The grain-handling facility, a collaboration between New York-based investment firm IFG and the Union Pacific Railroad, is the first of its kind to be built in the Gulf Coast region in almost 25 years.
IFG will immediately begin construction on the $59.5 million project, which is expected to create 36 new jobs and indirectly support 200 more.
The terminal will handle rice, wheat, corn, soybeans and dried distillers grains from across the nation for shipment to foreign customers.
“Through the development of enhanced rail capacity, the port will be better equipped to compete amongst the nation’s ports. The facility will create good jobs and help IFG achieve our long-term goal of developing a global supply-chain for grains and agricultural products,” IFG Port Holdings Chief Executive Officer Kabir Ahmed said in a statement.
UP will invest up to $6 million to connect to the new bulk grain elevator at the Port of Lake Charles, while the state of Louisiana will contribute $12 million to upgrade tracks, switches and signals to support additional growth. The government will also provide another $6 million from its Port Priority Program and grant a 5 to 6 percent rebate on new payroll expenses to IFG.
The port will contribute $4.1 million to the public-private project.
IFG, which specializes in agribusiness and port-related developments, considered several ports in the Gulf region before selecting Lake Charles, the Louisiana Economic Development office said.
In the past week, UP announced that it would also invest in a grain transload facility to transfer bulk shipments into containers for the ports of Los Angeles and Long Beach.
