Port of Galveston Approves Key Business Points of Agreement
with Texas, Mexico & Pacific Railroad, LLC
GALVESTON, Texas – In today’s Special Meeting of the Board of Trustees of the Galveston Wharves, the Port’s Trustees approved the Key Business Points of an Option Agreement and a proposed Lease Agreement between Texas, Mexico & Pacific Railroad, LLC and the Port of Galveston, for Texas, Mexico & Pacific Railroad, LLC to lease port-owned property on Pelican Island for further port development and expansion. The Port’s Trustees unanimously approved the Option Agreement with the Lease Agreement removed and also voted to have the Port Director, in consultation with the Port’s Legal Counsel and the Board Chairman, move forward to complete the final form of the Lease Agreement, which will be brought back to the Port’s Trustees for approval no later than March 31, 2012.
The Port of Galveston, in alignment with its mission to generate new and valuable business for the Port and the region, began evaluating an opportunity this past summer that will bring major enhancements to Pelican Island. Pelican Island has the Port’s most available and the closest deepwater real estate near the Gulf of Mexico. This effort is intended to serve the demands of growing international commerce, including the expansion of the Panama Canal in 2014, while creating sustainable, well-paying local jobs and opportunities.
The Port’s staff has been working with Texas, Mexico & Pacific Railroad, LLC, a Texas-based short-line railroad, on a conceptual plan to create rail connectivity between Pelican Island and the Western Class I railroad companies serving Galveston. A new rail connection will enhance existing business for current Port tenants and customers, and will bring valuable rail access to the Port’s undeveloped sites on Pelican Island.
In concert with the opportunity for enhanced transportation access, the Port has also negotiated the Key Business Terms of a Lease with the railroad for development of a bulk cargo terminal on the Port’s property located on the northeast corner of Pelican Island. This facility will be designed to import and/or export bulk minerals, including coal, iron ore, and others. Development of this prospective facility, which will soon enter the design phase, represents a new and exciting opportunity at Pelican Island that will generate valuable new jobs and economic growth for Galveston. This project does not include the development of container terminal facilities.
Efficient, modern materials handling facilities and procedures will be the hallmark of new bulk handling facilities at the Port of Galveston, placing safety and environmental protection at the top of the Port’s priority list.
The Port of Galveston is a major economic engine, and the Port’s staff is continuously researching and investigating the best opportunities to fuel job creation and to bring prosperity to our city and our county.