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REGIONAL FOCUS: U.S. GULF COAST industry bounces back.” Earlier this year, port tenants, many As for the port’s projects, “we continue to expand our foot- of which are vessel operators, asked the facility to reduce their print by building more bulkhead to create more waterfront,” rents by 30 to 35 percent, retired emeritus-economics profes- Chiasson said, adding. “And we’re beginning our new Slip sor Loren Scott of Louisiana State University said. “Lease D development with a bucket-dredge project there.” Much of rates for their vessels are down, boats are tied up and they’re the port is built on land? ll in wetlands. In swift growth since getting paid less,” he noted. In response, the GLPC cut basic Hurricane Katrina in 2005, the port has added nearly 20,000 land rentals for tenants by 20 percent, starting on April 1 and linear feet of waterfront, along with over 500 acres of land for continuing to March 31, 2016. The move potentially allows servicing the deepwater sector. tenants to hold onto key employees, at least a little longer, For example, Port Fourchon embarked on a Northern Expan- even as the downturn deepens sion more than 15 years ago and even if oil isn’t cooperating,

Weak oil prices have also affected some construction plans the port hasn’t yet taken its foot off the gas. “The area includes at the port. Galliano, La.-based Edison Chouest Offshore or the fully operational Slips A and B, along with Slip C--part

ECO, the port’s biggest tenant, and its Lockport, La. unit Bol- of which is becoming operational and part of which isn’t de- linger Shipyards, have slowed their expansions at the port this veloped or bulkheaded yet,” port spokeswoman Leigh Guidry year, Scott said. When asked about that, ECO wouldn’t com- said last month. “The expansion’s Slip D is being dredged into ment, however. existence right now. Like the rest of the port’s slips, D will be

But as of this fall, Bollinger had yet to announce the open- a new section of leasable, waterfront property.” ing of Bollinger Fourchon North, initially scheduled for this Last summer at Port Fourchon, Harvey Gulf International year’s second quarter. Designed as a dry dock facility, Bol- opened the country’s ? rst LNG marine-fueling facility. Ac- linger Fourchon North will also include fabrication space and cording to New Orleans-based Harvey Gulf, it bunkering site housing for subsea equipment. The existing Bollinger Four- is accessible to 600 oil and gas rigs and platforms within a chon South is a rig, topside repair and conversion facility on 40-mile radius of the port. The ? rm has invested in duel fuel the port’s main channel. OSVs that will operate in the Gulf. In October, the second of

Covered C-Ports, developed by ECO as supply centers for six LNG vessels being built for the company by Gulf Coast ? uids, bulk material, cement and pipe for offshore operators, Shipyard Group in Mississippi was delivered.

are one of Port Fourchon’s biggest advantages. The ? rst C-Port opened in 1997. The ability to load cargoes simultaneously at Pain Persists for Employers – and Employees Alike covered slips reduces movement to different docks, cutting In the last twelve months, south Louisiana’s oil and gas work- turnaround times for vessels heading to offshore rigs. ECO op- ers have felt the sting of lower oil prices. The Houma area alone erates over 200 offshore vessels, most of which it built. lost 800 jobs in 2015 and could lose another 2,000 in 2016, Scott said. Vessel operators and builders have terminated employees.

Waterfront Development Continues Despite Downturn And, that’s just the tip of the iceberg. “I don’t have layoffs at the

Overall, Port Fourchon is getting larger, Chiasson said. “The port this year since our tenants don’t report that to us,” Chiasson

Port Commission itself is doing some expansion, and several said. “But considerable layoffs have occurred in our community, companies, including Halliburton, Schlumberger, Ecoserv mostly by vessel operators and shipyards.” Company announce- and Bollinger, are building out facilities,” he said. “We’re con- ments are a source for what to expect this winter, he noted. tinuing to grow. All our available property is leased or is under Gulf Coast-based heavyweight Bollinger ? led a Worker right of ? rst refusal – meaning if a company is interested in a Adjustment and Retraining Noti? cation (or WARN notice) property, and before someone else can lease it, they have the with the Louisiana Workforce Commission in February, say- right to say if they want to commit or not.” ing it would shed 275 people this year. WARN notices are

Vessels at Port Foruchon

Credit: Greater Lafourche Port Commission 48 Maritime Professional 4Q 2015I I 34-49 Q4 MP2015.indd 48 11/18/2015 9:46:48 AM