Proposed Louisiana Cargo Airport Gets Further Study

The heads of Louisiana's departments of economic development and transportation on Monday said they support a study to measure the economic benefits of a cargo airport between Baton Rouge and New Orleans.

Louisiana Economic Development Secretary Michael Olivier and Louisiana Department of Transportation and Development Secretary Johnny Bradberry endorsed the second phase of a comprehensive study to determine the feasibility and viability of Louisiana Transportation Center, a proposed regional, intermodal airport.

SNC-Lavalin, a Canadian firm operating under the auspices of the Canadian government, is conducting the study.

Officials say the study's Phase I, which is being completed, indicates private sector interest in the project.

Phase II of the study would determine the economic impact of LTC.

"The initial findings indicate that the Louisiana Transportation Center concept has merit," Olivier said. "At the same time, it is important that the state undertake all due diligence activities to make sure taxpayer dollars are invested in a facility that will spur economic development in a timely manner. "

"DOTD is committed to pursuing projects that facilitate economic development," Bradberry said. "By signing off on this next phase, we are working toward rationalizing the use of public funds to stimulate economic growth. "

LTC has been promoted as a 25,000-acre manufacturing and intermodal transportation center largely financed with private capital with some public investment.

The state wants business and private investment to be lined up before the investment of any public funds.

At the end of the study's second phase, the state expects SNC-Lavalin will propose a public-private partnership specifying the level of private investment, the required public investment and sufficient information for the state to determine the net economic benefit to Louisiana, including employment and increased business activity.

In addition to SNC-Lavalin's Phase II study, the state will rely on an independent consultant to help measure the net economic benefit to Louisiana. Only new businesses to Louisiana will be counted as a benefit in the analysis.

If the proposed public-private partnership meets the state's economic development criteria, public investment in the LTC be considered.

If the state decides not to fully fund the project based on return-on-investment criteria, local governments and private interests can opt to close the financial gap.

"Louisiana will review and give serious consideration to any public-private partnership proposal brought forward," Olivier said. "But the private sector must come forward with investments before the state will consider the investment of taxpayer dollars. "

In addition to LED and DOTD, the Louisiana Division of Administration is part of the team of state agencies assisting in the due diligence process for the project.

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