The Port of New Orleans (Port NOLA) today announced its purchase of the 210,000 square foot warehouse located at 5200 Coffee Drive in the Uptown Port of New Orleans Terminal, which is supported by a new, 10-year lease with The Kearney Companies, Inc. (The Kearney Companies), a subsidiary of Precision Terminal Logistics (PTL). This agreement marks another milestone in the longstanding relationship between Port NOLA, The Kearney Companies, and the New Orleans Public Belt Railroad (NOPB), which provides rail service to its facilities and connection to all six Class 1 Railroads (BNSF, CPKCS, CN, CSX, NS and UP).
The lease agreement is the culmination of a multi-year effort between Port NOLA and the previous owner to ensure the facility supports import and export growth. As part of the lease, The Kearney Companies has committed to making capital investments through Port NOLA-approved facility upfits and improvements, emphasizing a shared commitment to servicing customer needs well into the future, supporting cargo growth and fostering continued job creation in the region.
The Kearney Companies’ operations with NOPB have reached 3,000 carloads per year and are continuing to grow. Additionally, The Kearney Companies handles close to 20,000 containers annually and supports 65 full-time jobs across various roles, including office/clerical, trucking, and warehouse workers. There are approximately 10 to 15 full-time jobs associated with the Coffee Drive facility lease.
“We have been working with the Port of New Orleans and the previous owner of the warehouse for over 2 years on a lease that enables the Port’s purchase of the facility. Further, we have developed a transition plan that ensures the facility continues to play a strategic role in supporting international supply chains through the New Orleans Port and Rail gateway. Through mutual trust displayed by all parties in this transaction, we were able to work through several long-term, difficult maintenance items, and future capital investments that are needed to ensure the future viability of this specific warehouse facility. We look forward to supporting existing business like the CME and LME metals customers that have historically utilized this facility, as well as attracting other new shippers for this location,” said David Kearney, President of The Kearney Companies, Inc.