CMC Railroad is planning a significant expansion of rail infrastructure at Gulf Inland Logistics Park in Dayton after securing an $87.9 million credit facility that will help finance approximately 1,100 additional railcar storage spaces and other improvements.
CMC Railroad, the rail service provider for Gulf Inland Logistics Park, announced Tuesday, Aug. 18, that it had closed on the financing with Bank of Texas, a division of BOK Financial.
The financing will refinance CMC Railroad’s existing debt while providing additional funding capacity for expansion of its rail infrastructure, storage and operations at Gulf Inland.
Among the planned improvements is the addition of approximately 1,100 railcar storage spaces, which would bring the park’s total capacity to approximately 2,000 railcars. The financing also provides CMC with flexibility to invest in additional track, transload facilities and other railroad improvements as demand at the industrial park grows.
“This strategic financing comes at a time when it is critical to meaningfully expand infrastructure and operations at Gulf Inland Logistics Park,” said Marcus Goering, principal at CMC Railroad. “With Phase One of development complete, demand continues to grow for Phase Two and the continued advancement of Gulf Inland and CMC Railroad facilities.”
The expansion comes as Gulf Inland moves into its second phase of development.
According to the company, Phase One brought seven anchor tenants to the park, resulting in more than 400 new jobs and approximately $250 million in capital investment in the Dayton area.
CMC Railroad provides switching, railcar storage, transloading and other rail services for businesses operating at Gulf Inland. The additional capacity is intended to accommodate existing customers as well as future industries locating at the park.
“It is clear that Bank of Texas understands our business, our assets, and our long-term strategy, and we appreciate their confidence in our continued growth,” said Paul Connor, principal at CMC Railroad.
George Sarvadi, relationship manager at Bank of Texas, said the bank sees the financing as an investment not only in CMC’s growth but also in regional transportation infrastructure.
“Bank of Texas is excited to support CMC Railroad through this new credit facility,” Sarvadi said. “The Bank is committed to supporting rail infrastructure development in Houston and is thrilled with the work CMC is doing to provide essential rail services to the region. This financing will help position the company for continued growth while supporting critical transportation infrastructure that serves Gulf Inland Logistics Park, its tenants, and the broader Houston industrial market.”
Gulf Inland Logistics Park is a 3,800-acre industrial and logistics development in Dayton. One of its primary advantages for industrial development is access to both BNSF Railway and Union Pacific Railroad, the two largest Class I railroads in the United States.
The park also sits at the intersection of the Grand Parkway and US 90, providing connections to several major highways serving the Houston region.
Its location also puts the development within 100 miles of the ports of Houston, Beaumont, Port Arthur, Galveston and Freeport.
Gulf Inland offers rail-served and non-rail-served industrial sites for manufacturing, transportation, warehousing and logistics operations, with spaces available for sale, lease or build-to-suit.