Chiquita Brands International has announced that it is to move its shipping operations back to New Orleans after an absence of nearly 40 years.
Louisiana Governor Bobby Jindal joined Chiquita's senior vice-president Mario Pachecoin announcing the move, which will see the fresh produce giant - currently in the middle of a major merger deal with fellow banana giant Fyffes -relocate its shipping operations from the Port of Gulfport in Mississippi to the Port of New Orleans.
Chiquita plans to ship 60,000-78,000 TEUs per year at the Port of New Orleans, representing a roughly 15 per cent increase in current container volumes at the port.
Chiquita, which was knownas United Brands in the 1970s, relocated its shipping operations from the Port of New Orleans to the Port of Gulfport in the mid-1970s after more than seven decades.
An LSU economic impact study suggests the project will result in approximately 270 to 350 new permanent jobs in New Orleans – based upon the range of TEUs shipped – as well as an increase in total economic output of US$373m-US$485m over the nextten years.
Chiquita plans to ship 30,000-39,000 TEUs of bananas and other fresh fruit into the Port of New Orleans, as well as 30,000-39,000 TEUs of various outbound cargos. Shipments in New Orleans are expected to begin by the first quarter of 2015.
“We at Chiquita are thrilled to return to the port and the great city of New Orleans as we implement a new shipping configuration,” said Pacheco, who supervises the company’s global logistics. “We are particularly excited about the enhanced service levels to our Chiquita and Great White Fleet customers that will result from this change in our shipping operations and expanded vessel capacity.
'We have valued our partnership with the Port of Gulfport and thank them for many years of great service,' he added.'This was a clear business decision for us surrounding our new shipping configuration rather than any dissatisfaction with the strong and economically competitive team we have had at Gulfport.”
The project isdesigned to strengthen both the state’s and the New Orleans port’s ties to Central America, resulting inimproved ocean transportation to those countries.
To secure the project, the State of Louisiana will provide Chiquita a performance-based incentive of US$18.55 per TEU (a total value of US$1.11m to US1.45m annually) to offset increased shipping and handling costs at the Port of New Orleans, and will invest US$2.2m in a port-owned distribution/ripening facility to be leased to Chiquita.
The Port of New Orleans will invest US$2m for refrigerated-container electrical infrastructure and rehabilitation of a container freight warehouse to accommodate the project.
Governor Jindal called the deal a “huge, historic win' for the Port of New Orleans, and for trade in the state.
