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CG Railway recently announced plans to relocate a rail-car cargo facility from the Port of Mobile, Ala., to the Port of New Orleans.

An International Shipholding Corp. subsidiary, CG Railway currently moves 10,500 cars annually via a water-rail service between Mobile and Coatzacoalcos, Mexico, near Mexico City. The relocated facility is expected to handle up to 25,000 cars and about 2 million tons of cargo annually.

The $40 million facility will be located on a 60-acre site on the Mississippi River-Gulf Outlet. CG Railway plans to use two nearby yards operated by the port and New Orleans Public Belt Railroad, improve the site and its current Mexican facility, and upgrade equipment.

The state of Louisiana will provide up to $15 million to fund infrastructure improvements at the port to accommodate the facility. The port, city of New Orleans and New Orleans Public Belt Railroad also plan to improve infrastructure.