Avondale Global Gateway is in talks with a Brazilian importer on a project that could bring more than 120 jobs to Jefferson Parish and provide a new tenant at the former shipyard as it seeks to transform itself into a global logistics hub.
The project isn’t a done deal. But information on Avondale’s potential new tenant was made public last week during the Jefferson Parish Council meeting as members debated whether to help fund a rail expansion at the site.
Avondale, which was purchased by the private equity-backed T. Parker Host in 2018, has been in discussions with a “major international importer” for several months “regarding the relocation and expansion of their imports” at the West Bank port, according to Jeff Keever, a Host spokesperson.
The site is nearing capacity on an existing rail connection, and Keever said it will need to cobble together $13 million for a second connection to grow.
Keever didn’t name the potential new tenant, but Jefferson Parish Council members identified it as based in Brazil. It’s not clear what industry the company is in, or what the timeline might be for executives to make a decision on locating at Avondale.
Keever said the company is sending trial shipments this month and is exploring Avondale Global Gateway “as a central logistics site to then distribute their product inland by rail to their final customers.”
With its access to the Mississippi River, a railroad and Interstate 10, Avondale has attracted interest from many companies. Host has struggled at times to close the deal on new tenants, though interest from different firms has made some economic development officials optimistic for the site’s future prospects.
A council debate
For Jefferson Parish Council members, the question up for debate last week was related to the site’s rail line. At-Large council member Jennifer Van Vrancken put forward a resolution that would have set aside $250,000 from her office’s discretionary funds to help pay for the new rail spur.
Council member Deano Bonano, who represents District 2, which includes Avondale, objected to the resolution when it came up for a vote at the meeting last week, arguing it was premature.
“The client is a Brazilian company who would come to Avondale and be a great asset for Jefferson Parish, but it’s not happening yet, because we’re just one of the finalists for this project,” he said.
“I’ve discussed this with Avondale,” Bonano added. “They’re not going to spend $13 million to build a rail spur if they’re not selected by the Brazilian company, so this is very premature and unnecessary.”
Bonano also said that Van Vrancken should have sought his approval before attempting to fund a project in his district.
Van Vrancken said Avondale executives told her about the rail spur at a recent Elmwood Business Association meeting and said they already secured $9 million in potential funding and “it would be wonderful” if the parish could “express support” by chipping in $250,000.
The parish’s two at-large council members each receive $200,000 annually in property taxes to spend on economic development projects. Van Vrancken proposed dipping into that fund to help pay for the project.
“I don’t understand why someone would object to how I’m using these funds and pledging these funds to be supportive of Avondale as one of the greatest industrial concerns in our parish,” Van Vrancken said.
Bonano said he learned about Van Vrancken’s involvement from a letter of support she sent in March to Louisiana Economic Development.
The letter notes that the rail spur is needed to attract a “Brazilian prospect that will create over 120 jobs at Avondale,” and will allow Avondale’s two existing tenants, Top Vegetable Oil and Gulf Wind Technology, to expand.
The resolution was deferred to a later meeting.
