The Port of New Orleans services 5,000 ocean-going vessels annually. Its proximity to the Midwest via a 14,500-mile inland waterway system, six Class One railroads and the interstate highway system makes New Orleans the port of choice for the movement of cargoes such as steel, rubber, coffee, containers and manufactured goods.
“We service cargo from America’s breadbasket,� said Pat Gallwey, chief operation officer of the Port of New Orleans, who addressed a luncheon meeting of the U.S. Grains Council’s 2011 International Marketing Conference & Annual Membership Meeting in New Orleans Wednesday.
Exports and Upgrades on the Rise
If exports from one of the world’s busiest ports are an indication, the U.S. economy is on the rebound. Through the first half of 2010, the port experienced a 60 percent increase in container shipments over the same period in 2009. Gallwey said the Port is working diligently to expand capacity and services to meet export demand.
The Port has completed more than $40 million of upgrades in the last five years. $100 million of new construction is now underway, with $50 million more in the design phase. This year, the port is taking delivery of two new 65-long-ton gantry cranes at an estimated cost of $26.5 million. The Port generated $40 million in revenue in 2010, about $29 million from cargo, and the remainder from industrial properties for shippers and service to cruise ships.
Sounding the Dredging Alarm
Despite the promising outlook, Gallwey is concerned about maintenance of the Mississippi River’s shipping capacity. To accommodate shipping, the River must be maintained by the U.S. Army Corps of Engineers at a width of 750 feet and a depth of 45 feet. Gallwey said the Corps is facing a potential $22 million cut in its $85 million dredging budget. He explained that bar pilots and maritime professionals who help guide ships through navigationally-challenging waters, are recommending that barges on the Mississippi be loaded to only a 44-foot draft due to insufficient dredging.
“With a national goal of doubling U.S. exports, we can’t start by reducing the draft in the Mississippi River. That sends a horrible message to the world about shipping from New Orleans and the United States,� Gallwey said. “We need the agriculture industry’s help to get the federal funding to keep the Mississippi dredged to 45 feet. The BP oil spill in the Gulf is minor compared to the economic impact of reducing the River’s draft to 44 feet.�