For 109 years, the New Orleans Public Belt Railroad has served as a catalyst for regional economic development by connecting the Port of New Orleans with railroad services. Since beginning operations in 1908, the NOPB has had a primary mission of serving both the port and local industries.
As 10/12 Industry Report details in a feature from the new quarterly issue, the NOPB—a short-line Class III switching railroad owned by the city of New Orleans and a designated political subdivision of the state of Louisiana—operates as a separate, neutral and financially independent entity.
The NOPB plays a vital role in not only the local and regional economies, but in the national and global economies as well. Rail traffic volumes have increased with global trade, and the NOPB is an important link in expediting local and intermediating freight through the strategic New Orleans rail gateway. New Orleans is one of four gateways connecting the eastern and western United States with six Class I railroads: BNSF, Union Pacific, Canadian National, Kansas City Southern, CSXT and Norfolk Southern.
In addition to the six Class I railroads that directly connect with the Public Belt, the NOPB also has a strong local customer base, largely resulting from demand driven by companies located on Port of New Orleans property. Examples include Ceres Gulf Inc., Destination Truck and Rail, Pacorini Metals USA, and U.S. Gypsum Co.
Yet despite the NOPB’s well-established history in the region, few residents are aware that the city of New Orleans actually owns the railroad. This was the case when New Orleans Mayor Mitch Landrieu and his administration took office in 2010.
“When we came in office in 2010, the Public Belt was embroiled in a scandal,” says Ryan Berni, the city of New Orleans’ deputy mayor of external affairs. “We were kind of surprised to learn the city even owned a railroad.”
It’s understandable that the city-owned railroad was not high on people’s radar. The Public Belt takes no tax money, but also contributes nothing to tax revenue. This piqued the mayor’s interest.
“The Public Belt is one of the only city assets that doesn’t have a direct financial relationship with the city,” Berni says. “The Public Belt is greatly undercapitalized. Given the global dynamics around private infrastructure, there is an opportunity to improve and enhance the railroad’s economic relationship with the city, the port and its customers.”
Read the full story, and check out the second quarter issue of 10/12 Industry Report for more industry news. Be sure to sign up for a free subscription of the quarterly publication. Send your feedback, story ideas and company news to editor@1012industryreport.com.
