TCI to expand its Port of New Orleans operationAnother small business in Louisiana has announced it is not only able to retain many current jobs, but expand and create new ones, the result of assistance from a series of loans, tax credits and bonds.
During a press conference held July 22, Transportation Consultants, Inc. – a full-service service logistics and warehousing services provider specializing in container yard services, intermodal transportation and international logistics consulting – announced that it intends to start using pellet packaging equipment and increased rail capacity as means of expanding its container traffic capabilities at the Port of New Orleans.
This expansion is the second phase of a project that began in 2009. The first phase will retain 62 jobs and 45 owner-operator truck driver positions and represents a capital investment of approximately $10.4 million. For the first phase TCI used Gulf Opportunity Zone (GO Zone) bonds and New Market Tax Credits to begin construction on a container terminal and warehouse facility at the current site.
The second phase represents a capital investment of $3.2 million and will create 60 new direct jobs, with an average annual salary of nearly $48,000 plus benefits. Louisiana Economic Development (LED) estimates the second phase will also create 20 new, indirect jobs, and generate $3.6 million in new, state tax revenue and $1.6 million in new, local tax revenue over the next 10 years.
To help secure the second phase of this project, LED committed $500,000 from the Enterprise Zone Program and $400,000 from the Economic Development Loan Opportunity Program. TCI will use the financial assistance to build a rail spur connected to the New Orleans Public Belt Railroad. That will enable the company to handle plastic pellet shipments from Louisiana's chemical manufacturers that are currently being sent to the Port of Houston by rail. Also, once the expansion is completed, shipments will be packaged at TCI and shipped out of the Port of New Orleans, reducing the time it takes to get the shipments to market and increasing pellet container volumes.
"This investment gives the local transportation sector the tools to handle chemical products more efficiently," said Port of New Orleans president and CEO Gary LaGrange. "It also allows Louisiana to maximize the economic impact of these home-grown products. Plastic pellets will continue to generate jobs and economic activity for the state, even as they move down the Mississippi River and are shipped to buyers around the world."
“TCI's expansion will improve the company's ability to capture additional container traffic that would have otherwise gone to out-of-state ports and, at the same time, the expansion will strengthen the competitiveness of the Port of New Orleans," said Louisiana Governor Bobby Jindal. "Most importantly, this announcement means that yet another Louisiana-based company is growing within our borders and we're creating and retaining good jobs for our people so they can pursue their dreams right here at home. This increased investment is also proving that business leaders are taking advantage of our healthy business climate, and they are recognizing the growth opportunities available in New Orleans and in our state."
According to New Orleans Mayor Mitch Landrieu, the expansion will not only retain and create new jobs, but add new tax revenue and a growing, diversifying business to New Orleans.
"We are pleased to welcome companies like TCI to the city and will continue to aggressively pursue good-paying jobs for our residents," Landrieu said.
"We're delighted to work with the port and LED to help ensure TCI's expansion is successful," added Entergy New Orleans president and CEO Charles Rice. "This project is an excellent example of the growth opportunities available in the trade and logistics sector in New Orleans."
Meanwhile TCI founder and CEO Jack Jensen said the project is about investing in New Orleans’ port industry.
"The $13.6 million investment will keep TCI and its 120 jobs in New Orleans for a long time to come,” he said. “Without the Port of New Orleans, the New Orleans Public Belt Railroad, Entergy, the mayor and Gov. Jindal's commitment to this project, we could not collectively increase international container traffic at the port."
[Cheryl Hentz, Contributing Writer]
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