GRAIN FIRM SIGNS PACT WITH PORT

SCOTT CITY - The Southeast Missouri Regional Port Authority Monday signed a letter of intent with Consolidated Grain and Barge Co. to lease up to 20 acres of land at the port and construct a $3.5 million facility.

Once the company is operational and the extension of Nash Road and construction of a rail spur into the port are finished, Consolidated anticipates moving a minimum of 400,000 tons of grain through the port each year - eight times more than was moved through in 1991.

Projections for tonnage in 1992 are 100,000 tons.

"This makes us a major player in the river industry," said Allan Maki, executive director of the SEMO Port. "In Consolidated we have an established international company.

"We believe the completion of Nash Road and this facility will have a significant impact on farmers and truckers in Southeast Missouri. This new state-of-the-art grain handling facility will expedite the flow of Missouri grain products, improve efficiency, and help keep Missouri exports strong."

Both Maki and Joe Allen, vice president of the St. Louis-based Consolidated, said they an~ti~cipate no problems working out a final lease agreement within about 60 days.

"The lease is just a formality," said Allen.

"The hard part was worked out here," added Maki, in reference to the letter of intent. He noted that the port authority and Consolidated will work together on bringing road, railroad, and utility connections to their site.

Allen said the main attraction to the port are Nash Road and the rail access.

Consolidated, which currently has a facility in Cape Girardeau, will have 15-20 jobs at its new facility. But Allen said having good rail access could open up other markets for the company and require the hiring of additional employees.

Allen said construction by the company will be designed to tie in with the completion of Nash Road, which could come in 2-3 years.

"We intend to join hands with the port to help make Nash Road a reality as soon as possible," said Allen.

Allen noted that Consolidated is satisfied that the SEMO Port will become a viable port authority and looks forward to reaching out to a larger share of the agriculture market in Southeast Missouri.

The first lease will be for five years, with five five-year options. Consolidated will lease approximately 600 feet of river frontage.

"We believe this is a red letter day for the port," said Maki. "Not only does this have an impact on our port development, but on all of Southeast Missouri. This will provide farmers with better and faster access to markets."

Allen was joined at Monday's meeting by Ed Case, regional manager of Consolidated, and John Sutton, the local facilities manager.

The agreement was signed following a brief closed session with port commissioners as part of the board's regular monthly meeting.

In other business Monday, Maki reported to the board that total tonnage for February was 9,056, which he pointed out is "pretty respectable for February, which is traditionally low."

For the first two months of 1992, Maki said total tonnage is 22,887. Maki said he is optimistic tonnage this year will reach 100,000, which would double last year's record.

Maki also reported that negotiations are under way with Respondek Railroad Corp. to operate the rail line at the port. Railroad construction should be completed later this year.

After reviewing proposals for railroad operators last week, Maki was authorized to enter into talks with Respondek. "We still have a lot of discussion ahead, but I'm very pleased to get started on this," said Maki.

The board also unanimously endorsed a plan to request a study from the Missouri Highway and Transportation Commission to extend Nash Road westward toward Highway 25. As part of the plan, an outer belt road connecting Highways 24, 34, and 72 running between the port authority and Neelys Landing, where Procter and Gamble is located, would be constructed.