New Orleans proposes 40-year lease of rail operations

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New Orleans proposes 40-year lease of rail operations

The City of New Orleans (US) has launched a tender process to enter into a long-term concession for the New Orleans Public Belt (NOPB) inclusive of capital investment, operations, and maintenance responsibilities.

The NOPB is a Class III switching railroad owned by the City of New Orleans since 1908 and a political subdivision of the State of Louisiana. The primary mission of NOPB is to serve the Port of New Orleans and local industries. With its 26 miles of main track, 9 miles pertaining to the Huey P. Long Bridge, and 40 miles of terminals, yard, and other track, NOPB is a critical freight infrastructure link that connects the Port of New Orleans with six Class 1 railroads and helps expedite local and intermediate freight through the strategic New Orleans rail gateway.

The City of New Orleans anticipates a transaction structure where a private partner or entity would assume the long-term business risks through the operational, capital improvements, maintenance and carrier responsibilities of the NOPB core rail operating assets in exchange for upfront, annual and/or revenue share payments over a term of 40 years. The services will include the ability to use NOPB operated right-of-way, civil structures, track, switches, interchanges, communication and signaling, rolling stock, locomotives, offices, real estate and real property, operating buildings, storage yards, car shops, equipment, machinery, information technology systems, and tools.

The City will retain ownership of the NOPB assets over the term of the contract except for assets as defined in the future concession agreement. Use of certain non-NOPB assets is currently conducted through agreements with third parties, including the Port of New Orleans. The City of New Orleans’ expectation is that any selected private partner or entity may be required to work directly with the Port of New Orleans, or in combination with the NOPB and the City to negotiate any use agreements necessary to continue operations for the benefit of the Port of New Orleans.

The deadline for submitting proposals is February, 24. For further information about the project, visit our business opportunity section.

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