The U.S. Department of Transportation has awarded the Port of New Orleans $226 million to build container terminal, to be called the Louisiana International Terminal. The funds come from the Infrastructure for Rebuilding America (INFRA) Grant Program, and is the biggest economic development grant in Louisiana history.
The new container terminal is necessary because of industry growth and to accommodate larger ships, port officials said. The current plan is still seeking federal approval but anticipates using 400 acres, strategically located near rail and road networks, to host the container terminal and surrounding infrastructure.
The future Louisiana International Terminal is expected to accept 180,000 to 280,000 containers in its first year. After 25 years, it could have a maximum capacity of 2 million.
Ports America and Terminal Investment Limited, a subsidiary of MSC Mediterranean Shipping Co., will both support the project through an $800 million public-private partnership (P3). The state of Louisiana has also committed $80 million for development and design costs of the NOLA Port.
The DOT in December awarded the port $74 million, part of an almost $2 billion projected payout from the Mega Grant Program, to construct the port, which will be located south of New Orleans near the town of Violet.
“This grant funding is a historic step towards transforming the economic landscape of Louisiana and solidifying our position as the premier international Gulf gateway,” Congressman Troy A. Carter Sr. said in a statement. “This additional investment will leverage Port NOLA’s extensive connectivity to interstate systems, railroads, waterways, and hubs.”
Construction is expected to start in 2025 and the first ship wharf could open by 2028.
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