Small trees and other wood byproducts of logging created a market opportunity for Southport Lumber Company. It started up in 1998 to mill or chip small trees and other timber resources that are not attractive to large lumber manufacturing companies.

The company grew quickly and in just four years needed a larger facility and access to rail transportation to keep its business revenues increasing. Because rail is the most cost-effective transportation mode to ship lumber, access to a rail line was an essential siting requirement.

Southport Lumber Company could not find an available site in the Coos Bay area with access to rail. Management was considering looking beyond Coos County to find a site that met their business needs.

An option became viable with the help of Business Oregon: the extension of rail service to an existing site that was otherwise feasible.

The Oregon International Port of Coos Bay had developed 125 acres at the North Bay Marine Industrial Park. With a plan for a rail service extension to the industrial park, Southport Lumber agreed to purchase 37 acres for its new facility.

Business Oregon provided more than $1 million in grants and loans for rail planning and construction. This assistance helped leverage more than $3 million in funds from federal, state and local organizations.

The construction of the rail line was the single critical element that retained Southport Lumber Company in the Coos Bay area. Business Oregon's support of this project helped to retain 65 jobs in Coos Bay with an average wage of $32,194.