A shipping and warehousing development using rail in Kingsbury that would have produced hundreds of new jobs has hit the brakes.
ICS Logistics, of Jacksonville, Fla., was unable to make the project work financially, said Tim Gropp, director of the Greater LaPorte Economic Development Corp.
In September 2009, the $50 million project involving the construction of a cold storage warehouse containing fish, vegetables and fruits was unveiled.
The products were to be brought into the warehouse at the Kingsbury Industrial Park by rail and shipped out to their final destinations by truck.
In total, 135 permanent jobs and 500 transportation jobs were projected.
Officials were optimistic the facility would be the beginning of a larger intermodal facility with additional warehouses requiring more trains and trucks.
ICS Logistics had lined up enough cargo to ship products to Kingsbury but was unable to secure enough produce for the train back to Florida to merit such a large investment, Gropp said.
The current economic conditions and risk that carries in making a profit also had a chilling effect on investors.
Gropp said ICS Logistics is not totally out of the picture, leaving the door open to resume the project if conditions become more favorable.
'They needed more time to review their options,' Gropp said.
Gropp said similar developers are being approached while communication with ICS Logistics continues.
'The Kingsbury project is not dead,' Gropp said.
Originally, construction was projected to start in 2010 with operations beginning this year.
The state, county and CSX Railroad pledged $12 million toward extending a rail line to the warehouse and other infrastructure.
Gropp said ICS Logistics probably would have been able to secure more customers had some of the infrastructure already been in place.
He said getting the site closer to being shovel-ready is something being closely examined.
'We think there's a lot of potential down there. It's just making it work and making it reasonable for all parties,' Gropp said.
State Rep. Tom Dermody, R-LaPorte, said the news was disappointing.
He was among state and local officials who worked on securing financial incentives to make the project happen.
'Unfortunately, it doesn't sound positive but we're going to keep fighting away to fill that industrial park,' Dermody said.