Port looks to pay for LAShip dredging

The Terrebonne Port Commission is close to submitting plans to the state for bulkhead and dredging operations required to accommodate Edison Chouest’s large LaShip shipyard to be constructed at the Terrebonne Port, said Executive Director David Rabalais at last Tuesday’s Port Commission meeting.

Approval of the plans will take between 30 to 60 days, Rabalais said.

The bulkhead and dredging will cost $28 million. To pay for the operations, the port has received $13 million from the state’s Capital Outlay program and another $4 million from the state through a Cooperative Endeavor Agreement.

After port officials met with Gov. Bobby Jindal, he agreed to provide an additional $10 million in funds for the project. The money would not have to go through the Capital Outlay program, Rabalais said.

LaShip will be constructed on more than 20 acres of land Edison Chouest donated to the Terrebonne Port. The company will lease the land, but the contract has a provision for Edison Chouest to purchase the property back.

The company owns more than 100 acres of land at the Terrebonne Port.

Edison Chouest received a $65 million interest-free loan using federal Gulf Opportunity Zone Act funding to build the LaShip shipyard. The 2005 Act provides funds to areas impacted by hurricanes Rita and Katrina.

The company qualified for the GO Zone money in part because LaShip is expected to create 750 to 1,000 jobs for the area economy.

Rabalais said work on the bulkhead and dredging would not start before the middle of the summer.