Maritime Industrial Development: Lake Charles, South Louisiana

Korean Cryogenic Insulation Manufacturer to Build First U.S. Facility at Port of Lake Charles

Dongsung Finetec America LLC has secured a lease with the Port of Lake Charles with the intention of developing a manufacturing facility that will supply the cryogenic industry and U.S.-based LNG companies with a full range of traditional insulation materials and services.

The plant is expected to be fully operational by May 2016 with further expansions to follow as needed to meet the requirements of the LNG industry. The overall initial phased investment will be approximately $5.0 million.

"We are very excited to be expanding our activities to the USA," said James Choid, Dongsung’s senior vice president. "The help and assistance of the Port of Lake Charles has been central to our decision. Clearly the USA and Southwest Louisiana are becoming significant players in the LNG industry. We have made a commitment to continue supporting our existing international customers here in the USA. Our plans are for the long term broader U.S. and Americas markets; we are not specific project driven – we are here for the long haul."

Dongsung will now embark on a two-phase development of the leased facility in Lake Charles. Phase one is the restoration of an existing circa 59,000 square feet building. Phase two is the installation of the manufacturing lines, equipment recruitment along with training and development of the workforce. As many as 200 workers could be employed permanently and three times that number during the installation of the insulation material.

Lake Charles Port Executive Director William R. Rase, III, said: "The decision of Dongsung Finetec to choose the Port of Lake Charles for its first in the U.S.A manufacturing site with its 200 manufacturing jobs demonstrates the tremendous spin-off positive impacts of the Calcasieu Ship Channel and the many new and existing industries and businesses dependent upon the channel for jobs and growth in the region."

South Louisiana: Pin Oak Terminals to Build $600 Million Petroleum Liquids Storage Terminal in St. John the Baptist Parish

Pin Oak Terminals plans to build a $600 million petroleum liquids storage terminal along the east bank of the Mississippi River in St. John the Baptist Parish, within the jurisdiction of the Port of South Louisiana.

Facility services would include offloading, storage, heating, blending and transfer of petroleum liquids.The company is permitted to construct up to 10 million barrels of storage and unit train loops on its 431-acre site, which is situated for convenient shipping of products by rail, pipeline, barge, ship and truck. The company expects to begin construction this year and become operational in late 2016.

"We were very excited to start Pin Oak Terminals in Louisiana and look forward to expanding our footprint with this new storage terminal facility in St. John the Baptist Parish," said company CEO Mike Reed. "We plan to grow the facility over time and work with our partners to continue on past successes. The community is vital to us, and we intend to remain a mainstay for many years to come. Our focus on growth is centered on superior customer service, safety-first work habits, and uncompromising environmental awareness."

The terminal project will create 70 new on-site jobs with an average annual salary of more than $60,000, plus benefits. Louisiana Economic Development estimates the project will result in an additional 81 new indirect jobs, for a total of more than 150 jobs in the Southeast Region and surrounding areas.The company estimates the project will also create 250 construction jobs.

"The commitment today by Pin Oak Terminals to construct a tank facility for receiving, blending and storing of various liquid products will be a tremendous asset to the Port of South Louisiana," Port Executive Director Paul Aucoin said. "The company has plans to significantly expand Phase 1 of its operations over the next five years into a world-class facility at the Mount Airy location. We couldn’t be more pleased today to welcome Pin Oak Terminals to the Port of South Louisiana and we will remain committed to work in tandem to see this project realized."

The a 54-mile South Louisiana port district encompasses the parishes of St. Charles, St. John the Baptist, and St. James on the Mississippi River between New Orleans and Baton Rouge. Sited along its 108 miles of deep-water river frontage are seven grain transfer facilities, four major oil refineries, 11 petrochemical manufacturing facilities and several other facilities for a total of more than 50 docks owned and operated by resident tenants such as ADM, ArcelorMittal, Dow, Cargill, DuPont, Motiva Enterprises, Marathon, Shell, Nucor Steel., Occidental, and Occidental Chemical. Throughput in 2013 consisted of nearly 238.6 million short tons of domestic and international cargo.

Pin Oak Terminals ground breaking: L-R: Port of South Louisiana Commission Treasurer Louis Joseph, Louisiana State Representative Randal Gaines, GNO, Inc. President & CEO Michael Hecht, Port of South Louisiana Commission Secretary Stanley Bazile, Port of South Louisiana Executive Director Paul Aucoin, Louisiana State Representative Gregory Miller, Louisiana State Representative Clay Schexnayder, Port of South Louisiana Commission President D. Paul Robichaux, Port of South Louisiana Director of Business Development Linda Prudhomme, LED Senior Director of Business Development Don Pierson, Jr., Louisiana Senator Gary Smith, Port of South Louisiana Commissioner P. Joey Murray, III, Pin Oak Terminals’ Danny Guidry, Pin Oak Holdings Owner Christopher James, Pin Oak Terminals CEO Mike Reed, St. John the Baptist Parish Sheriff Mike Tregre, St. John the Baptist Parish President Natalie Robottom, River Region Chamber of Commerce Executive Director Chassity McComack, and River Region Chamber of Commerce Chair-Elect Annette Wray

Photo/Port of South Louisiana

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