NEW ORLEANS–Chiquita Brands International Inc. will relocate its shipping operations from the Port of Gulfport in Mississippi to the Port of New Orleans. The move is likely to result in 270 to 350 new permanent jobs as well as an increase in total economic output of $373 million to $485 million over 10 years.
“This is a huge, historic win for the Port of New Orleans and for trade in our state,” said Governor Bobby Jindal, in a statement. “Today's announcement further solidifies Louisiana's position as one of the top states for international commerce in the US.”
Chiquita's decision returns the company to the New Orleans area after a 40-year absence. In the mid-1970's the company moved from the Port of New Orleans after operating from there for over seven decades.
“We at Chiquita are thrilled to return to the port and the great city of New Orleans as we implement a new shipping configuration,” said Mario Pacheco, senior vice president for Chiquita. “We are particularly excited about the enhanced service levels to our Chiquita and Great White Fleet customers that will result from this change in our shipping operations and expanded vessel capacity.”
Chiquita will ship between 30,000 and 39,000 TEUs of bananas and other fresh fruits into New Orleans, as well as 30,000 to 39,000 TEU's of outbound cargos. Shipments are expected to begin during the first quarter of 2015.
“This was a clear business decision for us surrounding our new shipping configuration rather than any dissatisfaction with the strong and economically competitive team we have had at Gulfport,” Pacheco said.
To sweeten the deal, the state of Louisiana will provide a performance-based incentive of up to $1.45 million annually. The state has also invested $2.2 million in a port-owned distribution/ripening facility that Chiquita will lease. The Port of New Orleans will put $2 million into refrigerated-container electrical infrastructure and rehabilitation of a container freight warehouse for the project.
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