April 5, 2011

IFG Port Holdings to build new grain export terminal

New York-based IFG Port Holdings LLC, an international agribusiness investment firm, has signed the final agreements to build a US$59.2 million grain export terminal at the Port of Lake Charles, Los Angeles.

The terminal being will handle rice, wheat, corn, soy and dried grain for overseas shipment. Governor Bobby Jindal said Thursday (Mar 31) that the project is expected to create at least 36 direct jobs.

The investment firm said it expects to begin construction immediately. The project has been in the works for several years. The port agreed to host the terminal in late 2008.

"This will be the first new export grain terminal developed in the state of Louisiana in over 25 years and will connect southwest Louisiana to the nation's grain export system, making the Port of Lake Charles a premier export point for grains," said IFG Port Holdings chief executive Kabir Ahmad.

Union Pacific Corp. chief executive Jim Young said the railroad would spend up to US$6 million to improve rail connections to a new bulk grain elevator at the port.

Jindal said the state is providing US$12 million in capital outlay funding that will go to rail tracks, switches and signals at the elevator. The state's port priority budget will provide another US$6 million. IFG Port Holdings also will be eligible for state rebates of 5-6% on its new payroll.

The Port of Lake Charles was chosen over several possible in the Gulf Coast region, said Stephen Moret, head of Louisiana's economic development agency.