Facility Development: Oakland, Port Everglades, Port Fourchon

Port of Oakland, Partners Investing $600 Million to Support Future Growth

A Port of Oakland executive outlined a $600 million spending plan  for growth at his West Coast trade gateway in a presentation at last week’s AAPA Planning for Shifting Trade workshop. Maritime Director John Driscoll told the audience that Oakland would increase trade volume by investing in new facilities and better infrastructure. The objective: more containerized cargo.

"We’re building for growth in a shipping industry that is becoming more and more competitive," he explained. "By investing with partners who share our vision, we can deliver services that will be of great value to the global supply chain."

Mr. Driscoll said the port would team with private developers and public agencies to modernize the port’s infrastructure. He said investment from all three sources would create new logistics capabilities in Oakland. It will also help eliminate bottlenecks that inhibit cargo flow, he said.  Among the proposed investments:

Mr. Driscoll noted that the port has just completed a $100 million railyard near marine terminals and a logistics complex and said the proximity of the new developments should be a drawing card for shippers. It will allow the speedy transfer of cargo between rail, road and ocean transport

Construction on Cool Port could begin next month. Terminal expansion is already underway. The truck-rail grade separation awaits government funding.

Port Everglades Receives Approval for a New Logistics Center

A team of investors spearheaded by Port Everglades tenant International Warehouse Services, Inc. (IWS) is planning to build a logistics complex on port property in Foreign-Trade Zone No. 25. IWS has been a port tenant for more than 30 years and is the largest occupant of the FTZ. The PE-ILC team also includes ANF Group, Inc., and Treadwell Franklin Infrastructure Capital LLC.  

PE-ILC will construct approximately 240,000 square feet of warehouse facilities with an attached 45,000 square-foot office building on 16.657 acres of port property. The initial ground lease term is for 30 years. The project consists of a warehouse, refrigerated warehouse and office space, and cross-docking facilities, and will enhance services available to shippers using Port Everglades. The entire logistics center will be designated a Foreign Trade Zone.

"The design and concept of the new logistics center is to provide shipping companies and international customers a full range of port related services," said Fred Rogacki, president and CEO of International Warehouse Services. "This will include 3PL warehousing services and government inspections, as well as refrigerated space for perishable cargo."

Completion of the logistics center, anticipated for April 2019, will allow the port to proceed with the demolition of the existing obsolete FTZ facility and construction of additional marine terminal yards as provided for in the Port Everglades Master/Vision Plan.

$800 Million LNG Facility Proposed for Port Fourchon

The Greater Lafourche Port Commission (GLPC) and tenant Energy World USA on January 31 announced the proposed development of a mid-scale liquefied natural gas (LNG) production and export facility at Port Fourchon.

The Energy World USA facility will eventually produce up to 2.0 million tons of LNG per year for export, as well as operate a separate smaller scale liquefaction plant geared towards providing fuel for LNG-powered offshore supply vessels operating in the Gulf of Mexico.

"While it is still very early in the planning and regulatory process, we are excited to be able to tell the community and our tenants about this potential opportunity to continue to keep Port Fourchon at the very cutting edge of the oil and gas services industry," said GLPC Executive Director Chett Chiasson. "We feel that this is a great addition to the suite of vessel services that are offered by our tenants and greatly enhances our capability and versatility as the premier services hub for the oil and gas industry."

The facility would occupy up to 150 acres of port property.

Energy World (USA) is an Energy World International Ltd (EWI) company. The EWI group is engaged in developing, constructing and operating in property investment, infrastructure, power generation and energy related projects.
"The Energy World family of companies has over 20 years' experience in the safe production, storage, transportation and delivery of LNG to its customers in Australia, Indonesia and the Philippines, and we are looking forward to bringing this expertise to Port Fourchon," said Kevin Blount, president of Energy World USA.
LNG produced at Port Fourchon initially will be exported to the company’s gas-fired power plants across the Asia-Pacific region and sold in U.S. domestic markets for marine applications.

"Eventually, we hope to export to Jamaica and the wider Caribbean, where Energy World is separately proposing to develop a LNG hub terminal and gas-fired power plants consistent with our goal of delivering clean and affordable electricity to developing countries on a global platform," said Stewart Elliott, chairman and CEO of Energy World Corporation.

The proposed facility could represent an investment of upwards of $800 million, making it the largest single initial investment for Port Fourchon and Lafourche Parish.

In the coming weeks, GLPC will begin a waterway suitability assessment with the U.S. Coast Guard to help ensure that current and future port activities are not adversely affected by the operation of the LNG facility. This document will also support Energy World's forthcoming application to the Federal Energy Regulatory Commission (FERC) for project approval.

With the assistance of the Director of Economic Development for Lafourche Parish Government, the South Louisiana Economic Council (SLEC) is working with the Louisiana Department of Economic Development (LED) to identify potential business and tax incentives to secure the project for Louisiana's Bayou Region.