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North Carolina Railroad Company and the North Carolina State Department of Transportation will provide funding to build a rail spur for JBB Packaging in Weldon.

Halifax County commissioners Monday awarded a contract for construction of the spur to STX Corporation, which submitted the lowest responsible bid at $529,220.

Halifax County Economic Development Director Cathy Scott told the board “the rail spur is very important” because that is how the plastics packaging manufacturer gets its materials.

North Carolina Railroad is providing $400,000 in funds while DOT is providing $200,000.

In a summary contained in the meeting agenda packet, Scott noted, “We have an executed contract with CivilSmith for engineering, design, and construction administration/observation for $74,260, resulting in a potential $3,480 shortfall in total project funding. JBB Packaging has agreed to cover the anticipated shortfall and will provide a letter of commitment to Halifax County …”

It is expected the rail spur project can be completed in 60 days, Scott said.

The state announced in February JBB would move its operations to Weldon in the former Flambeau building and create 50 jobs and invest $11 million.

The company recycles plastics and produces flexible packaging and garment bags.

Commissioner Patrick Qualls said he was pleased with the funds being injected into the project from North Carolina Railroad and DOT for a company which has had a good performance record in the past. “That’s $600,000 we couldn’t afford.”