Port of Galveston Gets Loan

The Port of Galveston has secured a $28.1 million loan from the Texas Industry Development Loan Program for improvements that include a channel-deepening project and renovation of aging public docks.

The state-sponsored program offers low-cost, long-term financing for economic development projects. The revolving loan program was established with proceeds from bonds issued by the state in 1986.

The port will spend $14 million of the loan for its matching share of a U.S. Army Corps of Engineers project to deepen the existing channel so the port can accommodate larger ships.

The improved docks will allow the port to attract specialized ships that transport automobiles and farm tractors, said Port director Steve Cernak.

An economic analysis commissioned by the port said the proposed improvements could generate more than 2,000 jobs and $405 million of economic activity.

In June, Moody’s Investors Service upgraded the port’s $39.2 million of outstanding debt to Baa1 from Baa2 with a stable outlook.

The report said the upgrade was based on “the port’s improved and stabilized market position in bulk cargo and substantial growth in the cruise industry market, the expected maintenance of currently solid coverage and reserve levels, limited future debt plans, and an average leverage position that also factors a high percentage of variable-rate demand obligations.”

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Transportation industry
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