A $21.6 million grant from California’s Trade Corridor Enhancement Program is helping the Port of Los Angeles move ahead with a major on-dock rail project designed to improve cargo flow.

The port is contributing $12.4 million of its own funds toward the project for a total coast of $34 million. The Terminal Island Railyard Enhancement Project plans to reduce 1250 truck trips by 2040, decrease emissions and congestion on local streets and freeways, port officials said.

“Expanding this rail yard … is a key element of regional and state transportation plans to improve safety and traffic conditions along some of our nation’s most crowded commuter and freight corridors,” Port of Los Angeles Executive Director Gene Seroka said in a statement.

The port now has on-dock rail at all [seven] container terminals, according to Phillip Sanfield, spokesman for the port.

The project plans to expand an existing intermodal rail storage yard on Terminal Island by increasing capacity and use of the Pier 400 on-dock railyard. When this happens, the on-dock capacity at Pier 400 will free up capacity at another major storage and staging yard located on Terminal Island, improving overall rail operations throughout the ports of Los Angeles and Long Beach, port officials said.

The Port is currently preparing the final design and the construction contract award is expected by June 2020, with project completion by early 2022.

Manufacturing, retail and trade reporter Shwanika Narayan can be reached at [email protected] or 323-556-8351. Follow her on Twitter @shwanika.