Newport moving forward with $2.7 million rail project.

The Newport Economic Development Commission recently agreed to buy a rail spur so it can move forward with a $2.7 million rail project.

When the project is complete, it could bring an additional 190 jobs to the Jackson County Industrial Complex, said NEDC executive director Jon Chadwell.

Last year the city of Newport and Jackson Country received several pants totaling $2.7 million to build a rail spur in the industrial complex. But no one realized Union Pacific owned the rail spur that was needed for the project, Chadwell said.

"If the commission tried to build it under UP's regulations, it would have cost [an additional] $350,000 to $400,000," Chadwell said.

So the commission, which is coordinating the project for the city and county, offered to buy UP's spur, which had 5,052 feet of existing railway, for $126,300--about $25 a foot.

Chadwell said the project also calls for building two roads that will total about three miles.

Chadwell hopes construction will begin in the summer and be completed seven to eight months after that.

After the project is completed, Arkansas Steel Associates in Newport can create 125 jobs, and two other companies can add another 65, Chadwell said.

"We're just ready to get the construction started and get through all the red tape," he said.