The money is being channelled to the port through the US Department of Transportation’s MEGA Grant Program. Primarily, it will support the first phase of LIT’s development which on completion is expected to cost close to US$2B.

The whole project is being funded by the Port of New Orleans and private interests, including Ports America and MSC’s port operating arm Terminal Investment Ltd, which will contribute at least US$800M in funding and manage the facility on its completion.

In addition, Louisiana lawmakers have already provided nearly US$30M towards early development costs of the LIT project, currently in the federal permitting and design process. The state has also committed US$50M for the design of the St. Bernard Transportation Corridor that will connect the terminal to the interstate system.

“I want to thank the Biden Administration, Secretary Pete Buttigieg and the US Department of Transportation for selecting the Port of New Orleans to receive this award and recognising its importance and powerful potential,” said John Bel Edwards, the governor of Louisiana “The Louisiana International Terminal will become one of the greatest public economic development projects in Louisiana’s history. It is an investment that leverages the economic power of the Mississippi River and will expand opportunities for residents and business across our entire state and beyond. This is a direct result of the Bipartisan Infrastructure Law supported by Sen. Bill Cassidy and U.S. Rep. Troy Carter. It is a testament to the great things that can happen for our state when we work together.”

LIT is being built in Violet which is about 14 miles downstream of the existing cargo handling facilities in the port of New Orleans, meaning vessels will not have any restrictions due to bridges across the river (air draught) in calling at the terminal. Construction work on the new terminal complex is expected to start in 2025 with the first phase of the terminal opening in 2028. On full build-out, LIT will have 3,600ft of berthing line, an on-dock rail yard and the capacity to handle 2M TEU a year.

Brandy D. Christian, president and CEO of the Port of New Orleans, sees the award of the federal grant as another step in the transformation of the port and of the region. “On behalf of the entire team at the Port of New Orleans, I would like to thank Governor John Bel Edwards, Louisiana’s federal delegation and the Biden Administration for sharing our vision to build a new efficient gateway to serve the entire state of Louisiana and America’s Heartland,” he said.

“With Louisiana’s unmatched inland connections and with no bridges in its way, the new Louisiana International Terminal will meet market demands for much-needed supply chain solutions and bring prosperity to our region for generations to come. This funding award builds on years of careful market analysis, planning, due diligence, and community outreach to ensure the project adequately addresses the market need and provides community benefits. We also look forward to working with the incoming State legislature and Administration to deliver this critical project.”

LIT is the biggest public economic development project in the state of Louisiana. It’s expected to generate 32,000 new jobs nationwide, including 18,000 in the state of Louisiana and 4,300 in the parish of St. Bernard. Meanwhile, it is forecast to generate more than US$1B in new state and local tax revenues by 2050.