Gulf Trade : 2024 Market Report
Special Report
The announcement , as well as the awarding of federal funding for the MSC-backed Louisiana International Terminal ( LIT ), comes amid a massive expansion at the Port of Houston , the busiest port in the Gulf Coast region by some distance .
APM said in a Jan . 12 statement it has signed a letter of intent to lease 200 acres of land for 30 years on the west bank of the Mississippi River from the Plaquemines Port Harbor and Terminal District . APM did not provide a timeline or total cost of development , but the terminal
“ This greenfield site has all the potential to evolve into one of the big ship gateways into the US .”
operator said it will fund the development of a terminal capable of handling container ships with a capacity of up to 14,000 TEUs , starting with an “ initial investment ” of $ 500 million .
The project “ holds significant potential to enable new business west of the Mississippi River , allowing for new markets of import and export cargos while continuing to grow the various Louisiana markets ,” APM said .
“ In time , this greenfield site has all the potential to evolve into one of the big ship gateways into the US ,” APM Senior Investment Advisor Wim Lagaay said in the statement , adding the terminal will incorporate “ cutting-edge technologies and sustainable practices to create a modern logistics hub that prioritizes safety , efficiency and productivity .”
APM , which has been studying the potential development of a terminal in Plaquemines since 2021 , said ships calling the facility will save three hours on a round-trip voyage compared with calling at the “ nearest proposed terminal ,” a not-so-subtle reference to the LIT project in Violet , La . Vessels calling Plaquemines also won ’ t be subject to the air draft limits that prevent larger ships from calling Port NOLA .
As originally conceived , the Plaquemines site was to encompass 1,000 acres , handle ships up to 22,000 TEUs and have annual throughput capacity of 2 million TEUs . APM said Plaquemines will initially be capable of handling 600,000 TEUs per year , with the ability to expand on some 900 additional acres at the site .
Separately , infrastructure financier Sustainability Partners had struck an agreement with Plaquemines Port to fund the terminal ’ s rail spur with a tolling agreement .
In close proximity
Plaquemines is just 20 miles downriver from the proposed LIT site in Violet , which is receiving about $ 800 million from Ports America and MSC subsidiary Terminal Investment Limited . APM parent Maersk and MSC are set to end their 2M Alliance vessel-sharing agreement in early 2025 .
Port NOLA has received a $ 226 million grant from the US Department of Transportation ( USDOT ) to help fund the LIT project , the second such announcement in as many months after a $ 73 million award from USDOT in
APM ’ s new terminal in Plaquemines would compete with an MSCbacked project in Violet . APM Terminals
22 Journal of Commerce | February 12 , 2024 www . joc . com