4 From the CEO. Steel Wheels. 12 Q&A with Michael R. Haverty. 16 Alabo Improvements Nearing Completion. 15 News Stream

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3 NEW ORLEANS Port record The Official Magazine of the Port of New Orleans Executive Editor Chris Bonura Editor Sarah Ravits Art Director Jenny Dascenzo Account Executive Aimee Arceneaux Sales Assistant Andrea Corne Production Manager Staci Woodward Chief Executive Officer Todd Matherne Editor in Chief Errol Laborde Director of Sales/Executive Vice President Kelley Faucheux President Alan Campell Executive Assistant Kristi Ferrante Port Record Contributors Matt Gresham, Lt. Joseph Labarriere, Sandy Byrd-Maldonado, Christy McBrayer, Tracie Morris Schaefer The Port Record is distributed free to subscribers with maritime and associated interests by the Port of New Orleans. Information is gathered from sources considered to be reliable, but the completeness and accuracy of the information cannot be guaranteed. Requests for changes of address should be accompanied by a mailing label. Correspondence concerning this magazine should be directed to: Port Record P.O. Box 60046, New Orleans, LA (504) (504) (fax) portrecord@portno.com 4 From the CEO 6 Steel Wheels 12 Q&A with Michael R. Haverty 16 Alabo Improvements Nearing Completion 15 News Stream 18 Shipper s Spotlight: Tempico Inc. 20 Port Connections 22 From the Archives 24 Final Frame 22 Contents 18 Published by Renaissance Publishing LLC 110 Veterans Memorial Blvd., Suite 123, Metairie, LA (504) Printed in partnership with Mpress, Inc 4100 Howard Ave., New Orleans, LA (504) Copyright 2009 New Orleans Port Record, Port of New Orleans and Renaissance Publishing LLC. Postage Paid at New Orleans and additional entry offices. POSTMASTER: Send address changes to Port of New Orleans, Post Office Box 60046, New Orleans, LA No part of this publication may be reproduced without the consent of the publisher. The opinions expressed in this publication are those of the authors and do not necessarily reflect the view of the magazine s managers, owners or publisher. The Port Record is not responsible for unsolicited manuscripts, photos and artwork even if accompanied by a self addressed stamped envelope. 6 January/February

4 From the CEO Seeking a balance between Time and Money The beginning of a new year and a new decade is a good time to reflect on where the shipping industry has been and where it s going. As I see it, shipping has always had to pay tribute to the twin forces of time and money. But the tradeoffs we make between time and money reveal a lot about where the supply chain is today and where it might be going. In the days before the recession, we had a serious capacity crunch in the supply chain as a whole and in the port industry in particular. If you could save a shipper time, you were a hero. Obviously, shippers weren t too upset if you could save them money. But costs often took a back seat to getting the cargo to its final destination, pronto. Fast forward to today. The port capacity crunch is now a capacity surplus due to the effect of the recession on international trade. Shipping lines are literally easing up on the throttle, sacrificing sailing speeds for fuel savings. The hours at truck gates around the country have been scaled back as terminal operators reduce costs. Where does this leave us in the next year, the next decade and beyond? Are we facing a major shift in the timemoney continuum? I m predicting that the pendulum will start to swing the other way, and we will see some improvements in cargo flows, but with a few caveats. We ve seen the early signs that the recession is about to break, but the Fed is warning that we may be facing a fickle, jobless recovery. While U.S. consumption will likely continue to pick up as consumers become more confident in the recovery, we can no longer depend on the appetite of the American consumer to grow without limit. I see the time factor growing in importance as the supply chain reacts to a modest increase in consumption. We will also be challenged to adjust the supply chain to place a greater emphasis on U.S. exports, by repositioning equipment and re-evaluating port calls and sailing schedules. The shipping industry will continue to keep a tight lid on costs. While we are all hoping trade volumes increase in the next year, everyone is preparing themselves to be profitable even if volumes remain sluggish. If we can strike a balance between saving shippers time and money, we will steer the Port and the industry in the right direction. New Officers at the Helm Speaking of steering the Port in the right direction, I d like to congratulate Capt. Allen J. Gibbs on a successful term as Chairman of the Board of Commissioners of the Port of New Orleans. His leadership was critical in many accomplishments, including finding a permanent home on the riverfront for the Port s dockside refrigerated terminal and lobbying for a tax credit that will benefit Louisiana shippers who import or export from Louisiana ports. I d also like to congratulate the board s new officers: Thomas D. Westfeldt, Chairman; John Fay, Vice Chairman; and Wayne Mumphrey, secretary treasurer. Their leadership will keep the Port on course. Sincerely, Gary LaGrange President & CEO Board of Commissioners of the Port of new orleans Commissioners Thomas D. Westfeldt, Chairman John F. Fay, Jr., Vice-Chairman J. Wayne Mumphrey- Secretary-Treasurer James O. Campbell Allen J. Gibbs Valerie S. Cahill Joseph F. Toomy Executive Staff Gary P. LaGrange / President & CEO Patrick Gallwey / Chief Operating Officer Ted Knight / Executive Assistant for Operations Chris Richard / Executive Assistant for Special Projects Robert M. Landry / Director of Marketing Clay Miller / Director of Business Planning James Ruckert / Director of Finance Paul Zimmermann / Director of Port Operations Deborah D. Keller / Director of Port Development Robert Jumonville / Director of Cruise & Tourism Cynthia Swain / Director of Administration Gerald O. Gussoni / Director of Legal Services Mark P. Williams / Director of Internal Audit Port of New Orleans P.O. Box New Orleans, La Northeast Sales Office Bill Connor Mack-Cali Centre 3, Suite 415/4ST 140 E. Ridgewood Avenue Paramus NJ (201) Far East Office Capt. Nobuyuki Tanaka Daido Building Uchi-Kanda, Chiyoda-Ku Tokyo, Japan South America Office Celso Camargo Rua Irma Piã, 422-5th Floor - Suite São Paulo- SP- Brazil New Orleans Port Record January/February 2010

5 January/February

6 4 New Orleans Port Record January/February 2010 Photos by Tracie Morris Schaefer

7 Betting on Rail s Big Future By Chris Bonura While many companies in the transportation sector have struggled through the recession during 2009, railroads keep chugging along. Now, Wall Street is helping to stoke their engines. Super investor Warren Buffett believes the future of rail transportation is bright. The Oracle of Omaha characterized the decision of Berkshire Hathaway to purchase the Burlington Northern Santa Fe Corporation for $26.3 billion as an all-in wager on the economic future of the United States. January/February

8 Steel Wheels Buffett and Berkshire Hathaway stockholders are not the only ones with a lot riding on the future of railroads. Many shippers moving goods through New Orleans know that a healthy rail sector means more inland transportation options that reduce costs and add convenience. Six of the seven Class I railroads operating in the United States have direct connections to New Orleans. That s more than any other deep draft port in the United States. Fanning out from West to East, the Union Pacific, Burlington Northern Santa Fe, Kansas City Southern, Canadian National, Norfolk Southern and CSX provide direct connections from New Orleans to just about any major industrial corridor in North America. The only Class I railroad with tracks in the U.S. that doesn t operate in New Orleans is the Canadian Pacific, which is mostly located in Canada but enters the U.S. as it makes a ring around the Great Lakes and then branches off to New York and Pennsylvania. The New Orleans Public Belt Railroad is the extra link that forms a network out of the six railroads. The NOPB is a switching railroad connecting the six railroads in New Orleans to each other, to the Port and to about 20 manufacturing and logistics companies. The city-owned railroad, formed in 1908, also owns the Huey P. Long Bridge which provides a crucial link between the two railroads located on the west bank and the four that are on the east bank. The availability of competing railroads with direct connections to New Orleans translates into better service for shippers using the Port of New Orleans. The importance of direct connections cannot be overstated, rail experts say, because exchanging cars between two railroads tacks on additional costs and as much as three days of additional transit times. It can sometimes be a little overwhelming for a shipper to negotiate with six different railroads, says Jesse Weisman of JW Transport, which consults with companies looking to improve their rail supply chain. Nevertheless, the flexibility that six railroads provide to shippers is a distinct advantage for New Orleans. For instance, if one railroad can t spare any cars for loading cargo, a shipper might have better luck with another railroad. Meanwhile, a vibrant field of competitors usually translates to good rates for shippers. Competition keeps everybody honest, Weisman says. The advantage accrues for those looking to move high volumes of freight over long distances. Weisman says he s seen many occasions where the cost to haul railcars 900 miles is not significantly more than the cost of hauling railcars 700 miles. The longer the haul, the more money you save, says David Renee Deshotel and Brandon Jacob perform maintenance on a portion of NOPB s 26 miles of track within the Port of New Orleans. 6 New Orleans Port Record January/February 2010 Photo by Tracie Morris Schaefer

9 Scoggin, manager of Business Development and Marketing for the New Orleans Public Belt Railroad. If you draw a radius around New Orleans, rail is going to be competitive on anything over 200 miles. On a long haul, rail is certainly cheaper than trucks. Long hauls work well with the Port of New Orleans traditional cargo base of breakbulk cargo traveling to or from industrial centers in the Mississippi Valley and beyond. Rubber, steel, metals and coffee are the leading rail import commodities, and paper, pulp and cotton are the leading export commodities. Rubber, which is destined for warehouses and manufacturing plants in Alabama, Illinois, Oklahoma and Kansas is the most consistent port-related rail commodity, Scoggin says. It stows very well in box cars, where it stays covered. We have a regular flow because you have to supply enough rubber to keep the tire plants running. It s not surprising that railroad companies have weathered the recession, says David Kearney, vice president of the Kearney Companies, a New Orleans warehousing and logistic company that trans-loads cargo to and from railcars. The company handles about 2,000 rail car stuffing or stripping operations per year. Railroads were quick to respond to decreased demand with furloughs, which helped reduce costs, he says. Meanwhile, the slower economy Above: The Port of New Orleans is the only seaport served by six Class One railroads. Below: The Port of New Orleans offers on-dock rail at its Napoleon Avenue Intermodal Terminal. Photo by Donn Young January/February

10 Steel Wheels has caused many shippers to reconsider rail because they are now more likely to sacrifice speed in order to get a lower rate. He encourages shippers to think of railroads as their rolling warehouses. They are seeing from a strategic standpoint that they can slow their supply chain down a little and reduce the square footage that they need for warehousing. They have to increase their lead time by a week, so it s not a huge issue. What we are pushing is to have a balance of truck and rail movements with each order to optimize cargo flow, Kearney says. If stocks become depleted, Kearney recommends that shippers can order a hot shot shipment of cargo to be trucked in to keep inventories at optimum levels. Rail is considered a key component of a modern, efficient container terminal. In 2008, the Port of New Orleans opened an on-dock intermodal railyard within the port complex to improve the efficiency of container shipments on rail. The intermodal yard is about 1,000 yards away from the Port s container berths at the Napoleon Avenue Container Terminal, enabling an easy transfer from ocean freight to rail cargo after a short in-port dray. Roughly, 1,600-1,800 containers per month are transferred at the terminal. Most of the traffic at the terminal arrives or Above: A roll of paper is loaded into a container at the Kearney Companies. Below: A top-loader prepares a container to be placed on rail at the Napoleon Intermodal Terminal. The 26-acre facility is located within 1,000 yards of container ship berths. 8 New Orleans Port Record January/February 2010 Top photo by Donn Young. Bottom photo by Tracie Morris Schaefer.

11 departs from New Orleans on an intermodal service started by the Canadian National railroad that reaches Memphis in 24 hours, Chicago in 72 hours and Detroit in 96 hours. The Napoleon Avenue Intermodal Rail Yard is located on a 26- acre site that the Port bought from the Illinois Central Railroad in The railyard is equipped with 6,800 feet of tracks, bordered by concrete pads enabling top-loaders to transfer containers between rail cars and trucks. New Orleans Terminal operates the intermodal railyard and transfers containers between the railyard and the container terminal. At the container terminal, which is operated by New Orleans Terminal and Ports America, rail users can access ocean shipping services from Mediterranean Shipping Company, Hapag-Lloyd, Seaboard Marine, Maersk, CSAV and CMA-CGM. The New Orleans Public Belt provides switching services between the six trunk line railroads and the intermodal yard. The CN uses the intermodal railyard on a regular basis and the BNSF occasionally uses the intermodal yard. Weisman says the intermodal railyard represents a huge step forward because rail users no longer have to rely on trucks to move boxes one at a time between the container terminal and the intermodal ramps of various railyards, which are interspersed throughout the city. The railyard also makes it more convenient to move containers that exceed the maximum weight capacity for trucks on highways and bridges, since boxes that travel by rail to the intermodal yard never have to leave Port property to be transferred to or from ocean-going vessels. Scoggin also points out that one train takes about 300 trucks off the highways, which saves considerable fuel and cuts emissions. In the long term, railroads have a bright future, he says, because everything is going green. It s a great way to save on pollution and fuel. It takes congestion off of U.S. highways, and it s safer when you take trucks off the road. On the horizon, Scoggin sees great potential for moving bulk materials by rail and stuffing them into intermodal containers for export on container ships. He points out that several local warehousing companies are investing in the equipment that would allow for such transfers. With credit markets tightening, many shippers can no longer afford to move 5,000 tons of cargo at a time by chartering a bulk ship, Scoggin says. But they can get the credit to move a container. As shippers move from a vessel-based supply chain to a container-based supply chain, Scoggin says New Orleans remains a competitive transportation hub. Photo by Chris Bonura January/February

12 Q&A with Michael R. Haverty KCS CEO Discusses the Future of Rail Michael R. Haverty is Chairman of the Board and Chief Executive Officer of Kansas City Southern, a transportation holding company headquartered in Missouri. The KCS Railway encompasses 3,226 miles of track in the south and south-central United States, and the Kansas City Southern de Mexico operates 2,645 miles of track in Mexico. KCS also owns a 50 percent interest in the Panama Canal Railway Company. Haverty is scheduled to speak at the Critical Commodities Conference, which will take place in New Orleans April In anticipation of his remarks, the Port Record invited him to an interview on the outlook for the rail industry. What strategic role do the rail corridors in New Orleans and Louisiana play in KCS network and what opportunities and challenges do you foresee for the future? New Orleans is a strategic gateway for KCS. We have a large market position with the chemical refineries along the Gulf Coast, and New Orleans is our largest gateway to the southeastern markets. Shreveport is the central hub of our U.S. operation. Our grain business, primarily corn, moves from the north over Shreveport to Mexico, and our coal business that interchanges to us at Kansas City moves to Texas utilities through Shreveport, as well. Shreveport also acts as our east-west hub for intermodal and paper and forest product business. KCSR s Meridian Speedway line from Shreveport, La. to 10 New Orleans Port Record January/February 2010 Meridian, Miss. is a key link in creating the shortest, most efficient rail route from the southwest to the southeast. Over the past few years, KCSR and our joint venture partner, NS, have invested more than $200 million to improve and upgrade the track on this line. Some prominent investors are buying into the railroad industry as a long-term bet that the U.S. economy will improve and the sector is poised to reap the benefits. Do you agree that railroads are good harbingers for the economy as a whole? Insofar as railroads move commodities which are essential to economic growth and prosperity, it is reasonable to think of railroads as harbingers for the economy as a whole. Commodities such as chemicals, steel, coal, forest products, among others, are most efficiently moved by rail and are bedrocks of the U.S. economy. Therefore, there tends to be a close relationship between volumes in these areas and the vibrancy of the economy. For a variety of reasons, the future looks quite good for the North American railroads. Railroads are the most efficient and cost-productive transportation mode to move bulk items long distances. Railroads are the most environmentally friendly means of transporting freight, which is becoming increasingly important to companies committed to lowering their carbon footprints. These, combined with competitive pricing, suggest that railroads will continue to gain freight market share in the years ahead. Photo by Chris Bonura

13 advent of the ocean carriers intermodal container. When you consider that a freight train can move a ton of freight an average of 436 miles on a single gallon of fuel, almost four times as far as it could move by truck; that a train can take the load of 280 trucks off the road, like removing 1,100 cars from the road; and that each ton-mile of freight moved by rail rather than highway reduces greenhouse gas emissions by two-thirds or more, it s no wonder that intermodal is the fastest growing sector in the rail industry. What are your capital improvement plans for 2010? Our objective in 2010 is to manage our capital spending based on economic conditions. At this time, we d expect the capital spend in 2010 to come in at around 17 percent of next year s revenue and relatively flat year-over-year from a total spend perspective. We completed the Victoria to Rosenberg project in 2009, which was a very significant achievement for our company and the primary focus of our capital program this past year. Next year, the primary operational focus of our capital spend will be maintenance on our main line in both the U.S. and Mexico, and you ll see a significant increase in the number of crossties inserted. All projects for 2010 have gone through a rigorous screening process to ensure that they achieve both our strategic and financial objectives. What is KCS doing to continue to push the envelope when it comes to fuel-efficiency and other green issues? KCS currently has the most modern locomotive fleet in North America, and we re continually looking at options to increase fuel efficiency and reduce fuel consumption. In addition, we have made investments in the following: Battery-powered locomotives (Hybrids) GenSet locomotives with multiple, truck-size diesel engines that activate individually as increased power is needed Repower of existing older locomotives with state-of-the-art engines to lower emissions and increase locomotive fuel efficiency The addition of idle control technology to existing locomotives achieving as high as 40 percent fuel savings. With KCS controlling the northern tracks of the rail crossing between the U.S. and Mexico near Laredo, you must have some interesting perspectives of NAFTA. How do you evaluate the success of that trade agreement? Despite what some critics have mistakenly declared, NAFTA has provided a tremendous boost to the U.S. economy. Even key U.S. labor leaders have pointed out that NAFTA has been a net positive for U.S. job creation. In terms of trade, NAFTA has been an overwhelming success to the point that Mexico is now the U.S. s third largest trading partner. This second point is key toward the long-term potential of KCS. Right now, cross border NAFTA business represents a significant percentage of KCS consolidated volumes and revenues. These numbers should escalate dramatically in the coming years. It is a combination of the strength of NAFTA and the efficiency of KCS rail system linking the commercial and industrial heartlands of the U.S. and Mexico that provides significant potential for growth. How has the rise of the container and intermodal service shaped the railroad industry? The rise of the intermodal and container business has reshaped the rail industry in that railroads no longer have to directly serve an industry to participate in its business. It has also opened the industry to participate in global trade with the KCSR is working closely with locomotive manufacturers and the Southwest Research Institute to test our locomotive fleet. Rail to wheel friction is one reason why moving freight is so cost-efficient; however, to improve the movement of the wheel on rail, KCS employs wheel lubrication on its locomotives, increasing fuel efficiency. Locomotives moving through curves will also increase frictional forces; therefore, similar to locomotive lubrication, curve lubrication is employed, allowing all cars moving through the curve to have reduced friction. How do you see the regulatory environment shaping up under this Congress and the Obama administration? That is a work in progress and the entire rail industry will be deeply engaged in helping to shape any new regulatory actions or legislation that may work through the Congress and the Obama Administration next year. To hear more from Haverty, and other transportation and commodity experts, please register to attend, exhibit or sponsor the Critical Commodities Conference. Registration information is available at or by contacting Jimmy Baldwin, Southern Sails, at (504) or j.baldwin@sailsla.com. January/February

14 Double Aught Construction LLC crews work to extend the upriver portion of the Alabo Street Wharf. 12 New Orleans Port Record January/February 2010

15 Alabo Street Wharf IMPROVEMENTS NEARING COMPLETION Work adds a third berth, boosts efficiencies for operator Pacorini Global A refurbished shed, improved rail access and an extended dock are on tap for the Alabo Street Wharf as construction nears completion in the first quarter of The $8.062 million project will add 418 feet to the dock 151 feet downriver and 267 feet upriver to create a 1,734-foot dock for three full ship berths. Other work includes improved rail access to the facility, new lighting and a refurbished shed both inside and out. Jacksonville, Fla.-based Pacorini Global Services LLC is the terminal operator for the busy facility, which spans more than 12 acres in New Orleans Lower Ninth Ward. The neighborhood was hard hit by Hurricane Katrina in 2005; however, the facility suffered only wind damage and no flooding. As a result, business sprang to life soon after at Alabo Street, but not without difficulties. Pacorini Global s Director of Sales Donald Broussard remembered working for nine months on generator power, while waiting for electricity to be restored. Additionally, we did not have any phone or internet service for about (18 months) and relied on a portable satellite dish to maintain contact with the shipping community. Today, the Alabo Street Wharf is one of the Port s bustling docks mostly handling various metals, including steel, aluminum, copper and zinc. The wharf extension will allow for more efficient shipto-barge discharges and for times when three ship berths are needed. Due to heavy demand, Pacorini Global had to utilize the Port s flex wharves at Governor Nicholls Street and Poland Avenue when a third ship entered the facility s schedule. Louisiana s Port Priority Program funded $5.63 million of the work, while the Port of New Orleans picked up the remaining balance. Crown Roofing Services of Kenner, La., received the contract to refurbish the dockside warehouse, which includes a new roof and siding, reinforced structural framework and upgrades to the electrical and lighting systems. Double Aught Construction, LLC, of Belle Chase, La. performed the wharf extension and Command Construction Industries of Metairie, La., performed the rail upgrades. Pacorini Global is a critical player in the steel and metals industries and a valued tenant of the Port of New Orleans, said Gary LaGrange, Port President and CEO. These upgrades to the Alabo Street Wharf illustrate a strong commitment from the Port and the State of Louisiana to provide the best facilities possible and our effort to work with Pacorini Global to grow its business in New Orleans. Photo by Lt. Joseph Labarriere January/February

16 14 New Orleans Port Record January/February 2010

17 lng terminal debuts in lake Charles News Stream Sempra Energy, a San Diego-based Fortune 500 energy services company, has opened a new liquefied natural gas terminal in Western Louisiana, near Lake Charles. The $900 million terminal can receive up to 1.5 billion cubic feet per day of natural gas. The Cameron LNG Terminal project employed 1,000 workers at the peak of its four-year construction cycle. Sempra Energy s decision to invest $900 million and establish Cameron LNG in Southwest Louisiana is building upon this region s terrific economic momentum, said Gov. Bobby Jindal. He said that the investment can be linked to comprehensive reforms we have made to Louisiana s business climate, which have enabled our state to continue successfully attracting companies during this time of national economic downturn. Cameron LNG has a 20-year contract with Eni S.p.A., an Italian energy company, and a flexible agreement with RasGas to purchase up to 50 LNG cargoes through Dec. 31, The natural gas processed at Cameron LNG will be used in the Gulf Coast, East Coast and Southeastern United States. This project would not have been possible without the help of many businesses, elected leaders, regulators and local residents, said Donald E. Felsinger, chairman and chief executive of Sempra Energy. We look forward to working with the state of Louisiana on future energy projects that address the state s energy needs and those of our nation. January/February

18 News Stream louisiana ranks 2nd in riding out the recession Critical Commodities Conference set for april In a recent analysis of how states fared during the recession, Louisiana ranked second best with an overall economic index of North Dakota was the only state outranking Louisiana with an overall economic index of Using data from the U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis and Federal Housing Finance Agency, the Portfolio.com analysis evaluated all 50 states and the District of Columbia on six different categories, including job growth, current unemployment, income growth, wage growth, home value growth and construction job growth over the past year. Each state s results were compared to corresponding national averages in the six categories. Above-average performances received positive scores, while below-average scores received negative scores. Strengthening Louisiana s economy and improving our state s business climate has been our top priority since taking office last year, said Louisiana Economic Development Secretary Stephen Moret. We are encouraged by the recent Portfolio.com ranking, yet we know we have a lot of work left to do to ensure that we consistently outperform the South and the U.S. Louisiana s position has improved across a variety of national business climate rankings over the last two years, including Forbes.com s Best States for Business, Small Business and Entrepreneurship Council s Business Tax Index and Small Business Survival Index, Beacon Hill Institute s State Competitiveness Report, Pacific Research Institute s Economic Freedom Index, CNBC s America s Top States for Business, Kauffman s State New Economy Index and State Policy Reports Index of Economic Momentum. In addition, Louisiana currently ranks in the top five in ethics rankings published by the Better Government Association. The Port of New Orleans and the American Institute for International Steel (AIIS) will host the 2nd Annual Critical Commodities Conference April 20-22, 2010 in the Crescent City. The event is designed to appeal to all carriers and shippers of waterborne commerce. Organizers expect more than 600 participants, which will include a wide variety of port authorities and North American, European, Latin American and Asian shipping executives, along with about 60 exhibitors. An impressive speaker and moderator platform is in place featuring Mike Haverty of KCS, Dr. David Welch of Stone Energy, Niels M. Johnsen of ISC, Peter Marcus of Steel Dynamics, Merritt Lane of Canal Barge, Cornel Martin of the Waterways Council, and Gary LaGrange of the Port of New Orleans. The keynote speaker will be Leo Gerard of the United Steel Workers. The Critical Commodities Conference will take place just prior to the first weekend of one of the city s most popular music festivals, the New Orleans Jazz and Heritage Festival, and the same week of the Zurich Classic PGA Golf Tournament. Southern Sails of Louisiana, LLC is in charge of the conference, which will be held at the Hilton New Orleans Riverside Hotel. For more information contact Jimmy Baldwin at (504) or j.baldwin@sailsla.com. new orleans terminal adds new service at napoleon A new service at the Port of New Orleans Napoleon Avenue Container Terminal is benefiting specialty bulk shippers. New Orleans Terminal LLC, one of two terminal operators for the facility, recently began bulk transfer service from both trucks and rail cars to containers. The service was first instituted in December and, according to New Orleans Terminal officials, is well-received by customers. We are currently looking at building operational efficiencies and hope to expand the service over the course of the next several months, said Jeff Hakala, vice president of New Orleans Terminal. Currently, the operation is transferring bulk cargo from bottom-dump rail cars and hopper trucks to containers. 16 New Orleans Port Record January/February 2010

19 News Stream Carnival Brings Bigger ship to new orleans With the arrival of the Carnival Triumph on Nov. 11, Carnival Cruise Lines increased the capacity of its New Orleans-based ship by 34 percent and resumed seven-day cruising from the Crescent City. The 2,758 passenger Carnival Triumph replaces the 2,056 passenger Carnival Fantasy, which offered four-and five-day cruises from New Orleans to the Western Caribbean and will now sail from Mobile, Alabama. Along with a new, bigger ship, Carnival has changed its sailing schedules to offer four-, five- and seven-day cruises to a variety of tropical destinations. The four- and five-day cruises visit the western Caribbean and the seven-day cruises alternate between routes in the western Caribbean and the Bahamas. On its New Orleans-based program, four-day cruises depart on Thursdays and call at Cozumel, while five-day voyages depart Mondays and Saturdays and visit Progreso and Cozumel. Seven-day cruises depart on Saturdays, with exotic western Caribbean itineraries visiting Belize City, Isla Roatan (Honduras), and Cozumel. The Bahamas cruises call on Key West, Freeport and Nassau. Mike Julius, Carnival s vice president central region, said the world s largest cruise operator has enjoyed an excellent relationship with the Port and the city. Carnival has enjoyed an excellent relationship with the Port of New Orleans for the past 15 years and during this time our passenger counts have increased significantly. New Orleans is an excellent departure point for Fun Ship cruising as well as an exciting tourist destination itself. We look forward to providing guests with a wonderful cruise experience aboard the Carnival Triumph. The Carnival Triumph offers a truly unique vacation experience, with a host of resort-style amenities and an exciting array of stunning public rooms and facilities, each with a character all its own. In addition to a diversity of themed bars, lounges and nightspots, Carnival Triumph features myriad full-service and casual dining choices, an on-board health and fitness facility, complimentary children s programs in three different age groups, and a comprehensive golf program offering golf excursions and personalized lessons. Cell phone service and ship-wide Wi-Fi access is also available. Of its 1,379 staterooms, 60 percent offer either an ocean view or balcony. For additional information, contact a travel agent, call CARNIVAL, or visit Photo by Tracie Morris Schaefer January/February

20 Shipper Spotlight Tempico inc New Orleans Port Record January/February 2010 Photos by Tracie Morris Schaefer

21 Shipper Spotlight Tempico Inc., based in Hammond, La., manufactures rotating autoclaves, or Rotoclaves, that are used to sterilize medical waste or for municipal waste treatment and recycling. The equipment consists of a large pressure vessel with a rotating helix-shaped agitator. Waste in large bins is loaded into the pressure vessel using an autoloader. Once the hatch is closed, steam is introduced into the system providing the heat and pressure that will help break down and sterilize the contents with the help of the rotating agitator. When the sterilization cycle is complete, the machine places the contents on a conveyor belt where they are sent to an integrated shredder system for medical waste. In municipal waste and recycling applications, paper pulp and other recyclable materials can be separated and reused. The entire process is operated from a touch screen, which allows for safe handling of medical waste and other materials. The Rotoclave process and equipment was invented and patented by the Terry Placzek, an engineer who worked in the paper and pulp industry and who was the founder and CEO before he passed away in The equipment is normally used in hospitals, research centers, regional medical waste processing centers and municipal waste facilities. It is assembled at Tempico s headquarters in Hammond by a team of Tempico workers and subcontractors. About half of Tempico s business is exports, primarily to the UK, Western Europe, Middle East and Japan & 2. Rotoclaves are manufactured in Tempico s Hammond facility. 3. craig Boots of Tempico, Ryan Bright of Bartlett engineering, Justin Landrum of Liberty Welding and Greg Diaz of Liberty Welding work on the rear drive bearing assembly. 4. William phillips and Justin Landrum of Liberty Welding use a forklift to help place and install the Rotoclave drive motor. 5. miguel Rodriguez of Liberty Welding installs the tie-down lugs which will be used to secure the machinery when it is shipped. 6. Ryan Bright of Bartlett engineering and Justin Landrum of Liberty Welding review the plans for the drive assembly, which spins the Rotoclave, as they prepare to install it. 7. Sky Foxworth (Tempico) works on the water pump regulator assembly for the Rotoclave rollers January/February

22 Port Connections John F. Fay Jr., vice chairman of the Board of commissioners of the port of New orleans, presents a port of New orleans mariner s certificate to capt. claudio cupisti, captain of the carnival Triumph. (Left to right) port president and ceo Gary p. LaGrange; Thomas Westfeldt, chairman of the Board of commissioners of the port of New orleans; and commissioner Valerie cahill look on. The 2,758-passenger cruise ship began sailing from New orleans in November. carnival cruise Lines Fun Ship represents a 34-percent increase in capacity, as it replaces the 2,056-passenger carnival Fantasy. Photos by Lt. Joe Labarriere Top photo: Norwegian cruise Lines 1,966-passenger Norwegian Spirit was featured on espn s monday Night countdown prior to the New orleans Saints monday Night Football matchup with the New england patriots Nov. 30. The Saints defeated the patriots Bottom left photo: Frozen poultry is prepared to be shipped by New orleans cold Storage. Bottom right photo: espn used a variety of mississippi River scenes in its coverage of monday Night Football, including a Jumbo Shipping vessel. 20 New Orleans Port Record January/February 2010 Photos courtesy of ESPN

23 Port Connections Top: U.S. Department of Transportation Secretary Ray LaHood visited maritime Administration officials in New orleans aboard marad vessels berthed at the port of New orleans poland Street Wharf Dec. 1. middle: port president and ceo Gary LaGrange briefs U.S. Department of Transportation Secretary Ray LaHood on port operations during his recent visit. Bottom: Left to right: port commissioner Joe Toomy, Vice chairman John Fay, US DoT Secretary Ray LaHood, chairman Thomas Westfeldt, and port president and ceo Gary LaGrange. January/February

24 From the Archives This page - Top Left: A breakman highballs the engineer and a string of mechanical reefers begins its journey to eastern markets. Top right: An engineer uses a train radio to communicate in a missouri pacific diesel freight locomotive at the port of New orleans. Bottom Left: A forklift operator loads commodities into a rail car; the New orleans Hilton and World Trade center are in the background. Facing page - Top photo: caterpillar diesel machines are crated onboard rail cars and ready to be loaded onto a vessel at the port of New orleans. Bottom left: The L&N Railroad spanned the inner Harbor Navigation canal, which is under construction in this photo. Bottom right: (Left to right) J.K. Dent, L&N vice president-traffic; R.c. Tway, Jr., vice president of Kentucky manufacturing co., and J.e. Tilford, president of L&N Railroad, watch the first Trailer on Train express service prepare to move out on Aug. 8, Kentucky manufacturing built the new trailers for the service, which accommodated markets between Louisville and New orleans. 22 New Orleans Port Record January/February 2010

25 From the Archives Rail through the years The history of rail in New Orleans dates back to April of 1831, when Pontchartrain Railroad Co. opened a 4.5-mile railroad from Lake Pontchartrain to the Port of New Orleans. Pulled first by horses, the company eventually imported a steam engine from England. By 1883, railroads linked west and north and New Orleans grew into a hub of railroads connecting it with the rest of the United States. Over time, hundreds of railroad companies were born and later purchased, acquired or merged with larger conglomerates. Today, New Orleans is the only deep-water seaport in the United States served by six Class 1 railroads. January/February

26 Final Frame The Rickmers Seoul discharges a 383-ton transformer in December New Orleans Port Record January/February 2010 Photo by Lt. Joseph Labarriere

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28 Prsrt Std U.S. Postage PAID New Orleans, LA Permit No. 2173