

“A lot of soybeans that are produced in states like South Dakota ultimately find their way to that particular terminal,” Steenhoek told the South Dakota Soybean Network. “A number of soybean farmer organizations, including the South Dakota Soybean Research and Promotion Council, provided some funding to help underwrite some of the costs of pre-engineering and design of the rail expansion project at that facility at the Port of Kalama, that’s in Kalama, Washington, about 45 minutes from Portland, Oregon.”

Not only was there direct financial support from soybean growers in South Dakota and other states, but Steenhoek pointed to that support as helping the project secure a $26.3 million grant from the U.S. Department of Transportation.

“So it’s a really good example of a port authority – the Port of Kalama – the export terminal itself, what’s called Tacoma Export Marketing Company, that’s a joint venture with CHS and Cargill, soybean farmers, and then the federal government kind of coming together to help provide meaningful investment in our supply chain,” said Steenhoek. “And [we] very much appreciate the forward-thinking perspective of the farmers from South Dakota and elsewhere to help make that project a reality.”

Some of this investment, according to Steenhoek, is thanks to what is referred to as the Bi-partisan Infrastructure Law, officially called the Infrastructure Investment and Jobs Act, signed into law by President Joe Biden in late 2021.

“It’s a reminder of the fact that transportation can and should be an issue that unites people of different persuasions,” Steenhoek concluded. “Soybean farmers are really showing leadership in this area, and we look forward to seeing more of that in 2025.”