This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The logistics paradigm is changing, as the Amazon model of just-in-time delivery expectations has created new supply chain dynamics that are driving more distribution and e-fulfillment opportunities. Today, the Port of New Orleans (Port NOLA) is positioned as a strategic gateway, ready to capture these growing opportunities.
Our container port and rail assets help elevate our position as the logistics industry evolves around us. The 2018 Port NOLA acquisition of the New Orleans Public Belt Railroad (NOPB) provides a significant competitive advantage and has resulted in true logistics integration of the New Orleans freight gateway. Port NOLA’s intermodal growth is up 22.7 percent, fueled by a new Kansas City Southern service between New Orleans and Dallas, and we have reduced overall rail dwell time from 19 hours down to 14 hours at NOPB.
Port NOLA is also thinking beyond our terminals more broadly throughout our three-parish jurisdiction to partner with companies looking to bring in distribution and logistics businesses. We are identifying industrial real estate with water access and existing or potential rail service on and off port property to accommodate value-add businesses, distribution centers, warehouses, and the accompanying transportation infrastructure.
Port NOLA’s container volumes continue to exceed projections. We’ve reached a tipping point in volume. The Panama Canal expansion is bringing newer and larger ships to the Gulf Coast, and capital investments in Louisiana, in petrochemical plants and in our agriculture, poultry, and forestry industries — are fueling Port NOLA’s double-digit growth in containerized cargo.
We are meeting the increased demand with a $100 million expansion plan that allows us to double our capacity at our current container facility — the Napoleon Avenue Container Terminal, which includes four new ship-to-shore cranes on order.
Our future is that of a state-of-the-art integrated gateway, which enables us to think more comprehensively about freight movement in order to meet the industry’s changing needs.