Avondale to have a new life as a global logistics hub

Written by Nick Blenkey
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Commissioned in 2014, USS Somerset was last ship to be built at Avondale

OCTOBER 4, 2018 — Huntington Ingalls Industries (HII) has closed the sale of HII’s Avondale facility to Avondale Marine, a joint venture between T.P. Host and Hilco Redevelopment Partners.

The Avondale facility, part of HII’s Ingalls Shipbuilding division, ceased its Navy shipbuilding operations in December 2014. Avondale’s UNO Maritime Center of Excellence has remained open and continues to do engineering and design work in support of Ingalls’ shipbuilding programs.

“We are very proud of our legacy at Avondale and the many contributions that generations of its shipbuilders made to our national security,” said Ingalls Shipbuilding President Brian Cuccias. “Ingalls will continue to maintain a presence in Louisiana, not only at the UNO Center, but also through the many Louisiana residents who commute to Pascagoula each day to help us build the ships we produce for our nation’s defense. We are pleased that Avondale Marine plans to put the facility back into commerce and look forward to its success.”

“For generations, Avondale Shipyards has been a source of pride for the community that generated jobs and economic development,” said Adam Anderson, president and CEO of T.P. Host and principal of Avondale Marine. “Our team will unleash its potential by transforming the shipyard into a global logistics hub for intermodal commerce. As we usher in a new era for this facility, we will benefit from the strength and skill of the workforce in Jefferson Parish and Louisiana. We are grateful for the steadfast support and leadership of the governor, parish president and council, as well as our partners in this project, including the Port of New Orleans, Public Belt, JEDCO, GNO, Inc., Business Council and Chamber of Commerce.”

In the coming months, Avondale Marine will begin its planning process for the approximately 254-acre site in partnership with stakeholders.

According to release from the Louisiana Economic Development Board Avondale Marine will redevelop the site’s crane, dock and terminal assets along nearly 8,000 feet of Mississippi River frontage, while connecting global waterborne commerce with manufacturing, fabrication and distribution facilities onshore. Capturing connections to six Class I rail carriers in the New Orleans area, the new owners envision creating a world-scale logistics hub at the former shipyard.

“For more than 75 years, tens of thousands of workers from Jefferson Parish, New Orleans and surrounding parishes built vessels at Avondale that preserved our freedom in times of war and invigorated our economy in times of peace,” said Louisiana Gov. John Bel Edwards said. “We know that golden age of shipbuilding will not return to Avondale. But after many months of discussion, we have secured a visionary private-sector partner to create a new path for growth at Avondale. This purchase represents a great opportunity to bring new investment, jobs and prosperity back to Avondale, with a sharp focus on attracting logistics and manufacturing leaders in the global economy.”

In business for nearly a century, T. Parker Host operates more than 30 maritime agency, terminal, and stevedoring sites, and the company has collaborated with Hilco Redevelopment Partners on prior projects. Following Hilco’s 2012 purchase of the former Bethlehem Steel mill at Sparrows Point in Baltimore, Hilco Redevelopment Partners and its joint venture team brought T. Parker Host in as the strategic marine operator for the Maryland site now known as Tradepoint Atlantic. In the past six years, Tradepoint Atlantic has generated thousands of new direct and indirect jobs after transformation of the site into an East Coast multimodal port. Similarly, T. Parker Host and Hilco Redevelopment Partners view the Avondale Marine site as a future economic engine for Jefferson Parish and the surrounding region. Capital investment and job projections will be disclosed as development plans for the site coalesce.

“For more than 75 years, tens of thousands of workers from Jefferson Parish, New Orleans and surrounding parishes built vessels at Avondale that preserved our freedom in times of war and invigorated our economy in times of peace,” Gov. Edwards said. “We know that golden age of shipbuilding will not return to Avondale. But after many months of discussion, we have secured a visionary private-sector partner to create a new path for growth at Avondale. This purchase represents a great opportunity to bring new investment, jobs and prosperity back to Avondale, with a sharp focus on attracting logistics and manufacturing leaders in the global economy.”

In business for nearly a century, T. Parker Host operates more than 30 maritime agency, terminal, and stevedoring sites, and the company has collaborated with Hilco Redevelopment Partners on prior projects. Following Hilco’s 2012 purchase of the former Bethlehem Steel mill at Sparrows Point in Baltimore, Hilco Redevelopment Partners and its joint venture team brought T. Parker Host in as the strategic marine operator for the Maryland site now known as Tradepoint Atlantic. In the past six years, Tradepoint Atlantic has generated thousands of new direct and indirect jobs after transformation of the site into an East Coast multimodal port. Similarly, T. Parker Host and Hilco Redevelopment Partners view the Avondale Marine site as a future economic engine for Jefferson Parish and the surrounding region. Capital investment and job projections will be disclosed as development plans for the site coalesce.

Known for repurposing large-scale industrial properties across North America, Hilco Redevelopment Partners identified Avondale as a potential redevelopment site several years ago and began working to assemble an acquisition strategy. Financial terms of Wednesday’s sale were not disclosed.

“We’re thrilled to leverage our extensive experience in redeveloping and transforming facilities that are at the end of their current useful life into modern, productive businesses for the future,” said Perez, the Hilco Redevelopment Partners CEO. “We look forward to supporting our managing partners at T. Parker Host in the Avondale Marine project as we build this important logistics hub in greater New Orleans.”

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