JUNEAU -- Modernization and expansion of the Auke Bay loading facility in Juneau can begin with U.S. Department of Transportation approval of a $3.6 million grant agreement.

Officials said the new loading facility will improve distribution services for the fishing industry, and increase the efficiency of small freight companies by offsetting the high cost of local operations.

The modernization project is expected to begin in November and provide about 250 jobs during the seven months planned to complete it.

Final approval was announced last week. The funding is part of the Recovery and Reinvestment Act of 2009.