Identification of NAFTA-induced opportunities for Louisiana's ports and waterways.
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1996-06-01
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Abstract:The implementation of the North American Free Trade Agreement (NAFTA) on January 1, 1994, created a trading region extending from the Yucatan Peninsula in Mexico to the Yukon region of Alaska with trade between the United States, Canada, and Mexico totaling $341 billion by the end of the first year of the agreement. Louisiana's exports to Mexico from 1993 to 1994 grew by over 50% to $753 million to rank 10th among all U.S. states in exports by value to Mexico by the end of 1994.
The primary objective of this research has been to identify NAFTA-induced market opportunities for Louisiana's maritime sector and to help define the strategies, maritime services, and port infrastructure requirements necessary to exploit these opportunities. Identification of current deficiencies also needed to be referenced.
Research methodology applied five types of maritime services currently operating or being considered for U.S. Gulf-Mexican Gulf trade (conventional deep sea, coastal short sea, feeder, river/ocean, and specialized services such as refrigerated or trailer ferry operations) to existing regional and Louisiana based commodity movements to Mexico. Louisiana port facilities that could potentially satisfy maritime service requirements were segregated by port type (i.e., deep draft - over 25 ft of water alongside berth, medium draft - between 15 ft and 25 ft, and shallow draft - less than 15 ft of water alongside berth) and port range (coastal, lower Mississippi River, inland river).
This research effort has identified specific maritime services, infrastructure requirements, and strategies required for the state's ports to play a role in capturing the impending growth of water transportation induced by NAFTA trade.
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