Port of Chicago leased

The agreement, which aims to “create a competitive business model” that “maximises economic growth”, was approved by the Illinois International Port District last week.

Broe Group, which has interests in rail and water transportation, is expected to invest US$500m in infrastructure improvements and create around 1,000 jobs by 2023.

Mayor of Chicago Rahm Emanuel, who announced the news, said in a statement: “Through smarter and efficient management of Chicago’s port, we will reinvigorate a critical asset for our city in the area of transportation and trade.”

The Port of Chicago, which is located at Lake Calumet Harbour and has facilities on Lake Michigan, is said to have been self funded with revenues from tenants, but operated at a loss for around 10 years until 2011.

Under the agreement, the district will be guaranteed a minimum payment of US$1m a year, plus 10% of any revenue increase above last year’s US$4.5m.

“We are taking what was an underutilised, rundown port and turning it into an engine of opportunity,” Mr Emanuel added.