New barge building operation to open at former Tallulah shipyard site

St. John Enterprises is to open a new barge building operation at Tallulah, Louisiana, succeeding a former Northrop Grumman Shipbuilding operation that closed in December and meant the loss of about 100 jobs

Today, Louisiana Governor Bobby Jindal was joined by St. John Enterprises Inc. CEO Ron Lewis to announce the company’s plans to create more than 450 jobs in the next five years at the location. St. John plans to invest $32 million in cranes, machinery and other upgrades at the 100,000-square-foot facility on 56 acres at the Tallulah port.

Governor Jindal said, “This announcement today is another sign that we are competing with states across the country for business investment — and winning.”

St. John Enterprises [ plans to hire 104 people in its first year, with production starting by late October, and to increase employment to 454 by 2016. Average annual pay at the new barge-building operation will exceed $40,000, plus benefits. At the same time, St. John will continue its barge fleeting, repair and cleaning services at the company’s original location in Garyville, north of New Orleans. Another 50 jobs will be retained at that location.

St. John Enterprises selected Louisiana for its new barge-building operation in competition with sites in three other Southern states. The 454 jobs the company plans to create in Tallulah will result in the generation of another 571 new indirect jobs in Northeast Louisiana, for a total of 1,025 new jobs.

St. John Enterprises CEO Ron Lewis said the company’s vision is a long-term one. “So many folks focus on jobs,” he said. “Our mission is to create careers — long-term careers for families. We’re creating careers, we’re putting the American workforce back to work in our heartland, and the recovery for America starts here today. We have a state government that is working very hard to improve the livelihoods of the people of the state of Louisiana.”

Mr. Lewis said recruitment of the previous Northrop Grumman workforce in Tallulah and elsewhere will be a high priority. That talent pool and the location of the Madison Parish Port on the Mississippi River, with rail service and access to Interstates 20 and 55, also played key roles in the site selection, he said.

To secure the project, the state offered an incentive package that includes customized recruitment and training solutions at no cost through the Louisiana FastStart workforce development program. Based on St. John meeting annual job and payroll targets, the company will receive a $1.4 million performance-based grant to be paid in annual installments over the next decade. The company is expected to utilize Louisiana’s Industrial Tax Exemption and Quality Jobs incentive programs.

“This is another positive step in creating new employment opportunities for Northrop Grumman workers who have lost or who are facing the loss of their jobs,” said LED Secretary Stephen Moret. “Additionally, the St. John project is expected to significantly increase employment in Northeast Louisiana beyond the level previously associated with this facility.”

St. John expects to produce its first six barges by the end of the year. Construction to upgrade the Madison Parish Port facility will begin September 15, when the company also expects to begin hiring employees. St. John expects production to begin in the next few months, and the company will use an innovative fabrication process that it says will make its barges cost-competitive with overseas builders while delivered on a shorter timetable.

Founded in 1976, St. John Enterprises initially operated in St. Rose, La., before moving to other locations and ultimately establishing a full-service barge fleeting, repair, cleaning and maritime construction business in Garyville. On the lower Mississippi River, the company has access to three miles of fleeting space and is capable of handling 300 dry bulk or liquid cargo barges. The company’s expansion to the Madison Parish Port in Tallulah will introduce a major new barge building and reconditioning operation for logistics customers.

August 29, 2011