Port of South Louisiana (Port SL) has reached a deal with terminal operator T Parker Host to purchase the Avondale Global Gateway facility for $445m.
The 254-acre logistics facility is situated on the west bank of the Mississippi river.
In 2018, T Parker Host bought the former shipyard, which was shuttered in 2014 and then converted into a multimodal commerce hub.
Avondale Global Gateway has the capability to accommodate ships, barges, rail and trucks. It also provides connectivity to regional and interstate highway networks.
Featuring 1.5 million ft² of convertible warehouse or manufacturing area, the facility offers indoor and outdoor storage spaces for Foreign Trade Zones.
As part of the new purchase and sale agreement, Port SL will sign a long-term deal with T Parker Host to act as the terminal operator of the facility.
Avondale Global Gateway will also become an economic unit of the state of Louisiana.
Furthermore, the deal will help Port SL to emerge as a major player in traditional global trade and promote the development of renewable energy.
The agreement comes shortly after the US Department of Homeland Security Federal Emergency Management Agency awarded a grant of around $1m to Port SL to upgrade the port’s cybersecurity and technology infrastructure.
Port of South Louisiana CEO Paul Matthews said: “The state’s largest port is ready to own the state’s greatest industrial icon.
“This acquisition establishes Avondale Global Gateway as a permanent Economic Development arm of the State of Louisiana. The Port is laser-focused on expanding our operations and bringing prosperity to the Southeast Louisiana Region.”
Port SL will receive federal and state funding to undertake new development activities at Avondale Global Gateway.
A new study presented by the Kathleen Babineaux Blanco Public Policy Center director Dr Stephen Barnes projected that Avondale Global Gateway will create more than 4,500 jobs.
T Parker Host president and CEO Adam Anderson said: “Host saw the potential of the Avondale site and stayed the course through significant challenges to realise what Avondale could become.
“Our team of 300 Louisianans has returned the site to commerce as Avondale Global Gateway. Host will continue our work at Avondale as the terminal operator.”