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This month, the Sabine-Neches Navigation District (SNND) signed a $357 million loan agreement to advance the deepening of the Sabine-Neches waterway, securing critical funding for a project that strengthens America’s energy future. 

The funding, issued through the Ship Channel Improvement Revolving Fund (SCIRF), was approved by the Texas Transportation Commission in Fall 2024. This strategic investment accelerates the deepening project, which will increase the waterway’s depth from 40 to 48 feet, allowing larger vessels to travel through and transport more cargo.

The Sabine-Neches Waterway is already a vital national asset, essential for U.S. energy exports, military mobility, and both domestic and global trade. Deepening the channel is expected to strengthen America’s competitive edge in these areas, particularly in energy exports.

 “The Sabine-Neches Waterway is America’s energy gateway, and this project will help strengthen Texas’s position as a global leader in energy production and exports,” said Executive Director and CEO Randall Reese.

The deepening project is expected to be completed in just one-third of the originally projected time, with 40% cost savings and an estimated $800 million in taxpayer savings. This project will also create thousands of jobs and drive long-term economic growth throughout Southeast Texas. 

“The Sabine-Neches Waterway is the backbone of our local economy, and the deepening project is essential to sustaining record economic development in our region,” said Jefferson County Judge Jeff Branick. “I applaud the Sabine-Neches Navigation District for signing the SCIRF loan agreement, which will satisfy the local cost share for the project and continue the vital work that is already underway.”

The loan agreement signing is a pivotal step in the 30-year effort to deepen the Sabine-Neches Waterway. SNND continues to collaborate with state and federal partners to ensure the project’s successful execution.

“I would like to thank the Texas Transportation Commission for helping to fund this historic project,” stated Reese. “This funding moves us closer to completing a project that delivers major returns—not just for Texas, but for the entire country.” 

About Sabine-Neches Navigation District:

The Sabine-Neches Navigation District is a political subdivision of the State of Texas and the local non-federal sponsor of the United States Army Corps of Engineers for the Sabine-Neches Waterway. The SNND responsibly manages, advocates, and improves the ship channel and navigable waters of Jefferson County to enhance the economy, environment, and quality of life in Southeast Texas. In 2013, the United States Congress passed the Water Resources Reform and Development Act authorizing the SNND to construct the proposed Sabine-Neches Waterway Channel Improvement Project, which would deepen the ship channel from 40 to 48 feet. In 2020, the SNND began construction on the Sabine-Neches Waterway Channel Improvement Project. The Sabine-Neches Waterway is the longest in-land waterway in Texas and currently ranks third in the nation for total waterborne commerce. It currently leads the nation in liquified natural gas (LNG) exports and is among the leaders for crude oil exports.