Maritime Economic Development: Brownsville

CSC Sugar Begins Operations at the Port of Brownsville

Sugar bagger at CSC’s newly opened Brownsville facility
Photo/CSC Sugar

Refined sugar trader CSC Sugar began packaging and distribution operations at the Port of Brownsville on March 22.

The Connecticut-based company in 2015 began discussions with the port that led to its lease of 242,000 square feet of port-owned warehouse space that will be used to support the export of beet sugar to Africa. The sugar comes from the West and Mid-West via UP and BNSF railroads. CSC expects to receive up 25 to 30 rail cars weekly.

The first rail shipment arrived at the CSC packaging plant March 22. About 500 tons of sugar daily will be packaged in 50 kilogram bags for export. The combined warehouses will accommodate 25,000 packaged tons of stored sugar.

"We chose the Port of Brownsville specifically because it provides great access from both Union Pacific and BNSF railroads. It’s excellent rail connectivity. The freight rate to Brownsville is basically the same regardless where you’re coming from, whether it’s from the sugar-growing regions in Minnesota or Idaho," said Paul Farmer, CEO and president of CSC Sugar. "Having the Brownsville Rio Grande International Railway as the local short line is also a key part of the deal."

In 2014, the port signed a strategic partnership with OmniTRAX to operate Brownsville and Rio Grande International Railway and develop the 1,400-acre GEOTRAC Industrial Hub.

"The Port of Brownsville and the GEOTRAC Industrial Hub offer a very unique location for companies like CSC Sugar. Plus, the capabilities of the Brownsville and Rio Grande International Railway will create new opportunities for exporting and importing a variety of products like beet and cane sugar," said Kevin Shuba, CEO of OmniTRAX.

Schaeffer Stevedoring is the selected stevedore. Ocean shipping will be via Handymax-type ships; the first vessel is expected here in May.

CSC has already hired 33 local employees to fill all available positions, including warehousemen, forklift drivers and packaging equipment operators.

"This is an important project for the Port of Brownsville because it helps bring greater employment opportunities to our region," said John Wood, chairman of the Brownsville Navigation District. "It further diversifies our cargo mix, making us less vulnerable to geopolitical influences."

Bagged sugar ready for export at the CSC Sugar warehouse at the Port of Brownsville
Photo/CSC Sugar