PROJECT: RAISE Greenfield Louisiana
1Q 2022 – 1Q 2024
BENEFIT COST ANALYSIS
– Technical Memorandum –
– Workbook [unlocked] –
– Workbook [protected] –
Paul G. Aucoin
Port of South Louisiana
171 Belle Terre Boulevard
LaPlace, Louisiana 70068
The Board of Commissioners of the Port of South Louisiana (“POSL”) requests funding from the U.S. Department of Transportation under the 2021 Rebuilding American Infrastructure with Sustainability and Equity (“RAISE”) Transportation Discretionary Grants program for a port infrastructure project, Greenfield Louisiana (“the Project”). The funding will be used for the construction of a new barge unloading and vessel loading dock (“the 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.
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 meets all the Selection Criteria. 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 $478 million project; (4) reduced carbon emissions and promotes energy efficiency through new technology and more efficient transportation methods; (5) compact facility design allows 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 and (7) a BCA ratio of 1.87 and $382 million in net benefits utilizing a discount rate of 7%.
The proposed Project will directly and indirectly benefit rural communities in a variety of ways. It is located within a U.S. consensus deemed rural area and within a Qualified Opportunity Zone. As part of developing a newbuild facility, the Project will create 500+ jobs during peak construction time and 80 – 100 local, long-term, high paying jobs once operational. All jobs resulting from this Project will be new jobs, as the site is currently un-developed.
The Project will have significant investment in local infrastructure to make the supply processes easier and more efficient for regional and national farmers, as well as investments in the people of the local community. As stated above, the Project will create jobs that will be considered high paying for the region and the state of Louisiana and offer competitive benefits to the workers. The Project will help to strengthen the community by providing greater economic stability to individuals and families. The population of the region is more diverse than the United States or Louisiana as a whole. Most of the jobs at this facility will be sourced locally, thus, the jobs provided will result in employment opportunities for underserved and minority groups. The Project will depend on the productivity of the neighboring communities and the region, which is why the Project will also invest in secondary and post-secondary education and training. These educational opportunities will be critical to the area in terms of its sustainable development.
The fundamental service the Project helps to provide is an outlet for both local and national U.S. farmers to sell their agriculture products (primarily corn, wheat, and soybeans) to demand sources around the world. This Project will help to create additional demand for U.S. agriculture products by decreasing transportation costs, thus potentially increasing the price to U.S. farmers, and requiring additional agriculture supply to meet this demand. The Project will also help to improve the environmental impact of the industry by reducing global deforestation and reducing the overall carbon footprint. Consequently, in addition to the Project’s location in a deemed rural area, it directly benefits U.S. farmers who are overwhelmingly located in rural areas throughout the United States.