Port of South Louisiana $445M price tag for Avondale Global Gateway could change after feasibility study

Photo courtesy Port of South Louisiana.

The Port of South Louisiana and HOST have agreed to extend the due diligence period related to PortSL’s acquisition of Avondale Global Gateway.

According to a news release, the extension will let PortSL’s team complete a feasibility analysis of the proposed acquisition.

The property was placed under contract at an appraised value, but the final price will be negotiated based upon the results of the feasibility analysis.

According to reports, the initial price of $445 million was met with criticism for its lack of transparency.

The due diligence period has been extended to August 31, 2023. This marks the fourth extension of the due diligence period.

“The Port of South Louisiana’s purchase of the Avondale facility has the potential to transform South Louisiana and position us as a global commerce leader,” Paul Matthews, CEO of PortSL, said in a news release.

“We are taking our time to analyze every aspect of this potential acquisition. We have retained multiple experts to conduct physical and financial analyses. We will ensure the State of Louisiana gets the best deal possible. Once the feasibility analysis is complete, we will negotiate final terms of the acquisition, including price. The additional time HOST is providing PortSL allows our experts to complete their work.”

He said HOST remains committed to working with the Port of South Louisiana as it completes its due diligence.
“We bought Avondale Global Gateway in 2018 because we believed in the possibilities for economic growth at this site and on the West Bank of Jefferson Parish,” Adam Anderson, chairman and CEO of HOST, said in a news release.

“In only five years, we transformed the former shipyard into a center of multimodal commerce. Under the Port of South Louisiana’s ownership and our management as terminal operator, Avondale Global Gateway will be structured to again serve as an anchor of our region’s economy for generations to come.”

A former shipyard, T. Parker Host transformed Avondale Global Gateway into a center of multimodal commerce and combines river, road and rail connections with storage and laydown space, according to a news release. It is strategically located on the West Bank of the Mississippi River. The hub can accommodate ships, barges, rail and trucks.

The site produces direct access to regional and interstate highway systems and is positioned at the interchange of six Class I railroads. This creates the capability to distribute cargo in all directions.

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