If there was ever a time for Louisiana ports and waterways to strategically pull together to attract greater investment and improve outcomes, it is now. Up until the last few years, the state’s ports have had enormous success on their own despite being managed by thirty-two independent boards. A significant reason for this success boils down to Louisiana’s geographical location situated at the mouth of the 2,350-mile Mississippi River which connects 31 up-river states to the rest of the world through the Gulf of Mexico.
From this vantage point Louisiana ports and waterways have generated wealth for the state including tax revenue representing five percent of the Louisiana annual budget. Our ports have employed more than half a million people and have provided for the generation of personal income totaling over thirty-two billion dollars per year. The sheer size of the port systems in Louisiana is staggering. The five ports on the lower Mississippi River alone form the largest port complex in the world.
But in 2019, Houston outstripped the Port of South Louisiana as the largest tonnage port in the western hemisphere and the Port of Mobile overtook the Port of New Orleans in terms of container traffic.
That’s why state and industry leaders think Louisiana needs a more unified, strategic mechanism for expanding on this success story to ensure we continue to attract national and international business and remain competitive.
“The five ports on the lower Mississippi River each have different capabilities and strengths and could truly complement each other if planning and development were more collective,” said Julia Fisher-Cormier, Commissioner of the Office of Multimodal Commerce, the agency whose programs are designed to strengthen multimodal transportation (ports and waterways, rail, aviation, and commercial trucking). “Geographic location is what draws opportunity to Louisiana ports, but a sophisticated plan is what lands them and creates the longevity that our citizens deserve.”
This is where House Bill 971 comes in. Passed by both houses of government and signed by Governor Landry, the new law creates the Louisiana Ports and Waterways Investment Commission, which would serve as an advocate for the state’s ports and waterways, coordinating efforts to attract investment and boost international trade.
The bill’s author, Rep. Mark Wright of Covington, said, “Shipping follows the dollars. If other ports like Mobile or Houston do this work better and faster, Louisiana will lose out. There’s a mentality that says ‘we have the river so we’ll always get the business,’ but at some point we’ll lose business if we’re not more strategic about investing in large projects.”
Right now, the Port Priority Program serves all inland, coastal and deep-water ports, but its investment is limited to $15M per project with a $5M maximum allocation per year. This level of funding helps streamline basic infrastructure improvements to keep port operations running smoothly, but, as Wright said, “It’s not a big picture investment process.” To retain a competitive edge, Louisiana ports need to be organized and develop a shared strategic vision.
“The Port Priority Program works well, but the ports need more dedicated, recurring money,” said Fisher-Cormier. “The ports currently all operate on self-generated revenue.”
The proposed LA Ports and Waterways Investment Commission would bring stakeholders together to strategically guide and attract more state funding. Louisiana is currently the only coastal state in the South that doesn’t have a central body creating strategic plans and guiding port investment.
“Although ports and waterways represent twenty percent of jobs, we’ve never invested a lot of money in them,” Wright said. “We want to develop big projects, to make significant changes, especially when ports like Mobile and Houston are already doing this.”
The Louisiana International Terminal (LIT), a new $1.8 billion container terminal currently in the design and permitting phase, will allow larger ships to enter the Port of New Orleans making Louisiana more competitive for international cargo. “LIT is a great example of the kind of big picture investment the proposed Ports and Waterways Commission would attract, particularly for those ports that currently don’t have the ability to make that happen,” Wright said.
The new legislation will create a 13-member commission under the Office of the Governor whose chair will be appointed by the Governor. Commission members will include leaders from the Department of Transportation and Development, the Department of Economic Development, the Louisiana Railroad Association, and the Louisiana Motor Transit Association, along with one member of the House of Representatives, one from the Senate, two members from inland ports, two from coastal ports, and two from deep water ports.
“Governor Landry has challenged all of us appointed to leadership to create change that produces results,”Fisher-Cormier said. “The status quo is no longer an option. We will make a concerted effort to make smart changes. This Commission will be a big step toward a unified effort to become the strongest ports system not only in the Nation but in the world.”
The bottom line, Fisher-Cormier said, is that Louisiana ports can no longer simply assume they can remain competitive without strategically pursuing opportunities for investment and growth. “If development continues in each silo, the state will continue to see lost tonnage, lost jobs and lost revenues,” she said.
The Louisiana Legislative Auditor, Mike Waguespack, backs this approach. A key recommendation of the Louisiana Legislative Auditor’s performance audit Louisiana’s public Ports System – Comparison to other Southern Coastal States
and Recommendations for Improvement, which came out in January this year, calls for the creation of a strategic body like the LA Ports and Waterways Investment Commission.
“The strategic plan that will result from the Commission will be the road map for the Multimodal Office to create a new program, determine funding needs and support the large-scale growth we need to see to compete globally,” Fisher-Cormier said. “Thankfully, Louisiana has leaders in our legislature like Representative Wright, and Senators Connick and McMath, who have put ports at the forefront for the past several years.”
For Fisher-Cormier, the importance of our ports was also brought to light through Governor Landry’s transition council discussions and findings.
With Bill 971 having been signed into law, the groundwork for creating the Louisiana Ports and Waterways Investment Commission has been done. “The foundation of our economy is based on our strength in ports and all of the pieces are in place to achieve the success Louisiana ports are capable of,” Fisher-Cormier said.