U.S.-Mexico rail ferry will relocate to Mobile
International Shipholding Corp. will relocate the U.S. port for CG Railway, its U.S.-Mexico rail ferry service, from New Orleans to Mobile, Ala.
It said it was making the change because of the closure of the Mississippi River-Gulf Outlet Canal to deep-draft shipping in the aftermath of Hurricane Katrina.
'After extensive research, we could find no other site in Louisiana for our specialized rail-ferry service,' said Erik F. Johnsen, chairman of the company. International Shipholding will also move its headquarters to Mobile.
Johnsen explained that Katrina deposited large amounts of silt in the 70-mile canal, reducing its draft from 36 to 23 feet, and making the waterway unpassable to deeper draft vessels.
That has frustrated expansion plans by CG Railway because it has been planning to add second decks to the rail ferries that it operates between New Orleans and Coatzacoalcos in southern Mexico.
The rail ferries offer about 90 round-trip voyages per year with a three-day transit between the United States and Mexico.
Adding a second deck will increase capacity on the vessels from 60 to 122 standard railcars. But the second deck would also mean the ferries would require 25 feet of draft, where today they only need about 20 feet of draft with a single deck.
Johnsen explained that relocating the CG Railway terminal to another location along the Mississippi River in New Orleans was not practical because of the large fluctuations in water levels on the river.
Johnsen said the Port of Mobile will cover most of the cost of a new terminal, with International Shipholding contributing the remainder.
U.S.-Mexico rail ferry will relocate to Mobile
