NEW ORLEANS - Since conducting feasibility studies in 2018, releasing preliminary design plans, and lodging its first permit application to the U.S. Army Corps of Engineers in 2021, the $1.8 billion Louisiana International Terminal (LIT) project proposed in Violet, Louisiana, has progressed with plans to start construction this year.
But local residents and St. Bernard Parish have concerns about traffic congestion and air quality due to the increase in trucks transporting goods in and out of the proposed terminal.
And that’s not the only problem for Port NOLA. Plaquemines Port Executive Director Charles Tillotson is urging Louisiana Governor Jeff Landry to support an alternative to the Port of New Orleans’ LIT project according to nola.com. Anthony McAuley reported that “The move is the latest in a long-running saga over where to build a new downriver terminal, which is seen as vital for the state of Louisiana to stem the loss of container ship market share to rival Gulf ports like Houston and Mobile, Alabama.”
The LIT is considered the largest public economic development project in Louisiana. It is expected to generate 18,000 jobs in the state with 4,300 in St. Bernard Parish and more than $1 billion in total new state and local tax revenue by 2050 according to Port NOLA.
In 2022, Port NOLA purchased approximately 1,200 acres for the project and is planning to receive its first ship berth in 2028.
To address road use concerns, Port NOLA is also developing the St. Bernard Transportation Corridor plan which proposes an elevated roadway located outside the levees along the 40 Arpent Canal connecting lower St. Bernard Parish to the interstate system.
Besides the land purchase, federal permits, and the development of the St. Bernard Transportation Corridor plan, major financial commitments are in place to fund the LIT project, including approximately $800 million from private partners (Ports America and MSC’s Terminal Investment Limited) and over $300 million in federal grants (from USDOT’s MEGA and INFRA programs). Louisiana state support has included nearly $30 million toward early development costs and $50 million for the St. Bernard Transportation Corridor.
When LIT received the USDOT's grant last year, U.S. Sen. Bill Cassidy (R-La.) said, "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. Louisiana is punching above its weight in the funding coming to our state.”
Tillotson argues that the West Bank site in Belle Chasse would save ships time and money because of its location at the mouth of the Mississippi River with deep draft access to the Plaquemines Port. But according to Port NOLA Board Chair Michael Thomas, Plaquemines Port has not addressed certain downfalls, including that it falls outside the zone covered by the Lower Mississippi River flood protection system. Tillotson is proposing a joint venture with Port NOLA but so far Port NOLA is proceeding with the LIT terminal as planned.
In the meantime, Plaquemines Port has been engaged in discussions with APM Terminals, a port operating company headquartered in The Hague, Netherlands. A letter of intent to develop a container terminal has been signed which includes a 30-year land lease with extension options. According to Plaquemines Port, the initial 200-acre phase would feature on-dock rail and a berth for the largest Panama Canal ships, with potential expansion to 900 acres, but it is not clear whether any land has been purchased for this joint venture. If it proceeds, APM Terminals plans an initial $500 million investment in infrastructure.
According to nola.com, Tillotson has stated that if a joint venture with Port NOLA is not secured, he plans to move forward independently with the proposed APM Terminals port expansion project.
Meanwhile, Governor Landry’s administration emphasizes that neither project has been vetted by the newly established Louisiana Port and Waterways Investment Commission and urges further evaluation before endorsing either plan.
