Millennium Port Authority Market Development Strategy

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Millennium Port AuthorityMarket Development
Strategy
August 2005
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Shipping Supply / Demand CycleUpward
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• Container Fleet Size 2004 - 2008
• Source Drewry Shipping Consultants

Vessels ordered as of July 2004 47 of the
current fleet Investment of approximately 50
billion
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• Container Fleet Size 2004 - 2008
• Source Drewry Shipping Consultants

Redeployment Opportunity
Panamax Vessel Size Range
Post Panamax Vessel Size Range
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Estimated Asian Traffic Volumes to/from Target
Market Areas
Throughput total 775,200 TEUs
Source Journal of Commerce PIERS Statistics
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Core and Secondary Inland Markets LMR Projected
1st Year Throughput Volume
107,270 TEUs
Memphis N.O.-B.R. Jackson, MS
Dallas-FTW Kansas Shreveport
Secondary Market
Core Market
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Transpacific Inbound Cost per TEU to Memphis
Source Mercator Transport Group / Maersk
Sealand inland zip tariff
Cost savings per TEU 155 via LMR
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Transpacific Outbound Cost per TEU from NOLA
Source Mercator Transport Group / Maersk
Sealand inland zip tariff
Cost savings per TEU 655 via LMR
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Top Outbound Commodities Originating in Target
Areas

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Containerized Backhaul Freight Opportunities

• Cotton
• Estimated 62,000 TEUs for 2004/05 from target
  state areas to China. (Source USDA Agriculture
  Marketing Service)
• Petrochemicals
• Third largest export to China from all U.S.
  Coasts
• Number one export to China from the Gulf
• (Source Journal of Commerce PIERS statistics)
• Grain
• Container export volumes have increased by 500
  for soybeans and 200 for animal feeds over the
  past decade. (Source USDA Agriculture Marketing
  Service)

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U.S. Containerized Grain Shipments (in
TEUs)Source USDA
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Industry Segment Factors
CARRIERS
Utilization Redeployment Port Facilities Infrastr
ucture Cargo Availability
Low Shipping Cost Efficient Transit Time
Reliable Service Proximity to Markets

SHIPPERS RECEIVERS
PORTS
High Cargo Volumes Capital Funding Sources
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What Actions Can Louisiana Take?

• Obtain commitment and support from all benefiting
  parties
• Review port and inland capabilities
• Secure adequate state funds to meet capital
  investment needs of port facilities
• Persuade ocean carrier(s) to initiate new service
  
• Sustain growth by attracting manufacturing plants
  and distribution centers

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