[StBernard] How Mobile AL sees move of Int'l Shipholdings

[Westley Annis]

Let me borrow a phrase here...I know Alabama, I'm *in* Alabama.  Alabama,
you ain't no Louisiana!
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>From AL.com and Mobile Register...

 
INTERNATIONAL SHIPHOLDING'S relocation to Mobile is a direct result of
Hurricane Katrina and of the city's dominant position on the northern Gulf
Coast. 
 
It's also an example of how state and local leaders working together can
lure businesses that might be thinking of abandoning the greater New Orleans
area. 
 
International Shipholding is moving its corporate headquarters from downtown
New Orleans to the RSA Tower in downtown Mobile, bringing 150 jobs. Whether
it brings all of its New Orleans employees along or hires new people in
Mobile, its presence is a huge boost to the city's economy in general and
the Alabama state docks in particular.
 
Soon after Hurricane Katrina's destruction of much of New Orleans, the
Press-Register editorial board said Mobile's future would be altered as
well. With so much uncertainty about what will be rebuilt -- and when -- in
south Louisiana, individuals and businesses must make decisions about
whether to stay or look for opportunities elsewhere. 
 
According to New Orleans CityBusiness newspaper, International Shipholding's
CG Railway facility took on five feet of water from Katrina and was shut
down for three months. The Mississippi River Gulf Outlet (MRGO) remains
closed to deep-draft ships, hitting CG Railway's business even harder.
International Shipholding's net income dropped 64 percent in 2005, to $4.6
million. 
 
MRGO's future, like so much else in New Orleans, is unclear. The Port of New
Orleans offered concessions to try to keep major tenants, but meanwhile the
Alabama state docks offered to build a $19 million terminal for CG Railway.
The railway had been in Mobile at one time but had moved to New Orleans
because of construction on the docks' Choctaw Point container terminal and
because the state of Louisiana had offered incentives. 
 
This time, incentives totaling at least $23 million have come from the
docks, the state of Alabama, Mobile city and county governments and the
Retirement Systems of Alabama, which owns the RSA Tower now under
construction. 
 
The benefits include an expected increase of 9 percent in ship traffic at
the state docks and 80 more spin-off jobs in the local maritime industry. 
 
Mobile is well situated to draw more business from Louisiana. Questions
about homes, schools, insurance, flood protection and flood zones may force
people to leave south Louisiana for good. Local and state leaders have shown
their willingness and ability to make businesses welcome. 
 
The same sort of cooperation and attention to planning will be needed in
other sectors besides business, however. Already there is a shortage of
rental housing and affordable housing in Baldwin County, and a labor
shortage regionally. If population and business centers shift in large
numbers from New Orleans eastward, Mobile and Baldwin counties must be
prepared to deal with increased demand for housing, more traffic and larger
school enrollments, among other growth issues. 
 
Louisianians and those who do business in Louisiana will be watching
International Shipholding's move to Mobile. Its success can be a harbinger
of more economic growth for the Port City. 
 
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Just my personal opinion, but if this company can't recognize the loss of
life in SBP and the amount of damage to homes, businesses, etc., from the
MRGO, then...good riddance!  I think those 150 jobs can be replaced in the
NOLA area.
 
JLY