Exports come crashing in at T’bonne port

Exporting goods overseas could be the wave local ports have been waiting to ride for years.

“With the recent downturn in the exploration of oil and gas in the Gulf of Mexico, a lot of our local companies are looking to do business overseas,” said Bill Cummins, executive director of global trade for J. P. Morgan Chase.

Officials from the U.S. Export Assistance Center touted advantages of exportation, like increases in jobs, during a joint meeting with the Terrebonne Economic Development Authority (TEDA) last Tuesday.

However, by hiking new landscapes, small businesses are likely to encounter high risks.

“In more recent periods we’ve been working with our smaller clients who have been historically focused on the Gulf of Mexico,” Cummins said. “Helping them structure themselves safely and correctly to minimize risk when taking advantage of business opportunities worldwide.

“I mean, what’s the point of going to Nigeria and being very successful with the Nigerian oil and gas authority, if at the end of the day, you can’t bring the rewards of those efforts back into the United States?,” noted Cummins.

The Export-Import Bank, an independent agency of the federal government, aims to alleviate those worries. “It’s an arm of the U.S. government that helps us and our clients mitigate credit risks and facilitate financing of operations,” explained Cummins.

The bank’s products include export credit insurance, working capital loan guarantees for U.S. exporters and loan guarantees and direct loans for foreign buyers of U.S. goods and services.

With only about 450 employees and five locations nationwide, the bank’s reach into local markets has been limited. However, the firm is seeking a new location in New Orleans.

“What that means is easier access to this very important resource,” said the director.

With a hand in things, officials said that the Ex-Im Bank would substantially increase the amount of business local ports are seeing – meaning more money and more jobs.

“For every dollar sold overseas, it creates a dollar in the community,” added TEDA’s CEO Mike Ferdinand.

“Right now, with the economy still sluggish, opening and introducing our companies and business to other markets and other opportunities is a chance for them to grow,” he said.

With the help of organizations like the Ex-Im Bank, those companies would be guaranteed a certain level of success. “It gives the company, who has never done export business, security in moving forward into new areas of the marketplace,” added Ferdinand.

But for Terrebonne Port Director David Rabalais, the next step is likely to be on shaky ground. “I know nothing about this,” he said. “I’m looking to expand, so I’m open to anything.”

Terrebonne Port currently has seven tenants and 170 acres of land available for leasing. With a heavy focus on oil and gas services, the port could possibly expand into regions like Africa.

“West Coast Africa has, for a long time, had a lot of synergy with Louisiana; Nigeria, Angola, and now more recently Ghana,” said Cummins. “There’s a lot of commonality in the technology that’s required in shallow water and on shore by oil exploration [companies].”