Thursday, May 8, 2014

AFTER TODAY, THE PORT WILL NO LONGER HAVE A RAILROAD

By Juan Montoya
After today's pro-forma "done-deal" third-reading vote by the Brownsville Navigation District commissioners to award the franchise of the Brownsville Rio Grande Railroad to a private corporation, the port will no longer have a railroad.
And seven years from now after the installment payments by OmniTrax to the BND, it will  no longer own any rolling stock, railroad warehouses, mechanic shops, rail machinery or tools.
The port commissioners seem bent on handing over the control of the profitable railroad to the Colorado-based OmniTrax – a subsidiary of the rapacious Broe Group – on the vague promises that it will "attract or invest" $8.5 million for the development of an 1,200-acre industrial park and 227-acre small-business incubator area.
OmniTrax states in the franchise agreement that it promises to post a $1.7 million bond which will be released once it reaches 50 percent of its goal to "attract" the $8.5 million. From there on, if it doesn't reach the full $8.5 million, the port is free to remove its exclusive development rights to the unused portion of the 1,2000 acres. In other words, take back its own undeveloped land in lieu of the remaining $4.2 million.
And to top it off, the port will have to shell out $1 million in marketing funds to help OmniTrax achieve is stated goal.
And whatever portion of the unused 227 acres of the "incubator" don't get occupied by tenants will simply be added to the 1,2000 acres of undeveloped land.
It should be noted that the railroad was transferring more than $750,000 that it earned yearly after operating expenses before the commissioners of the BND and the railroad decided to use the money for capital improvements on the railroad and rolling stock instead. So far in the last two or three years, they have invested some $5 million on improvements. OmniTrax will get that in its franchise deal to pay over the next seven years.
Do the math. at $750,000 x 7, that will be $5,250,000 in profits from which the company will pay the port for its the railroad stock it is buying from the port. In other words, the profits from the railroad will pay the port for the railroad itself.
And look out for the rates. If three port commissioners are convinced that OmniTrax is justified in raising its rates on the captive port tenants, it will be able to do so. They have already convinced three commissioners to let them operate the railroad franchise. What's to deter them from convincing the pliable BND commissioners to go along with their rate-hike requests?
After the payments are made, OmniTrax will have 23 years left on the railroad franchise to do as it wishes and the port (or its taxpayers) will have little or nothing to say about it.
What a deal!

9 comments:

Anonymous said...

Who gives a shit?

Anonymous said...

Then we have to ask "If the railroad can pay for itself, why didn't BND keep it?" and what's in it for the tax payer.....will the tax to BND ever go away???? Not in our lifetime!!

Anonymous said...

Fuck me, I'm a taxpayer.

Anonymous said...

The question is. : whose pockets were lined?

Anonymous said...

Damn, isn't there a legal way to stop this assholes from giving away taxpayer's assets.

Anonymous said...

The future demands investment of Billion$ in the
development of the Port area. Broe Group has resources to invest, develop, and create jobs.
Your headline is negative, while the future has just been given positive news.

Anonymous said...

HEY MACLOVIO!! ORCA IS BEING UNFAITHFUL WITH EL PINCHE BOBBY TOILET (WC)!!! IF YOU DON'T BELIEVE ME READ THE FOLLOWING!!
BOBBY "On my 50th birthday I bench pressed 315lbs. You do not do that over night. It was years of training and focus. But somewhere along the way I tore the annulus tissue.
PINCHE ORCA TORE BOBBY'S ANNULUS!!!!
QUE PEDO MACLOVIO!!!!!

Anonymous said...

" Anonymous said...
Damn, isn't there a legal way to stop this assholes from giving away taxpayer's assets.

May 8, 2014 at 3:13 PM"
YES STOP VOTING FOR LOS PENDEJOS democRATAS!

Anonymous said...

We have all heard , "the bridge to nowhere". Here in Nacolandia (Nacoville) we will have the railroad to no-where.

rita