In the St. Louis metropolitan region, developers are collaborating with federal, local and state governments to work in tandem with the capital markets to finance an expansion of the region’s most robust port — through both bonds and grants.
When the government sells its debt in the form of bonds, it is able to finance long-term projects to invest in infrastructure on a large scale. In general, local governments, agencies and authorities that wish to raise money for long-term infrastructure projects may receive state or federal funds, they may choose to sell municipal bonds in the capital markets—or, as in the case of the St. Louis region, pursue a combination of both.
Port Expansion Relies on Public-Private Partnership
America’s Central Port, one of the region’s major hubs, located on the Illinois side of the Mississippi River, received $14.5 million in federal dollars several years ago to help fund a new South Harbor expansion.
But the federal funding alone could not get the port all the way there. To bridge the funding gap, another $15 million for the project came from “a mix of Illinois state funds and bonds issued by the port district,” according to the St. Louis Post-Dispatch.
As a direct result of this project, “The new harbor will handle exports of agricultural products from mid-west growers and shippers as well as imports of products for the heartland.”
The port district estimates that the port contributes $282 million annually to the county and supports nearly 1,500 local jobs.