PASCAGOULA, Miss. -- The Port of Pascagoula will borrow up to $5 million for upgrades to a Bayou Casotte wharf to aid Chevron with importing mixed xylenes.
The Mississippi Press reports (http://bit.ly/1kj1x0l ) Jackson County supervisors approved the plan Monday.
Port director Mark McAndrews said with the renovations, the wharf will be better able to handle liquid bulk from barges.
McAndrews says it's an about $15 million project, where the shipper will pay for up to $11 million and the port will pay up to $5 million for modifications to the Terminal G berth.
He says the facility can't currently accommodate deep-draft vessels.
Chevron intends to bring in about 400,000 tons of xylene each year.
Chevron has said the mixed xylenes go into making paraxylene at the Pascagoula facility.
Paraxylene is a basic raw material used in the manufacturing of many plastics, containers and packaging, films and upholstery and clothing fabrics.
The 10-year port loan will be repaid through the proceeds generated by the cargo, McAndrews said, which represents the first time the port will make revenue from Chevron's tonnage.
Currently, the port receives fees for each ship that comes in, but it does not receive revenue from the cargo tonnage that comes in to the private user.
With Chevron's congested waterfront, McAndrews said the company may also choose to route other products to the upgraded terminal.
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