More grant funding on upcoming projects at the Port of Vicksburg and hopes for a renewed deal to operate it should shrink the Warren County Port Commission’s deficit for 2009-10 by more than 85 percent, according to a draft budget report.

Revenue expected from a pending deal with Kinder Morgan to extend its current arrangement plus lease income totals $307,000, which could pump up revenue by more than $165,000 next fiscal year. Expenses heightened by legal fees stemming from an ongoing legal battle over the replacement of the T-dock crane support platform and more money to maintain its Web site are countered with less money needed to pay for engineering services at the port and at Ceres Research and Industrial Interplex, making for a deficit of $33,071 if projections hold. This year’s deficit is on pace to hit $238,126.

The decrease in engineering is reflective of the completion of the T-Dock which was completed within this current budget year, executive director Wayne Mansfield said.

Terms calling for an annual base rent of $235,000 plus 8 percent if yearly revenue tops $2.8 million in the first five years of the contract are tied to an Oct. 1 deadline to nail down a deal with Russia-based Severstal to ship steelmaking components to its plant in Columbus. The current agreement stipulates only a $135,000 base rent, but with higher incentive ceilings. Cargo-loading revenue is tied to total tonnage, which has been up and down since the dock was replaced. Work to repair surface cracks discoverd earlier this year is to be contracted by the company and is vital to enabling heavier cargo to be loaded.

Web-based spending and office machine rental are forecast $3,900 higher together, due to hardware costs and the Web site upgrade that included a GPS component for users to locate Vicksburg, Mansfield said.

*

Contact Danny Barrett Jr. at dbarrett@vicksburgpost.com