The state of Louisiana, the Port of New Orleans (Port NOLA), North American terminal operator Ports America and MSC's terminal arm Terminal Investment Limited (TiL) have formed a strong partnership to build a US$1.8 billion container facility on the Lower Mississippi River.
The new Louisiana International Terminal (LIT) in St. Bernard Parish will be able to serve vessels of all sizes, increasing Louisiana’s import and export capacity and stimulating the creation of more than 17,000 new jobs statewide by 2050, according to Port NOLA's estimates.
Ports America and TiL have contributed US$800 million to the project, while the construction of the terminal will be supported by a substantial commitment from Port NOLA, as well as state and federal funding sources.
The joint venture is also expected to operate the terminal once construction is complete.
"This public-private partnership with the Port of New Orleans, TiL and Ports America has the potential to become one of the most impactful economic development projects in our state’s history," said Governor of Louisiana, John Bel Edwards who made the announcement of the historic partnership.
Edwards added, "The powerful impact of this world-class logistics asset will benefit not only residents and businesses in south Louisiana, but it will also benefit advanced manufacturing, agribusiness and energy workers all across the state."
The project is currently in the design and permitting phase of the US Army Corps of Engineers’ environmental review process. Barring unforeseen delays, construction is slated to begin in 2025, and the first berth to open in 2028.
At full build-out, LIT will be able to handle 2 million TEUs annually, taking advantage of the deeper 50-foot (15.24-metre) Lower Mississippi River Ship Channel and avoiding height restrictions from Mississippi River bridges further up the river.
This new terminal is expected to strengthen Louisiana’s ability to attract distribution centers, logistics services and value-added services through Port NOLA’s multimodal connectivity.
TiL's terminal investment director for North America, Tom Van Eynde commented, "Today, the container trade in Port NOLA mainly consists of export cargo, making it an exception among US ports, which are usually import-heavy. LIT will attract new container trades, providing access for local industry to cost-competitive shipping options. The development of this facility cements TiL’s commitment to further strengthen American infrastructure, making Port NOLA accessible for larger vessels and increasing its throughput capacity in a sustainable way that will bring measurable benefits to the community."
Following an extensive site selection process and feasibility studies, Port NOLA purchased more than 4.85 million m² of land in Violet in 2020, sufficient to accommodate the terminal, additional services and warehousing facilities.
The latest design incorporates community feedback gathered over the last two years regarding traffic, drainage and other impacts on nearby homes and businesses.
"The location of the Louisiana International Terminal offers deeper draft and federal hurricane protection thanks to state and federal investments to make Louisiana’s waterway infrastructure more resilient,” pointed out Louisiana speaker of the House Clay Schexnayder.
