State funds release means SEMO Port will add railroad tracks

A release of $3 million from Missouri's general revenue budget by Gov. Jay Nixon earlier this month means the Southeast Missouri Port Authority will move ahead this year on a project to add railroad tracks, accelerating development of the port's infrastructure.

Ports throughout the state are sharing the $3 million designated for capital improvements, which was placed on hold by the governor last year and released recently because of an increase in state revenue that Nixon attributed to an improving economy.

Port authority executive director Dan Overbey said the local port's share is nearly $425,000, which, combined with the port's $106,000 match, will build about 1,800 feet of railroad tracks to serve future customers.

"It's something we've found a great need for and that customers want to have," Overbey said.

The tracks can be leased to a port customer and occasionally shared by the port railroad and other customers. Revenue from use of the tracks helps cover operation expenses and port maintenance. It also puts the port in a position to save for future infrastructure improvements.

The amount of cargo shipped through the port reached a record high in 2014, at 1.3 million tons, according to lease reports.

Capital funding the port hopes to receive this year, totaling $762,000, will see a $190,000 match from the port to pay for other infrastructure improvements, Overbey said.

The funding must be approved by the Missouri Legislature.

Port officials throughout the state also are watching two port-related proposals. One would create "advanced industrial manufacturing zones" at ports, and another would establish tax credit opportunities for businesses opting to ship goods by water versus road and rail -- or, if it is an international business, add new employees or make capital investments.

The advanced industrial manufacturing zones, according to the legislation filed by state Sen. Paul Wieland, a Republican from Jefferson County, would send half of payroll taxes from new industries in the zones to a fund to be used for development at ports.

eragan@semissourian.com

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