Group 5: Andrea Berge Samantha Erwin James Tierney Oluwafemi Popoola

Port of New Orleans - SWOT Analysis

Strengths: Intermodal connections to six Class I railroad lines - Burlington Northern/Santa Fe, Canadian National, CSX, Kansas City Southern, Norfolk Southern, and Union Pacific. This gives direct transfer of goods from ship to rail or rail to ship. Also allows competition from railroads for business to choose from foreign trade zone. This allows cargo to be stored, or manufactured on the port and prevent from taxing on every single item. Location on the Mississippi River - connection to both international and inland markets. New cold storage facilities/dockside refrigerated terminal. Only deep water port in the U.S. which allows more variety of ships to harbor Maritime activities of the Port of New Orleans are responsible for 160,500 statewide jobs (6). Louisiana was ranked as the most improved state for business according to the magazine Chief Executive. Worlds busiest waterway with more than 6,000 ocean vessels annually move through New Orleans on the Mississippi River (8). Can accommodate cruise liners which help increases profits. Serves six Class 1 railroad lines, 50 ocean carriers, 16 barge lines, and 75 truck lines which help contribute to making it the most intermodal port. The Clarence Henry Truckway gives truckers better access to the Ports Mississippi River terminals (8). A major foreign trade zone to help improve global trade. A leading port for the movement of imported steel (8). Nations head port for imported natural rubber (8). The nations leading coffee-handling port, with 14 warehouses, more than 5.5 million feet of storage space and six roasting facilities in a 20 mile radius (8). Weaknesses: Shallow draft along the Gulf Coast which could be dangerous for larger ships. Lack of local/regional demand for products - population lacks concentration.

 The breakbulk cargo sector is expected to only grow 2 to 3 within the Port of New Orleans while it is expected to grow 3 to 7 percent worldwide is because of the lack of adequate transit shed. Accommodating such fluctuations in the amount of breakbulk cargo would need smooth and easy access to more transit shed space. Being that the transit shed capacity at the Port of New Orleans is divided among privately owned and operated terminals, it would be very difficult to move cargo from one terminal to another. Many other ports will be growing and expanding at a much faster rate and could take away some business. (1) Frequency of natural disasters - hurricanes, flooding and droughts. This could scare away customers from doing business with the Port of New Orleans. Opportunities: Growth in the size of container ships and the Panama Canal expansion. Improvements in dockside infrastructure to specifically target the cruise ship industry. Received federal grant funds to build the Mississippi River Intermodal Terminal for improved rail access. Two new post-Panamax gantry cranes at the Napoleon Avenue Container Terminal, specifically designed to accommodate the larger container ships expected as a new set of locks opens on the Panama Canal in 2014 (6). A marshalling yard expansion of 4.5 acres to help increase container capacity at the Napoleon Avenue Container Terminal (6). Remodeling of the Julia Street Cruise Terminal will let the port accommodate larger ships and handle more passengers. This enables the port to handle up to two cruise ships a day, which could increase profits. Transportation Consultants Inc. expansion expected to increase PVC exports (6). Contains the worlds longest wharf (2.01 miles) that can harbor up to 15 vessels at the same time. Being the worlds busiest waterway enables a greater diversification of cargo moving throughout the port which makes room for new business to grow around the port. Since costs are growing in other ports, having strong efficiency and being the largest port can hopefully minimize costs. As cost are being minimized and efficiency increased, the port of New Orleans will be the smarter choice compared to other ports. Threats: Expansion of Gulf Coast and Caribbean ports which leads to increased competition. Proposed funding cuts for Army Corps of Engineers dredging activities are necessary to keep the channel and river clear. Frequency of natural disasters - hurricanes, flooding and droughts. This could scare away customers from doing business with the Port of New Orleans.

 Being the worlds busiest port can also deter customers. If the port is overcrowded or there are long waiting lines to enter the port, customers may find other places to move their goods or business. Other ports such as Tampa are making heavy investments into better technology and equipment. If more investments are not made, the Port of New Orleans may end up falling behind. The economy (could get worse).

References

1. "Charting of the Port of New Orleans: Master Plan 2020." Jemison & Partners, Inc. Feb 2008. 8 Sept. 2012. <https://docs.google.com/a/odu.edu/viewer?a=v&q=cache:10KWAEzExgYJ:senate.la.go v/Appel/topics/2010/2007ss/2020%2520PoNO%2520Master%2520Plan.pdf+port+of+ne w+orleans+weakness&hl=en&gl=us&pid=bl&srcid=ADGEESjEtacahz3hWVKYveLPD 4Lk_oSLhe5mB5k9MnUKS2OeIMDfDt5z6jW8xrFZcqMHXzBwKzsRf_ZJ_NNSldx8pI Zyjc9PjqvlUUWpBxJ9zsWr1msxzyLldiQ8uXlxT_aFXQnFLXFN&sig=AHIEtbQDtD6T ytsNn1G-_XxS-OK9bjouUA&pli=1>. 2. Cruising in overdrive. (2012). New Orleans Magazine, 29. 3. "Latest News: Port Terminals Operating Normal Schedules." Port of New Orleans. Web. 08 Sept. 2012. <http://www.portno.com/>. 4. Leach, P. T. (2012). New cold storage warehouse opens in New Orleans. Joc Online, 1-2. 5. Leach, P. T. (2012). New Orleans container traffic jumps 11.6 percent. Joc Online, 1-2. 6. New Orleans Port Record 2012. 08 Sept 2012 <http://www.ammaxdigital.com/publication/?m=6893&l=1>. 7. Ngai, C. (2012). Funding cut for port dredging would bring big US losses: study. Metal Bulletin Daily, (294), 275. 8. "Port of New Orleans Overview." Port of New Orleans. 08 Sept. 2012. <http://www.portno.com/pno_pages/about_overview.htm>. 9. "U.S. Port Industry." - Port Industry Information. N.p., n.d. Web. 08 Sept. 2012. <http://www.aapa-ports.org/industry/content.cfm?itemnumber=1022>.