Weekly News Summary For September 25-October 1, 2006:
Key Container Service Returns To Port Of New Orleans
A long-term shipping partner of the Port of New Orleans has returned one of its two former weekly services to the Crescent City, a move that will spur continued growth in container business, said Gary LaGrange, port president and chief executive officer. LaGrange made the announcement September 20 during his annual State of the Port Address to the World Trade Club of New Orleans at the Plimsoll Club atop the World Trade Center.
The mv. Ara J called on the port that morning, marking the return of APM Terminals and Maersk Sealand’s weekly Expreso Service to Central and South America. The vessel called on Ceres Gulf’s terminal at the Napoleon Avenue Container Terminal.
“The ports that Maersk serves with its Expreso Service are crucial, especially with the advent of the Central American Free Trade Agreement,” LaGrange said. “We want to continue to grow that business in New Orleans and work with our friends and business partners in Latin America. This is vital to restoring our container business in the Port of New Orleans.”
During the first six months of 2006, containerized cargo was down 33 percent, primarily due to the absence of Maersk Sealand, whose facility at the France Road Container Terminal sustained severe flood and wind damage. That terminal constituted one-third of the port’s container terminals. LaGrange thanked Rob Baigrie, Maersk’s port director for the company’s operations in Houston and New Orleans….
American Commercial Lines (ACL) has entered into an agreement to sell its interests in ACBL Venezuela Ltd. and GMS Venezuela C.A to a consortium of Venezuelan businessmen.
The agreement, which is subject to certain closing conditions, will result in the divestiture of the company’s barge, towboat and related assets that are used to provide barging services on the Orinoco River in Venezuela.
The sales price is approximately $32 million, including anticipated post-closing adjustments. The transaction is expected to close on October 31, 2006.
“We are very pleased to have taken this important step in executing our business strategy,” said Richard A. Mitchell, Jr., senior vice president-corporate strategy. “This transaction divests us of substantially all of our remaining international assets, which contributed approximately $6.6 million of EBITDA (earnings before interest, taxes, depreciation and amortization) in 2005. The net proceeds from this transaction will be used to further reduce our debt.”…
The Corps of Engineers will not need to permanently acquire any land near Winfield, Mo., for lock construction to replace Upper Mississippi River Lock 25, the St. Louis Engineer District announced last week.
The district will discuss the announcement and update the public on potential lock construction plans at a public meeting in Old Monroe, Mo., September 26.
In a May 2005 public meeting, the Corps presented preliminary information on the Upper Mississippi River System Navigation and Ecosystem Sustainability Program as it applies to Lock 25. The primary point of concern from the initial meeting was the possible need to permanently acquire land on the point immediately south of the existing lock and potential impacts on Winfield Ferry operations.
According to Steve Hobbs, of the St. Louis District of the Corps, findings from the physical navigation model at the Environmental Research and Development Center (ERDC) in Vicksburg, Miss., now indicate that land will not be necessary for the completed project….
Congestion of freight as it leaves port facilities and enters the nation’s transportation infrastructure is a major issue that has to be addressed, said Bernard S. Groseclose Jr., chairman of the board of the American Association of Port Authorities, at its annual convention held at the Riverfront Hilton in New Orleans earlier this month.
Groseclose, who also serves as president and chief executive officer of the South Carolina State Ports Authority, was the speaker at the awards ceremony on the final day of the four-day convention, which saw delegates from port authorities in Canada, the U.S., Latin America and the Caribbean.
He urged adoption of a National Freight Policy, with the basic understanding that the demands of freight will grow, current infrastructure will not be able to support it, and that planning, funding and development are inadequate to meet present and future needs.
The convention welcomed new port directors throughout the Western Hemisphere, many of whom are experiencing the same congestion problems that plague the U.S….
Meeting on the West Coast for the first time, the National Waterways Conference (NWC) re-elected Scott Robinson chairman of the board at its 46th annual meeting in Portland, Ore., September 6–8. Robinson is the port director of Muskogee City-County Port Authority, a position he has held since 1990.
He has served, at one time or another, on a variety of waterway related boards including the Arkansas Basin Development Association, Arkansas Oklahoma Port Operators’ Association, Waterways Advisory Board and Arkansas River Historical Society.
NWC also re-elected Gary LaGrange, executive director, Port of New Orleans, vice chairman; Worth Hager of Arlington, Va., National Waterways Conference Inc., president; Fred Rickert of Amory, Miss., Weyerhaeuser Corporation, first vice president; and Patrick Donovan of Charleston, W.Va., West Virginia Public Ports Authority; Scott McGeorge, Pine Bluff (Ark.) Sand & Gravel Company; and Larry Bory of Alexandria, Va., HDR Inc., vice presidents….
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