A new rail transfer facility in Washington, Missouri, is heralded as being instrumental in inspiring two local manufacturers to invest $3.5 million to significantly expand their operations and create more than 330 local jobs.
CG Power Systems created 255 new jobs as part of its expansion, while Canam Steel plans to add 75 employees, according to Gov. Jay Nixon’s Office.
The most significant part of the project, which also includes upgrades to wastewater collection, storm sewer and water distribution, is the new rail spur that will allow the companies to ship and receive goods via Union Pacific Railroad. Rail service is important to both companies, as CG Power Systems constructs and ships large electrical transformers, and Canam Steel constructs and ships steel products.
As an incentive to spark growth, the state funded a $4.2 million railway infrastructure project that included the addition of a new Union Pacific Railroad Spur. "Up-to-date infrastructure is a critical factor in economic development, and rail infrastructure is a vital part of moving products made in Missouri," Gov. Nixon said. "I'm pleased my administration was able to help the City of Washington make this facility a reality. We've already seen these two companies create more than 300 new, local jobs as a result of this project, with more to come. It's a great day for this region's economy, and for our state."
The state awarded $2,052,810 in CDBG funding to the city of Washington for the project, which also is using $973,551 in federal funds and $1.1 million from the city.