< Previous58 NOVEMBER 2024 SITE SELECTION “While navigating the complexities of global trade, the Port of South Louisiana has not only reversed a historical trend with a remarkable surge in cargo but also demonstrated adaptability and resilience in an ever-evolving market,” said PortSL Board of Commissioners Chairman Ryan Burks. “As we witness transformative initiatives like the Life for Tyres project and the construction of the second dock access bridge, these endeavors underscore our commitment to sustainable practices and operational excellence. It’s a testament to the port’s strategic vision and the collaborative efforts of our dedicated team which is driving progress, sustainability and prosperity for our region.” Seven months later in September 2024, Woodland Biofuels selected Port SL for the world’s largest carbon negative renewable natural gas plant at the Globalplex multimodal facility. The $1.35 billion investment from the Canada-based company is set to begin commercial operations by 2028. “Woodland is thrilled to announce that we plan to build, right here at the Port of South Louisiana, the world’s largest carbon-negative RNG facility,” said Woodland Biofuels CEO Greg Nuttall. “Our sustainable biofuel plant will be an economic driver for St. John Parish and beyond. We look forward to establishing deep ties with the local community and drawing on the existing world-class workforce and utilizing Louisiana’s exceptional infrastructure to execute on our project.” The first phase will permanently remove 210,000 tons of CO2 per year, while phase two will scale CO2 removal by 660,000 tons annually. Waste biomass will be used to create sustainable biofuel that can be applicable to transportation, heating and electricity generation. “Port of South Louisiana is the second-ranked port in the nation for energy transfer,” Matthews said. “This significant investment by Woodland Biofuels to construct the world’s largest carbon-negative renewable natural gas plant and a large-scale green hydrogen facility at our Globalplex Intermodal Terminal proves that PortSL and the state of Louisiana are leading the way in diversifying our energy industry, which will result in the creation of hundreds of high-paying jobs for River Region families.” Puerto Rico’s FTZ 7 in Mayaguez moved up Site Selection’s rankings by two spots to land in the tie for No. 5. Increased activity is tied to bustling pharmaceutical industry including the likes of Eli Lilly and Company, Bristol Myers Squibb Company and The Port of Port Arthur houses FTZ 116, which landed at No. 3 just ahead of No. 4 FTZ 84 operated by Port Houston. Photos courtesy of the Port of Port Arthur60 NOVEMBER 2024 SITE SELECTION AbbVie. Together they accounted for more than $6.1 billion in production activity in 2023. Oil and petroleum refining companies Citgo and Valero led FTZ 122 at the Port of Corpus Christi for production activity, drawing in $10 billion. Overall activity in the zone resulted in an 8.1% increase in annual tonnage in 2023. In total, 203 million tons were moved last year, marking the highest tonnage in the port’s history. Crude oil exports made up 126.1 million tons alone, reflecting a 12.5% increase from 2022. “The reaching of this newest milestone in the Port of Corpus Christi’s lengthy history is a testament to the strength and commitment of our customers, who supply much-needed goods to our trading partners around the world,” said Port of Corpus Christi CEO Kent Britton. “Closing out 2023 on such a strong note sets the right tone as we go into 2024, which we expect to be another solid year for our customers.” About 297 miles northeast to FTZ 116, the Port of Port Arthur has experienced the same industry success behind neighboring FTZ 122. A combined $20 billion in merchandise received and $2 billion in exports between Motiva Enterprises and Premcor Refining Group made for a profitable year. Just shy of a top five rank comes FTZ 98 in Birmingham, Alabama. Out of the state’s five FTZs— Mobile (FTZ 82), Huntsville (FTZ 83), Birmingham, Montgomery (FTZ 222) and Dothan (FTZ 233) — FTZ 98 was the highest- performing zone in 2023. A $10 billion influx of production activity from Mercedes-Benz U.S. International, whose Tuscaloosa site was the company’s first major automotive manufacturing facility in the nation, made for an impressive year at Port Birmingham. The company was additionally responsible for $5 billion in export activity, landing it the No. 1 rank in Top 25 Production Operations for exports in the FTZ Board annual report. Mercedes-Benz received approval from the Foreign-Trade Zone Board in October 2023 to expand Subzone 98A to include the company’s operations in Moundville, Vance and Woodstock, Alabama. Coming Back for Texas Texas was again able to cement its status as the No. 1 state for FTZ impact in 2023. In total, 16 FTZs around the state can be found within Site Selection’s Top 100 U.S. FTZs. After Port Arthur, Port Houston and Corpus Christi, FTZ 115 in Beaumont comes in at No. 16 and FTZ 199 in Texas City finishes in the Top 20 at No. 19. Port Freeport came in at No. 26 2024 TOP 25 STATES FOR FTZ ACTIVITY MERCHANDISE RECEIVED RANK STATE/TERRITORY 1 Texas 2 Louisiana 3 California 4 Illinois 5 South Carolina 6 Tennessee 7 New York 8 Kentucky 9 Arizona 10 North Carolina 11 Alabama 12 Pennsylvania 13 Puerto Rico 14 Florida 15 Ohio 16 Indiana 17 Mississippi 18 Washington 19 New Jersey 20 Georgia 21 Maryland 22 Delaware 23 Nevada 24 Hawaii 25 Michigan EXPORTS RANK STATE/TERRITORY 1 Texas 2 Louisiana 3 California 4 Florida 5 South Carolina 6 Alabama 7 Indiana 8 Puerto Rico 9 North Carolina 10 Mississippi 11 Arizona 12 Tennessee 13 New Mexico 14 Massachusetts 15 Washington 16 Kentucky 17 Pennsylvania 18 New Jersey 19 West Virginia 20 Ohio 21 Georgia 22 Michigan 23 Oregon 24 Missouri 25 New York Source: USFTZ Board62 NOVEMBER 2024 SITE SELECTION with activity from FTZ 149, tying with California’s FTZ 3 in San Francisco. In September 2024, Port Freeport announced that its Port Commission voted to adopt a zero tax rate for the first time in its history. Increased activity at Port Freeport has led to a $23.5 billion taxable value of the district — 794 times its $29.6 million value in 1927 just two years after the port was established. The move removes a tax burden on voters, while the port becomes tax independent and self-sustainable. In 2023, the Port Commission voted to bring the Maintenance & Operations rate to zero, returning a year later to additionally approve a zero tax rate for Interest & Sinking. Beginning in 2025, port operating revenues will be used to cover ensuing debt payments for bonds approved by voters in 2018, which backed the $295 million Freeport Harbor Channel Improvement Project. “This achievement represents the culmination of dedication and vision from both current and past commissioners and employees,” said Port Freeport Commission Chairman Ravi Singhania. “It all began with the visionary decision of Brazoria County voters in 1925, who laid the groundwork for the creation of Port Freeport. The steadfast trust and commitment of taxpayers, combined with tireless efforts, have fueled growth and opportunity in the region for decades, and we look forward to even more in the future. We are immensely proud to be part of this moment and to have achieved this together.” Once the Freeport Harbor Channel Improvement Project wraps and becomes operational in 2025, Port Freeport will be the deepest port in Texas. Project details include deepening the current depth of 46 feet to between 51 and 56 feet, thus accommodating the needs of modern ships and enabling larger ships to access the port. To do so, the project aims to enhance upper turning basins, implement selective widening of the channel and lower channel bend easing. “This is a proud and transformative moment for the entire community and a reminder of the incredible legacy and responsibility we carry,” said Port Freeport Executive Director and CEO Phyllis Saathoff. “The Freeport Harbor Channel is a gateway for global trade that will continue to fuel growth and prosperity for future generations.” FTZ 301 aims to bring new opportunities for businesses in western North Carolina counties once things return to a semblance of normal after Hurricane Helene recovery. Map courtesy of the Economic Development Partnership of North Carolina64 NOVEMBER 2024 SITE SELECTION New FTZs Established Three new FTZs were approved in 2023, opening new opportunities in Louisiana, North Carolina and Texas. All new zones were pursued under the alternative site framework which allows the grantees to designate a service area that allows for subzone operators to streamline the FTZ designation process. FTZ 300 established a new zone at in Plaquemines Parish, Louisiana, at Plaquemines Port in January 2023. The new zone was approved less than a year after the Plaquemines Port, Harbor & Terminal District submitted an application for designation under the alternative site framework. The port provides water access to 33 states in the U.S., in addition to barge, rail and Interstate proximity, with more than 80 miles of deep draft access at a 50-foot minimum. Its location in southeastern Louisiana positions FTZ 300 some 20 miles south of No. 32 ranked FTZ 2 at the Port of New Orleans. Plaquemines Port announced a partnership with terminal operator APM Terminals in January 2024 to build a new container terminal on the West RECEIVED RANK STATE 1 California 2 Texas 3 Louisiana 4 South Carolina 5 Illinois 6 New York 7 Florida 8 Arizonia 9 Pennsylvania 10 Tennessee 11 Georgia 12 Ohio 13 Puerto Rico 14 Maryland 15 New Jersey 16 Kentucky 17 Indiana 18 Washington 19 North Carolina 20 Nevada 21 Alaska 22 Mississippi 23 Michigan 24 Iowa 25 New Mexico EXPORTS RANK STATE 1 Texas 2 South Carolina 3 Louisiana 4 Florida 5 California 6 Arizona 7 New Mexico 8 Tennessee 9 Indiana 10 Pennsylvania 11 New Jersey 12 Washington 13 Massachusetts 14 Mississippi 15 Hawaii 16 Michigan 17 Alaska 18 Ohio 19 Iowa 20 Georgia 21 North Carolina 22 Minnesota 23 Puerto Rico 24 Maryland 25 Illinois RECEIVED RANK STATE 1 Texas 2 Louisiana 3 California 4 Alabama 5 North Carolina 6 Kentucky 7 Illinois 8 South Carolina 9 Mississippi 10 Tennessee 11 Indiana 12 Washington 13 Puerto Rico 14 Arizona 15 Ohio 16 New Jersey 17 Pennsylvania 18 Delaware 19 Florida 20 Maryland 21 Nevada 22 Hawaii 23 Georgia 24 Nebraska 25 Colorado EXPORTS RANK STATE 1 Texas 2 Louisiana 3 Alabama 4 California 5 Puerto Rico 6 Indiana 7 North Carolina 8 Mississippi 9 Florida 10 Tennessee 11 South Carolina 12 Massachusetts 13 Kentucky 14 West Virginia 15 Georgia 16 Oregan 17 Ohio 18 Arizona 19 Missouri 20 Washington 21 Michigan 22 New York 23 New Jersey 24 Pennsylvania 25 Wisconsin TOP 25 STATES BY TYPE OF FTZ ACTIVITY WAREHOUSE/DISTRIBUTION ACTIVITYPRODUCTION ACTIVITY Source: USFTZ Board66 NOVEMBER 2024 SITE SELECTION Bank of the parish. A -year agreement enables the port to lease acres of land to APM in an eff ort to draw new business west of the Mississippi River. Future terminal expansions would allow for up to acres if needed. APM Terminals expects the privately funded project to cost around $ million initially, featuring on-dock rail and a berth capacity fi t to support ships carrying a maximum of , -foot- equivalent units. “In time, this greenfi eld site has all the potential to evolve into one of the big ship gateways into the U.S.,” stated APM Terminals Senior Investment Advisor Wim Lagaay. “ is venture allows us to build from the ground up, integrating cutting-edge technologies and sustainable practices to create a modern logistics hub that prioritizes safety, effi ciency and productivity. Our collaboration with the Plaquemines Port and local stakeholders is key to developing a facility that sets new industry standards and serves as a boon to the economic vitality of the region.” e Land of Sky Foreign-Trade Zone, now known as FTZ , represents North Carolina’s fi fth FTZ — the others are FTZ in Mecklenburg County, FTZ in Raleigh/Durham (tied for No. ), FTZ in Lenoir County and FTZ within the Piedmont Triad Area (No. ). e goal in establishing this zone was to better serve new and growing businesses operating in counties throughout western North Carolina. e new FTZ will cover all of Henderson County and include sites in Buncombe, Haywood, Jackson and Transylvania Counties. e Land of Sky Regional Council’s Annual Report noted that with the approval of FTZ in June the council would soon partner with the Asheville Regional Airport (AVL). e duo will aim to establish a U.S. Customs Port of Entry at the airport and allow AVL to clear fl ights originating in a foreign nation. “Western North Carolina is home to over , manufacturing fi rms representing around , jobs. Foreign-Trade Zone will provide Western North Carolina companies another opportunity to expand their business while giving our economic developers another tool to help existing fi rms expand and new businesses locate in the region,” the report noted. e FTZ approval process and projections all occurred before western North Carolina was devastated by Hurricane Helene. Contacted by Site Selection, Land of Sky Regional Council Deputy Executive Director and Economic & Community Development Director Erica Anderson said, “We are in the very early stages of FTZ and hope that in the recovery process from Hurricane Helene, we can support our region’s businesses through the FTZ. Due to response and recovery eff orts, this process will be longer than we like, although we are hopeful to assist companies as they return to production.” In November , the Foreign- Trade Zones Board approved FTZ in the city of Socorro, located in El Paso County, Texas. e U.S. Customs and Border Protection Tornillo Port of Entry will be responsible for governing operational activity within the zone. e objective of establishing FTZ was to spark fresh economic development, create and retain jobs while increasing capital investment within the community. e new zone will be located about miles away from FTZ located at El Paso International Airport. Our collaboration with the Plaquemines Port and local stakeholders is key to developing a facility that sets new industry standards and serves as a boon to the economic vitality of the region.” — Wim Lagaay , Senior Investment Advisor, APM Terminals Our collaboration with the Plaquemines Port and local Next >