The Port of South Louisiana, the Port of New Orleans, Plaquemines Port, the Port of Greater Baton Rouge, the Port of St. Bernard have collaborated to initiate a comprehensive study on commodity cargo.
These five ports are critical components of the local, regional, and national economies.
“The Lower Mississippi River is one of the most commercially significant waterways in the world, home to four of the top 15 ports by tonnage in the United States, handling together more than 500 million tons of cargo annually,” said Jay Hardman, executive director of the Port of Greater Baton Rouge. “Every type of cargo is handled between public and private facilities, including bulk, general break bulk cargo, oversized project cargo and containers.”
In addition, Hardman said, a robust cruise business serves international markets and Louisiana communities by inland cruise operators.
The study came after months of meetings of the Southeast Louisiana Port Authority Advisory Commission, which was comprised of leaders of the five Lower Mississippi ports. The commission was created by Act 461 of the 2023 Regular Session of the Louisiana Legislature. Sen. Patrick Connick sponsored the act. The study is expected to take 17 weeks and cost $299,000, and is projected to be completed by the end of the year.
“Each port has had its own studies, but we’ve never had a comprehensive one,” said Paul Matthews, CEO of the Port of South Louisiana. “We’ve worked together on major security projects before and now we’re working together on an economic development project.”
The Port of New Orleans also praised the collaborative nature of the study and expressing hope for more cooperative projects. “We look forward to working collectively on this analysis and future strategically aligned opportunities to move Louisiana’s trade-based economy forward,” the Port of New Orleans said in a statement.
The World Trade Center of New Orleans will lead the study, which will be conducted by Martin Associates, an internationally recognized economic and transportation consulting firm.
“We are excited to partner on this groundbreaking agreement for a global commodities study, marking a pivotal moment for the five deep draft ports along the Lower Mississippi River,” said Harrison Crabtree, director of the World Trade Center of New Orleans. “By leveraging the collective efforts and strengths of our local ports, Louisiana not only enhances our understanding of global trends but also strategically position ourselves for economic success.”
For Crabtree, the collaboration is essential as the region aims to optimize the transportation and logistics sector to meet future demands and opportunities.
Drew Heaphy, executive director of the St. Bernard Port, said he was looking forward to the study because of its comprehensive nature. Previous studies were less expansive.
“Most studies that have been done on the river in the past have been primarily focused on containers and general cargo,” Heaphy said, pointing out that 90% of St. Bernard Port’s cargo is bulk.
The study will contain multiple parts. The first is container market analysis and projections. The first task for this part of the study is quantifying the current flow of containerized cargo moving through the Lower Mississippi River ports. Martin Associates will develop container trade flows by country trading partners for both imports and exports as well as studying the flow of containerized cargo from the ports through the U.S.
Martin Associates will also be conducting baseline logistic cost analysis. They will conduct interviews with ocean carriers and beneficial cargo owners who call at Lower Mississippi River ports. The interviews will focus on terminal costs, productivity, inland access, and beneficial cargo owners.
Next, Martin Associates will develop baseline container cargo projections for current container flows and customers and identify the flow of potential containerized cargo with the hope of identifying new potential markets for the Lower Mississippi River ports.
The study will also feature a break bulk market analysis. Here, the study will interview major break bulk importers and exporters. It will also develop a market potential assessment for break bulk cargo for the five ports.
There will also be a bulk market analysis. This will review bulk cargo trends in the Gulf Coast region and interview important bulk operators and port managers along the Gulf Coast and the Lower Mississippi River. Martin Associates will also conduct a review of trends in industrial development and new bulk terminal development along the Gulf Coast port region.
Officials from the ports are excited about the study and what it will signify to state government officials.
“Short term, I hope our legislators get the message that we are not competing,” said Charles Tillotson, executive director of Plaquemines Port. “We talk and work together regularly. We have a common goal to grow the Lower Mississippi Port District and the state as a whole.”
In the long term, Tillotson said he hopes to see more economic development such as warehouses and third party distribution centers.
Officials at the five ports are confident of what they have to offer businesses. The end results of the study will make it easier for the ports to promote their services to interested parties.
“This gives us the data to really tell our story,” Tillotson said. “We could take a collective trip to Asia or Mexico and truly have the study to support our strength as the five deep water ports.”
Matthews said once the study is completed, the five Lower Mississippi River ports can reach an agreement on what projects should be emphasized to improve the ports. They will also have concrete data to back up their requests when they approach state government officials for funding for these projects.
Hardman said he hopes the ports will start seeing more import business on top of the already robust export business.
“The maritime industry works better when you’ve got cargo going both ways,” Hardman said.
One potential project Matthews has hopes for is an industrial rail corridor from Plaquemines to Baton Rouge. He noted that the Westbank has a lot of space and land available for development. If the land is developed well and more business comes as a result, that will lead to the creation of other small businesses surrounding the port areas. This will help not only the ports, but local economies as well.
Heaphy noted that one in five jobs in Louisiana are in the maritime industry. It is therefore crucial for the state to maximize its ports.
“Louisiana needs to look at and take advantage of the Mississippi River. Hopefully this study gives us the blueprint to do that,” Heaphy said.
