INTERNATIONAL BUSINESS COMMITTEE

Peter Bordeaux (Chairman)
Charles Nelson (Vice Chairman)

MISSION: To recommend policy positions and programs to strengthen Louisiana's development of foreign trade, investment and international services.

1997 Trade Programs:

GOVERNMENT AFFAIRS COMMITTEE

Frank H. Walk, Sr., Chairman
John P. Laborde, Vice Chairman

MISSION: To work with other organizations throughout the state and recommend policy and actions on federal and state legislation and issues to enhance Louisiana's international trade, port development and allied activities.

Each of the following are issues approved by the Government Affairs Committee and endorsed by the Executive Committee during 1997:

1. Inner Harbor Navigation Canal Lock Replacement Project - In reviewing this issue, the Committee noted the time delays caused by the current lock. The Committee unanimously approved a motion that a position in favor of the project be approved and forwarded to the Executive Committee. The Executive Committee subsequently approved the GAC's position on this issue, and letters were sent out by WTC President John Ochsner to the appropriate federal officials, as well as all Board and Advisory Committee members soliciting their active support.

2. Emergency Dredging Funding for the Mississippi River and the Mississippi River-Gulf Outlet - The Committee approved requesting federal funds for emergency dredging on the Mississippi River and Mississippi River-Gulf Outlet, required by flooding in the first quarter of the year. U.S. Army Corps of Engineers utilized operating money dedicated to the third and fourth quarters during the emergency, and additional money could not be obtained from the federal Harbor Maintenance Fund without authorizing legislation being passed. A letter from WTC President John Ochsner was forwarded to the Louisiana Congressional delegation requesting additional funding. A supplemental appropriation bill was subsequently passed by the Congress providing the additional money requested by the Corps.

3. Coast Guard's Vessel Documentation Office - The New Orleans office has provided timely and efficient service to the local maritime community, maintaining the smooth, uninterrupted flow of vessel commerce. After a discussion of the matter, the Committee voted to recommend a WTC position in support of retaining the Vessel Documentation Office in New Orleans. A meeting hosted by the Coast Guard on the issue was held, and local opposition to the closure convinced the Coast Guard to retain the New Orleans office for now.

4. Louisiana Tax Free Shopping - The Government Affairs and Executive Committees passed a motion in support of the reauthorization of the Louisiana Tax Free Shopping Program by the Louisiana Legislature, which was scheduled to lose its authorization on July 1, 1997. A letter from WTC President John Ochsner was sent to the leaders in both the state House and the Senate. Because 1997 was not a fiscal session, a temporary reauthorization was approved and a full reauthorization will be required next year.

5. I-69 - The Government Affairs and Executive Committees approved a motion made at the request of Mr. John Carruthers, Chairman of the I-69 Commission, affirming the development of trade through the I-69 project, which is expected to run through Shreveport. A letter was forwarded by WTC President John Ochsner to Mr. Carruthers highlighting the potential importance of this corridor/project to trade development in Louisiana.

6. Louisiana Senate Bill 1086, the Forum Non Conveniens Measure - The measure would have allowed state courts to dismiss suits involving foreign claimants or incidents occurring outside of the state's boundaries. This initiative was also endorsed by several maritime associations. A letter from WTC President John Ochsner was sent to the appropriate legislators, but the bill was not considered by the full Louisiana House during the session.

7. Louisiana Senate Bill 520 - Proposed during the Louisiana legislative session, this bill would raise the number of claimants required for a class action suit from one (1) to thirty (30). A letter from WTC President John Ochsner supporting the bill was forwarded to the appropriate members of the legislature, but opposition by the trial lawyers resulted in no action being taken on the bill.

8. Amendment to the Louisiana Code of Civil Procedures, Article 1732 - Also advanced during the session, this amendment would have given defendants the right to request jury trials in maritime cases (thereby offsetting the exclusive right to forum determination currently enjoyed by plaintiffs). The Committee reviewed a white paper prepared by the Waterways Operators Association on the issue, and noted the groups in support (including Governor Foster, LABI, the Steamship Association of Louisiana, and other transportation industry associations). A letter from WTC President John Ochsner supporting the amendment was sent to members of the Louisiana legislature, but the amendment was not acted on during the session.

9. Generalized System of Preferences (GSP) - The GSP, which reduces U.S. tariff rates on goods imported from over 90 developing countries worldwide, expired on May 31. A letter of support for the GSP was forwarded to the Committee from the Port of New Orleans, and both the Transportation and International Business Committees had previously endorsed renewal. The Committee approved a motion in support of GSP, with the proviso that any correspondence on this matter include some reference to the desirability of establishing reciprocal treatment for U.S. goods from the countries involved. This recommendation was subsequently approved by the Executive Committee, and a letter stating the position was sent from WTC President John Ochsner to the Louisiana Congressional delegation. The Congress approved an extension of GSP during the summer, and the legislation was made retroactive to May 31 so that no monetary impacts were felt by business.

10. Louisiana House Bill 2455 - As approved on the final day of the legislative session, this bill would exempt state Pilotage Fee Commissions from the Louisiana Administrative Procedures Act. This would undermine a First Circuit Court of Appeals decision that overturned a 57% increase in rates charged by the New Orleans-Baton Rouge Pilots Association. The potential result of the bill could be increased shipping costs to Louisiana companies, reduced ship calls, and it could set a dangerous precedent with regard to the three other pilotage commissions in the state. A letter by WTC President John Ochsner asking Governor Foster to veto this legislation was forwarded sent. Since Governor Foster did not veto the bill, it became law.

11. Louisiana Senate Bill 1098, the Private Sector Employee Whistle Blower Act - As approved in the recent legislative session, this act seeks to protect Louisiana employees from retaliation or reprisal for disclosing or threatening to disclose a workplace act or practice they believe to be in violation of law or for refusing to participate in an employment act or practice they consider to be in violation of law. The problems with the bill, as discussed by the Committee, are twofold: (1.) there are currently ample protections under state and federal law to protect whistle blowers; and, (2.) the bill is vague, requiring only "good faith" on the part of the employee, with regard to employees failing to perform their assigned duties. The Government Affairs and Executive Committees approved sending a letter from WTC President John Ochsner to Governor Foster expressing the concerns with the bill, but not asking him to veto the legislation outright. Governor Foster subsequently signed the bill into law.

12. U.S. House Bill 1432, the African Growth and Opportunity Act - Congressman William Jefferson, a co-sponsor of this bill, requested WTC support of this legislation which would promote trade and provide infrastructure funding to African countries. While a WTC position in support of the bill was approved, the bill ultimately was not acted on by Congress during 1997.

13. U.S. Senate Bill 877 regarding National Oceanic and Atmospheric Administration Commissioned Officer Corps - A WTC letter was sent to Senators Breaux, Hollings, Lott, and McCain opposing U.S. Senate Bill 877, which sought to eliminate the Commissioned Officer Corps of the National Oceanic and Atmospheric Administration (NOAA). The bill was not acted on during the 1997 Congressional session.

14. "Fast Track" Authorization for the U.S. Trade Representative's Office - "Fast track" legislation provided that any trade agreements developed through the U.S. Trade Representative's offices would not be subject to amendment on the floor of the House and Senate, a device commonly used to defeat such measures. The Committee endorsed a motion in support of the WTC joining America Leads on Trade, the private sector initiative created to lobby for "fast track" authorization. Jack Walker of the WTC staff prepared a position paper supporting "Fast Track" that was distributed to the Louisiana Congressional delegation, to chambers of commerce statewide, and to other organizations and companies with international involvement. "Fast Track" subsequently won a cloture vote in the Senate, but the House vote was highly questionable because the President had yet to obtain 60 Democratic votes in the House to pass the bill. In the end, no vote was held in the House of Representatives on "Fast Track" because the President requested that the matter be tabled since he did not have enough firm votes to pass the bill out of the House. It is not currently clear whether the President will re-introduce "Fast Track" legislation in 1998.

15. The Intermodal Surface Transportation Efficiency Act (ISTEA) - the initial ISTEA had a five-year duration which expired on September 30. The Act allowed state and local planning officials greater flexibility in their ability to choose among various transportation alternatives. It also provided the funding formulas, in the form of trust funds for each mode of transportation, to allocate federal money to the states. The funding formulas, which have allowed the Southern states a less than one-for-one return of federal gasoline taxes collected, are the primary subject of debate. ISTEA reauthorization and an increase in the current funding formula are crucial elements to improving Louisiana's transportation infrastructure. The World Trade Center, which endorsed the initial ISTEA bill, will be advocating reauthorization with modifications which will bring the more federal dollars to Louisiana to assist in congestion mitigation, highway construction, and waterway maintenance. Since the House Transportation Committee could not gain approval from the House leadership for a full reauthorization bill that would have exceeded the limits of the budget accord, the House approved a six-month reauthorization at current funding levels. As a result, a new longer-term bill will have to be submitted early next year.

16. Steamship Association of Louisiana/New Orleans-Baton Rouge Steamship Pilots Association - The Steamship Association of Louisiana requested that the Committee forward to the WTC Executive Committee a recommendation to file an amicus curiae brief in the Association's ongoing litigation, Hayden et al v. New Orleans-Baton Rouge Steamship Pilots Association, et al. WTC President John Ochsner previously had written to the Governor requesting him to veto H.B. 2455, which exempts the Pilot Fee Commissions from the Louisiana Administrative Procedures Act. The Governor neither signed nor vetoed the bill, so the law became effective automatically.

Mr. Hayden stated that representatives of the pilots and the industry had met together with the Governor over H.B. 2455, and the pilots assured the Governor that H.B. 2455 would not affect the ongoing litigation over a proposed 57% increase in pilots fees during the 1995-99 contract period. The pilots were arguing that with passage of H.B. 2455, the Court should dismiss the case because the law was retroactive to include Hayden v. NOBRA. On September 19, the Louisiana Supreme Court granted the writs to the pilots. The Steamship Association is now back in litigation in the Louisiana Supreme Court on the issue of the Baton Rouge Pilots Fee Commission, arguing that proper procedure was not followed in the Commission's determination of a 57% increase in tariff rates for the 1995-99 period.

Following discussion, the Government Affairs Committee decided to refer this matter to the WTC's Transportation Committee in view of their members' greater technical knowledge of the various issues involved. The Transportation Committee subsequently discussed and approved a recommendation to file an amicus curiae brief on behalf of the Steamship Association of Louisiana. This recommendation was then considered by the Executive Committee, which decided to maintain the WTC's longstanding practice of not filing such briefs. It did, however, pass a resolution encouraging both parties to settle the dispute, and a letter from WTC President John Ochsner was forwarded to the presidents of both parties to the lawsuit.

17. Louisiana Processing Tax - Mr. Ed Bee, President of Taimerica Corporation, made a presentation to the Committee on behalf of the Alliance for a Strong Louisiana Economy and requested that the WTC oppose a proposed processor tax on Louisiana production facilities that process hydrocarbons. The WTC's International Business Committee had previously approved such a motion on the basis of its adverse impact on Louisiana's international trade, since approximately one-third of organic chemicals produced in Louisiana are exported. The proposed tax would mean a $1 billion tax on the refining industry in Louisiana, reducing average profits at Louisiana refineries from 55 cents per barrel to an average loss of 36 cents a barrel. Following discussion, the Government Affairs Committee unanimously approved a motion opposing the processor tax, and the Executive Committee also endorsed a WTC position in support of the Alliance for a Strong Louisiana Economy on this issue.

18. Louisiana Port Priority Program - The Committee reviewed a WTC position recommended by the Transportation Committee supporting an increase in the funding for the Louisiana Port Priority Program from $15 million to $24.5 million annually. The Port Priority Program is one of the few state programs nationally dedicated to funding of port improvement projects. It requires that port improvement projects have a company committed to using the facility upon its completion in order for that project to be funded (no speculative building is allowed). The Government Affairs Committee unanimously approved a motion in support of increased funding for the Louisiana Port Priority Program. This proposed WTC position was subsequently approved by the Executive Committee at its November meeting, and letters from WTC President John Ochsner were sent to the appropriate officials.

TRANSPORTATION COMMITTEE

Francis E. Lauricella, Chairman
George W. Healy, III, Vice Chairman

MISSION: To recommend policy and projects which will increase usage of Louisiana's transportation system and increase public understanding of the system's impact on the state's economic development.

At its meetings during 1997, Transportation Committee members reported on the following matters:

Port of Greater Baton Rouge - Final tonnage statistics for 1996 showed that the Port did slightly better than in 1995. The Port dealt throughout the year with contractors and engineers responsible for the Inland Marine Terminal, which had a structural failure late in 1996 that rendered the facility inoperable. By the end of the year, construction had begun on replacing the terminal.

Port of New Orleans - The Nashville Avenue "C" Wharf was completed in January and two dockside cranes were put in place at the end of July. Total cargo for the Port in 1996 was 40.55 million tons, a 9% increase over 1995; most of the increase was in dry and liquid bulk cargo. The Port handled 10.04 million tons of general cargo, a slight decrease of 3% from 1995. In November, Sea-Land agreed to a five-year extension of their lease and an expansion of their operation at the Port. In addition, four new shiplines will begin calling on the Port in 1998.

Port of South Louisiana - Trade with Latin America accounted for 54 percent of all imports into the Port of South Louisiana in 1995, which amounted to approximately 10 percent of the Port's exports and nearly 24 percent of the Port's total foreign trade in that year. The Port also saw a new cement production plant built at the Port's Globalplex facility, and two major iron-reduction plants went through an extended environmental review process during the year.

Ports Association of Louisiana - In December, the Committee heard a report on the Louisiana Port Priority Program. A motion was made that the Committee support an increase in the money committed by the Legislature to the Port Priority Program, from $15 million to $24.5 million annually beginning in 1998. The Committee approved this motion unanimously, and it was also subsequently approved by the WTC's Executive Committee.

Governor's Task Force on the Maritime Industry - The lack of dredge funding necessary to maintain project dimensions on both the Mississippi River and the Mississippi River-Gulf Outlet were issues of major concern during the first half of 1997. The federally-owned dredge Wheeler was laid up by the end of the year, but the Task Force will continue lobbying Congress to keep the dredge in operation.

The Task Force Chairman also stated to the Committee that the U.S. Army Corps of Engineers study on the Minimum Dredge Fleet was invalid due to the lack of statistical information used to form its conclusions. Since over 85% of all U.S. dredging occurs on the Gulf Coast, it is imperative to Louisiana's maritime community that any study of the Minimum Dredge Fleet be as accurate as possible to maintain commercial shipping activity on the waterways. After discussion, the Committee unanimously approved a motion to forward a letter to the U.S. Army Corps of Engineers and the Louisiana Congressional delegation stating that the data set used in the Minimum Dredge Fleet study was inadequate to make a final determination on this issue.

New Orleans International Airport - 1996 was a record year for the airport. Although operations were down 9%, more cargo and passengers were transported via the airport than ever before. 8.4 million passengers, an increase of 3% over 1995, and 179.5 million pounds of cargo, also an increase of 3%, moved through NOIA. The airport is currently constructing a perishable cargo center. The perishable cargo facility that the airport completed in 1997 was fully leased to Federal Express, who planned to establish a "mini-hub" with the facility. The new center is projected to come on line in March 1998. The Airport Board was able to reach an agreement to utilize an existing facility for perishable goods until the Airport's new facility is ready in 1998.

The Aviation Board purchased a main deck loader for 747 freighter-type aircraft, allowing the airport to attract large cargo aircraft. Three airlines that announced future international service to New Orleans during the year are: Air Aruba, TransBrasil and LTU. New flights are also to be added to Jamaica and Grand Cayman Island. Also during 1997, the Duncan Canal project, the re-flooring of Concourses A & B, and the Concourse D and main terminal projects were all either completed or are nearing completion.

U.S. Coast Guard - Intensive efforts were made during the year investigating the Bright Field incident, in which a grain ship lost power on the River and ran into the Riverwalk. A Coast Guard report focusing only on the incident came out during the year; the National Transportation Safety Board report will come out shortly and is expected to highlight a broader spectrum review of port and waterway safety issues. The number of incidents investigated by the Coast Guard decreased as the water level on the River went down. A study was begun to determine the effects of having the Bonnet Carre Spillway opened during the months of March and April.

U.S. Army Corps of Engineers - The Corps was busy with River flooding during the first half of 1997 that required opening the Bonnet Carre Spillway. River dredging required by the flooding necessitated utilizing funds budgeted for the entire year during the first half of the year, but a supplemental appropriation was approved by Congress to reimburse the Corps. In addition, the Corps held the public comment process related to the modernization of the Inner Harbor Navigation Canal Lock in New Orleans, which is currently awaiting final approval from the Office of Management and Budget in Washington.

Maritime Administration - The Committee was kept informed of regional efforts by MARAD, in conjunction with the various state transportation departments, to develop a systemic approach to utilizing/enhancing the U.S. Gulf ports. A meeting of the Secretaries of Transportation for the multi-state region will be held at the World Trade Center on January 28-29, 1998.

University of New Orleans - Information was distributed to the Committee on the International Program for Port Planning and Management, co-sponsored by the WTC, UNO, Port of New Orleans, and LSU National Ports and Waterways Institute, which is held at the WTC every April. Dr. Joder also indicated that the University is working to develop a Transportation Logistics Institute, and UNO has contracted with the Louisiana Transportation Research Center at LSU and the Louisiana Department of Transportation and Development to consult on implementation of the Statewide Intermodal Transportation Plan.

UNO officials worked with the World Trade Center on a exploring the possibility of submitting a grant application for the U.S. Department of Commerce's Market Development Cooperator Program. The grant would have been used for establishing a marketing initiative to promote the state's transportation infrastructure, but there was not enough time to develop a proposal in 1997, though there may be an application made in 1998.

On August 15, the WTC hosted a meeting of the region's senior transportation executives with Senator John Breaux. The purpose of the meeting was to impress upon Senator Breaux the importance of developing a center dedicated to intermodal transportation planning at one of the state's public universities. Top UNO administrators briefed the assembled group on the University's proposal to establish a federally-designated Intermodal Planning and Policy Institute at UNO's College of Urban and Public Affairs within the ISTEA reauthorization bill currently being reviewed on Capitol Hill. The transportation leaders who attended the meeting at the WTC were invited to reflect that the selection of New Orleans as the site of the proposed Institute would help ensure the area's continued standing as an important trade and transportation hub into the 21st century.

New Orleans Public Belt Railroad - In February, the Committee was informed that the NOPB had a 22% increase in cargo in 1996 over 1995, largely due to imported steel slabs. Burlington Northern-Santa Fe Corp. completed a purchase of 190 miles of Union Pacific line between Iowa Junction (just outside Lake Charles) to Avondale, allowing BNSF to compete for Louisiana freight traffic. The BNSF acquired from NOPB trackage rights from the Huey P. Long bridge to the CSX Gentilly Yard in New Orleans East. Representatives of the CSX made a report to the Committee on the importance of CSX operations in Louisiana after a local jury awarded a $3.4 billion settlement to Gentilly residents for a 1987 rail car accident; the award was subsequently overturned by the Louisiana Supreme Court. A rail study is being conducted to establish the impact of the railroad traffic currently going though Metairie.

Steamship Association of Louisiana - The Committee was informed that the Port's Safety Council and the Maritime Navigation Association worked together in Washington to have a moratorium declared on new paging licenses which transmit in the marine bands, thereby causing a black-out of bridge-to-bridge communications between ships.

The Steamship Association requested that the World Trade Center file an amicus curiae brief in support of the Association in its ongoing litigation with the New Orleans-Baton Rouge Steamship Pilots Association (NOBRA). The lawsuit in question, Hayden et al v. NOBRA et al, asks that the NOBRA Fee Commission, which oversees the NOBRA pilots, present documentation and findings of fact to support the Commission's ruling in favor of a 57% fee increase to the NOBRA pilots over the five-year contract period 1995-99. The Committee held a meeting dedicated to a debate between Mr. Channing Hayden, President of the Steamship Association, and Capt. Joe Clayton, President of NOBRA. The Committee endorsed supporting the Steamship Association by filing an amicus curiae brief, the Executive Committee decided instead to send each party a letter from WTC President John Ochsner indicating the concerns expressed over the issue and urging them to amicably resolve the dispute.

International Freight Forwarders and Customs Brokers of New Orleans - Two major issues of interest to the freight forwarders and customs brokers during 1997 were renewal of the Generalized System of Preferences (GSP) and the proposed shipping reform legislation currently under review on Capitol Hill.

Trucking - Early in the year, the Committee was informed that the 19 southern states were requesting that Congress require some uniformity in truck permitting and licensing to allow unobstructed movement through the South from Virginia to Texas. The southern states were also lobbying to spend down the cash balances in federal transportation trust funds. Trucking interests also indicated concern over the lack of an effective local Incident Management System in New Orleans.

Barge - River flooding resulted in a poor first quarter in 1997 for the barge industry; grain transport was off, and it took months for normal operations to resume. Barge operators reported that low water upriver and several lock closures kept grain shipments from coming down from the Midwest during the latter half of the year, and the export market remained relatively weak. As a result, barge operators are looking for a better year in 1998.

Chamber's Regional Intermodal Advisory Council - This Council was created in 1997 and will serve as the Chamber's primary outlet for developing suggested transportation improvements for the region (the WTC's Transportation Committee Chairman, Mr. Francis Lauricella, serves as co-chair of this important Chamber Council, along with Mr. Quentin Dastugue). The Council will have input from special committees to be developed in four key areas: Aviation, Personal Mobility, Freight Commerce, and Agency Management. The WTC's Transportation Committee will serve as the Chamber's Freight Commerce arm.