The project which could establish a $100 million facility to export more than 5 million tons of coal per annum represented one of six controversial proposals across Washington and Oregon to boots coal exports on the West Coast.

The decision to shelve the terminal plans was reportedly made because another opportunity to generate more jobs, port business and tax revenues presented itself to the developing rail company.

According to The Associated Press, RailAmerica spokesman Paul Queary said a third party interested in shipping “something else” from the terminal would allow for quicker development of the infrastructure.

RailAmerica senior vice president Gary Lewis said, however, that the company still plans to partner with the port on future projects.

“We believe that the biggest and best potential for continued growth here at Grays Harbor is the development of Terminal 3,” he was quoted as saying in The Daily World after his company completed its evaluation of the site.

“It’s a prime piece of property [with] deep water access, of course served by a terrific railroad.”

The northwest coal port proposals, including the Port of Grays Harbor project, have attracted fierce community resistance in recent months, hardened by outcry over a string of coal train derailments across the country.

RailAmerica’s announcement to abandon the coal terminal coincides with its second quarterly of 2012 which posted a 5% increase in carloads compared to the same time last year.

The increase was largely due to higher loads of motor vehicles and petroleum, but coal loads did manage a 6% increase compared to a year ago, climbing 12,790 carloads on the quarter.