Port Fourchon is up and running at full speed. More land is being offered for lease. New tenants are moving in. Tonnage throughput increased by 75% in 2006 to 38 million tons of cargo (over 95% is oil and gas related). And the port’s leader and visionary, Ted Falgout, will remain at the helm as director for another three years. The 28-year veteran’s contract was renewed by the board of commissioners through Dec. 31, 2009.
The port commission is undertaking a number of projects to enhance the facility’s infrastructure and security. These include the creation of a new slip, C, which will add 300 acres to the port; improvements to its recently acquired airport; continued support of the LA1 coalition; and lobbying for additional OCS revenues for coastal restoration and protection.
The port’s central location on the Gulf Coast with its close proximity to open waters, and deepwater growth, are the main drivers behind getting support for these projects.
One of Falgout’s objectives over the next few years will be to continue to educate the industry on the importance of Port Fourchon and its adjoining highway, LA1, in supplying the US with energy; 15-18% of the nation’s oil supply to be exact.
As a result of Falgout and the port commissioner’s lobbying efforts over the past decade, new OCS legislation made it through to the president’s desk. On Dec. 20, 2006, President George W. Bush signed into law the Gulf of Mexico Energy Security Act.
The new law opens 8.3 million acres in the eastern Gulf of Mexico, much of which likely will be supported by Fourchon, and shares 37.5% of royalties paid on new leases with Louisiana, Texas, Mississippi, and Alabama.
“Although very little money will be flowing to Louisiana in the short-term, these next few years will be critical in shaping this program (OCS revenue sharing),” says Falgout. “The fate of our port, transportation, hurricane protection, and community as a whole, will lie in the details of how this program unfolds.”
According to Louisiana senator Landrieu’s office, the bill could provide Louisiana with an estimated $13 billion over the next 30 years; close to $1 billon/year starting in 2017.
Deepwater
Tenants continue to move into Port Fourchon because of its ideal location on the Gulf Coast to support the growing deepwater drilling and production market.
Currently, over 70% of GoM oil and 40% of OCS gas comes from deepwater. This percentage has been increasing since 1990, and with an estimated 50 Bboe left to be discovered in deepwater, this upward trend will continue for the foreseeable future.
Port Fourchon currently supports almost 70% of the Gulf’s deepwater projects, and is projected to service at least half of the pending developments.
“We have clearly been the main shorebase for support of deepwater activity in the GoM, and we anticipate that this role will increase because the efficiencies that exist in Fourchon don’t exist anywhere else in the Gulf,” says Falgout.
As a result, the port continues an aggressive construction and expansion plan.
Northern Expansion
In 2001, construction began on the 4,000-acre Northern Expansion project, which will more than double the size of the port. Construction on Phase I continues. It includes a 700-acre site with 180 acres of non-waterfront property and 520 acres with 21,000 linear ft (6,400 m) of water frontage. Construction of 1,707 m (5,600 ft) of waterfront in Slip B of the expansion is finished and leased. New lessees include C-Terminal, Delmar, Expert Riser Solutions, Grand Isle Shipyard, Southern Tank Specialist, Express Weld, InterMoor, and US Liquids.
A variety of industries are based at Port Fourchon.
This year, the port plans to begin construction on an additional 1,097 m (3,600 ft) of bulkhead, which is expected to be complete in early 2008. Tiger Tanks LLC already has leased 427 m (1,400 ft) of the new bulkhead.
Airport construction
Another element of the port’s strategic plan is the acquisition of the South Lafourche Leonard Miller Jr. Airport. The port acquired the airport in 2002 to serve as an additional transportation link to Port Fourchon. It’s a 35-km (22-mi) drive or 10-minute helicopter ride between points.
Phases I and II, which extend the airport runway from 1,158 m to 1,981 m (3,800 ft to 6,500 ft), are complete. “With this improvement, more corporate aviation is visiting. Most of the people are in the seaport, but others are people wanting to access world-class recreation opportunities,” says Falgout.
Aerial view of Port Fourchon’s E-slip adjacent to the mouth of Bayou Lafourche.
Phase III, scheduled to be complete in the first half of this year, includes installation of airfield lighting and electrical requirements. Phase IV, also scheduled for completion this year, will strengthen the runway to accommodate wheel loads up to 75,000 pounds. This will allow commercial-type passenger and freight planes to use the runway. “If oil and gas stays at these levels and the money continues to flow, there are going to be more companies getting jets and using private air transportation in their business, and we see our airport fitting this need,” says Falgout.
Three new companies plan to build their own hangers at the airport to accommodate their own specific aviation needs.
The port commission is also in the planning and design stages for construction of an instrument landing system, approach lighting system, safety areas improvements, and full parallel taxiway. These improvements are scheduled to be complete in 2008.
While the airport is transitioning from a small aircraft recreational facility into a premiere corporate facility, it also “will be a vital component in the matrix of transportation, service, and support facilities for the GoM deepwater oil market,” says Beau Martin, port commissioner.
Message from the director
As many of you know, I had announced my intention to retire at the end of 2006. After 28 years as port director, it was a decision I was very comfortable with at the time. During the nine month period from my announcement, several things occurred that have caused me to reconsider my retirement. One major factor in my decision to remain was the outpour of requests from very diverse interests which included individuals, businesses, environmental groups and political leaders, to stay on longer. Another major factor was the unprecedented passage of Federal Outer Continental Shelf Revenue Sharing with states that support this production. This is an issue that I have worked on for over a decade and feel that over the next three years the details of this critical source of funding will unfold. I feel I have the experience and certainly the interest to be actively involved in how this program will impact Louisiana. Although major funding will not arrive until the year 2017 and beyond, this funding will offer Louisiana an opportunity to conduct meaningful coastal restoration and hurricane protection as well as provide funding for highways that support critical energy infrastructure, like LA1. I have executed a new three-year contract with the port commission to remain its executive director. I look forward to facing the many challenges and opportunities that are on the horizon.
Ted M. Falgout,
executive director,
Port Fourchon
