The State of Louisiana, the Port of Lake Charles, IFG Port Holdings LLC (IFG), and Union Pacific Railroad (UP) have finalized agreements necessary for IFG to launch a new export grain terminal at the Port of Lake Charles. Gov. Bobby Jindal, IFG CEO Kabir Ahmad, and UP Chairman and CEO Jim Young made the announcement on Mar. 31.

“This will be the first new export grain terminal developed in the state of Louisiana in over 25 years, and will connect Southwest Louisiana to the nation’s grain export system, making the Port of Lake Charles a premier export point for grains,” Ahmad said. “Through the development of enhanced rail capacity, the Port will be better equipped to compete amongst the nation’s ports. The facility will create good jobs and help IFG achieve our long-term goal of developing a global supply-chain for grains and agricultural products.”

IFG expects to begin construction on the terminal immediately. Upon completion, the facility will handle agricultural products, such as rice, wheat, corn, soybeans, and dried distillers grain. Shipments through the new terminal are expected to increase agricultural exports through southwest Louisiana.

An upgraded rail connection to a new bulk grain elevator at the port is also planned. Union Pacific will contribute up to $6 million in improvements. The State of Louisiana is providing $12 million in capital outlay funding toward upgraded tracks, switches, and signals to support the new grain terminal as well as existing and future tenants, and an additional $6 million is being invested by the state through its Port Priority Program. The Port of Lake Charles is contributing to the construction of a loop track for unit trains as well, Railresource reports.