Port NOLA Acquires New Logistics Facility and Secures Strategic Lease with The Kearney Companies
Port NOLA has purchased a logistics facility for $6.6 million from Access World, a Switzerland-based logistics firm. This acquisition is part of a long-term strategy to enhance import and export growth. The port has leased the facility to The Kearney Companies, a New Orleans-based third-party logistics firm founded in the mid-1990s and acquired by Pittsburgh-based Precision Terminal Logistics in 2021. David Kearney continues to serve as president of the company.
Strategic Lease Agreement and Investments
The 10-year lease agreement marks the culmination of a multi-year effort between Port NOLA and Access World. As part of the lease, The Kearney Companies has committed to making capital investments approved by Port NOLA, which will create 15 new full-time jobs at the facility. These investments will include facility upgrades and improvements to ensure its long-term viability and support increased import and export activities.
Expansion and Continued Collaboration
In a similar deal signed in April, Kearney extended its lease of 286,000 square feet of warehouse space at the France Road and Jourdan Road facilities for 10 years. This deal included a $450,000 investment in dock doors, levelers, paving projects, and LED lighting conversions, with an option to invest up to an additional $1 million to increase rail capacity on site.
Enhanced Operations and Rail Capacity
With the new agreement, Kearney’s operations in collaboration with the New Orleans Public Belt Railroad, which is also owned by Port NOLA, have reached 3,000 carloads per year and nearly 20,000 containers. This increased capacity underscores the importance of the partnership between Port NOLA and The Kearney Companies in driving economic growth and enhancing the region’s logistical capabilities.
Addressing Long-Term Challenges
David Kearney highlighted that the lease agreement took years to negotiate due to the need to address several long-term maintenance issues and future capital investments. These efforts are crucial to ensuring the facility’s future viability and operational efficiency. Kearney also noted plans to work with customers from the Chicago and London metals exchanges who have traditionally used the facility, while also seeking new users to further expand its reach.
Future Outlook
The strategic investments and enhanced operations resulting from this agreement are expected to bolster the region’s economic development and logistical capabilities. By improving infrastructure and expanding capacity, Port NOLA and The Kearney Companies are positioning themselves to better serve both current and future clients, supporting the continued growth of import and export activities in New Orleans.