News

U.S. SUGAR EXPANDS FOR RAIL ACCESS

By Amy Riggin/OF THE COMMERCIAL STAFF
Thursday, February 12, 2009 10:24 AM CST

Last month, U.S. Sugar Co. Inc. of Buffalo, N.Y., purchased 3.6 more acres in the Jefferson Industrial Park, Lou Ann Nisbett, president and chief executive officer of The Economic Development Alliance of Jefferson County, said Wednesday.

Nisbett gave the report at a meeting of the Pine Bluff/Jefferson County Port Authority.

The land is adjacent to the former Rolling Pin Donut factory, which U.S. Sugar had purchased in December. Nisbett said the company plans to use the additional acreage, purchased Jan. 22, to expand its railroad access.

“They’re looking at probably late summer before they get it off and going,” she said.

In a December interview with The Commercial, William K. McDaniel, president and chief executive officer of U.S. Sugar, said the company plans to employ 20-30 workers by the end of 2009 and as many as 80-100 in the following two to three years.

Nisbett also mentioned an update on Pine Bluff Poultry LLC, which announced in December 2007 that it would invest up to $5 million to renovate the former Tyson Foods plant on Second Avenue and employ 300 by late 2008. According to the Alliance’s Prospect Report, the process is behind schedule “due to financing difficulties experienced by the project’s principal investor, but officials are now working with a local consultant to identify potential new investors.”

The report stated that opening in early 2009 is “still possible” and that their markets remain viable.

In 2008, Nisbett said The Alliance had recorded visits from 24 poten tial business prospects, two international delegations and 48 business retention and expansion visitors. It received a total of 60 inquiries from various industries, including 10 related to the Port of Pine Bluff, last year.

In January, there were two prospect visits.

“Just in the last few weeks that number has actually increased,” Nisbett said. “We’re excited that we’ve had some prospect visits.”

Mike Murphy, terminal manager for Kinder Morgan, pointed out that commodity tonnage at the Harbor Industrial District Public Terminal has been on the decline since 2000.

“In 2000, the last time we had a recession, the numbers look similar to this year,” Port Authority Chairman David Bush said.

Nisbett and others present at Wednesday’s meeting noted that the economy has affected barge, rail and truck traffic at the terminal.

“The economy does not help,” she said, noting that ports all over the country are having the same woes.

Bush agreed.

“This economy is affecting every phase of every business,” he said. “Certainly if manufacturers aren’t putting out products, they are not moving it. Hopefully the farm side of it will hold.”

Murphy said the port “really needs an industry that strongly needs water transportation.”

The following data includes information on the amount of tonnage at the terminal for the past nine years: