NEW ORLEANS – The urgency to build a Louisiana port situated down river to accommodate larger modern cargo vessels has become even more urgent as states vie for shifting international trade. Texas and Alabama ports have surpassed Louisiana in container cargo tonnage, reaping the economic benefits of increased commerce.
Economic Imperative
A comprehensive study conducted by economist Dek Terrell with Lewis Terrell and Associates has revealed that the planned Louisiana International Terminal (LIT) located 17 miles downriver in Violet will generate 18,500 new direct and indirect well-paying jobs in Louisiana and produce more than $1 billion dollars in new state and local tax revenue by 2050. That study is posted on the Louisiana International Terminal website here.
“Our state’s future economic stability depends on our ability to meet the demands of modern and future shipping,” said Kimberly Curth, Press Secretary at the Port of New Orleans (Port NOLA). “For decades, it has been clear that a new container terminal is essential downriver from the Crescent City Connection Bridge to accommodate the larger vessels used in global commerce and trade. If we do not build a new terminal capable of serving these ships, we risk losing our relevance in international trade. This new terminal will ensure strong and resilient supply chains not just in Louisiana, but the region and nation.”
In addition to increased cargo capacity, LIT is projected to open substantial economic development opportunities in manufacturing, warehousing, and distribution. “It will be the largest public economic development in the State,” said Curth.
A second study conducted by Lewis Terrell and Associates found that nearly 10,000 existing jobs and over $10 billion in output in the state would be lost in just a decade if LIT is not built. See that study here.
Support for LIT
Support for the project runs deep. In the 2024 regular session, Governor Jeff Landry and the Louisiana Legislature committed $230.5 million to Port NOLA infrastructure projects, including LIT and the St. Bernard Transportation Corridor. In addition, the U.S. Department of Transportation awarded $300 million in federal funding to assist in building LIT, the largest federal investment in a new container terminal in the agency’s history.
New Jersey-based Ports America, North America’s largest marine terminal operator, and Switzerland-based Mediterranean Shipping Company (MSC), through its terminal development and investment arm Terminal Investment Limited (TiL) have committed a combined $800 million toward the project to date.
Governor Landry has also asked the CEO of GNO, Inc., Michael Hecht, to manage the roll out of the LIT project following Hecht’s efforts in helping to maneuver the successful implementation of the record-breaking Super Bowl LIX, according to Anthony McAuley, NOLA.com.
"The Port of New Orleans deeply appreciates Governor Landry’s support and commitment to the Louisiana International Terminal (LIT). We fully align with his assertion that “(s)uccessful execution of LIT is essential to the future of trade in Louisiana, the very reason we were founded.” We look forward to working collaboratively with GNO, Inc. and Michael Hecht, united by a shared vision that underscores the pivotal role LIT plays in strengthening Louisiana’s economic vitality and global trade competitiveness."
Addressing Concerns by Locals
To address the concerns of locals who argue that the LIT facility will disrupt their neighborhood with increased noise, road traffic, and rail lines, Port NOLA says it has a unique opportunity to modernize. The LIT will be the first greenfield terminal to be built in decades in the United States, providing the Port the ability to incorporate green technology to reduce pollution impacts.
“This allows us to intentionally think about needs for the future that we are not able to construct into existing infrastructure. For example, we are building in greater electrical capacity to allow for shore power, electrified cargo handling equipment and charging stations for medium and heavy-duty trucking,” said Curth. “Electrification of traditionally diesel equipment significantly reduces on-site emissions.”
Part of the federal permitting process involves evaluating how LIT will affect traffic in the local area and beyond. “The St. Bernard Transportation Corridor is a vital transportation link - a third artery that has been requested for decades in St. Bernard Parish,” said Curth. “The Regional Planning Commission is currently finalizing alignment options to accommodate increased commercial traffic related to the terminal.”
Louisiana House Bill 616 (HB616), which seeks to authorize the Port of New Orleans to engage in public-private partnerships for infrastructure projects like the St. Bernard Transportation Corridor, is scheduled for a House Committee on Transportation, Highways, and Public Works committee hearing on May 12 and a public report outlining final road options is expected May 14. The corridor is designed to run outside the levee system along the 40 Arpent Canal.
LIT will not impact any levee system in St. Bernard Parish, constructing the wharf structure in the Mississippi River and ramps over the levee to access it. “The area where we are proposing to construct the LIT project was originally used for agricultural purposes,” said Curth. A 428-acre area will be cleared of undergrowth vegetation and the top two feet of soil. “This was included in our permit application to the U.S. Army Corps of Engineers,” said Curth.
Plaquemines Parish Port
Lt. Gov. Billy Nungesser and members of the St. Bernard Parish Council have argued for a Plaquemines Parish alternative to LIT, citing reduced costs. But Port NOLA argues that, unlike the Plaquemines site, Violet is the only location situated within the federal Hurricane & Storm Damage Risk Reduction System (HSDRRS). “In the event of a natural disaster, trucks, rail, and workers will not be able to access the proposed site at Plaquemines while the St. Bernard LIT location is protected,” said Curth.
The Port of New Orleans is Louisiana’s only international container port and has over 50 years of experience handling containerized cargo. It is also the only U.S. deep-water port with direct access to all six Class I railroads.
“Port NOLA and its partners studied sites in St Bernard and Plaquemines Parish,” said Curth. “Mediterranean Shipping Company (MSC), Ports America and Port NOLA are well versed in the pros and cons of each site from a water, land, and intermodal perspective.”
Their site identification and analysis process included an evaluating the ability to accommodate large container vessels, deep water, the length of river frontage, terminal and ancillary acreage, road and rail service, flood risk reduction, and access to labor.
“The evaluation process made it clear that sites closer to the mouth of the river were less connected to critical transportation networks and would therefore require significant investment and time to build those networks, and they are more vulnerable to sea-level rise and hurricane impacts,” said Curth.
The LIT project is also just months away from “shovels in the ground.”
