In December, House Speaker Clay Schexnayder, Gov. John Bel Edwards and Port of New Orleans leaders touted the state and federal money headed to the $1.8 billion international container terminal in St. Bernard—a project the port sees as its crown jewel.
But in the span of a few hours on the last day of the legislative session last week, that bipartisan support for the terminal took a significant hit.
Edwards, a Democrat, had recommended that lawmakers approve $130 million in future construction funding for roadway improvements, site preparations and mitigation for the container terminal, which is slated for the town of Violet downriver from New Orleans.
His request—only $4 million of which is funding that could come to fruition in the near term—stayed in the state’s construction budget, House Bill 2, throughout the two-month session. But on Thursday, House leaders worked behind closed doors to make a slew of changes to HB 2, in part to retaliate against conservative Republicans who voted against Schexnayder on a key vote to raise the state’s spending limit.
When lawmakers voted on the bill – seven minutes before session adjourned – the funding for the terminal was gone. Legislators and port leaders found out about the cut only after the session had ended. The move has infuriated some lawmakers and economic development leaders who have touted the project–which is controversial in St. Bernard–as the only way to keep Louisiana ports competitive with places such as Mobile.
Several supporters complained that the project got caught up in what they see as political backstabbing, and that the move to defund it sends the wrong message to the shipping industry worldwide.
“I think it’s absolutely disgraceful,” said Greg Rusovich, CEO of Transoceanic Development and a former chair of the Port of New Orleans. “It frankly is indicative of why the state is having such a problem in terms of growing our economy and growing jobs, and why we continue to take steps back instead of steps forward.”
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