NEW ORLEANS – On July 2, The Port of New Orleans announced that it has purchased for $6.6 million a 210,000-square-foot warehouse located at 5200 Coffee Drive in the Uptown Port of New Orleans terminal. The seller is Access World, operator of a global network of port and warehouse facilities.
The Kearney Companies, a third-party logistics provider, has signed a 10-year lease for the space and has committed to investing in facility improvements.
A subsidiary of Precision Terminal Logistics, Kearney is a longtime operator in the New Orleans area with a significant presence in New Orleans East. It plans to use the new warehouse for additional storage as it expands its handling of metals and forest products and seeks new commodity opportunities. The building, located directly behind Port NOLA’s Napoleon Avenue container terminal, offers customers “on dock” warehouse solutions.
“We are thrilled to announce this agreement with the Kearney Companies, which marks a pivotal moment for our port and the surrounding community,” said Ronald Wendel, acting president and CEO of Port NOLA and acting CEO of the New Orleans Public Belt Railroad. “This facility will enhance our operational capacity and support economic growth by creating new jobs and opportunities. We appreciate the continued partnership with the Kearney Companies and PTL and look forward to long-term growth.”
NOPB said that the Kearney Companies handles 3,000 carloads and close to 20,000 containers annually. Its endeavors support 65 full-time office, trucking and warehouse jobs. There are approximately 10 to 15 full-time jobs associated with the Coffee Drive facility lease.
The Kearney Companies operates more than 500,000 square feet of rail-served warehouse space and over 45 acres of yard capacity in the region. The majority of its jobs are located along the Industrial Canal.
“We have been working with the Port of New Orleans and the previous owner of the warehouse for over two years on a lease that enables the port’s purchase of the facility,” said David Kearney, president of the Kearney Companies. “We have developed a transition plan that ensures the facility continues to play a strategic role in supporting international supply chains through the New Orleans port and rail gateway.”
Precision Terminal Logistics, operates 21 rail-served transload terminals in 15 states and operates a large-scale mining operation in Bloomfield, Mo.
“Through mutual trust displayed by all parties in this transaction, we were able to work through several long-term, difficult maintenance items, and future capital investments that are needed to ensure the future viability of this specific warehouse facility,” said Kearney. “We look forward to supporting existing business like the CME and LME metals customers that have historically utilized this facility, as well as attracting other new shippers for this location.”
