Greater New Orleans has been a major player in international trade for a long time, with roots that can be traced back to 1682, when Robert de La Salle petitioned France’s King Louis XIV to construct a port in the region.
Since then, Louisiana has grown to become one of the world’s leaders in global trade. Today, the state is home to 30 ports, which are responsible for more than $33 billion in annual earnings and bring in over $2.4 billion in state taxes and $1.8 billion in local taxes. Additionally, last year, Louisiana-made goods and services were sold to customers in over 196 countries, resulting in exports totalling more than $63 billion and supporting some 3,500 businesses.
The growth isn’t static, either. International trade continues to offer tremendous economic opportunities for Greater New Orleans and the surrounding region, and the reason is simple: location, location, location.
“We are perfectly suited,” says Greg Rusovich, Chairman of Louisiana Board of International Commerce (LaBIC). “We have the Mississippi River running from Canada to Louisiana. We have six ‘Class A’ railroads that come right into the New Orleans region for distribution of products nationally. We have everything going for us to be the leader in global trade.”
Launched in 2011, LaBIC is a part of the Louisiana Economic Development (LED) that’s focused on advancing the state’s international commerce initiatives. Rusovich says that before then, there wasn’t a unified structure focused on growing foreign investment and international trade.
“As a region, we’ve really always had three foundational industries: energy, tourism and hospitality, and then international trade,” Rusovich says.
Trade means more than just goods coming and going. It also means jobs for Louisianans ranging from stevedores loading and unloading on docks to truck drivers, forklift operators and administrative employees, in addition to warehousing and logistical employees. All in all, trade creates more than 539,000 jobs in the state. That’s one out of every five jobs.
International trade and logistics also play a critical role in the national economy and supply chain.
“Over 95 percent of the cargo entering the United States arrives by vessel to more than 360 commercial ports,” says J. Edwin Webb, CEO of the World Trade Center New Orleans (WTCNO), an organization focused on accelerating the region’s business growth through international trade. Louisiana’s ports are a vital part of those efforts.
“All ports are important,” Webb says. “The Port of New Orleans is the sixth largest cruise port in the United States. Its partner ports, which include the Port of South Louisiana, Port of Saint Bernard, Plaquemines Port Harbor and Terminal District, among others, each play an important role in keeping Louisiana an ‘open for your international trade’ resource.”
But don’t just take his word for it. In the international trade industry, money talks—none more so than foreign direct investment (FDI).
Nationwide, FDI contributes to productivity growth, generates U.S. exports, and creates high paying jobs for American workers. In 2019 alone, FDI was responsible for 7.9 million jobs in the U.S., $71.4 billion in research and development expenditures, and accounted for 24% of all U.S. goods exports.
Foreign investment is also a clear indicator that other companies (and countries) see the value in a particular region. A great example is the airliner British Air launching nonstop flights from London to New Orleans.
“One of the biggest wins for the region over the last few years was British Air putting in a direct flight,” Rusovich says. “You don’t think of trade, but you think of investment. That further fostered New Orleans being the leader for European visitors coming to the city, and of course, it fostered trade.”
However, foreign investment alone won’t build a business environment that can attract and sustain an expansion in international trade. For that, you need local dollars and commitment. Both Rusovich and Webb point to a newly proposed container facility in Violet, Louisiana as a key initiative. The Port of New Orleans’ current container facility is on the other side of the Mississippi Bridge, which lacks sufficient air draft to allow for the larger “megaships” of today’s shipping industry to access the facility.
“They just can’t fit,” says Rusovich. “You have no choice but to move south and closer to the mouth of the river.”
The “Louisiana International Terminal at Violet,” as the proposed container facility is set to be called, would allow the larger ships to easily access the region and would “announce to the world that Louisiana will be a formidable player in the global trade of the future.”
Rusovich says it’s been frustrating over the years to watch other Gulf Coast states organize around and support their ports and international trade industries. For example, many states had a single port authority and well-funded outreach to the global community for foreign investment long before Louisiana did. But since the founding of state initiatives like LaBIC and other organizations such as the WTCNO, those gaps have been closing, and with the Violet container terminal, the state is set to expand its reach even further and attract even greater investment.
“We can have the megaships coming into Violet, Louisiana right from the Panama Canal,” says Rusovich. “We want them stopping in Violet. We don’t want them going straight to Savannah or Houston.”
Louisiana is poised to become an even bigger leader in the world of international trade, and we already have much of the infrastructure it takes to support such an expansion. The Port of South Louisiana is currently one of the largest trade ports in the nation, handling more than 238 million tons of goods per year, giving it the number two spot on the list of the country’s top tonnage ports.
Local industry leaders like Webb and Rusovich say that the time is now for the state to really focus on investing in trade and giving the industry what it needs to continue to grow.
“Leadership in Louisiana has long recognized the power and the growth potential of international trade,” Webb says. “However, we need to get down to business and allow the Port of New Orleans to do its business and compete for Louisiana.”
One thing’s for sure: international trade will continue to be a key driver for the state’s economy, and as new investments and innovations are made, the Greater New Orleans region’s identity as a vital player of the global trade system is only going to grow stronger.
