June/May 2010 PDF - Port of New Orleans

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Contents
NEW ORLEANS
Port record
The Official Magazine of the Port of New Orleans
Executive Editor
Chris Bonura
Editor
Sarah Ravits
Art Director
Jenny Dascenzo
Account Executive
Aimee Arceneaux
2
From the CEO
4
RiverSphere
Tulane Project Taps into
Energy of the Mississippi
6
Folgers Makes Louisiana
its Exclusive Roasting,
Distribution Hub
Decision Cements New Orleans’
standing as a leading coffee port
8
A Catalyst for Exports
Chemical Industry
Generates International
Business for Louisiana
Sales Assistant
Andrea Corne
Production Manager
Staci Woodward
Chief Executive Officer
Todd Matherne
Editor in Chief
Errol Laborde
Director of Sales/
Executive Vice President
Kelley Faucheux
President
Alan Campell
Executive Assistant
Kristi Ferrante
Port Record Contributors
Matt Gresham, Lt. Joseph Labarriere,
Sandy Byrd-Maldonado, Tracie Morris Schaefer
The Port Record is distributed free to subscribers with
maritime and associated interests by the Port of New Orleans.
Information is gathered from sources considered to be reliable, but the completeness and accuracy of the information
cannot be guaranteed. Requests for changes of address
should be accompanied by a mailing label. Correspondence
concerning this magazine should be directed to:
Port Record
P.O. Box 60046, New Orleans, LA 70160
(504) 528-3222 • (504) 528-3376 (fax)
[email protected]
6
12 Port Connections
16 News Stream
18 By the Numbers
London Metal Exchange Cargo
20 Shipper Spotlight:
H&H Lure Company
22 From the Archives
24 Final Frame
4
8
Published by Renaissance Publishing LLC
110 Veterans Memorial Blvd., Suite 123, Metairie, LA 70005
(504) 828-1380 • www.myneworleans.com
Printed in partnership with
Mpress, Inc
4100 Howard Ave., New Orleans, LA 70125
(504) 524-8248 • www.mpressnow.com
Copyright 2010 New Orleans Port Record, Port of New
Orleans and Renaissance Publishing LLC. Postage Paid at
New Orleans and additional entry offices. POSTMASTER:
Send address changes to Port of New Orleans, Post Office Box 60046, New Orleans, LA 70160. No part of this
publication may be reproduced without the consent of the
publisher. The opinions expressed in this publication are
those of the authors and do not necessarily reflect the
view of the magazine’s managers, owners or publisher.
The Port Record is not responsible for unsolicited manuscripts, photos and artwork even if accompanied by a self
addressed stamped envelope.
On the Cover
Glenn Sellers (right) teaches students like Alex Armenta how to safely operate
chemical plants at Louisiana Technical College in Reserve.
May/June 2010 | www.portno.com
PortMayJun_1-18.indd 1
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From the CEO
Exporting our way to Prosperity
If you want to make
big changes, you have
to set big goals. That’s
why I think the Obama
Administration should
be applauded for
challenging our country
to double exports over
the next five years.
China and Germany
have surpassed the
United States as
the world’s biggest
exporters. These two
economic powerhouses each exported
about $1.2 trillion worth of merchandise
in 2009. The U.S. also had a respectable
showing by exporting about $1 trillion,
according to estimates from the Central
Intelligence Agency’s World Factbook.
Not bad, but we can do better.
As we embark on this effort, we must
insist that these goals be accomplished
not by limiting the world’s access to U.S.
consumers, but by doing a better job of
convincing the world’s consumers that
U.S. products represent a great value.
As we dig out of the recession, it’s
smart to look at trade as a powerful tool
for shoring up our economic prospects.
As the President put it in a speech to the
Export-Import Bank’s Annual Conference,
“We can’t return to an economy where
too much of our prosperity is based on
fleeting bubbles and rampant speculation.
We have to rebuild our economy on a new,
stronger, more balanced foundation for
the future – a foundation that will advance
the American people’s prosperity at
home, and support American leadership
in the world.”
As we move forward with this goal,
ports, government and businesses all
will play key roles in the effort.
At the Port of New Orleans, we
have traditionally been tilted more
heavily toward general cargo imports,
but we think that the time is right for
encouraging more exports. Throughout
most of the last decade, about 70% of this
port’s general cargo tonnage was imports
and 30% exports. But in the last few years,
we have seen the split shrink to 60-40
as the value of the dollar weakened and
steel imports dropped off considerably.
Obviously, both imports and exports
are good for ports. Nevertheless, we think
there is a tremendous opportunity for
promoting exports, particularly export
goods shipped in containers. So many
of the containers leaving the U.S. are
repositioned overseas as empty boxes.
The Port of New Orleans and its operating
2
partners are exploring
ways to fill those empty
boxes with products,
such as bulk agricultural
products which
traditionally haven’t been
shipped in containers. It’s
important to remember
that both importers and
exporters profit from
lower shipping rates
when there is a back-haul
creating revenue on the
round-trip journey.
Meanwhile, through the National
Export Initiative, the government is
making an additional $2 billion per year
available in trade financing for smalland medium-sized businesses, beefing
up trade promotion and supporting free
and fair trade agreements.
Speaking of trade agreements, it’s
important that we follow through
with three free trade agreements with
Colombia, South Korea and Panama, all of
which are long overdue. In New Orleans
we have strong ties with all three of the
countries who are waiting for Congress to
sign their free trade agreements.
But perhaps the most important role
will be played by American business.
Doing business internationally requires
a sustained commitment. Government
programs designed to stimulate exports
can help provide working capital for
foreign sales or provide the financing that
will ensure that U.S. companies get paid.
But it’s up to entrepreneurs to identify
what their market opportunities are
overseas and to figure out how to address
any hurdles that they might face.
International business doesn’t
materialize without a lot of nurturing.
It’s up to individual business leaders to
decide if the extra effort will translate
into a better bottom line. Donald van
de Werken of the New Orleans branch
of the U.S. Export Assistance Center
has seen his share of successes and
setbacks as businesses try to navigate
international markets for the first time.
Nevertheless, he says, “once they get the
taste for international trade, they can’t
get enough of it.”
Sincerely,
Board of Commissioners
of the Port of new orleans
Commissioners
Thomas D. Westfeldt, Chairman
John F. Fay, Jr., Vice-Chairman
J. Wayne Mumphrey- Secretary-Treasurer
Allen J. Gibbs
Valerie S. Cahill
Joseph F. Toomy
Daniel Packer
Executive Staff
Gary P. LaGrange / President & CEO
Patrick Gallwey / Chief Operating Officer
Ted Knight / Executive Assistant for Operations
Chris Richard / Executive Assistant for Special Projects
Robert M. Landry / Director of Marketing
Clay Miller / Director of Business Planning
James Ruckert / Director of Finance
Paul Zimmermann / Director of Port Operations
Deborah D. Keller / Director of Port Development
Robert Jumonville / Director of Cruise & Tourism
Cynthia Swain / Director of Administration
Gerald O. Gussoni / Director of Legal Services
Mark P. Williams / Director of Internal Audit
Port of New Orleans
P.O. Box 60046
New Orleans, La. 70160
504-522-2551
1-800-776-6652
Northeast Sales Office
Bill Connor
Mack-Cali Centre 3, Suite 415/4ST
140 E. Ridgewood Avenue
Paramus, NJ 07652
(201) 940-7256
Far East Office
Capt. Nobuyuki Tanaka
Daido Building 305
3-5-5. Uchi-Kanda, Chiyoda-Ku
Tokyo, Japan 101-0047
81-3-3252-6681
South America Office
Celso Camargo
Rua Irma Piã, 422-5th Floor - Suite 507
05335-050 São Paulo- SP- Brazil
5511-3766-7322
Gary P. LaGrange, PPM
President & CEO
New Orleans Port Record | May/June 2010
5/17/10 12:57:04 PM
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5/17/10 12:57:09 PM
RiverSphere
Tulane Project Taps into Energy of the Mississippi
t
he maritime industry has been
tapping into the power of the
Mississippi to generate commerce
for centuries, but a new project organized
by Tulane University will examine the
potential to use the Mississippi River
to tap into power of another kind: “instream” hydrokinetic power.
Tulane is leasing a portion of the
Robin Street Wharf from the Port of
New Orleans to house a research center
that will serve as an incubator for
technologies to draw electricity out of
the river’s current.
The project, called RiverSphere,
will use 78,000 square feet along the
downriver end of the Robin Street
Wharf, next to the Port of New Orleans
Administration Building. Tulane will
build 25,000 square-feet of research
space, offices and exhibition space within
its leased area of the Robin Street Wharf.
In stream “hydrokinetic” power is
different than traditional hydroelectric
projects because it doesn’t require
waterways to be dammed up to generate
power with large turbines. Instead,
it uses a series of smaller turbines or
other hydrokinetic technology mounted
along the shoreline or on the bottom
of a barge. Tulane plans to dock barges
alongside the research center, where
various types of water turbines can be
mounted and tested.
Doug Meffert, the Eugenie Schwartz
professor of river and coastal studies,
is leading the project for Tulane. It’s
the first in-stream research station in
the United States that’s not tied to a
specific technology or vendor, Meffert
says. Because of this vendor-neutrality,
RiverSphere will be able to be an
objective source of information of best
practices for hydrokinetic power.
The center will ultimately be powered, in
part, by hydrokinetic power, and one day
may be able to feed to the grid with some of
its excess energy.
“Our goal is not to generate as much
electricity as possible, but to generate as
much knowledge as possible,” Meffert says.
The U.S. Department of Commerce
has awarded the project a $3
million Economic Development
Administration grant. The grant covers
most of the cost of construction.
U.S. Assistant Secretary of Commerce
for Economic Development, John R.
Fernandez recently traveled to New
Orleans to announce the grant as part of
a larger effort to promote “green jobs.”
“This EDA investment will work to
ensure the long-term resiliency of the
greater New Orleans area by supporting
Tulane University’s efforts to grow
and commercialize innovation in the
alternative energy sector,” he says.
With the recent focus on green
jobs, Meffert says that there are many
emerging companies that could use
RiverSphere to get the data that they
need to prove their technology works
and refine it. Tulane will also examine
the issues that might challenge the
budding hydrokinetic power industry,
including how to minimize any impact
on navigation and how river sediment
influences the hydrokinetic equipment.
Additionally, the project will help
promote Louisiana as a manufacturing
center for renewable energy projects.
An exhibition component will also
be a part of the project, and Meffert
has been working in consultation with
the Department of Energy and the
Department of Natural Resources. He
points out that the site, located next to
Mardi Gras World, is a high visibility spot
in one of the world’s great river cities that
offers Tulane a platform for spreading the
word about hydrokinetic power.
Meffert says that the Mississippi offers
some unique opportunities since it is
the largest river in North America. He
foresees a day when a grid of hydrokinetic
devices would hug the sides of the river,
generating as much power as Niagra
Falls, but without the negative impacts to
navigation and ecology caused by dams.
“The Mississippi River is a key to
the past of our city. We need to think
creatively about how it can be a key to
our future,” he says. “It can be a key for
unlocking a strategic niche that we have
as a renewable resource capital.”
Top: Free Flow Power has developed the SmarTurbine generator, one of several hydrokinetic
concepts that will be tested at RiverSphere. Bottom: Doug Meffert says RiverSphere will have
exhibit space to demonstrate the potential of hydrokinetic power.
4
Photos Courtesy of Tulane University & Free Flow Power.
5/17/10 12:57:28 PM
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5/17/10 12:57:29 PM
Folgers Makes
Louisiana its
Exclusive Roasting,
Distribution Hub
Decision Cements New Orleans’ standing as a leading coffee port
More than 300,000 short tons
of coffee were imported to
New Orleans in 2009.
t
he aroma of roasting coffee
floating above the Mississippi
River just got a lot stronger.
J.M. Smucker Company, which owns
Folgers, recently announced that it would
move all of its coffee roasting operations
to New Orleans, which is the hub of its
coffee supply chain. The company will
invest $70 million to consolidate all
coffee production at its existing facilities
in New Orleans.
The announcement is part of a
restructuring of the Smucker coffee and
fruit spread supply chain, expected to
shave a total of $60 million from the
company’s expenses. It will also increase
New Orleans’ cachet as a distribution hub
and coffee town, since the nation’s largest
coffee maker is making the Crescent City
its exclusive entrepot.
“We take this announcement as a
tremendous vote of confidence in the
Port of New Orleans and the local coffee
community,” said Port President and
CEO Gary LaGrange. “The decision also
6
represents some very aggressive moves
on the part of the Louisiana Department
of Economic Development that shows
this state is a real economic contender.
We are proud to be an integral link
in Folgers’ supply chain, and we will
continue to work diligently to keep the
coffee brewing.”
In 2009, New Orleans and New York
shared the title of the country’s leading
coffee ports, each accounting for roughly
300,000 short tons of imported coffee
beans, according to PIERS data.
All of Folgers green coffee beans are
handled by Silocaf, the world’s largest
green coffee storage and blending
facility on property leased from the
Port of New Orleans. The coffee silo is
located next to the Napoleon Avenue
Container Terminal, where green coffee
beans enter the U.S.
Once the beans leave Silocaf, they
are shipped to one of four roasting
facilities that Folgers owns. Two are
located in New Orleans and two are
located outside of the city. Folgers also
has a distribution center in Lacombe,
Louisiana, which will be upgraded as
part of its supply chain revisions.
Smucker, which bought Folgers in 2008
from Proctor and Gamble, will phase
out the coffee plants in Sherman, Texas,
and Kansas City Missouri, and invest $70
million to consolidate all coffee production
at its existing facilities in New Orleans.
By 2012, all of Folgers and other
associated coffee brands will be roasted in
New Orleans. That represents more than
$1 billion in coffee sales per year. In fact,
Folgers generated $885 million in sales
from the time that Smucker purchased it
in November 2008 until it filed its annual
report some six months later.
Silocaf, a division of Italian stevedoring
and logistics firm Pacorini Global,
sees the announcement as a “fantastic
affirmation” of Folgers’ operations
and vendors in New Orleans, says Lee
Trumble, Silocaf’s chief financial officer.
“Logistically, it makes tremendous sense,
5/17/10 12:58:09 PM
Louisiana Incentives
Louisiana offered the following incentives to Folgers to retain and grow its coffee operations:
Industrial Tax Exemption Program
10 year exemption on property tax for manufacturing
construction and equipment
$17.8 million
Relocation Incentive
Performance based grant for relocation of employees and
equipment
$3.0 million
Quality Jobs Program
5% or 6% payroll rebate for qualifying new job and sales tax
rebates for 10 years
$2.7 million
Retention and Modernization Program
Refundable state tax credit for capital investment
$2.1 million
Louisiana Fast Start Incentive
Customized workforce recruitment, screening and training
$0.5 million
Infrastructure Incentive (EDAP)
Used for drainage and surface improvements to Old Gentilly
Road, where one of the Folgers plants is located
$0.5 million
Total
not just for Folgers but for Silocaf,” he says.
“We have had operations in Kansas City.
We have been there to service Folgers.
Being able to consolidate our processing
and warehousing and supply chain logistic
support, gives us some opportunities to
offer better value for Folgers.”
Folgers’ history in New Orleans has
not been without its challenges. When
Hurricane Katrina hit in 2005, Folgers
was the first manufacturer to restart
its operations about a week after the
storm. Much of the cargo handled on the
first commercial ship to arrive in New
Orleans, two weeks after Katrina, were
coffee beans to keep Folgers’ roasting
plants running.
Despite the challenges, both P&G
and Smucker were always committed
to keeping at least part of their coffee
operations in New Orleans, says Trumble.
A discussion of the improvements that
the U.S. Army Corps of Engineers is
making to New Orleans’ flood protection
system was part of Smucker’s analysis
on whether to place an “all in” bet on
Louisiana, according to economic
development officials who were part of
the negotiations.
“They told me, ‘We feel pretty
confident about the levees,” says
Tommy Kurtz, executive director of
the business retention and expansion
group for the Louisiana Department of
Economic Development. Louisiana’s
small population is not a significant part
of Folgers customer base, Kurtz admits,
but Louisiana is in a good position to
provide distribution for Smucker and
other industry leaders. He points out
that the distribution center in Lacombe
has prime transportation connections
and is located in an area that doesn’t
leave Folgers’ supply chain or inventory
vulnerable to hurricanes.
Kurtz met with Folgers and Smucker
executives shortly after the purchase
was executed. Louisiana put together a
package of incentives, valued at $26.6
million. In exchange, Folgers agreed to
add 120 jobs to its operations in the state.
While the incentives were important,
it helped that the Louisiana economic
development community understood
Folgers’ business and the coffee sector
and was able to offer some helpful
insights. “It’s not just about money, it’s
about solutions,” Kurtz says.
Allan Colley, president of Dupuy Storage,
a New Orleans coffee warehouse and
handling firm, says he’s “delighted” to see
$26.6 million
Above: Employees at Silocaf unload coffee
beans into a pit. A conveyor system transfers
the coffee into silos.
the nation’s leading coffee brand choose
New Orleans. He thinks it will have a
spillover effect on the local coffee business,
including the business that he does storing
coffee in a silo on property that he leases
from the Port of New Orleans.
He thinks Smucker’s decision will
improve New Orleans’ standing as a place
for bringing “spot coffee,” a shipment of
coffee that is brought into a port unsold
with the prospect of merchandizing it to
several people.
He says it’s also a win for a basic,
common sense supply chain
management philosophy. “It solidifies the
concept that you build your plants close
to where the coffee arrives.”
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5/17/10 12:58:38 PM
A CATAlyST FOR ExPORTS
The glass labs in the Process
Technology Department at louisiana
Technical College in Reserve allow
students to gain hands on experience
in how to control chemical reactions.
8
5/17/10 12:59:09 PM
Chemical Industry Generates
International Business for Louisiana
N
estled in the nooks and crannies created by the
winding Mississippi River between Baton Rouge and
New Orleans is the heart of the Louisiana chemical
industry. Louisiana ranks second in the U.S. for chemical
value output. There are more than 300 chemical plants located
in the state that employ more than 27,000 skilled workers, who
help make the building blocks of modern living.
The chemicals needed for making plastics, artificial
sweeteners, detergents, water treatment chemicals, epoxies,
pharmaceuticals, herbicides, pesticides, fertilizers,
refrigerants, carpet, cosmetics, paints and many other
products are all made in Louisiana chemical plants.
It’s the intersection of the rich oil and gas resources of the
Gulf of Mexico with one of the world’s great avenues of
commerce, the Mississippi River, that makes Louisiana such
an important cluster for the chemical industry, experts say.
Additionally, Louisiana has a history of making breakthroughs
in the production of chemicals and a vibrant and reliable
workforce trained in the intricacies of chemical related
manufacturing. The combination has proved to be a powerful
draw for some of the world’s largest chemical companies.
The chemical industry is also a major source of exports for
the Port of New Orleans. Some 1.2 million tons of chemicals
were exported from the Port of New Orleans in 2009. With
economic conditions favoring U.S exports, many people in
the Louisiana port industry are trying to nurture the flow of
chemical exports through the port.
“Louisiana is the 8th largest foreign investment state in the
United States because of the petro-chemical industry,” says
Dane Revette, director of the energy cluster for Louisiana
economic development. “BASF, Shell, DuPont, Sasol, SNF
Chemical Company, all of the major chemical companies
from around the world are here.”
Dan Borné, president of the Louisiana Chemical
Association says foreign investment in the chemical industry
helps raise Louisiana’s profile in international business circles.
“It not only helps Louisiana’s image worldwide, but it
exposes our folks to a variety of management styles,” Borné
says. “I have had the opportunity over the years to meet
many of the principals of these corporations. They have been
uniform in their assessment of the productivity of Louisiana’s
workforce and the synergies that have developed between
and among many of their operations here.”
Borne says the Mississippi River serves as a “ribbon of
commerce” connecting chemical companies to customers and
markets worldwide. It’s no surprise that many of these plants
have decided to locate along the banks of the great river, he says.
Story By Chris Bonura | Photos by Tracie Morris Schaefer
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5/17/10 12:59:32 PM
Randy Rice collects a sample in
the process technology wet lab at
louisiana Technical College.
“It’s like a giant kitchen,
Uptown New Orleans. Tulane University had the first chemical
“We usually export approximately 10 percent of all that we
engineering program in the United States, which helped churn
produce in our plants and the majority of that goes through the
out the intellect that powered the chemical industry. HydroPort of New Orleans,” Borné says. “When industry began locating
here in earnest, we also found abundant land available on or near cracking, a chemical process that was crucial for the
development of jet fuel and other products, was invented in
the river, and that has been an economic blessing, too.”
Some 30 percent of all U.S. oil production and over 20 percent Louisiana before World War II, he says.
Those innovations continue today. Glenn Sellers, who runs
of all U.S. natural gas production comes from the Gulf of Mexico
region, off Louisiana’s coast. Louisiana ranks second in total U.S. the Process Technology program at Louisiana Technical College
in Reserve, Louisiana, says the chemical processes themselves
refining capacity, generating some 2.8 million barrels of oil per
haven’t changed much, but the equipment in the plants
day or about 17 percent of U.S. refining capacity.
themselves have become much more advanced.
Those fossil fuels and other mineral deposits, such as salt
“My personal conviction is that it’s a lot more sophisticated.
domes which provide the raw materials for chlorine production,
Today, you can handle a process that used to be hazardous,
are one of the main reasons for Louisiana’s prowess in the
and you can handle it with a great deal
chemical industry, Borné says.
of safety. Everything runs at greater
Chemical companies in Louisiana have
Port of New orleaNs ChemiCal exPorts
tolerances,” says Sellers, who worked
formed synergistic relationships,
Top Destination Countries
for 37 years at DuPont before becoming
becoming suppliers of raw materials for
CY 2009 – Excludes Bulks
an educator.
the chemical reactions plotted by their
As an example, he points out that
neighbors up and down the river.
raNk
CoUNtrY
stoNs
many
plants have switched from
“It’s like a giant kitchen, where
1
BElgium
288,414
pneumatic controls to digital controls.
everybody produces different
2
Brazil
195,950
“It’s like comparing a Model A [Ford]to a
ingredients,” says Revette. “Those
3
argEnTina
88,129
modern car. You get more money out of
different ingredients allow us to make a
4
iTalY
70,392
each pound (of raw materials).” he says.
larger variety of ‘foods.’ We keep
5
nEThErlanDs
58,806
As the plants become more
expanding the ingredients that are in
6
ColomBia
48,893
sophisticated, so does the training. At
our pantry. Because of it, we are the best
7
DominiCan rEp
44,549
the campus in Reserve, Sellers’s students
place to put chemical companies, hands
8
ChilE
43,601
get hands-on experience by working in a
down. There are only a few places that
9
pEru
36,926
state-of-the-art glass laboratory and in a
even come close.”
10
FranCE
36,424
scaled down version of a plant that
Louisiana has a history of chemical
all oThErs
278,646
makes methanol.
industry breakthroughs, which Revette
total
1,190,732
With this equipment, students at the
traces all the way back to 1795 when
two-year
program learn how to safely run
Etienne de Bore invented a process for
Source: PIERS
chemical processes on a large scale, to
granulating sugar on his plantation in
10
5/17/10 12:59:55 PM
w
,
Glenn Sellers and Brandon labourdette
conduct tests inside of the methanol plant
at louisiana Technical College in Reserve.
where everybody produces different ingredients.”
read and draw diagrams of chemical plants and to diagnose
problems. They go on to get jobs in the chemical plants, oil
refineries, power generation, pharmaceutical plants and paper and
pulp plants. Depending on the health of the economy anywhere
between 50% and 100% of his students have jobs before graduation
and they usually start out around $50,000 per year.
The workforce that Sellers helps develop produces chemicals
that are used in the United States and around the world.
Conditions are particularly good now for exporting Louisianamade chemicals. Louisiana chemical companies are heavily
reliant on natural gas as an input, Borne says. With the low price
of natural gas, Louisiana-made chemicals are a tremendous
value on the world markets right now, he says.
“Many parts of the world use oil for their petrochemical
feedstock whereas we on the Gulf Coast use mostly natural gas.
Anytime the oil to natural gas (price) ratio is between six and
seven to one, Gulf Coast chemical manufacturing enjoys a cost
advantage, so shipments overseas tend to increase,” he says.
Currently, the ratio is about 20 to 1, which means a
tremendous cost advantage for Louisiana producers, but Borne
warns that price ratios are cyclical in nature and one can easily
find oneself on the wrong side of the swing.
Currency valuations also seem to point in favor of Louisiana
chemical exports. Sam Deepipat, a freight forwarder for Meiko
who handles cargo for Shintech, says that the dollar is weak
compared to other currencies and that means that foreign
buyers’ currency gets them more product for a lower cost.
Shintech produces and exports PVC, which is used to make
plastic pipes, bags, siding and other products. Deepipat says it is
shipped through New Orleans and other ports as a powder that
is about the same consistency as sand. It’s shipped either inside
of a container with a plastic liner, in 1-metric ton super sacks or
on pallets of 50 bags, which are also placed inside containers.
“We ship it all over the world. This month, it might be South
America. Next month, it might be Asia,” Deepipat says. At the
destination, the powder is melted and placed into an extruder
to form different products.
The intermodal transportation system in Louisiana is a
tremendous advantage for chemical shippers, says Christian
Jensen, President of Transportation Consultants Inc (TCI). If
chemical makers ship to the Port of New Orleans by truck they
can ship up to 95,000 pounds per truck with an overweight truck
permit. That translates to 9% more product in each container
when compared to other nearby ports, and substantial savings
on transportation costs, he says.
Louisiana’s top-flight rail network is also a tremendous
advantage for shippers, Jensen says. With six railroads
connected to the Port of New Orleans, shippers have lots of
options for getting their products to port.
As Jensen sees it, the missing piece of the puzzle is a bagging
operation that allows chemicals that are produced in bulk form
to be transferred into other packages more suitable for shipping
and sales. While some chemical plants have their own
packaging operations, others rely on third-party packing and
logistics companies – in other states.
TCI is building a $10 million warehouse facility in New
Orleans to provide that missing piece of the puzzle, particularly
for plastics such as PVC, polyethylene, polypropylene and
polystyrene. The warehouse will be outfitted with about $2
million worth of equipment that bags resins using a vacuum
and hopper system. The warehouse complex will also be
outfitted with a rail siding connected to the New Orleans Public
Belt Railroad so that TCI can receive railcars from any of the six
railroads operating in Louisiana.
The facility is set to open in June, but it is already causing a
stir in the chemical industry. Jensen says he has secured new
business that will bring an additional 4,800 containers per year
through the Port of New Orleans. •
11
5/17/10 1:00:28 PM
Port Connections
The Board of Commissioners of the Port of New
Orleans recognized Eugene Schreiber for 30 years
of service as Managing Director of the World Trade
Center of New Orleans.
Lt. Joe Labarierre photos
Port President and CEO Gary laGrange presented
Schreiber, who is retiring, with a framed copy of a
March 2010 Port Record story about his career.
Finland’s Interior
Minister Anne Holmlund
(fifth from the left)
led a delegation of
government security
officials from Finland.
They toured the Port of
New Orleans with Harbor
Police Chief Robert
Hecker (center).
12
Chris Bonura photo
5/17/10 1:00:53 PM
13
5/17/10 1:01:00 PM
Port Connections
Hugo llorens, U.S. Ambassador to
Honduras, attended the March meeting of
the Board of Commissioners of the Port of
New Orleans. He discussed trade between
the Port and Honduras and gave an update
on the improving political situation since
elections were held.
Top: Mitch landrieu was
recently sworn in as
Mayor of New Orleans.
Before he took office, his
transition team held an
economic development
task force meeting at
the Port of New Orleans.
landrieu, who served
as lieutenant Governor
before being elected
mayor, addresses the
audience with his
economic development
task force in the
background.
Bottom: Greg St. Etienne
and leslie Jacobs
chaired the economic
development task force.
Other task force members
pictured are (clockwise
from lower left) Glenda
McKinley-English,
Margaret MontgomeryRichard, IlA local 3000
President Ken Crier and
Bill Hines.
14
Photos by Lt. Joe Labarriere
5/17/10 1:01:29 PM
Port Connections
Top: His Excellency Sebastián
Piñera Echenique, President of
the Republic of Chile, visited
the Port of New Orleans on April
11, 2010. As Chile prepares to
rebuild following its earthquake,
he was seeking the advice of
New Orleanians who rebuilt their
city following Hurricane Katrina.
Middle: President Piñera shakes
hands with Commissioner Valerie
Cahill. Standing to Cahill’s
left in the receiving line is
Commissioner Joseph Toomy.
Bottom, left: lt. Gov. Mitch
landrieu, President Piñera,
Mayor C. Ray Nagin and Chile’s
Foreign Affairs Minister Alfredo
Moreno. Since the presidential
visit, landrieu has succeeded
Nagin as Mayor of New Orleans.
Bottom, right: President Piñera
consults with Mayor Nagin.
Photos By Tracie Moriss Schaefer
15
5/17/10 1:01:57 PM
News Stream
manufacturer Chooses new orleans to set-up shop
The Board of Commissioners of the
Port of New Orleans recently approved a
two-year lease agreement with Atlantic
Metrocast, Inc., a concrete products
manufacturer, for a seven-acre section of
the France Road terminal.
A subsidiary of Atlantic Wood
Industries of Savannah, Ga., Atlantic
Metrocast, Inc., which was formed in
1995, will produce pre-stressed concrete
pilings mainly to be sold in Louisiana
for local construction projects. With
the assistance from the State for site
preparation, the Port will host the first
pre-cast concrete manufacturing plant
in Southeast Louisiana.
“Our hope is to be in New Orleans
for the long term and participate
in all of the exciting growth that
this great city is experiencing,” says
William “Bill” Crossman, president of
Atlantic Metrocast, Inc. Approximately
$160,000 in State funds under the
Economic Development Assistance
Program (EDAP) will be used to help
start-up the company.
Crossman looked at other sites in
the region, but decided on the France
Road location because, “The site is
in a hub zone, and the Port of New
Orleans has all of the transportation
needs we were looking for – rail, barge,
and easy highway access,” he says. The
businessman gives GNO, Inc., a regional
economic development agency, high
marks for having played an invaluable
supportive role in the site selection
process. “They were extremely helpful
in finding many sites for us to look at.
They coordinated and participated in
numerous meetings.”
Crossman is thrilled about the
business venture which brings him
home to New Orleans where the
company’s original wood treatment
business was founded in 1901.
Today, Atlantic Wood Industries/
Atlantic Metrocast, Inc., operates four
wood treatment plants in four East coast
states, from Georgia to New Jersey and
two pre-stressed concrete plants. The
company is expected to boost the local
economy with the creation of 50 to 100
jobs with a $2.5 million payroll.
Before Hurricane Katrina, the
France Road site was used as the port’s
secondary container terminal, but
damage to the Mississippi River Gulf
Outlet and its ultimate closure has
limited deepwater marine access to
the site. The idea of introducing a nonmarine cargo commercial user to that
area underscores the Port’s mission
to promote economic development
and diversify the use of its industrial
properties. “The Port has been great in
expediting this venture by setting a new
course for its France Road facilities,”
says Andrea Bland, senior vice president
of economic development at GNO, Inc.
The lease agreement marks a
collective push by several agencies
to promote economic development
by building a manufacturing base in
Louisiana. In addition to producing
and selling its concrete pilings in
Louisiana, the company also plans
to take advantage of the port site for
shipping its products to other states
and countries.
During a press conference to announce Atlantic
Metrocast’s plans for New Orleans, Bill Crossman
said the decision to return to the city of his
company’s roots was like a homecoming.
16
Photos by Lt. Joe Labarriere
5/17/10 1:02:22 PM
News Stream
Board adopts hazard mitigation Plan
After much planning and two public hearings, the Board of
Commissioners of the Port of New Orleans formally adopted its
Hazard Mitigation Plan at its March monthly board meeting.
The Plan identifies specific hazards that could have an
impact on the facilities and infrastructure owned by the
Board. The plan also examines the level of risk arising from
those hazards, the impact of the most likely hazards and
actions that can be taken to mitigate or protect against the
hazards most likely to occur.
“The plan helps us qualify for FEMA grant funds to address
our vulnerabilities prior to hazards likely to occur at the
Port,” says Deborah Keller, director of port development.
Keller emphasized that while the City of New Orleans Hazard
Mitigation Plan made some reference to the Port, that plan was
not suitable to address the specific risks unique to its facilities
and infrastructure.
The Port sustained nearly $250 million in damages from
Hurricane Katrina in addition to the loss of operating revenue.
The impact was not only local, but global as well. Through the
Hazard Mitigation Grant Program (HMGP) from FEMA and
the Governor’s Office of Homeland Security and Emergency
Preparedness (GOHSEP), the Port was awarded funding to
prepare its own plan.
Completing this plan has been a comprehensive process
that has taken more than two and half years. However,
it will be updated every five years to re-assess the latest
hazard events, the impact those hazards had on the Port,
and identify any additional mitigation efforts that could
further protect Port assets and operations. With the hazard
mitigation plan in place, the Port is in a better position
to address vulnerabilities and ensure that operations will
bounce back quickly from hazards, says Keller.
left: New Orleans based shipping line Intermarine recently
docked the Industrial Dawn at the louisiana Avenue Wharf.
Below: Coastal Cargo Company unloaded the ship which
contained a shipment of baler twine, imported from Brazil.
Photos by Chris Bonura
17
5/17/10 1:03:19 PM
344,400 26,355
By the Numbers
tons of aluminum product
imports to the Port of New
Orleans in 2009.2
tons of copper anodes &
ingots were exported from
New Orleans in 2009.2
456%
increase in zinc imports
to the Port of New
Orleans from 2008
(27,116 tons) to 2009
(150,730 tons) 2
226,667
tons of copper anodes & ingots were imported to New Orleans in 2009.
2nd
New Orleans has the second-oldest
U.S. Foreign Trade Zone designation,
which allows cargo to be stored
without incurring Customs duties.
The LME requires that all delivery
points are able to store metals
indefinitely without incurring duties.
Table 1 STockS of london MeTal exchange cargo in new orleanS1
Zinc...................................................................... 257,025 tons
Copper ................................................................. 190,175 tons
Aluminum .............................................................. 77,800 tons
Lead ....................................................................... 9,725 tons
NASAAC (aluminum alloy)......................................... 5,320 tons
TOTAL .................................................................. 540,045 tons
London MetaL
exchange cargo
26
number of Certified
London Metal Exchange
warehouses located in
New Orleans.
40¢
Maximum rental charge for
storing one ton of aluminum
for one day at any LME
warehouse in New Orleans.5
$29
billion average daily
value of transactions
on the London Metals
Exchange during 2009.
copper priceS (caSh buyer) 4-1-08 To 4-1-103
4
1. London Metal Exchange, Metals Report, 4/26/10 (net totals on LME Warrant) 2. PIERS 3.www.lme.com/copper_graphs.asp 4. Standard CIB Global Research www.standardbank.co.za 5. http://lme.com/what_warehouse_charges.asp
18
5/17/10 1:04:33 PM
19
5/17/10 1:04:41 PM
Shipper Spotlight
1
H&H Lure Company
Founded: 1959 | Industry: Fishing Tackle Manufacturer | Headquarters: Baton Rouge, La.
Products: Freshwater and saltwater fishing lures, tackle and equipment
By the age of 6, Bill Humphreys Sr. had a rod and reel
and a shotgun in his hand. As a teenager, he turned his
passion for the outdoors into his business – purchasing a
bread truck for $300 at age 19 and setting off to sell fishing
tackle and sporting goods equipment.
He began manufacturing a simple lure – the Original
H&H Spinner Bait. With more than 80 million of the freshwater lures sold, he now manufactures more than 14,000
items and ships them around the globe from his 60,000
square-foot facility in Baton Rouge, La. The company also
employs about 225 people between the Baton Rouge of2
20
fice and a manufacturing facility in Honduras.
“I never dreamed all this would start with me and
that bread truck and mushroom into today’s operation,” Humphreys said. “But I love it, and that’s why
I’m still at it.”
H&H’s lures range from a 1/48th-ounce lure for
bream to 16 ounce lures for cobia and barracuda and
all species in between. The top-selling lure in H&H’s
portfolio is its Cocahoe Minnow lure for saltwater
anglers, which has sold more than 100 million since its
conception in the early 1980s.
3
Photos by XXXXXXXXXXXXX
5/17/10 1:05:09 PM
Shipper Spotlight
4
6
5
7
1. h&h coastal casting Spoons with the company’s original cocahoe
Minnows in the background. 2. Two generations: bill humphreys Sr.
and his son, bill humphreys Jr., stand beside rows of the original h&h
Spinner lure. anglers throughout the world purchased more than 80
million of the popular spinner bait. 3. Tuyen psan packages pro cajun
Spin lures, popular for bass, crappie and bream. 4. bao bui manufactures a two-piece push pole for maneuvering small boats in shallow
water. 5. nha lee uses a custom-made machine to bend gaff hooks.
6. bill humphreys displays the company’s gaff hook, for landing sports
fish up to 1,000 pounds. 7. handcrafted bayou Special flies are
displayed in h&h lure’s headquarters.
21
5/17/10 1:05:49 PM
From the Archives
New Orleans Board of
Trade Celebrates
130 Years of Commerce
For 130 years, the New Orleans Board of
Trade, Ltd., has been a leader in promoting New Orleans as a center of commerce.
The organization’s first transaction began
in 1880, in a scene that played out on the
corner of Magazine and Poydras Streets,
when a business reporter for the New
Orleans Item staged an impromptu auction
for 1,700 pounds of pork.
Throughout the years, the Board of Trade
became a place for trading many of the commodities that moved through New Orleans
and it has been active in many developments that shaped the development of
the Port of New Orleans. It pushed to open
Southwest Pass to deep draft navigation, it
promoted the creation of the New Orleans
Public Belt Railroad connecting the port
to six class I railroads in the late 1800s, and
it lobbied for the creation of the Board of
Commissioners of the Port of New Orleans.
Today, the Board of Trade remains active
in the port and trade sectors. It maintains
a database of information on vessels calling the Port of New Orleans, offers members a database that allows them to track
movements of vessels all over the world in
real time and sends out daily updates of
vital navigational information.
22
1
2
3
5/17/10 1:07:15 PM
From the Archives
4
5
1. The past presidents of the board of Trade
gathered in 1968 for the dedication of the
board of Trade plaza, a courtyard outside
of the building. pictured are e.S. binnings,
charles w. frank, Sr., warren apgar, T.r.
Spedden, J.J. Meyers, harold Scherer, J.w.
gehrkin, e.T. colton, albert hanemann, h.x.
kelly, alex c. cock. 2. The offices of the new
orleans board of Trade, located on Magazine
Street near poydras in the central business
district, were originally built as the produce
exchange in 1883. This picture was taken in
the 1920s or 30s. 3. coffee merchants pose
for a picture on the trading floor of the new
orleans board of Trade. first row(left to right):
dave conrad, albert breaud, Maurice galliand,
herbert graf, Sam isreal, ashton lefaye.
Second row: cole Mccreary, paul fallon, J.h.
edwards, Jules cathalonque, bill richardson
and adolph rice. 4. coffee traders monitor
coffee future in this picture from 1946.
5. on febrary 14, 1955, Vice president
richard nixon, third from left, visited new
orleans for the sale of the billionth bushel of
grain traded on new oreans board of Trade.
nixon is holding a check in which the board
of Trade paid ed J. garland $1.82 cents for the
bushel of no. 2 yellow corn from iowa, which
was handled by the public grain elevator at
the port of new orleans.
March/April
23
5/17/10 1:08:23 PM
Final Frame
p&o cruises recently brought The oriana
to new orleans for a port call. about 1,750
passengers visited new orleans. The
oriana is slated to make a return trip to
new orleans in late January 2011.
The final frame in the March april misstated the
frequency of the Victory bridge Service, in which the
cMa cgM rossini (pictured) is employed. The service
from new orleans and other gulf and South atlantic
ports to northern europe calls new orleans weekly,
not every two weeks as previously stated. The port
record regrets this error.
24
photo by lt. Joe labarriere
5/17/10 1:08:52 PM
5/17/10 12:55:48 PM
Prsrt Std
U.S. Postage
PAID
New Orleans, LA
Permit No. 2173
Prsrt Std
U.S. Postage
PAID
New Orleans, LA
Permit No. 2173

June/May 2010 PDF - Port of New Orleans

Transcription

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