WM expanding capabilities at international rail port

WM expanding capabilities at international rail port

City, UP strike deal on joint use of track agreement

news@theeveningtimes.com

Development of the West Memphis International Rail Port Logistics park took two big steps forward in May. The City Council approved both an industry track agreement and a joint use of track agreement with the Union Pacific Railroad at the new city bulk transfer facility. The railroad and city came to terms on using 3,000 feet of rail adjacent to the West Memphis river port.

Economic Development Executive Director Phillip Sorrell explained the particulars to city council during the last meeting in May.

“The joint user agreement is between the city, Union Pacific and Bates, our operator, and these are standard bona fide agreements for the operation of the newly constructed bulk transfer facility on the land on Port road we acquired under the TIGER IV agreement,” said Sorrell.

The agreement for the transload and rail switching facility prohibited hazardous materials and extended storage. As the volume grows at the bulk transfer site so will city revenue. The city focused on throughput.

“The city gets paid a fee of $30 per car for every rail car transloaded,” said Sorrell.

The agreement was on the must do list to start operations.

“In order for Union Pacific to switch the cars in there we need to have this agreement in place,” said Sorrell. The economic development director issued kudos to City Attorney Mike Stephenson for some unprecedented results.

“Our city attorney was successful in getting certain changes made in the agreement to protect our city,” said Sorrell. “I don’t think we’ve ever before had Union Pacific agree to changes.”

By John Rech