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Gov Nixon Helps Dedicate New Rail Transfer Facility in Washington, MO; Project is Helping Two Major Local Employers Expand, Create More Than 300 Jobs

Press Release

Location: Washington, MO

Gov. Jay Nixon today helped dedicate a new rail transfer facility in Washington that is helping two local employers significantly expand their operations and create some 330 local jobs. The Governor was joined at the dedication of the $4.2 million infrastructure project by community leaders and officials from the two companies, CG Power Systems and Canam Steel.

"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 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.

To date, CG Power Systems has already created 255 new jobs as part of its expansion, while Canam Steel has created 41, for a total of 296 new jobs already created. Canam Steel plans to add another 34 jobs, bringing the total to 330. In addition, the two companies have invested approximately $3.5 million to fund their expansions.

The state of Missouri 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.

The Community Development Block Grant program, administered by the Missouri Department of Economic Development, provides grants and loan funds to cities with populations under 50,000, and counties under 200,000 to assist in a variety of public works and economic development projects.

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