The Toledo-Lucas County Port Authority board in Ohio has voted to create its own nonprofit operating company designed to handle freight shipments at Toledo Express Airport. The plan passed by a 10-2 vote, with one board member absent.
Three customers were left with no one to service their shipments in and out of Toledo when the previous operator, BX Acquisitions went out of business on January 22. As a result, the board created the company, ARG Services Inc.
Under the plan, five staffers of the port authority have been named board directors over the operation, including Port Authority President and Chief Executive, Paul Toth Jr.
The plan has been developed as a way to maintain business operations at the port authority’s large cargo building, which is mostly unused, while it pursues new potential users for the space. ARG Services will oversee the four employees who are currently serving customers in the facility.
Board members Opie Rollison and Jerry Chabler were opposed to the plan. Rollison’s belief is that the ongoing business delays the effort to market the facility for other uses. While occupied, it will be difficult to be visible to another operation. Chabler believes the cost of utility bills for lighting and heat will ultimately lead the port to lose money. In 2015, the port authority paid $240,000 in utility costs and was projected to cost the same in 2016 before BX Acquisitions filed for bankruptcy in November, later ending operations in January.
BX was formed by former employees of BAX global after the air freight business closed in 2011. The executives of BX were initially confident that the company would make large profits, and be doing $150 million to $200 million annually after two to five years. BX was paying $500,000 in rent per year on the facility at One Air Cargo Parkway.
BX Acquisitions, which was also doing business as BX Solutions, filed for Chapter 11 bankruptcy on November 2, 2015.