June/May 2010 PDF - Port of New Orleans
Transcription
June/May 2010 PDF - Port of New Orleans
PortMayJun_cover.indd 1 5/17/10 12:55:39 PM PortMayJun_cover.indd 2 5/17/10 12:55:42 PM 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) portrecord@portno.com 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 1 5/17/10 12:56:54 PM 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 PortMayJun_1-18.indd 2 5/17/10 12:57:04 PM May/June 2010 | www.portno.com PortMayJun_1-18.indd 3 3 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 New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 4 Photos Courtesy of Tulane University & Free Flow Power. 5/17/10 12:57:28 PM May/June 2010 | www.portno.com PortMayJun_1-18.indd 5 5 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, New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 6 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.” May/June 2010 | www.portno.com PortMayJun_1-18.indd 7 7 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 New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 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 May/June 2010 | www.portno.com PortMayJun_1-18.indd 9 9 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 New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 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. • May/June 2010 | www.portno.com PortMayJun_1-18.indd 11 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 New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 12 Chris Bonura photo 5/17/10 1:00:53 PM May/June 2010 | www.portno.com PortMayJun_1-18.indd 13 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 New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 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 PortMayJun_1-18.indd 15 May/June 2010 | www.portno.com 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 New Orleans Port Record | May/June 2010 PortMayJun_1-18.indd 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 PortMayJun_1-18.indd 17 May/June 2010 | www.portno.com 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 New Orleans Port Record | May/June 2010 PortMayJun_18-24.indd 18 5/17/10 1:04:33 PM May/June 2010 | www.portno.com PortMayJun_18-24.indd 19 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 New Orleans Port Record | May/June 2010 PortMayJun_18-24.indd 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. May/June 2010 | www.portno.com PortMayJun_18-24.indd 21 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 New Orleans Port Record | May/June 2010 PortMayJun_18-24.indd 22 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 May/June 2010 | www.portno.com PortMayJun_18-24.indd 23 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 New Orleans Port Record | May/June 2010 PortMayJun_18-24.indd 24 photo by lt. Joe labarriere 5/17/10 1:08:52 PM PortMayJun_cover.indd 3 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