Even a Category 3 hurricane couldn’t stop this 289-year-old port from moving forward.

After strengthening into a Category 3 storm with winds reaching 130 miles per hour, Hurricane Katrina barreled into Louisiana. Less than a week later, Port of New Orleans, one of the US’s major cargo gateways and a thriving cruise ship terminal, closed. At the time, the port’s Web site said normal operations would continue at the earliest possible time, but it would be weeks before the nation’s busiest port would again open its harbor.

On September 7, 2005, the Port of New Orleans announced its official re-opening, coinciding with a similar announcement from the region’s portion of the Mississippi River. Because of the extensive devastation Katrina left in her wake, the Mississippi was only open to one-way traffic during daylight hours. In an interview with FleetOwner, Port of New Orleans’ president and CEO, Gary LaGrange, said he hoped revitalizing business through the port would be a major force behind the reconstruction of New Orleans.

“Port of New Orleans’ riverfront terminals survived Hurricane Katrina in fairly decent shape,” LaGrange told FleetOwner in September 2005. “Although they are damaged, they are still workable once electrical power and manpower becomes available. For the next several weeks, the majority of Port of New Orleans will be dedicated to military relief vessels.”

Less than one year later, Port of New Orleans reestablished itself as the Gateway to the Americas as its cargo figures raised dramatically. According to figures released in March 2007, between January and December 2006 the port’s cargo volumes exceeded its five-year average by 4%. In addition, because of a 37% increase in volumes of cargo imports such as steel, natural rubber, and coffee, Port of New Orleans’ offset a 14% decline in container cargo due to the hurricane-based destruction of its container terminal at France Road.

“The port’s recovery from the unprecedented events of 2005 has been nothing short of remarkable,” said LaGrange. “The entire port community, from longshoremen and stevedores to the shipping lines and port staff, are to be congratulated.”

In 2006, Port of New Orleans moved 9.38 million short tons of general cargo—a 20.7% rise compared to its 2005 figures. In addition, the port increased its handling of short tons of steel by 28%, as averaged over five years. Figures relayed from the port’s 2006 fiscal year, which runs from July 2005 through June 2006, showed the port’s operating revenues totaled $38.87 million, roughly 86% of its pre-Katrina figures.

“While these figures are encouraging, we still have a long road ahead of us to fully recover and continue to grow to meet our customer’s demands,” said LaGrange. “We must replace the container capacity we lost at France Road and recreate it on the Mississippi River.”

Recovering together
In March 2007, Port of New Orleans announced a cooperative-endeavor agreement with Plaquemines Parish Port, Harbor, and Terminal District to market current and future facilities together. More than 6,000 oceangoing vessels travel the Lower Mississippi River Port Complex, which stretches from Baton Rouge to Plaquemines, and officials from both companies saw regional cooperation as a way to secure the future of any maritime investments.

“We look forward to working with the Plaquemines Parish Port, Harbor, and Terminal District to jointly market our facilities to potential investors,” said LaGrange. “Parochial thinking is a thing of the past. In the new global economy, we must work together as a region to be competitive.”

Officials from both companies, under the terms of the agreement, outlined a joint marketing plan to promote their facilities, as well as agreeing to consider joint investments of capital for both the port and terminal operations to maximize cargo capacities. “Our future lies with the Mississippi River,” said Billy Nungesser, Plaquemines Parish president. “We look forward to working with Port of New Orleans, and we can surely benefit from the many years of experience they have in port operations. In the global economy, we can be more successful as a region in competition for trade, as opposed to many small agencies standing alone.”

Picking up the pieces
A 2005 economic impact study found Port of New Orleans to be responsible for nearly 160,000 jobs and more than $8 billion in statewide earnings. Consequently, more than $100 million of public port infrastructure and thousands of jobs are at stake as the port moves into the next phase of its insurance recovery efforts with policyholder FM Global Insurance.

During the hurricane, the port sustained roughly $160 million in damages but has only collected about $30 million from its insurers, including a $20 million policy limit from its primary property insurer, Lexington Insurance Company. To date, the port has completed roughly $12 million in repairs from the damage inflicted by Katrina, with about $8 million worth of projects currently underway. With plans to put out roughly $40 million in bids during 2007 and 2008, a complete insurance settlement would be welcome.

As Port of New Orleans continues to negotiate with FM Global, LaGrange is confident in the integrity of both his company and that of his insurance carrier. “The community and Port of New Orleans are counting on FM Global to boost our recovery,” said LaGrange. “Although we expected more by this time, we are pleased that FM Global has advanced funds so we can proceed with repair work. FM Global is highly regarded among its industrial and commercial client base, and we are certain the company will quickly resolve our outstanding claim and live up to its promises of customer service.”