Terrebonne businesses consider expansion

When Yu Gouchun arrived in Terrebonne Parish last Tuesday she was not sure exactly what to expect.

The vice president for foreign affairs from Weihai, China knew her city had signed a letter of intent for an economic partnership with the Terrebonne Economic Development Authority. She knew her three-day assignment was, in part, advance work for a Chinese delegation tour to the area in October. What she did not expect was the reception she received from those she met and their willingness to discuss options, challenges and opportunities.

“The people here are so friendly to me,” Yu said during a Wednesday morning coffee interview with the Tri-Parish Times. “They are so dedicated to what they are doing.”

“We started out having a meeting with [Vice President of Academic Affairs] Dr. Allayne Barrilleaux at Nicholls [State University], and with Fletcher Technical Community College Chancellor Travis Lavigne,” TEDA CEO Steve Vassallo said of his having taken Yu on a tour of the region, helping her recall their multiple stops by name. “We talked with them about exchange programs with the [two four-year universities and seven vocational-technical] colleges in Weihai.

“When I go back I will research to see which universities are most appropriate to do studies with [Nicholls and Fletcher],” Yu said.

Other stops included the Terrebonne Port Commission, JuJu’s women’s attire and additional retail and industrial locations.

Yu said in her experience, independent business owners tend to have an easier time with the initial securing of international placement than large corporations. “The larger chain can bring the prices down, so it is very difficult [for small business] to compete on prices, but it is easier for the independent store to get established,” she said.

The Chinese visitor said some of her most impressive stops involved taking in regional cuisine, and experiencing receptiveness from entrepreneurs in the restaurant business.

Big Mike’s BBQ owner, Mike Lewis, said he has been impressed with the sister-city relationship effort between Terrebonne Parish and Weihai.

“The owner of Big Mike’s is very keen to establish his business in China,” Yu said. “He wants to start over there today.”

“My hopes are we can take [southern American barbecue] to China and make a success of it,” Lewis said. “We have a party in China that is interested in putting [a Big Mike’s] there that can help make it happen. That’s the reason we are talking. Without [having an investor located in Weihai], it would be difficult.”

Lewis said he has no firm details or contracts in place, but described his international expansion venture as making progress. “I always wanted to do something I was proud of and I’m definitely proud of this,” he said.

Food might be fundamental for most residents of south Louisiana, but Vassallo and Yu contend it is industry that keeps working people wanting more.

“I think the ship building technology and techniques are what we can learn most from [Terrebonne Parish industry],” Yu said. “You have a very strong ship building industry. Weihai also has a strong marine industry and are interested in having their workers being trained here.”

With marine training, shipping opportunities could also expand for the trade partners, according to those involved in the diplomatic front tour.

“We talked about a deepwater port in Louisiana, where it could be located, and what kind of investment would be available from China,” Terrebonne Port Commission Executive Director David Rabalais said of his conversation with Yu. “She said she would take that back to China and plant a seed with the group coming in October so we could possibly talk about it.”

Rabalais said it is difficult to tell what might emerge form the intended trade relationship. He acknowledged that along with listed similarities by TEDA officials, many questions remain.

“A deepwater port here would be a big investment, but I don’t even know if it is even feasible,” Rabalais said. “Everybody in the United States is jockeying for the ships coming out of the new Panama Canal in 2015. Those ships need 55 to 60-feet of water [depth]. I don’t know if it is feasible for us at this point. We really need an intermodal system. We could also build a distribution facility in Gibson, but you are limited getting stuff from the Gulf to there. We’ll see that happens. I want to look at it and explore it because the Chinese are building eight or 10 of these new ships that are going through the Panama Canal.”

Yu said in addition to business similarities, Weihai, like Terrebonne Parish, possesses its share of people resistant to the intended trade relationship. She was asked about past U.S. experiences with China dumping shrimp and producing low-quality clothing and products often sold among large American retailers.

“I know there are some things that happened in the past that are unpleasant,” Yu said. “Now, not only your people realize that is past, but people in China would not choose to do that again, especially as [relationships] improve.

“Yes, [we have people afraid of trade],” Yu continued, “mostly, because of language obstacles. They know little about the regulations and policies of the United States and are afraid. TEDA and my organization, if we stay in close contact we can help people on both sides to learn more about policies and regulations.”

Yu said she would not expect businesses in Weihai, with its population of 2.8 million people to resist working with the lesser populated Terrebonne Parish at 111,197 residents (a total 262,073 for the Tri-parish region), or viewing the region as too small for their good. “This is still an opportunity,” she said. “You cannot find a city in other countries with the same population as China. We understand and still see this as an opportunity.”

Houma-Terrebonne Chamber of Commerce President Drake Pothier is among those that recognizes benefits when area business reach beyond familiar territory.

“For a local business to expand their services outside of our local regional market is a boost for the individual business and certainly for the local economy,” Pothier said in an email statement. “Broadening a customer base can help [many] companies growth potential but also make them more diverse, which can add some level of security in the event that one region’s economy slows down.”

Pothier said that if a company has its headquarters locally, revenues return to that location from expanded areas and can lead to reinvestment or additional expansion.

With a laugh, Yu said she had not yet discovered any deficiency of the Tri-parish region that would be of concern to people from Weihai, and views the international prospects as a win-win opportunity.

“People are very efficient here,” she said. “My visit has been very productive. We hope that during the visit of our delegation to Terrebonne Parish we can sign a formal agreement for a sister-city relationship.”

Weihai Vice President of Foreign Affairs Yu Gouchun gets her first taste of southern barbecue with Big Mike’s BBQ owner Mike Lewis. The Houma restaurateur is looking into expanding his operations to the Chinese city as part of an economic partnership between Weihai and Terrebonne Parish.

MIKE NIXON | TRI-PARISH TIMES