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Chiquita banana boats return to Port of New Orleans after 40 years

AFTER a nearly 40-year hiatus, the major American producer and distributor of bananas, Chiquita Brands, is returning its shipping operations to the Port of New Orleans from Gulfport, Mississippi.

For this, Louisiana will provide Chiquita a grant of US$18.55 per TEU to offset increased shipping and handling costs at New Orleans, and invest $2.2 million in a port-owned distribution/ripening facility to be leased to Chiquita.

The Port of New Orleans will also invest $2 million for refrigerated-container electrical infrastructure and rehabilitation of a container freight warehouse to accommodate the project.

Chiquita relocated its shipping operations from the Port of New Orleans to the Port of Gulfport in the mid-1970s after more than seven decades of calling at New Orleans.

The move is expected to result in 270 to 350 new permanent jobs in New Orleans - based upon the range of TEU shipped - as well as an increase in total economic output of US$373 million to $485 million over the next 10 years.

Chiquita plans to ship 60,000 to 78,000 TEU per year to New Orleans, representing a 15 per cent increase to current container volumes.

Chiquita expects there with also be 30,000 to 39,000 TEU of outbound cargo. The company shipments in New Orleans are expected to begin by the first quarter of 2015, according to the American Journal of Transportation.

"This is a huge, historic win for the Port of New Orleans and for trade in our state," said Louisiana Governor Bobby Jindal. "This solidifies Louisiana's position as one of the top states for international commerce in the US."

Said Chiquita vice president Mario Pacheco: "We are excited about the enhanced service levels to our Chiquita and Great White Fleet customers that will result from this change and expanded vessel capacity."