PROJECT: Greenfield Louisiana
1Q 2022 – 1Q 2024
BENEFIT COST ANALYSIS
– Technical Memorandum –
Chief Executive Officer
Port of South Louisiana
155 West 10th Street
Reserve, Louisiana 70084
The Port of South Louisiana has requested funding from the U.S. Department of Transportation under the 2022 Port Infrastructure Development Program (PIDP) Transportation Discretionary Grants program for a port infrastructure project, the Greenfield Dock and the production of an associated Community Investment Plan to ensure an equitable relationship between the POSL and the local community to balance the needs of a historically disadvantaged community and the need to maintain robust export capacity in south Louisiana. The funding will be used for the construction of a new barge unloading and vessel loading dock, which will provide barge access to a $478 M newbuild grain export elevator being constructed through a public-private partnership in St. John the Baptist Parish, Louisiana as well as a community engagement process resulting in a Community Investment Plan that residents can be proud of.
This new, state-of-the-art grain elevator and accompanying Dock will facilitate the movement of agricultural goods from both local and national farmers in the U.S. to end-users throughout the world. With multimodal connectivity in the form of a Post-Panamax sized deep-water dock, a tie-in to the main line of the Union Pacific railway, and access to local roads and state and interstate highways, the Project will serve to increase the efficiency, reduce the overall environmental impact, and bolster the reliability and resiliency of the U.S. agricultural supply chain, all of which will allow U.S. farmers to better compete in the global economy in a sustainable manner. The Project has strong support from the local community, local and state agencies, elected local and state officials, national trade organizations, and the private sector. The RAISE funds, along with significant committed private sector investment, will help fund the construction of this Project.
The project will be located on the West Bank of the Mississippi River on an Opportunity Zone tract in St. John the Baptist Parish. The project will create 500+ jobs during peak construction and 100+ full-time, well-paying jobs with benefits once operational.
The Greenfield Louisiana project will employ innovative financing through a public-private partnership of the Board of Commissioners of the POSL and long-standing investment and development firms that have successfully participated in previous capital improvements at the port. PIDP grant funds will be leveraged with private investment to optimize project financing.
Key benefits of the Project include: (1) economic development in both a rural area and Qualified Opportunity Zone; (2) creation of 500+ immediate construction jobs, including 80 – 100 high-paying, long term jobs in a diverse, economically distressed parish (county) with a history of barriers to access to middle class opportunities; (3) an innovative public-private partnership between the POSL and the private sector to develop the $479 million Project; (4) reduced carbon emissions and promotion of energy efficiency through new technology and more efficient transportation methods; (5) compact facility design allowing for a smaller overall footprint of the facility; (6) State of the Art facility designed for 50-year useful life, allowing for employment opportunities for the future; (7) an extensive community engagement and planning process resulting in a Community Investment Plan as a part of this proposal; and (8) a BCA ratio of 1.73 and $276 million in net benefits utilizing a discount rate of 7 percent.
The POSL has purchased ~1,300 acres on a strategic marine site to support the Dock project. The Dock project site is currently undeveloped with no improvements having been commenced as of the date of this application. The estimated cost of the overall Dock project is $478 million, with the Dock comprising about $66 million of that total cost. Additionally, the inclusion of a robust community engagement and investment endeavor resulting in a Community Investment Plan is estimated to cost approximately $1 million. The overall capital Project will consist of storage bins, enclosed conveyor belts, scales, grain pits, loading spouts, loading sheds, dust collectors, state-of-the-art dust mitigation systems, bucket elevators, and other operational and safety systems and equipment needed to operate a grain elevator. The grain terminal will have 54 silos connected to the Dock with the ability to berth two Post-Panamax bulk carrier vessels when fully built out.