Gov John Bell Edwards announced the partnership
The Port of New Orleans (Port NOLA), the state of Louisiana, Mediterranean Shipping Company (MSC)’s Terminal Investment Limited (TIL) and Ports America have entered into a public-private partnership to build a US$1.8bn state-of-the-art container facility on the Lower Mississippi River.
The new Louisiana International Terminal (LIT), once fully built-out, will be able to handle 2m teu annually and will take advantage of the deeper 50-ft Lower Mississippi River ship channel to be able to serve vessels of all sizes.
Matthew Leech, president and CEO of Ports America, said: “Ports America is looking forward to partnering with Port NOLA and the state of Louisiana in the development of sustainable infrastructure that meets the long-term needs of the global container logistics industry on the Mississippi River.
“With over 100 years of operations in New Orleans, Ports America is excited to be part of the future of the next century.”
Ports America and TIL have committed US$800m toward the project and, in addition to the partners’ investment, the terminal will be supported by a substantial commitment from Port NOLA as well as state and federal funding sources.
The joint venture will operate the terminal once construction is complete.
Port NOLA president and CEO Brandy Christian said: “Ports America and TIL are global industry leaders and we value their partnership in the LIT.
“This investment, in addition to the billions of dollars the joint venture will contribute over the life of the lease, demonstrates their confidence in our gateway’s ability to service vessels of all sizes, while creating jobs and opportunity for Louisiana.”
Expected to dramatically increase Louisiana’s import and export capacity, LIT is currently in the design and permitting phase of the U.S. Army Corps of Engineers’ environmental review process.
Construction is slated to begin in 2025, barring unforeseen delays, and the first berth is set to open in 2028.
The new terminal will strengthen Louisiana’s ability to attract distribution centres, logistics services and value-added services through Port NOLA’s multimodal connectivity.
TIL’s director for North America Tom Van Eynde said: “Today, the container trade in Port NOLA mainly consists of export cargo,z making it an exception among US ports, which are usually import-heavy.
“LIT will attract new container trades, providing access for local industry to cost-competitive shipping options.”
Following an extensive site selection process and feasibility studies, Port NOLA purchased 1,200 acres of land in Violet in 2020.
This land is sufficient to accommodate the terminal, value-added services and warehousing facilities as well as to provide a natural buffer for the nearby community.
The latest design incorporates community feedback gathered over the last two years regarding traffic, drainage and other impacts on nearby homes and businesses.
Louisiana department of Agriculture and Forestry commissioner Mike Strain said: “This partnership is pivotal for the future growth in trading Louisiana agricultural commodities in the global marketplace.
“While bulk grains, grain products and edible oils are exported through the port, the dominant product is poultry. Poultry is one of the largest agricultural enterprises in Louisiana, contributing over US$1bn to the state’s economy. This project will only further the success of Louisiana agriculture exporters and the many products they have to offer the global market.”
Louisiana speaker of the house Clay Schexnayder added: “This is a great example of private investors bringing high dollar commitments to the state of Louisiana because it’s clear we can offer an unmatched advantage.
“The location of LIT offers deeper draft and federal hurricane protection thanks to state and federal investments to make Louisiana’s waterway infrastructure more resilient.”
