VIOLET, LA. — Louisiana Gov. John Bel Edwards has announced a public-private partnership between the State of Louisiana, the Port of New Orleans (Port NOLA) and two global maritime industry leaders to build a $1.8 billion container facility on the Lower Mississippi River.
The new Louisiana International Terminal (LIT) will be located in Violet, a tiny municipality of fewer than 6,000 residents approximately 10 miles downriver from New Orleans proper. The new facility will be able to serve vessels of all sizes, dramatically increasing Louisiana’s import and export capacity and stimulating the creation of more than 17,000 new jobs statewide by 2050, Port NOLA estimates.
New Jersey-based Ports America, one of North America’s largest marine terminal operators, and Switzerland-based Mediterranean Shipping Co., through its terminal development and investment arm Terminal Investment Limited (TiL), have committed $800 million toward the project. In addition to the partners’ investment, 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 will 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,” says Gov. Edwards. “It leverages the economic power of our greatest natural resource — the Mississippi River — and enhances Louisiana’s ability to attract new investment from companies competing in the global marketplace.
“The powerful impact of this world-class logistics asset will benefit not only residents and businesses in South Louisiana, it will benefit advanced manufacturing, agribusiness and energy workers all across the state,” he adds.
The project is currently in the design and permitting phase of the U.S. Army Corps of Engineers’ environmental review process. Construction is slated to begin in 2025 and the first berth to open in 2028.
A proposed layout for the new terminal. Click to view larger.
At full build-out, LIT will be able to handle 2 million TEUs (twenty-foot equivalent units) annually, taking advantage of the deeper 50-foot Lower Mississippi River Ship Channel and eliminating any height restrictions from Mississippi River bridges. This new terminal will also strengthen Louisiana’s ability to attract distribution centers, logistics services and value-added services through Port NOLA’s multimodal connectivity.
“This partnership will strengthen Port NOLA’s competitiveness, making it a key facility in the Gulf of Mexico capable of handling ultra-large container vessels,” says Tom Van Eynde, TiL’s terminal investment director for North America. “Today, the container trade in Port NOLA mainly consists of export cargo, making it an exception among U.S. ports, which are usually import-heavy.”
Following an extensive site selection process and feasibility studies, Port NOLA purchased 1,200 acres of land in Violet in 2020, sufficient to accommodate the terminal, value-added services and warehousing facilities, and provide a natural buffer for the nearby community. The latest design incorporates community feedback gathered over the last two years regarding traffic, drainage and other impacts on nearby homes and businesses.
“This partnership is pivotal for the future growth in trading Louisiana agricultural commodities in the global marketplace,” says Mike Strain, commissioner of the Louisiana Department of Agriculture and Forestry. “While bulk grains, grain products and edible oils are exported through the port, the dominant product is poultry. Poultry is one of the largest agricultural enterprises in Louisiana, contributing over $1 billion to the state’s economy.”
— Jeff Shaw