The Port of New Orleans has had a good year, both in terms of container shipping and cruise line business.
For the 12-month period through last September, the port set a record for twenty-foot-equivalent units (TEU) handled in a 12-month stretch. Year-over-year the New Orleans facility saw a 13.6 percent increase in cargo containers, according to The New Orleans Advocate. The port handled 537,285 TEUs. Banana imports as well as paper and chemical exports made up much of the cargo that passed through New Orleans during the 12-month period through September.
"It's another milestone that comes on the heels of four record years in a row," Gary LaGrange, the port president and CEO, said at the 29th Annual State of the Port Address hosted by the International Freight Forwarders and Customs House Brokers Association of New Orleans. "We anticipate continued growth in our container market, along with a robust breakbulk and project cargo market, as we recently set 14-year highs in tonnage moved over port docks."
Chemical investments to propel container growth
Chemical and petrochemical exports through New Orleans, in particular, could grow substantially in the coming years. Companies within the industries have invested over $81 billion in various projects through Louisiana. As a result, experts believe that chemical exports could triple.
"While we expect some softening in the imported steel market this fall, we anticipate the investment boom in the chemical and petrochemical industry on the Lower Mississippi River will spur continued growth for the future," LaGrange explained.
The Port of New Orleans is becoming an important location for cruise lines.Cruise lines drawn to The Big Easy
It's not just imports and exports that are adding up to a great year for the port, though. Cruise business in New Orleans has also been booming. Over 1 million cruise passengers passed through the Port of New Orleans cruise terminals this year. LaGrange explained that the port actually set the 1-million mark as a goal a few years ago, and now it has finally surpassed that threshold. Through investment in cruise facilities and marketing efforts, he added, the port has been able to significantly ramp up tourist business.
Further investments should bolster the Port of New Orleans' cruise business even more. Carnival Cruise Line is expected to bump up its capacity for its four- and five-day year-round itineraries by 34 percent this spring, when it upgrades from Carnival Elation to Carnival Triumph. In late 2017, a new cruise terminal is expected to be completed, as well. This will offer more incentive for cruise lines to make New Orleans their home port.
In addition, river cruising is growing in popularity, and New Orleans' location on the Mississippi makes it perfect for these lines. American Cruise Line will add a third sternwheeler to its homeported New Orleans fleet. The Port of New Orleans will also be the first North American homeport for Viking River Cruises, which plans to set up a terminal there by 2017.
"The Port of New Orleans has taken to expanding marketing efforts."
Marketing to make a better future
The Port of New Orleans has also taken to expanding marketing efforts to improve business, Marinelink.com explained. LaGrange noted that it is important to teach the public about the economic and community benefits international trade can bring to Louisiana, and the port's role in drawing that business to the state.
"Thanks to our board of commissioners, we have invested in recent years to educate the community about what the port means to them, our state and this nation," he said. "We've made great strides and will continue to reach out to academia, business associations, policy makers, elected officials and neighborhood associations."
The Port of New Orleans is reaching out within the community, as well as airing radio and television advertisements designed to educate the public on how international trade can benefit Louisiana. The investments being made by the chemicals industry and cruise lines, as well as the Port of New Orleans' aggressive marketing tactics, should further benefit it in the coming years as it keeps its eye trained on growth.