The Port of New Orleans has downgraded its projected 2008 revenue, due largely to the lack of steel import cargoes at the Port.
The Port's Dock Board voted Thursday to officially adjust its fiscal 2008 revenue figures to $36.4 million, nine percent short of initial projections. Chairman of the Dock Board, H. Daniel Hughes, told press that the downgrade is "a direct result of problems with steel."
In 2007, steel import arrivals to the US dropped 26 percent, and the 2007 drop in steel imports to the Port of New Orleans was even sharper, at 48 percent, resulting in a 20 percent drop in the Port's total cargo from the previous year and the lowest cargo levels at the Port since 1991. With the weak dollar and stronger steel markets abroad, it doesn't look like this trend will turn around in the near future.
As a result of the continued lack of steel cargoes, the Port intends to diversify its ability to handle containerized cargo, which has, in part, kept revenues from falling too significantly this year, Mr. Hughes told press. Looking forward, Port officials plan to triple the capacity of their container terminal as part of its 2020 master plan, making it clear that steel imports aren't expected to return anytime soon.