Leonard Gray / L’Observateur / July 13, 1998

LAPLACE – The scheduled merging of the Illinois Central Gulf Railroad and the Canadian National Railroad received the blessing of the Port of South Louisiana Wednesday.

The two railroads signed a merger agreement Feb. 10, and the matter goesfor approval before the National Surface Transportation Board on July 18, after which a 320-day public comment period is set.

The merger will connect the Pacific, Atlantic and Gulf coasts with a rail network under the control of a single operator. On a North American map,the lines funnel from Chicago south to the Port of South Louisiana, with spurs to Houston, Texas, and into Mexico.

“It’s incredible! It’s our future,” commented Kay Jackson, director of business development for the port.

Canadian National is the only transcontinental railway in North America, and at one time it was the second-largest railroad in the world. IllinoisCentral Gulf is the main line of mid-America and at one time was the longest railway in the world.

The newly merged railway will provide shippers to the Port of South Louisiana with direct links to 17 major markets and six key ports in North America.

In other matters discussed at the South Louisiana Port Commission meeting Wednesday, Executive Director Gary LaGrange reported 1998 first-quarter tonnage was already “well over” 1997’s figures, with 54.0million tons. This, though, was slightly behind the port’s “banner year” of1996, where 57.2 tons were logged.He said The Port of Cortes, Honduras, has asked for infrastructure help from American ports, saying their decaying facilities are in need of $46 million in renovations and repairs.

Also, the port is preparing to open trade negotiations with Cuba, once Castro falls from power. “They’ll need everything under the sun,” LaGrangesaid.

At the port’s Globalplex facility in Reserve, LaGrange continued, five ships made use of the general cargo dock and more than $43,000 in dockage and wharf fees were collected.

Also at Globaplex, prospects have already expressed an interest in occupying their planned warehouse, construction funds for which were approved in the last legislative session.

Priority 2 funds, available this year and totaling $100,000, are earmarked for the warehouse, and Priority 5 funds, totaling $2.4 million, areexpected next year.

“This is all the more reason to fast-track it,” LaGrange commented, adding it should be built and occupied by fall 1999.

Commissioners also heard the port discovered CBG Fleeting had an unauthorized fleet operation going near the Wilton Plantation property in St. James Parish. The port successfully collected back rent due sinceOctober 1996 and negotiated a deal for $33,343 per year.

“We didn’t know they were there,” Director of Governmental Services Joe Accardo noted. “There was a solid line of trees from the levee.”In addition, a six-month lease with Shell Chemical has been successfully negotiated for the storage of pipe at Globalplex in Building No. 19 at a rateof $2 per square foot.

Also, a bid was accepted for an electrical dock crane for Globalplex from Coastal Equipment for $3.2 million. Ninety percent of the cost will bepicked up by the Louisiana Department of Transportation and Development, with the remainder paid for by the port.

Finally, the port commission elected officers for its 1998-1999 term.

President is Brandt Dufrene, Executive Vice President is Brent Tregre, Secretary is Cart Davis, Treasurer is Gregory Lier, Vice Presidents are Honora Gravois and Louis Joseph. Commissioner E.J. Martin holds no office.

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