Throughout my 46-year career in the maritime industry, I have had the great fortune to serve as the executive director, president and CEO of four globally significant ports, including both the Port of New Orleans and Port of South Louisiana.
On my very first business trip to Japan, I was asked by a Japanese official, “What is a Louisiana?”
In my opinion, herein lies the crux of an issue that is germane to the subject of not only the purchase of Avondale Global Gateway by the Port of South Louisiana, but to the growth, development and economic well-being of all of Louisiana and its entire port system.
“What indeed is a Louisiana”?
I believe my experience gives me firsthand knowledge that in order for Louisiana to remain competitive with its neighboring states, we must be bold, and always remember that no other state and no other port (outside of Louisiana) has the intermodal connectivity to the rest of the North American continent that we do.
Now is the time to finally take advantage of this great asset to connect with our trading partners — the inland ports of America. It is for these reasons that I was elated to see the news that the Port of South Louisiana was seeking to purchase and develop Avondale Global Gateway.
Louisiana ports carry 25% of all U.S. waterborne commerce, and that certainly will be enhanced and increased in the future with channel deepening and riverside development for cargo transfer at expanded operations, including many on the cutting edge of a long overdue ‘clean energy’ effort to balance our abundant fossil fuel base.
The recent joint announcement by Shell and Gulf Wind Technology of plans to build a facility at Avondale Global Gateway, creating new jobs along with an enhanced environment, is a perfect fit for Louisiana.
Our federal government has already recognized the economic impact of the Lower Mississippi River, authorizing the deepening of the ship channel to 50 feet. That investment alone will produce an $11.49 billion increase in U.S. production, create a projected 17,000 new jobs and spur an $849 million dollar increase in income, a ratio of $90 return for every one dollar spent.
It is now incumbent upon us to see to it that we maximize this opportunity for Louisiana and better compete with the ongoing expansion in Houston, Mobile and Florida. Certainly the Port of New Orleans’ proposed development of the Louisiana International Terminal will go a long way in competing for growing future trade, but the development of Avondale Global Gateway can only complement that development, especially with its transfer capacity connecting to all of the inland ports of America.
It’s Louisiana’s time to fight back for industrial retention and development. We can no longer survive as only “a place that care forgot.”
Avondale Shipyard was once Louisiana’s largest employer. Its closing impacted thousands of families. The site itself is strategically located and has a proven maritime history of success.
The new public partnership with the Port of South Louisiana will make the site more desirable and spur growth in international trade and waterborne commerce. The port as a state entity will give Avondale the ability to access infrastructure dollars from Washington and Baton Rouge. Equally as important, it will provide for a ‘team’ approach in global marketing led by the port, the state and regional and local marketing entities that few privately held groups could compete with.
With the purchase of Avondale Global Gateway by the Port of South Louisiana as well as the opening of Louisiana International Terminal on the Mississippi River, Louisiana will once again “be open for business”.
The global and domestic marketing of such geographically improved and superior sites, along with the utilization of our ‘team’ concept, should be second to none. The marketing entities — regional and local chambers of commerce, business councils, local governments, trade associations, etc. — are there. They simply must be called upon to “play ball,” but they also must be orchestrated and led by the state in a unified approach.
Yes, the purchase of the Avondale Global Gateway by the Port of South Louisiana is a major move forward for Louisiana and our future generations. Bringing us together to market this most underutilized asset on the river would be a great win for Louisiana.
Let’s finally get it right, Louisiana. It’s our time!
Gary P LaGrange is former CEO of the Port of South Louisiana and the Port of New Orleans.
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