Port Corpus Christi Approved Long-term Agreements with M&G Group

Corpus Christi, TX – Port Commissioners approved a series of agreements associated with the construction of M&G Resins, USA, LLC project at a special Port Commission meeting, Thursday, June 20, 2013.

Over the course of the last year, Port and Corpus Christi Regional Economic Development Corporation (CCREDC) staff have worked closely with representatives of the M&G Group to assist them in their final site selection and planning for their new resins plant. The Corpus Christi plant will produce two main products, PET (polyethylene perephthalate) and PTA (purified terephthalic acid). M&G Resins, USA, LLC will be a major rail customer and will ship an estimated 14,000 rail cars loaded with PET and PTA each year.

“I’m really excited about this new step,” said Marco Ghisolfi, CEO of M&G International, “that is a key to fully enable the logistic competitiveness that a location like Corpus Christi can provide to our project, both for raw materials intake and for products outbound shipments. I’m also grateful for the excellent working relationship developed with the Port, whose leadership has shown with facts a great understanding of the business needs and a genuine interest in having them covered timely and efficiently.”

“This is another important step by the region to secure this project. Chairman Mike Carrell and the Port Commission along with senior staff John LaRue and Frank Brogan have done a phenomenal job of balancing the needs of the company while protecting the interests of the Port and the region,” said Garry Bradford, Chairman of CCREDC.

M&G selected the property formerly owned by the Driscoll Foundation for the site of their new plant and closed on the purchase of the property in late 2012. One of the reasons why M&G selected this property in the Port of Corpus Christi’s Inner Harbor is because the accessibility to three major railroad carriers (UP, BNSF and the KCS).

“The Port is pleased with the signing of these agreements and the addition of another world class company to our harbor,” said Mike Carrell, Chairman Port Commission. “M&G site selection was feasible due to Port’s infrastructure strategic plan that included the construction of the Joe Fulton Corridor (a TxDOT and Port highway and rail project that ties US-181 with I-35 through the north side of the Inner Harbor) that opened acreages of land for industrial development on the north side of the Inner Harbor.”

The Port’s incentive package to help secure M&G’s selection of Corpus Christi as the location for their new plant contains a direct investment of $18.0 million. The investment would include the construction of a new barge dock (public oil dock), drainage improvements, access road, relocation of a power line, and the purchase of land that the Port would own and lease to M&G. The investment would be repaid through various rentals and port fees over a period of 14 years using a guaranteed volume agreement. These rentals and port fees are expected to continue after the 14 year period and provide the Port with a steady revenue stream that can be used for other projects.

M&G’s plant will provide the Port with a unique opportunity to expand its Nueces River Rail Yard (NRRY) through a second phase project supported by the State of Texas. This follows a $10 million TIGER grant and funding commitments from the three Class I railroads to assist in financing Phase I of the NRRY. The excellent rail service at the Port was attractive to M&G. The Port will purchase land from M&G to complete construction of the eight 8,000 ft unit train sidings in Phase II of the NRRY. This is funded by a $22.0 million grant received from the Texas Department of Transportation, in part because of the future jobs and economic growth to be generated by M&G. The Port’s indirect investment for the local grant match and real estate is estimated to cost $8.77 million. The M&G Plant and the Nueces River Rail Yard project demonstrate a strong collaboration among federal, state, local and private entities to bring economic development benefits to the region.