NEW ORLEANS – The Port of New Orleans said it has been awarded an additional $226 million in federal grant dollars for the development of the $1.8 billion Louisiana International Terminal in Violet, La.
It’s another step forward for Port NOLA, which believes building a new container terminal capable of receiving bigger vessels is essential for it to stay competitive with its counterparts in Houston and Mobile.
The U.S. Department of Transportation funds come via the Infrastructure for Rebuilding America competitive grant program, which supports multimodal freight and highway projects. The U.S. DOT also recently awarded Port NOLA an additional $74 million through a separate grant program.
“This money to build a new terminal in the Port of New Orleans is good for commerce, good for jobs, and good for coastal communities,” said U.S. Sen. Bill Cassidy (R-La.) in a press release. “Because I had a seat at the table for the infrastructure law, Louisiana is punching above its weight in the funding coming to our state.”
Port NOLA said the new container terminal will increase Louisiana’s import and export capacity thanks to its proximity to four interstate systems, six Class I railroads, 14,500 miles of inland waterways and more than 30 inland hubs. Its location downriver from the Crescent City Connection bridge means it will be able to accommodate larger vessels. The LIT project has broad political and industry support throughout the state and country, but it has vocal opponents in its own backyard
A recent poll cited by The Advocate shows that 74% of St. Bernard Parish residents back the “Save Our St. Bernard” campaign working to stop the LIT development. Lt. Gov. Billy Nungesser has become the state’s most high-profile critic of the plan.
If all proceeds as planned, though, the LIT will be built through a $800 million dollar public-private partnership between Port NOLA, New Jersey-based Ports America and Switzerland-based Mediterranean Shipping Company through its terminal development and investment arm Terminal Investment Limited (TiL).
Louisiana has provided nearly $30 million toward early development costs for the LIT, which is currently in the federal permitting and design process. Last week, the state announced an additional $50 million commitment for the design of the St. Bernard Transportation Corridor, a new roadway that would connect the terminal to Interstate 510.
The port said LIT is expected to generate 32,000 new jobs nationwide as well as more than $1 billion in total new state and local tax revenue by 2050.
The port hopes to begin construction in 2025 and to open the first ship wharf in 2028.
“We are incredibly honored to receive this landmark grant award, which underscores decades of site and market analysis and reflects the recognition of our transformational project on a global scale,” said Port NOLA President and CEO Brandy Christian. “Not only is this the biggest economic development grant in Louisiana history, but also the largest federal investment in a new container terminal in USDOT history. We express our deepest appreciation to Louisiana’s federal delegation, state leadership and the Biden Administration for their confidence in our vision and look forward to delivering on this investment.”