La. Admin. Code tit. 56 § III-2109
Current through Register Vol. 50, No. 11, November 20, 2024
Section III-2109 - ApplicationA. General Instructions 1. Applications may be submitted to the department quarterly no later than the first of March, June, September and December of each calendar year for consideration for funding the following fiscal year. If said day falls on a weekend or holiday, the next working day is the deadline. Contact the Office of Multimodal Commerce for the current address. The application shall be submitted in the format as shown and as follows: Number of copies: | Original and three copies |
Time: | Before 4 p.m. on the 1st of March, June, September and December |
B. Contents. All pages in the application shall be numbered and the application shall be bound. Applications shall be submitted in the following format. Application Format
All applications submitted for funding through the Port Construction and Development Priority Program shall be prepared in accordance with the following format:
1. Title Pagee. Name of Port Authorityf. Legislative Delegation2. Description of Proposed Project d. Adequacy of Components3. Demonstration of Immediate Need for Project b. Market Analyses i. Extrapolation from Past Trendsv. Cargo Handling Revenuec. Industrial Developmentd. Prospective Industrial Tenants4. Preliminary Design, Plans and Cost Estimatec. Preliminary Construction Plans5. Determination of Benefits to the State d. Spin-off Benefits of Payrollg. Benefits-Costs Tabulation6. Description of Project Area7. Impacts of Implementing Proposed Project9. Other Information d. Permits Attachments
E. Layout of Existing and Proposed FacilitiesF. Preliminary Construction PlansK. Other Attachments 1. Title Page. The title page of the application shall be as follows.a. Parish. In the upper right hand corner of the title page indicate the name of the parish in which the project is proposed to be built.b. Project Name. Directly below the parish name, enter the project name. The name should have some identifying characteristic of the work that is proposed and should not be an exact duplicate of a project name used in a previous year. If the application is for an extension of a previous project, then the same project name may be used if additional information is incorporated into the name such as Phase 1, Phase 11, etc.c. Priority. If more than one application is submitted, then indicate the priority directly under the parish. The top priority project should be indicated as "Priority One".d. Application Title. Approximately one-third from the top of the page and centered place the title, "Application to Louisiana Port Construction and Development Priority Program".e. Name of Port Authority. In the middle of the page from the top indicate the legal name of the port authority, address, telephone and fax numbers, and authorized representative.f. Legislative Delegation. In the lower one-third of the page, provide the names and district numbers of the senators and representatives within whose districts the project is proposed.g. Preparer. If different from the authorized representative, provide the name, address, telephone, and fax number of the person who prepared the application.h. Date. Centered at the bottom of the page, state the month and year in which the application was submitted.2. Description of Proposed Project a. Nature and Goals. Provide a narrative description of the proposed project and the total project. The descriptions are to be in sufficient detail to clearly convey the purpose, design, and major components of the project and the total project.b. Funds Requested. Indicate the amount of funds needed for the project and the total project. Also show the expected funding sources such as programs, port authority, federal, and other. If the project will be implemented in two years, the amounts needed for each year shall be shown.c. Alternatives. Discuss alternatives, and state the reason they were not selected. At least one alternative solution shall be discussed and developed in sufficient detail to ensure that the proposed project was selected as the result of an objective analysis. Explain why the proposed project was selected over the alternatives.d. Adequacy of Components. New port projects often create operational bottlenecks in supporting infrastructure such as access roads, warehouses, and yard spaces. Identify all the components necessary to derive the benefits stated. Go from a logical terminus, through the port to another logical terminus. For example, the discussion of the necessary project components may begin in the gulf, go through the navigational channels to the port, unload at the port, reload at the port onto a railroad car, and from the rail spur to a main line. A trucking operation may terminate at a state highway that is capable of handling the added traffic satisfactorily. Indicate whether these components are existing or proposed. For all existing components, discuss the adequacy of the components. For all proposed components, indicate what is proposed, by whom, when, and what is the estimated cost. Verifying documentation may be included in §2109 B3. Demonstration of Immediate Need for Project. Provide a demonstration of the immediate need for the project and supply supporting documentation. This portion of the application is extremely important. Most of the information provided in this section are forecasts and estimates. Therefore, sufficient attention should be given to adequately communicate and document the need for the proposed port project through detailed market analyses and commitments by port users to utilize the expanded project facilities.a. Cargo History. Indicate the total cargo and revenue cargo that was handled by the port in the last five years. List the cargo by type (bulk, break-bulk, neo-bulk, containers) and volumes. Analyze trends of cargo growth and the underlying reasons. Establish the level of utilization of existing facilities in relation to cargo volumes handles. If congestion was experienced, identify facility bottlenecks and describe how they were overcome. Also indicate the sources of all data. i. If the project is expected to be leased to a tenant, then the cargo history is for the tenant and not the port. If the tenant has no cargo history or will only move a minimal amount of cargo, the port's history may be listed. However, information regarding both the tenant's business history and their business plan should be included to support the project.ii. Provide a summary in this section of the application. A detailed list of cargo history shall be provided as Attachment H (see §2109 B)b. Market Analyses. Forecast the cargo which will use the project for the next 10 years. List the type of cargo and volumes expected, along with the market analysis and estimate of the market share. Cargo forecasts and market analyses have to be complete with detailed underlying assumptions and justifications. If cargo forecasts exceed historical trends, provide justification in terms of significant economic and technological developments occurring in the ports service area. If the port facility expansion is in response to increased demand from new industries locating in the area, these location decisions have to be substantiated by comparative cost analyses. As port projects cover diverse types of investments, it is difficult to provide exact industry norms to cover all situations. Some general guidelines on cargo forecasts are provided in this section. These must be considered as general industry norms. Variation from these norms must be analyzed and justified. If the project is expected to be leased to a tenant which does not specialize in cargo movement, then the market analyses is for the tenant's business and not the port's cargo. This also applies to the following: extrapolation from past trends, diverted cargo, generated cargo, origins and destinations, and cargo handling revenue. i. Extrapolation from Past Trends. The simplest method of cargo forecasting is to extrapolate from past trends, making whatever adjustments that may be necessary to take into account change that are likely to modify these trends. The freight analysis framework provides growth estimates for the movement of freight by all modes of transportation and commodity type through the year 2050. These growth estimates are to be used to forecast traffic growth unless adequate justification is provided to support any deviation. If a particular commodity is not included, then use the total waterborne commerce trend.ii. Diverted Cargo. Cargo may be diverted to a port facility either from other modes of transportation or from other routes. As cargo diversion can occur due to cost differentials in competing modes or routes, comparative cost studies must be presented to justify these cargo flows. If cargo diversion occurs due to establishment of new industries at the waterfront, these location decisions have to be analyzed and justified.iii. Generated Cargo. New industrial and agricultural developments in an area can increase output and these developments may translate into new traffic. In such cases, these sources must be identified and new cargo must be analyzed in terms of volumes, origins and destinations. The total traffic generated must be distributed to different transport modes based on cost considerations.iv. Origins/Destinations. Identify the major origins, routes, and destinations of the forecasted cargos which will use the project. Indicate what route the goods would move if the project is not built. Would the cargo be routed to another facility at the port, via another port in Louisiana, via a port outside of Louisiana, or via a non-water transport means?c. Cargo Handling Revenue. Once the new cargo has been forecast, the revenue to be derived may be estimated. Use existing port tariff rates to make these estimates.d. Industrial Development. What new industrial development would result from the project; without the project, where would this development otherwise occur?e. Prospective Industrial Tenants. List prospective industrial tenants, indicate if confidential. If tenants are to be located at the waterfront, sufficient reasons have to be provided that such a location is critical to their operations.f. Letters of Commitment. Include letters of commitment from users, indicate if confidential. Discuss whether commitments have already been made in terms of investments and planning and what other assurances (for example, executed lease agreements) are available to the port that the commitments will be met. If the viability of the project depends on these commitments, sensitivity analyses should be conducted to analyze the alternatives available to the port in the event the commitments are not met by the port users. The inclusion of the following types of information into the letter will be useful:i. the amount that the user/tenant is willing to pay for use of the project;ii. anticipated cargo tonnages;iii. number of jobs created/saved by the project;iv. amount of investment the user is expecting to make on the project; andv. length of time to which the user is willing to commit.g. Other Factors. Discuss other factors that may justify the proposed project.4. Preliminary Design, Plans and Cost Estimate. To further describe the proposed port improvement, provide a brief discussion of the design, preliminary plans, and cost estimate. The level of detail of the design, plans, and cost estimate should be adequate to allow developing final plans in approximately six to eight months since a construction contract should be awarded within one year of project funding. a. Design Criteria. The design criteria needed to obtain the stated benefits are to be submitted as Attachment B (see §2109 B)b. Design Calculations. Design calculations are to be submitted as Attachment C (see §2109 B)c. Preliminary Construction Plans. The plans shall be included as Attachment F (see §2109.B) The level of detail shall be sufficient to conceptually convey the project components and requirements.d. Cost Estimate. The detailed cost estimate for the project shall identify construction costs, land, mitigation, engineering, legal and administration. Recurring maintenance costs shall also be estimated and included in this section. The estimate should also detail the costs of equipment and construction activities to at least the level to allow verification of the estimate. For each component, provide the description, quantity, unit of measure and unit price. Avoid the use of lump sum where possible. i. In addition to the above, estimates of related investments made by the industrial tenants also have to be included to take into account the cost of the total project. If, for example, an industrial development is anticipated consequent to the project and benefits are claimed, associated costs should also be included as total project costs. The estimate should be of similar detail to that required for the portion of the project to be funded by the program.e. Progress Schedule. Provide an anticipated progress schedule for plan preparation and construction of the project, by phases if applicable. Indicate the beginning and ending dates for both.5. Determination of Benefits to the State a. General. Benefits from the proposed project will be evaluated from the state's point of view, which includes the taxpayer's point of view and the port's point of view. All of the benefit will not be derived until the investment for the total project has been made and all of the necessary components are adequate. Estimating these benefits is a key element in the application process. Sufficient attention should be given to substantiate procedures adopted in quantifying benefits and in providing supporting documents. Overall, benefit estimates should be logical, verifiable, and based on sound judgment and acceptable industry norms. Claimed benefits will be adjusted to conform to industry norms unless adequate justification is provided. In order to make a proper allocation of funds among the requests, it is necessary to have a clear understanding of each project's expected net benefits to the state. The term net benefits means the difference in the benefits to be derived "with the project" and those to be derived "without the project". For example, when port improvements are implemented, there is usually a higher level of facility costs, mostly for construction. This is offset by the benefits including a reduced level of other costs (vessel operating costs, cargo handling costs, maintenance costs, etc.). There may be an increase in economic activities, improved (or worsened) environmental consequence, etc. All of these benefits are relative, i.e., they are based on the spread between what would happen with the new project vs. what would happen without the new project. In other words, to determine the benefits, it is necessary to evaluate the cargo flow projection, transportation costs savings, impact on other Louisiana ports, etc., without the project as well as with the project. Only then can the costs and gains under both scenarios be compared. The difference is the net benefits to be derived.b. Revenues and Expenses. Estimate the port revenues for both with and without project conditions. Also estimate the operating expenses with and without the proposed project (e.g., labor, utilities, etc.). These estimates have to be based on present and future port tariff rates to conform to industry norms. Only projects that will realize the minimum return on the state's investment as defined herein will be funded by the program.c. Number of Jobs. Indicate the number of permanent jobs that would be created and/or existing jobs saved from implementing the project. How many of these jobs are port related and how many are industrial jobs, what is the total payroll for each; without the project, where would these jobs otherwise be created? Do not include temporary jobs created by construction activities. The estimate of number of new jobs created shall conform to industry norms such as capital investment/worker and volume of cargo handled/worker and number of employees per firm. If jobs are displaced elsewhere in the state, these jobs shall be subtracted from the jobs created or saved by the project. Figure 1 below indicates the employment profile for major port related industries in Louisiana. The average number of employees per firm provides the typical characteristics of a firm. It should be noted that a large percentage of firms employ less than 50 workers. Therefore, employment estimates must be justified on a case-by-case basis analyzing the nature of operations of the prospective industrial tenants. In general, it is likely that ports in rural areas with less populations support smaller firms and the few large firms are supported by large metropolitan areas. There may be exceptions to this general rule. | Figure1: Classification of Commercial Firms in Louisiana by Employement Size |
| Number of Firms by Employee size |
Industry Category | Total Employees | Total Firms | Average Per Firm | 1-4 | 5-9 | 10-19 | 20-49 | 55-99 | 100-249 | 250-499 | 250-999 | 1.000+ |
Agriculture Services, Forestry, Fishing and Hunting. | 3,645 | 534 | 7 | 299 | 90 | 29 | 10 | 0 | 0 | 0 | 0 | 0 |
Mining | 40,123 | 1,310 | 31 | 591 | 145 | 144 | 186 | 57 | 35 | 3 | 0 | 5 |
Manufacturing | 118,959 | 3,062 | 39 | 1,010 | 539 | 476 | 443 | 214 | 137 | 23 | 6 | 0 |
Transportation and Warehousing | 77,521 | 3,701 | 20 | 1,904 | 575 | 445 | 378 | 153 | 78 | 10 | 4 | 0 |
Source: County Business Patterns: 2020 Louisiana - U.S. Census Bureau |
d. Payroll Benefits. Standard payroll estimates provided in Figure 2 shall be used in estimating payroll benefits in order to equitably evaluate applications for funding through the program. The department will adjust the payroll and spin-off benefits for inflation using the U.S. Department of Labor's Consumer Price Index. If job benefits are assumed to continue unchanged into the future, then an implication is made that those individuals employed as a result of the project would not otherwise find employment. This is not reasonable, as employment will ebb and flow over time. As true net benefits from employment diminish over time, the payroll benefits resulting from the project have to be allowed to decay in a linear fashion annually, reaching zero at the end of the project life. Figure 2. Average Annual Earnings by Category for Port Related Industries |
Work Category | Average Annual Earnings |
Transportation, Storage, and Distribution Managers (11 - 3071) | $98,850 |
First-line Supervisors of Transportation and Material Moving Workers, Except Aircraft Cargo Handling Supervisors (53 -1047) | $57,550 |
Structural Metal Fabricators and Fitters (51 - 2041) | $43,840 |
Laborers and Freight, Stock, and Material Movers, Hand (53 - 7062) | $30,170 |
Source: Louisiana - May 2021 OES State Occupational Employment and Wage Estimates United State Department of Labor, Bureau of Labor Statistics, May 2019. https://www.bls.gov/oes/current/oes_la.htm#53-0000 Data released March 31, 2022 |
e. Spin-Off Benefits of Payroll. New payroll generated by the project results in spin-off benefits in the local economy. In order to calculate the spin-off benefits, assume that they are equal to the payroll benefits directly created or maintained by the project. If a project will have $100,000 payroll benefits in a year, then the spin-off benefits also equal $100,000. Spin-off benefits will also decay in a linear fashion annually, reaching zero at the end of its project life.f. Shipping Costs. If the proposed project will alter shipping costs, identify these costs with and without the project. Cost estimates should conform to general industry norms.g. Other Benefits. Identify any other benefits that would result from the project.h. Benefits-Costs Tabulation. Tabulate the project's benefits and costs over the project's life. Remember that all the benefits will not be derived until all of the components that are identified in "Adequacy of Components" are implemented and are adequate.6. Description of Project Area. Provide a narrative description of the project area. The description shall include the location of the existing port, navigable waterways to the port, rail and highway access, location of neighboring ports competing for cargo, unemployment rate, land use adjacent to the port, and soil conditions in and around the port. Identify all major commodities which are handled by competing ports.7. Impacts of Implementing Proposed Projecta. An assessment of the impacts associated with the implementation of the proposed project shall be submitted. Usually the economic, environmental, and other impacts shall be identified. A detailed environmental assessment is not required by this program but may be required to obtain certain permits.b. The economic impacts may be indicated by the number of permanent jobs created or saved and the annual payroll resulting from the proposed port improvement. This information is reported in §2109.B 5, "Determination of Benefits to the State."c. The environmental impacts shall be identified as to the effects on the following: ii. habitat modification;iii. fish and wildlife resources;iv. cultural, historical, and archeological features.d. Any other impact(s) shall also be identified. The impact of the proposed project on other ports in the state, (e.g., diversion of cargoes or industrial activities, etc., from other state's ports) shall be stated.e. If the project is expected to generate over one hundred inbound and outbound trips in an hour or more than 750 trips a day, then a traffic impact study with comments from the Metropolitan Planning Organization and/or the Regional Planning Commission is required. Said study is to identify adverse impacts on the transportation network and to mitigate negative impacts.f. The assessment is to indicate whether the impacts are short-term or long-term, direct or indirect, and adverse or beneficial. Applicants may seek comments from appropriate state and federal agencies.8. Master Plan for Port. Discuss how the proposed project complies with the port's master plan or why it does not. Indicate when the master plan was adopted by the port authority. Copies of the master plan are to be submitted with the application as Attachment I. (Refer to Page Application 22, I. Port's Master Plan.)9. Other Information a. Funding Sources: Identify all sources and amounts of funding, such as port, program, federal, state, parish, private and other. Clearly indicate if any type of bonds will be sold to assist in financing the project. Indicate if an application for other funds has been submitted and if a commitment has been received. Provide a status of the port authorities' 10 percent local match.b. Multi-Year Projects. If the project will require more than one year to complete, summarize the anticipated investment schedule required for full completion of the proposed project.c. Permits. List all necessary permits, indicate the status of permit acquisition, and indicate project compliance with permit requirements.C. Attachments 1. Resolution. Provide certified copies of the resolution adopted by the port authority similar to the sample resolution in the appendix indicating that the port authority is knowledgeable and is agreeable to its duties and responsibilities in participating in the Port Development and Construction Priority Program.2. Design Criteria. Include the design criteria necessary to properly design the project.3. Design Calculations. Include the design calculations and soil investigations; the level of detail of the design should be sufficient to allow the award of a construction contract within the year of funding.4. Engineering Report. Provide copies of the engineering report and geotechnical report, if applicable.5. Layout of Existing and Proposed Facilities. Submit a layout of existing and proposed facilities.6. Preliminary Construction Plans. Enclose preliminary construction plans in sufficient detail to allow the award of a construction contract within a year of funding.7. Financial Statements. Provide financial statements for the last five years. The financial statements shall show assets, liabilities, profit and loss and include the accountant's letter transmitting the statement to the port authority and notes of explanation.8. Cargo Tonnage. List the total amount of cargo by commodity for the port for the same periods covered by the financial statements. The commodity classification shall be the commodity classification for domestic waterborne commerce.9. Port's Master Plan. The port's master plan is to be submitted with the application. If the port does not have a master plan, then it should submit a layout of existing facilities and an explanation why the port does not have a master plan. If the port has submitted a current copy with an application that was recommended by the department in the last three years, the port does not have to submit a master plan.10. Commenting Agencies. Letters of comment from appropriate state and federal agencies responding to applicant's solicitation of views, if appropriate.11. Other Attachments. Any other attachments that may be helpful in evaluating the proposed project may be included as other attachments.D. Information Sources. Information and data that may be useful in estimating the costs and benefits and in completing the project application is available from a number of sources. Some of these sources are local records from engineers, marketing surveys conducted by private firms, local industry performance standards, and performance records of the port. Selected references from federal, state, and local agencies are listed and described below. 1. Louisiana Labor Market Information, Louisiana Workforce Commission, Baton Rouge, Louisiana. A monthly publication providing the following labor market information by parishes and by major metropolitan statistical areas (MSA) in Louisiana: a. the Louisiana economic situation;b. non-agricultural wage and salary employment;c. average hours and earnings in manufacturing;e. employment and payroll trends.2. Directory of Louisiana Manufacturers, Louisiana Department of Economic Development, Baton Rouge, Louisiana. Presents data on the following:a. companies located in Louisiana and products manufactured;b. companies employing more than 250 workers;c. manufacturers of specific products in Louisiana by standard industrial classification (SIC) codes;d. parent firms of companies.3.a. U.S. Army Corps of Engineers, Waterborne Commerce of the United States, Part 1-5, Department of the Army, Water Resources Support Center, Fort Belvoir, Virginia. The data collected in this publication consists of vessel and cargo movement information reported to the Corps of Engineers by carriers engaged in commercial transportation of goods on the navigable waterways and international trade and also international trade data provided by the Bureau of the Census. Part 2 of this publication covers waterways and harbors in the Gulf Coast and Mississippi River System. Current issues of this publication can be obtained from the Commander, U.S. Army Engineers District, Box 60267, New Orleans, LA 70160-0267.b. U.S. Army Corps of Engineers, Other Data Sources.c. Public Domain Database: Contains aggregated information which depicts waterborne commodity movement between different regions and states sorted by origin, by destination, and by commodity. Special Requests for Waterborne Commerce Statistics: The Waterborne Commerce Statistics Center (WCSC) handles special requests for statistics on a case-by-case basis. These requests are characterized by the need for information not contained in the aforementioned Waterborne Commerce of the United States.d. For more information on data sources available to the public from the U.S. Army Corps of Engineers, request a free copy of Products and Services Available to the Public from Data Request Office, Waterborne Commerce Statistics Center, U.S. Army Corps of Engineers, Box 61280, New Orleans, LA 70161-1280.4. Port Import/Export Reporting Services (PIERS), Journal of Commerce, Inc., New York. PIERS data services provides detailed information on foreign trade, identifying commodity descriptions, origins and destinations, consignees and shippers, and tonnage of individual shipments. This data can be selected to suit individual specifications and obtained on tape, diskette, or hard copy reports.5. County Business Patterns, 2022 Louisiana, U.S. Department of Commerce, Bureau of Commerce, Bureau of the Census, U.S. Government Printing Office, Washington, D.C., 2022. Provides information on industrial establishments, number of employees, payrolls by major groups of industries and by individual parishes.6. 2022 Census of Manufacturers-Geographic Area Series-Louisiana, U.S. Department of Commerce, Bureau of the Census, U.S. Government Printing Office, Washington, D.C., 2022. This publication provides the following aggregate data on commercial establishments by parishes and metropolitan areas:a. number of companies, employment and payroll, production worker-hours, and worker-wages;b. value of shipments, cost of materials, and value added;c. beginning and end of year inventories;d. expenditures, assets, rents, and purchased services.7. Agricultural Statistics and Prices for Louisiana, Louisiana Agricultural Experiment Station, Louisiana State University Agricultural Center, Baton Rouge, Louisiana-This publication provides data on agricultural product prices, average value of farm assets, acreage, and production.8. Other Publications a. Moving America-New Directions, New Opportunities, a statement of National Transportation Policy Strategies for Action, U.S. Department of Transportation, Washington, D.C., February 1990.b. National Transportation Strategic Planning Study, U.S. Department of Transportation, Washington, D.C., March 1990.La. Admin. Code tit. 56, § III-2109
Promulgated by the Department of Transportation and Development, Division of Flood Control and Water Management, LR 16:695 (August 1990), amended LR 18:752 (July 1992), repromulgated by the Department of Transportation and Development, Office of Public Works, LR 31:942 (April 2005), amended LR 34:1044 (June 2008), Amended by the Department of Transportation and Development, Office of Multimodal Commerce, LR 491437 (8/1/2023).AUTHORITY NOTE: Promulgated in accordance with R.S. 34:3451-3463.