New study finds Port Fourchon ‘vital’ to US economy
F. Jay Schempf
The new study on the economic impacts of Port Fourchon on the US and Houma MSA was written by Loren C. Scott & Associates., a Baton Rouge economic consultancy. Its premise states that the most effective way to measure the role of Port Fourchon and its effects on the US and local economies might best be estimated by creating a total loss of the services of the port for a time. Using a February 2004 study of the economic impacts of coastal erosion on regional, state and national economies as a guide, the report factors-in the effects of hurricanes Katrina and Rita a year later to help estimate the possible current impact of a three-week loss of services from Port Fourchon due to hurricane damage, a terrorist attack, or to some other destructive phenomenon.
The researchers list several “conservative” estimates of impacts of this fictional loss of the port’s services on basic US economic indicators, including the following:
- A loss of some $10 billion in sales at US companies
- A loss of some $3 billion in US household earnings
- A loss of some 77,400 jobs.
Also, the research team surveyed a sample of companies operating at the port during 2006 that resulted in the following estimates of impacts of Port Fourchon activity on the overall economy of the Houma MSA:
- About $1.5 billion in MSA business sales are tied to the port
- About $351 million in household earnings of MSA residents trace back to the port
- About 8,150 jobs in the MSA depend ont the presence of the port
- At least $12 million in sales taxes are collected by local governments because of the port’s presence in the MSA.
The report contains many more breakdowns of the possible effects of the three-week port shutdown to illustrate its strategic significance to other facets of national, state, and MSA economics.
Port expansion continues
Facilities at Port Fourchon continue to expand in size and scope in line with the strategic planning initiatives scheduled in past years by Port Commissioners. In 2001, construction began on Phase 1 of the Northern Expansion project, which would more than double the size of the port.
Construction of Phase 1 (consisting of Slip A and B) is 75% complete. It includes 180 acres of non-waterfront property and 520 acres with 21,000 ft (6,400 m) of water frontage. The 3,300-ft (1,006-m) Slip A is being fully utilized. Slip B, includes 14,700 ft (2,134 m) of waterfront property, of which 10,100 ft (3,078 m) is bulkheaded or under construction. The remainder of the bulkhead of Slip B should be complete by 2011. With 75% of Slip B already under lease, Port Fourchon is building as fast as it can to accommodate the energy needs of the GoM.
The Port Commission has also begun permitting Phase 2 of the expansion and will add a Slip C, which will be 7,000 ft (2,134 m) long x 700 ft (213 m) wide and will incorporate approximately 400 acres. The Commission hopes to complete the permitting process by mid-year 2008 and begin the initial creation of dredging and filling activities by early 2009, with a completion date of 2014.
Meanwhile, major renovations at the South Lafourche Leonard Miller Jr. Airport continue to be made, with the goal of supporting current tenants and attracting businesses engaged in offshore support.
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Volume 68 Issue 3
March 2008
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