Humboldt Eastern Railroad LLC

Overview of the Project


Pacific Charter Financial Services Corporation, with the assistance of Humboldt Eastern Railroad LLC, is seeking to create an “American Gateway” with the construction of the Pacific Northwest Railroad rail lines, docks, and hub terminals. 

For a number of years there has been an economic decrease in Humboldt County and the adjacent areas of Northern California due to the decline in the Timber and Fishing Industries. In addition, due to a lack of rail and highways to Humboldt County, very few industrial and manufacturing shippers and their investors have been drawn to the area. 

The port of Humboldt Bay currently has little shipping activity. It is a deep water port (35-38 feet) located between San Francisco, California (258 miles south) and Coos Bay, Oregon (180 miles north). Among the docks on the West Coast, Humboldt Bay is the shortest direct route to Asia by two and one-half (2 1/2) days or five (5) days round trip. For this reason, this port has great potential. There has not been rail service to the Port for over 20 years due to destruction of the previous railway line, which followed a North-South route to Napa. There are no plans to rebuild that route. 

It is anticipated that the completion of the Pacific Northwest Railroad connection to the national rail network in the Central Valley near the towns of Red Bluff and Gerber will have some effect on population increase in Upstate California, thereby increasing the economic activity in the area. The number of residents currently living in the immediate communities and geographical areas to be served or affected by the Port, Rail and Hub Terminals is estimated at 9 to 11 million. These areas extend from the Gerber switching yards near Red Bluff and include Sacramento north to Medford, Oregon, and the Sierras west to the Pacific Coast. 

Expected Project Benefits

We believe that the following benefits of a port and rail “land bridge” as proposed by PNR can be expected:

  1. A significant private industrial base for our area.
  2. Good, decent paying jobs which provide a living wage. 
  3. Industrial base, private sector jobs with medical benefits.
  4. Government entities experience growth in revenue from increased economic activity.
  5. Improved economy encourages investment by entrepreneurs.
  6. Significant benefits for timber owners and mill operators.
  7. Decreased cost to import and export goods.
  8. Improved air travel service.
  9. More resources to solve social issues.
  10. Hope and optimism returns to Humboldt County.

Tax Base Impact of this Project

Freight Corridor Project – Estimated $70 million Annual Tax Revenues For County of Humboldt

Tax Assessor, Mari Wilson, was asked to provide the current total value of real property on Humboldt County’s Tax Assessment Rolls. She sent a copy of the last 25 years including the current total value of $12,764,000,000.

Calculating the value of construction costs for three green marine terminals on the Samoa Peninsula at $5 billion would result in an increase of 39% in the total assessed valuation. The annual revenue derived from the improvements on the Samoa Peninsula, at a minimum of 1% tax rate, would provide a $50 million increase for local governments in Humboldt County. One key factor to consider is that 62.5% of revenues goes to public schools.

The green, two-track freight railroad from the Port of Humboldt to the Red Bluff area is projected to cost about $4 billion. Assuming that a minimum of $2 billion will be expended for construction of the railroad in Humboldt County, then an additional $2 billion would be added to the County Real Property Tax Assessment.

Interim County Auditor Controller, Cheryl Dillingham, confirmed that private railroads are taxed and gave a breakdown of how revenue from property taxes is expended in Humboldt County. 

The proposed port and rail project in Humboldt County is likely to add $7 billion to the Secured Tax Assessment Roll, a 54.8% increase generating approximately $70 million annually in additional tax revenues.