Aucoin: Major strides mark Port’s 2016

Published 12:03 am Wednesday, January 4, 2017

Port of South Louisiana data thus far seems to suggest that we are on target to record an increase in our vessel and barge count over that of 2015’s count (55,000 barges and 4000 vessels).

I am optimistic that tonnage handled by the facilities within our port district will reach the 300 million short ton mark in 2016. If we do surpass last year’s numbers, it will be, yet again, a record-breaking year.

To support and encourage tonnage growth, the Port of South Louisiana continues to make capital investments into its infrastructure.

We have secured $56.8 million for the maintenance of Port infrastructure, enhancements that are crucial in remaining competitive in the global market. Some improvements will commence in the near future, like the strengthening of Globalplex Intermodal Terminal’s general cargo dock, an $8.4 million project.

Other upgrades are currently underway. For instance, the expansion of Globalplex Building 19, a $12.2 million project funded by the Port Priority Program, will be complete by the end of 2016.

In addition, interest in a Port of South Louisiana container terminal continues to grow. We have met with several companies interested in participating in the project. By the time this Director’s Log is in print, the first of two phases of a strategic planning and market study will be complete, paid for in part by a $250,000 grant received from the U.S. Economic Development Administration.

The Port of South Louisiana currently operates out of four office locations, which slows communication and decreases efficiency. We are one step closer to the construction of an all-inclusive administration/business development center.

In 2016, the Louisiana Legislature approved the reallocation of $5.4 million from another Capital Outlay project to this project, which is approximately half the funds needed to make this project possible. At the Executive Regional Airport, the construction of the self-funded 10,000 square foot hangar is underway. The $700,000 structure should be completed by the first quarter of 2017.

Also, the Louisiana Department of Transportation and Development is funding two generators for the airport: one for the terminal building; the other for the airport taxiway. They will also provide monies for reflectors that will extend the length of the taxiway. Tonnage will see an increase as announced economic development projects come online. In January 2016, Pin Oak Terminals hit the ground running as they began construction of a petroleum liquids storage terminal (and supporting docks), which is scheduled to be operational in mid-2017. The $750 million project will create 80 to 100 local jobs.

Syngas Energy is also in the early construction stages of a methanol plant on the west bank of the Mississippi River, co-located with NuStar in St. James, Louisiana. Slated to be completed by the end of 2018, the company’s $360 million facility will create 86 local jobs.

In the spotlight for the Port of South Louisiana in 2016 were two key issues: Louisiana’s trade initiative with Cuba and dredging of the Mississippi River.

As home to five of the top 15 ports in the United States, Louisiana wants to be ready and first in line to expand commerce with one of its closest neighbors and historical trading partners.

We have been very involved this year advocating free trade with Cuba. In January 2016, I joined the advisory council of Engage Cuba, a coalition of leaders dedicated to advancing legislation to lift the antiquated trade embargo.

In July, we participated in a Louisiana Trade Mission to Cuba, where we met with government and trade leaders to explore trade opportunities for Louisiana and Cuba. In October, we returned with Louisiana Governor John Bel Edwards to sign a Memorandum of Understanding with the National Port Administration of Cuba, a ceremonious partnership between our state and the island nation.

It’s a worthy endeavor and we are grateful for all the media coverage this effort received this year.

Because of the Port of South Louisiana’s status as a leading energy transfer port in the nation, the Port of South Louisiana received $542,000 in federal funding for dredging as a result of the Water Resources Reform and Development Act of 2014.

Though appreciated, more funding is needed to deepen our navigation channels to the required draft. We are taking every opportunity to address the issue of dredging, especially at the Southwest Pass of the Mississippi River, and continue to build a strong case for Congress to allow the Harbor Maintenance Trust Fund to be fully disbursed as it was intended.

In July, Real Clear Policy, an influential online publication that targets Washington insiders including members of Congress, posted “The Most Critical Infrastructure Project in America,” an opinion editorial aimed to educate policy makers about the importance of the Port of South Louisiana on the economic well-being of the nation and the consequences from failure to dredge the mouth of the Mississippi River to 45 feet.

We were fortunate that the op-ed was circulated by other publications (e.g., Dredging Today).

We are proud of our efforts and grateful for our achievements; however, for all the efforts expended to encourage capital investment and increase trade, the nation’s economy is at risk due to insufficient maintenance of our navigation channels. Economic growth depends on the unrestricted and reliable movement of goods to and from the global marketplace. We will continue to be a voice for dredging … and economic growth!

Paul Aucoin is executive director of the Port of South Louisiana. For more information, call 985-652-9278.