In 2023, the Port of New Orleans (Port NOLA) recorded 20,500 container moves through its container-on-barge service, the most since the program began in 2016.
This service — a collaboration with the Port of Greater Baton Rouge and Ingram Marine Group — forms the largest network of its kind in the U.S. It offers an alternative to road transport, transporting cargo to inland destinations via barges on the Mississippi River. It aims to cut back on some of the emissions associated with traditional cargo movement methods.
The initiative led to a reduction of nearly 2.9 million pounds of carbon dioxide emissions and conserved over 130,000 gallons of diesel fuel in 2023, the port estimated. Since its inception, the service has achieved a cumulative CO2 emissions reduction exceeding 22.9 million pounds. That’s roughly equivalent to the amount of CO2 that some 478,000 mature trees can absorb in a year.
“We are poised to expand this service even further in the coming years,” said Port NOLA President and CEO Brandy Christian in a release.
Economic, operational and environmental impacts
The increased use of Port NOLA’s container-on-barge service for transporting cargo could necessitate some recalibrating within the trucking industry, particularly impacting the demand for intermodal truck transport.
The premise that water-based transport’s efficiency could diminish the need for short-haul trucking between New Orleans and inland ports invites a closer examination, especially considering the current low levels of the Total Outbound Rail Container Volume index for New Orleans. This index reflects a downward trend over the past five years.
Trucking companies faced with reduced short-haul opportunities may find themselves needing to diversify their service offerings. However, this assumes a zero-sum scenario in which gains in one sector inherently lead to losses in another, overlooking potential areas of growth or adaptation in the trucking industry. For instance, while the demand for certain types of trucking services may decline, there could be an increased need for others, such as long-haul trucking or specialized transport services that cannot be accommodated by barge.
Moreover, the emphasis on the efficiency of water-based transport raises questions about the scalability and sustainability of such solutions. While barges offer a lower-emission alternative to road transport, their impact on the overall logistics ecosystem, including flexibility, access to certain areas and the speed of delivery, remains a critical consideration.
Looking beyond 2023
As Port NOLA looks to the future, its plans to expand the container-on-barge service invite scrutiny alongside optimism. The proposal to explore new routes and form partnerships aimed at improving the logistics network’s efficiency and sustainability presents an innovative vision.
“These recordbreaking numbers for our container-on-barge service are a direct result of our collective effort to create a stronger and more resilient supply chain,” said Jay Hardman, executive director of the Port of Greater Baton Rouge.
The Louisiana International Terminal (LIT), currently in the planning and permitting stages, is expected to further contribute to the port’s container handling capacity. The terminal is planned to include modern green technologies like shore power and an electrified equipment fleet to reduce emissions from docked vessels.
Financial support exceeding $300 million from federal grants, alongside significant private and state investments, highlights the broader interest in enhancing the Gulf region’s shipping infrastructure. The development of LIT, construction of which is to start in 2025 with the opening of its first berth expected in 2028, is part of efforts to increase the port’s capacity and sustainability.
However, the success of such expansions depends on a delicate balance among economic viability, environmental impact and logistical feasibility. Integrating more inland and potentially international routes to decrease reliance on road transport raises questions about the scale of infrastructure development required, potential regulatory hurdles and the readiness of markets to adapt to these changes.
And in any event, more conventional services make up the lion’s share of the port’s overall container throughput for now. The 20,500 TEUs moved by the service in 2023 represent a small portion of the port’s overall container throughput. Port NOLA, the only deepwater container port in Louisiana, has an annual capacity of 1 million twenty-foot equivalent units and is equipped with nine gantry cranes capable of handling vessels up to 10,000 TEUs. The port continues to attract new services and ocean carriers, including all three major carrier alliances — 2M, Ocean Alliance and THE Alliance. It offers direct container services to Asia and South America.
It’s likely the container-on-barge throughput will remain a small slice of total activity at the port. But results have been positive, and there’s almost always a strong argument for adding modal choice.
