NEW ORLEANS – On Sept. 29, Brandy D. Christian, CEO of the Port of New Orleans and the New Orleans Public Belt Railroad, delivered the 2022 State of the Port address highlighting successes across the Port’s four lines of business — cruise, rail, industrial real estate and cargo — and the completion of several maritime infrastructure projects.
During her remarks and a post-speech Q&A, Christian talked about how the city’s cruise and transportation industries have bounced back in a big way since the pandemic. But she emphasized that competition is fierce from competitors in Houston, Mobile, Houston, Savannah, Charleston and elsewhere — all of whom are trying to build their business by taking advantage of supply chain disruption and traffic jams at ports on the West Coast. She believes the port’s proposed $1.5 billion container terminal in St. Bernard Parish is the key to staying competitive in the coming years.
Louisiana is also competing with its southern neighbors to attract the type of major distribution centers for giant retailers like Amazon and Walmart that help create more logistics activity and, as a result, increase the volume of goods moving in and out nearby ports.
“The future is bright at Port NOLA as we continue to shine a light on our gateway’s diversity that has allowed us to pivot, providing supply chain solutions to customers old and new,” said Christian at the event. “We have the opportunity to be the next-generation leader in global trade so let’s seize this moment of clarity brought by global events, and let’s deliver Louisiana’s future together.”
Infrastructure
At the beginning of her remarks, Christian touted several infrastructure successes. First, the port recently completed a three-year, $140 project at the Napoleon Avenue Container Terminal that adds four new 100-foot- gauge container gantry cranes and creates additional container yard space. In New Orleans East, meanwhile, the $42 million expansion of Port NOLA’s Jourdan Road Cold Storage Terminal nearly doubled the facility’s capacity and created 50 new jobs.
“These last few years on the global stage have revealed the fundamental importance of the supply chain in getting food to grocery store shelves, packages delivered to our doorsteps, and manufactured products to markets,” said Christian. “As a state, we have a real opportunity here — not just to retain our access to goods and materials, but to reestablish Louisiana as an integral nexus within the global market.”
Christian also credited two recently completed infrastructure projects for paving the way to increased maritime commerce in Louisiana: the completed federal levee system and the recent 50-foot deepening of the river by the Army Corps of Engineers.
“With flood protection and deeper draft, we welcome bigger ships, more cargo and resilient facilities for decades to come,” said Christian. “It is up to us to seize the opportunity these massive investments bring – we must deliver maritime facilities to match. And that’s exactly what we’re doing.”
Proposed Container Terminal
Several times during her presentation, Christian talked about the port’s hopes for a second container terminal in St. Bernard Parish.
“One thing is certain: If our state is to remain in the container shipping business, attract and retain manufacturing and distribution businesses, we must build the $1.5 billion Louisiana International Terminal,” said Christian. “The new terminal will create 17,000 new direct and indirect jobs and $800 million in new tax revenue for the state and $200 million for St. Bernard Parish.”
The project is in the beginning of the permitting process. The port hopes to begin construction in 2025.
Business Is Booming
Christian said the supply chain challenges of the past two years have highlighted the port as an alternative gateway to inland markets.
She said the port’s breakbulk volumes doubled in fiscal year 2022, led by imported steel which grew by 123% and natural rubber which grew by 50%. In addition, Port NOLA is being sought as an alternative for shippers seeking to diversify and mitigate their exposure to container shipping challenges. As a result, in 2022, the port saw an increase in breakbulk plywood, and welcomed its first breakbulk coffee vessels in 30 years.
Christian said the New Orleans Public Belt Railroad, now led by General Manager Tomeka Watson Bryant, recorded a 47% increase in local customer volumes in fiscal year 2022. Storage volumes rose by 15% and overall rail volumes increased by 4%.
“Now more than ever, we are offering customers more integrated marine and rail solutions,” said Christian. “That includes growing intermodal connections to the Midwest via the CN and to Dallas and Kansas City via KCS. And the Seacor-operated container-on-barge service moves 30,000 TEUs per year between New Orleans, Baton Rouge, Memphis and now St. Louis.”
In addition, the port continues to grow its real estate portfolio, which Christian said is key to attracting new and expanding businesses looking for rail-served warehousing and trans-load facilities.
Cruises Bounce Back
Christian also announced the return of the cruise business. Carnival Cruise Line was the first to restart ocean-going cruises from New Orleans in September 2021, and it is now celebrating its 50th anniversary with an average of 110% occupancy on their sailings out of New Orleans.
With the return of Norwegian, Disney and Royal Caribbean cruise lines, the port is back to pre- pandemic passenger numbers. And in October, it will welcome Viking Cruise Line’s first North American river cruise.
“Our cruise business is a vital economic engine that contributes to the local tourism and hospitality industry,” said Christian. “Every time a cruise ship docks at our Erato or Julia St. terminals, it’s like a mini-convention pulling into town. All this activity creates jobs and injects money into the local and state economy.”
Green Initiatives
Christian touted the port’s green initiatives, such as the Clean Truck Replacement Incentive Program that helps truck and fleet owners pay to replace old engines. The port also replaced its fleet of locomotives, leading to reduced fuel consumption and emissions.
“Our future must be greener, more resilient, more inclusive, and most importantly, our future must meet the needs of tomorrow,” she said. “So here we are at a defining moment. Let’s seize this moment of clarity wrought by disasters and supply chain disruptions. Let’s use this opportunity to speak with one voice. Louisiana’s future rests in competing in a global market. So we must invest in a trade-based economy. We must invest in transformational projects.”
