New Orleans: A Growing Hub for Logistics, Distribution, and Economic Expansion

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The New Orleans area has long been a strategic hub for manufacturing and logistics. Located near the mouth of the Mississippi River, it has served as a key location for cargo trade in and out of North America for over 300 years. While its role has evolved over time, the region has consistently remained a focal point for commercial activity. Historically, New Orleans played a major role in moving bulk agricultural and consumer products. Over the past century, the focus has shifted toward large-scale oil and gas, petrochemical, and agricultural imports and exports.

More recently, the region has re-emerged as a pivotal hub for warehousing and distribution, driven primarily by multimodal opportunities associated with container traffic. Several factors contribute to this resurgence, including its strategic positioning at the crossroads of major transportation routes such as railroads, water-based routes, and an extensive highway network, as well as the nationwide trend of onshoring and near-shoring goods, expansion of container port capacity, lower relative cost of power, abundant natural resources, and the availability of development-ready locations amid a constrained supply of modern distribution space. As a result, the area is experiencing renewed attention from both local developers and large institutional investors.

New Orleans’ strategic location is underscored by its access to six Class I railroads, providing seamless connectivity to major markets across North America. Rail service, predominantly provided by the Port of New Orleans-owned Public Belt Railroad, facilitates the efficient movement of both containerized and bulk goods for domestic and international trade. The region’s road infrastructure further enhances its logistics capabilities, with key interchanges including the intersection of Interstates 10, 12, and 59 in Slidell, the I-12 and I-59 interchange in Hammond, and the Highway 90 Corridor on the Westbank of the Mississippi River, which provides additional connectivity to western markets.

Several significant projects are shaping the region’s future, reflecting growing institutional investment and economic expansion. The Venture Global Facility in Plaquemines Parish began production in December 2024 representing an over $22 billion investment in the market employing hundreds of direct and thousands of indirect jobs, fueling the local economy. Another development a few miles downriver, the 420-acre Gulfstream LNG manufacturing facility is in the development process and will produce approximately 4 million tons of product annually upon completion. Meanwhile, the River District Project is transforming a 40-acre site along the Mississippi River near the Central Business District into a mixed-use development with offices, entertainment, green spaces, retail, and housing, expected to generate $1 billion in economic activity and create significant job opportunities.

Perhaps the most impactful project for the logistics sector is the Louisiana International Terminal in St. Bernard Parish. This $1.8 billion container terminal, designed with advanced sustainability features, will dramatically increase the state’s shipping container import and export capacity. The strategically chosen 1,000-acre site offers strong rail and road connectivity, deep-water access for large vessels with up to 50-foot drafts, and protection within the region’s fortified levee system. Construction is set to begin in late 2025, with projections of over 17,000 direct and indirect jobs statewide by 2050.

As demand for warehouse and distribution space continues to grow, the market is adapting to accommodate new developments. While the availability of modern facilities remains limited, there are signs of increasing interest in Class A distribution properties, with early indications of willingness to support higher rental rates associated with new construction. Propel Park is New Orleans’ first speculative Class A distribution development and is located within NASA’s Michoud Assembly Facility. Phase I, featuring approximately 250,000 square feet of 32’ clear height space, has been placed into service, with much of the space now under lease, reflecting positive momentum in the market.  Luling Business Park, situated 24 miles from New Orleans, provides convenient access to I-310, Highway 3127, and U.S. Highway 90. Its first phase includes a 125,000-square-foot distribution facility with 30’ eave heights that was completed in early 2025.  Several locations positioned near key infrastructure hubs are being considered for future distribution development projects. Gulf South Commerce Park, near the I-12 and Highway 1088 interchange in Mandeville, offers nearly 1,000 acres of land for development zoned for advanced manufacturing and logistics, with 189 acres available in Phase I. The Louisiana International Terminal will also feature approximately 400 acres designated for cargo-related development, providing opportunities for rail and road distribution assets. With ongoing investment and infrastructure enhancements, the region is well-positioned for continued growth in the distribution and logistics sector at these locations and many other sites.

The New Orleans area is poised for substantial growth in warehousing and distribution, supported by its strategic location, robust infrastructure, and significant ongoing projects. These developments will enhance logistics capabilities, create economic opportunities, and strengthen the region’s position in the global supply chain. As these projects progress, the region will continue to attract investment, further solidifying its role as a logistics powerhouse.

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Chris Abadie is Senior Vice President of Colliers