Louisiana targets freight growth with US$600m toll road and port expansion

Plans have been announced for a US£600m toll road project in Louisiana to support development of the Louisiana International Terminal (LIT), a major new container terminal designed to strengthen the US state's freight handling capacity and global trade competitiveness. The proposed St Bernard Transportation Corridor would create an elevated roadway connecting the 400-acre terminal in Violet, Louisiana, directly to Interstate 510. Designed to facilitate efficient container movement and ease local congestion, it will also serve as a new hurricane evacuation route.

The Louisiana Legislature has committed US£50m for planning and design phases, with the Regional Planning Commission awarding the corridor study in June 2023. Long envisioned by local officials and residents, the corridor would provide a third major access route into St Bernard Parish. To structure a sustainable funding model, Port NOLA has engaged WSP USA to advise on a public-private partnership (PPP) approach that combines public and private investment for financing, construction and long-term operation.

Brandy D Christian, president and CEO of Port NOLA, said: "We are pleased that this new terminal is serving as a catalyst for a critical roadway that will support future growth in St Bernard Parish." The Louisiana International Terminal forms part of a wider US£2bn infrastructure strategy led by Port NOLA. Federal support includes a US£226m Infrastructure for Rebuilding America (INFRA) grant and a US£74m MEGA grant from the US Department of Transportation.

Terminal operations will be led by Terminal Investment Limited (TiL) -- the terminal investment arm of Mediterranean Shipping Company (MSC) -- and Ports America, one of the largest terminal operators in North America. Located downriver of the Crescent City Connection bridge, the terminal will accommodate ultra-large container vessels up to 14,000 twenty-foot equivalent units (TEUs) -- ships that existing Port NOLA facilities cannot handle due to height restrictions. Shippers will benefit from direct access to six Class I railroads via the New Orleans Public Belt Railroad, the Gulf Intracoastal Waterway for barge traffic and efficient interstate highway links.

Port NOLA anticipates a modal split that heavily favours rail and barge, supporting greener logistics solutions. The terminal will feature shore power to cut vessel emissions by up to 98%, alongside electric terminal equipment and expanded container-on-barge services. Sustainability efforts are being benchmarked under the Envision programme.

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At full build-out, LIT is expected to handle more than two million TEUs annually, create over 18,500 direct and indirect jobs statewide and generate US£97.3bn in additional industry sales by 2050.

For St Bernard Parish, the terminal is projected to deliver 4,300 new jobs and US£760m in parish tax revenues. Without the project, economic modelling suggests Louisiana could lose nearly 10,000 existing jobs and US£10.3bn in current industry sales by 2033 as shipping routes bypass the state in favour of rival Gulf Coast ports. Port NOLA will retain ownership of the terminal under a landlord port model, leasing operations to its private partners to ensure stable governance and operational efficiency.

The project is currently progressing through the National Environmental Policy Act permitting process, with Port NOLA pledging mitigation measures and pursuing Envision sustainability certification. Port NOLA is also collaborating with state and regional agencies to mitigate traffic impacts and enhance freight movement beyond the terminal gates. The St Bernard Transportation Corridor is seen as critical to the success of the terminal and to regional infrastructure resilience.

While the project faces opposition over potential displacement and community impacts, a Louisiana Senate committee has approved the toll road proposal, clearing a major legislative hurdle. Construction of the terminal's first phase -- initially providing two berths for 14,000-TEU vessels -- is expected to begin in 2025, with operations projected to start by 2028. Development of the toll corridor will follow, subject to final approvals and financing arrangements.

Once operational, the LIT and St Bernard Transportation Corridor are set to more than double the region's container handling capacity, positioning Louisiana as a critical logistics hub for North America's southern gateway.

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References

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