[StBernard] New distribution facility brings St. Bernard Port closer to goal of becoming bulk cargo hub

[Westley Annis]

New distribution facility brings St. Bernard Port closer to goal of becoming
bulk cargo hub
Posted by jdegregorio August 08, 2007 6:43PM
6:46 p.m., Wednesday

Buoyed by a demand for more fertilizer to grow ethanol-yielding crops,
ConAgra has opened a distribution facility at the St. Bernard Port, the
first such facility to open at the growing port. 

The opening of the distribution facility moves the St. Bernard Port closer
to its goal of becoming a hub for imported dry bulk cargo. The port is also
designing a second distribution facility, which is set to begin construction
early next year. 

ConAgra International Fertilizer Co., a division of ConAgra Foods Inc., has
a three-year lease for a new, $6 million warehouse between the Mississippi
River and the port's Chalmette Slip, which the company is using to store and
distribute imported fertilizer. 

The port began building the 40,000-square-foot warehouse four years ago in
order to boost its dry bulk business. The warehouse was constructed with
money from the state and stevedore Associated Terminals. 



Officials from the Port and Associated Terminals are scheduled this morning
to officially sign ConAgra's lease, which significantly steps up the
company's presence at the port. 

Unlike other warehouses at the St. Bernard Port, the ConAgra warehouse can
immediately move dry bulk cargo, a term used to describe unbundled goods,
such as coal or grain, from a barge to trucks and trains for distribution to
locations across the country. 

Such facilities increase a port's ability to attract business from shippers,
who want the ability to move their goods as quickly as possible, said Jerry
Graves, director of operations for the St. Bernard Port.

The opening of the ConAgra warehouse is the culmination of a years-long
struggle to make the port a central stopover for dry bulk imports. 

"The warehousing component of the shipping business is the most lucrative
because you are able to generate jobs on a more long-term basis," Graves
said. "If you put in a warehouse, you have to have equipment operators,
truck drivers .¥.¥. and you're also charging for the storage. It's better
for economic development." 

The ConAgra operation will likely create between eight and 10 permanent jobs
at the St. Bernard Port, he said.

The Port of New Orleans has also struggled to identify itself as a dry bulk
hub in recent years, competing against ports in Alabama and Texas for
business. Conrad Appel, chairman of the Dock Board of the Port of New
Orleans, has said that the lack of a distribution center is one of the
reasons why the New Orleans port has had difficulty competing. 

The St. Bernard Port is designing a second, $5 million distribution facility
with the intention of drawing additional dry-bulk shippers. Construction of
the warehouse is expected to begin early next year, Graves said. 

A user for the new facility has not yet been named. 

Glenn Schexnayder, vice president of sales for Associated Terminals, said
the port could do well by targeting other fertilizer importers. 

U.S. farmers have needed more fertilizer as they have ramped up production
of corn and other crops in recent years. Ethanol, which is made by
processing corn or other plants, has become a popular alternative fuel
source and is in part responsible for increased farming. 

Farmers planted nearly 93 million acres of corn this year, the most corn
planted since 1944, according to the National Corn Growers Association. In
2006, farmers planted 78.3 million acres of corn. 

But while U.S. corn production is on the rise, domestic fertilizer
production is stagnant due to skyrocketing energy prices. "Less domestic
production of fertilizer opened the door to imports, and with more imports
there was a need for another warehouse," Schexnayder said. 