PORT CLOSE TO ACCORD ON TENANT; GRAIN FIRM MAKES FIRST LEASE PAYMENT

SCOTT CITY -- The Southeast Missouri Regional Port Authority is one step closer to securing a new tenant that could increase shipping volume tenfold at the port.

Consolidated Grain and Barge Co. in April signed a letter of intent to lease up to 20 acres of land at the port and construct a $3.5 million facility. On Monday, Ed Case, regional manger and corporate vice president for the company, presented a $41,000 check to the port authority for the lease.

Case and Port Director Alan Maki said only minor details of the lease have yet to be ironed out before it can be finalized.

Once the extension of Nash Road and construction of a rail spur into the port are finished which is expected within three years Consolidated anticipates moving a minimum of 400,000 tons of grain through the port annually. Last year, the port moved 49,000 tons of material.

"This is a tremendous day for the port authority," said Maki. "I think you're going to see farmers benefit from this and you'll see an indirect benefit from other agri-businesses."

Case said Consolidated is "anxiously waiting" for the project to come to fruition and "happy to be on board."

Monday's payment is the result of more than a year of negotiations between the port authority and Consolidated. Maki called Monday the "biggest operating payday for the port" since it opened in April 1990.

"It demonstrates not only the viability of the port, but a strong commitment from the tenants who are willing to make an investment in the port."

Consolidated would join at the port Egyptian Concrete, which is manufacturing bridge components for a project near Alton, Ill.; Midwest Agri-Chemico and First Missouri Terminals, which ship both bulk and liquid fertilizer; Girardeau Stevedores, which operates the public dock facility; and Cape Girardeau Fleeting Co.

But Maki said Consolidated is by far the most significant lease at the port.

"Girardeau Stevedores is five acres and some of the others are three and two acres," he said.

Case said the company plans to build an 800,000-bushel grain elevator similar to one it operates in Mound City, Ill.

Apparently, the only possible sticking point that remains is completion of the Nash Road extension, as the railroad spur already is under construction.

Under an agreement with the Missouri Highway and Transportation Department, the port plans to provide the right of way and secure all permits, and the department will pay for engineering and construction of the four-mile highway.

State funding for the project will come from an increase in the state's fuel tax.

"We want to be up and going by the time Nash Road is completed," Case said. "I think that's the hinge point here the ability to get a direct line to the interstate."

Maki said Consolidated's commitment will serve as an "anchor" to justify the Nash Road project.

"The success of Consolidated Grain locating in the port is contingent upon the prompt development of Nash Road," he said. "Consolidated was specifically attracted to the port because of its intermodal access.

"They're anticipating using truck and railroad transportation as well as barges."

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

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

Overall, the port owns 480 acres of land and has an option for another 175 acres.

In other business, Maki announced he recently was appointed to the Missouri Highway and Transportation Commission's 10-member Total Transportation Committee, which will draft a transportation plan for the state.