Efforts to construct an international container terminal at the Port of New Orleans received a significant boost from the federal government on Monday.
The port was granted an additional $226.2 million to aid in the development of the $1.8 billion Louisiana International Terminal (LIT), which aims to establish the port as the premier international container gateway in the Gulf of Mexico.
“This landmark grant award is a testament to years of research and planning, showcasing the significance of our project on a global scale,” stated Brandy Christian, the port’s President and CEO. “Not only is this the largest economic development grant in Louisiana’s history, but it also marks the largest federal investment in a new container terminal by the U.S. Department of Transportation.”
The Louisiana International Terminal will have the capacity to handle 2 million twenty-foot equivalent units annually, as well as accommodate ultralarge container vessels passing through the Panama Canal once it is completed around 2028.
The project is a joint effort involving the Port of New Orleans, Ports America from New Jersey, and Terminal Investment Ltd., the investment arm of Mediterranean Shipping Co. The partnership has already pledged $800 million towards the LIT.
Apart from the federal grant, the Port of New Orleans also secured a $73.77 million federal grant to advance the project’s first construction phase, with Louisiana lawmakers allocating nearly $30 million towards initial development costs.
According to state officials, the LIT is expected to create 18,000 jobs in Louisiana and generate over $1 billion in new state and local tax revenue by 2050.
U.S. Rep. Troy Carter Sr., D-La., stated, “This additional investment will utilize the Port of New Orleans’ extensive connectivity to interstate systems, railroads, waterways, and hubs.”
The Louisiana International Terminal is one of two major container facility projects underway along the lower Mississippi, with the Plaquemines Port Harbor and Terminal District signing a $500 million preliminary agreement with APM Terminals to construct their own container facility south of the Port of New Orleans.
The initial construction phase for the Plaquemines Port’s container terminal will commence with a 200-acre development that includes on-dock railings and a berth capable of handling ships carrying 14,000 TEUs.
“This will truly establish Plaquemines as ‘The Louisiana Gateway Port,’ given its overwhelming geographic and strategic advantages,” remarked Charles D. Tillotson, executive director of the Plaquemines Port.
