The first privately funded work on a $200 million grain terminal at the Port of Longview began last week, and the publicly funded construction of a new dock to service the terminal is expected to start early this fall.

Battle Ground-based Tapani Underground, a subcontractor working for Minnesota-based T.E. Ibberson Co., began excavating thousands of tons of dirt on about 120 acres in the port’s east industrial park.

EGT Development, a joint venture between Japan-based Itochu, Korean shipper STX Pan Ocean and St. Louis-based grain company Bunge North America, is leasing the port land and funding the project.

The company believes the state-of-the-art grain terminal is needed to accommodate growing grain demand in Asian countries, and that it will pull business away from terminals in the Southeast along the Gulf Coast.

Construction is expected to bring about 200 jobs to the area during the next three years. The terminal will employ about 50 people and add about 20 ancillary jobs to the local economy, according to EGT.

In addition, the Port of Longview will advertise bids this week to build a $7 million Berth 9 for the terminal, said Norm Krehbiel, port deputy director.

A contractor should be selected by September, and in-water work will begin Oct. 1, Krehbiel said. Construction should be complete by July of 2010.

The port is paying $4.6 million for the shipping dock, and EGT is kicking in $2.4 million for the barge dock, he said.

Statewide, construction costs have fallen because of low demand in the slumping economy, but Krehbiel doesn’t expect much of a break for the cost of Berth 9.

“This is speciality work (in the water), and it requires special equipment,” he said.