Katana, port explores extending rail

Funds being sought

EPHRATA - Work is under way to find $1.6 million to extend a rail spur and improve roads for wind tower supplier Katana Summit.

If the improvements did happen, company President/CEO Darrell Lehmann said it's possible production would double and 50 jobs would be added at the Ephrata location.

It's unclear where the money for rail and road improvements will come from, but different options are being explored, such as requesting money from the state Legislature or having the company pay for a portion of the work, said Mike Wren, the Port of Ephrata's manager. Katana Summitt leases land from the Port of Ephrata.

Wren said he prefers the company pay for a portion of the work in a public/private partnership. The likelihood of the state helping financially is higher, he said.

"When the business is helping fund the project, it obviously shows it's important to them," Wren noted. "They're not sitting there with their hand out, expecting people to pay their way."

If the improvements do occur, a couple of land parcels near Katana Summit would benefit, Wren said.

The loading space is currently such that Katana Summit workers have to jockey train cars around in the limited loading area, Wren said. The track is also tied up during loading, he said.

House Speaker Frank Chopp, D-Seattle, and his staff, visited Katana about three weeks ago, Wren said.

"They were clearly impressed," Wren said.

Wren said he is working on a report for Chopp explaining why helping the company with improvements is a good investment for the state, as well as details of the impacts.

Katana Summit's Ephrata location employs 174 people and pays out $7 million in payroll annually, Wren said.

Last year, Sumitomo Corporation of America, a multinational investment company, bought into Katana Summitt, he said. So there's pretty substantial funding for the company, Wren added.

SC Steel Investment, LLC is also part of the joint venture, according to Katana Summit's Web site.

"It would benefit us and probably benefit the port to add more capability to their facility," Lehmann said of the plans in Ephrata. "I think it would be a good thing for Grant County."

The company's Ephrata location recently hired more employees because it added shifts, Lehmann said.

Lehmann said he wasn't sure how funding would be pursued and that he was leaving it up to Wren.

"I think he's pursuing some funding because this will add jobs to the community," Lehmann said.