SOUTHEASTERN LOUISIANA

IMPORT TRENDS/OPPORTUNITIES

By: Mark West (504) 307-0805 (Cell)April 17th, 2009 mwest@crossroadcenters.com

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AGENDA

U.S. Port District Drill Down

• U.S. Port Districts

• New Orleans, LA Port District

• Southeastern Louisiana Ports

Import Trends (Total Imports)

• U.S. Port Districts

• Southeastern Louisiana Ports

Import Trends (Commodities)

• Harmonized System

• U.S. Port Districts

• Southeastern Louisiana Ports

Sample Opportunities

• U.S. imports from South America

• Copper

• Iron

• Steel

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U.S. Port Districts

New Orleans, LA Port District

Southeastern Louisiana

Ports

U.S. PORT DISTRICT DRILL

DOWN

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U.S. BUREAU OF THE CENSUS

PORT DISTRICTS

Anchorage AK

Baltimore MD

BostonMA

BuffaloNY

CharlestonSC

ChicagoIL

ClevelandOH

Columbia-Snake

Dallas/Fort Worth TX

DetroitMI

DuluthMN

El PasoTX

Great FallsMT

HonoluluHI

HoustonTX

LaredoTX

Los Angeles CA

MiamiFL

MilwaukeeWI

Minneapolis MN

MobileAL

New Orleans,LA

New York City NY

NogalesAZ

NorfolkVA

Ogdensburg NY

PembinaND

Philadelphia PA

Port Arthur TX

PortlandME

Providence RI

San DiegoCA

San Francisco CA

San JuanPR

SavannahGA

SeattleWA

Shipments Individually

St AlbansVT

St LouisMO

TampaFL

Vessels Own Power

Virgin Islands

Washington D.C.

Wilmington NC

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NEW ORLEANS, LA

PORT DISTRICT

Blythville,AR

Avondale,LA

Baton Rouge, LA

Chattanooga, TN

Destrehan,LA

Good Hope, LA

Gramercy,LA

Greenville,MS

Knoxville,TN

Lake Charles, LA

Little Rock,AR

Memphis,TN

Morgan City,LA

Nashville,TN

New Orleans, LA

Port Sulphur, LA

Shreveport-Bossier City,

LA

St. Rose,LA

Tri-City Airport, Bloun

tville, TN

Tri-City User Fee Airport,

Blountville, TN

Vicksburg,MS

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SOUTHEASTERN LOUISIANA PORTS

The Southeastern Louisiana ports, a subset of the New Orleans Port District,

include the following port locations:Avondale, LA

Baton Rouge, LADestrehan, LAGramercy, LA

Morgan City, LANew Orleans, LAPort Sulphur, LA

St. Rose, LA

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U.S. Port Districts

Southeastern Louisiana Ports

IMPORT TRENDS

(TOTAL IMPORTS)

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U.S. PORT DISTRICTS

TOTAL IMPORTS (2004-2009)

$0

$50

$100

$150

$200

$250

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SOUTHEASTERN LOUISIANA PORTS

TOTAL IMPORTS (2004-2009)

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$0

$2

$4

$6

$8

$10

$12

$14

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U.S. PORT DISTRICTS VS. SE

LOUISIANA TRENDS

Both import trends peaked in July of 2008.

• U.S. Port Districts $202B

• SE Louisiana Ports $12.3B

However, since July of 2008 SE Louisiana imports have declined disproportionately.

• U.S. Port Districts 46%

• SE Louisiana Ports 60%

February 2009 imports.

• U.S. Port Districts $109B

• SE Louisiana Ports $4.9B

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Harmonized System

U.S. Port Districts

Southeastern Louisiana Ports

IMPORT TRENDS

(COMMODITIES)

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HARMONIZED SYSTEM (HS)

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HS 1-50

01 Live Animals02 Meat And Edible Meat

Offal03 Fish, Crustaceans & Aquatic Invertebrates

04 Dairy Prods; Birds Eggs; Honey; Ed Animal Pr

Nesoi

05 Products Of Animal Origin, Nesoi

06 Live Trees, Plants, Bulbs Etc.;

Cut Flowers Etc.

07 Edible Vegetables & Certain Roots & Tubers

08 Edible Fruit & Nuts; Citrus Fruit Or Melon Peel

09 Coffee, Tea, Mate & Spices

10 Cereals11 Milling Products; Malt; Starch; Inulin; Wht Gluten

12 Oil Seeds Etc.; Misc Grain, Seed, Fruit, Plant

Etc

13 Lac; Gums, Resins & Other Vegetable Sap &

Extract

14 Vegetable Plaiting Materials & Products

Nesoi

15 Animal Or Vegetable Fats, Oils Etc. & Waxes

16 Edible Preparations Of Meat, Fish, Crustaceans

Etc

17 Sugars And Sugar Confectionary

18 Cocoa And Cocoa Preparations

19 Prep Cereal, Flour, Starch Or

Milk; Bakers Wares

20 Prep Vegetables, Fruit, Nuts Or

Other Plant Parts

21 Miscellaneous Edible Preparations

22 Beverages, Spirits And Vinegar

23 Food Industry Residues & Waste; Prep Animal

Feed

24 Tobacco And Manufactured Tobacco

Substitutes

25 Salt; Sulfur; Earth & Stone; Lime & Cement

Plaster26 Ores, Slag And Ash

28 Inorg Chem; Prec & Rare-earth Met & Radioact Compd

29 Organic Chemicals

30 Pharmaceutical Products

31 Fertilizers32 Tanning & Dye Ext Etc; Dye, Paint, Putty Etc; Inks

33 Essential Oils Etc; Perfumery, Cosmetic Etc

Preps

34 Soap Etc; Waxes, Polish Etc;

Candles; Dental Preps

35 Albuminoidal Subst; Modified Starch; Glue;

Enzymes

36 Explosives; Pyrotechnics; Matches;

Pyro Alloys Etc

37 Photographic Or Cinematographic Goods

38 Miscellaneous Chemical Products

39 Plastics And Articles Thereof

40 Rubber And Articles Thereof

41 Raw Hides And Skins (no Furskins) And Leather

42 Leather Art; Saddlery Etc; Handbags Etc; Gut Art

43 Furskins And Artificial Fur; Manufactures

Thereof

44 Wood And Articles Of Wood; Wood Charcoal

45 Cork And Articles Of Cork

46 Mfr Of Straw, Esparto Etc.; Basketware &

Wickerwrk

47 Wood Pulp Etc; Recovd (waste & Scrap) ppr &

pprbd

48 Paper & Paperboard & Articles (inc Papr Pulp

Artl)

49 Printed Books, Newspapers Etc;

Manuscripts Etc

50 Silk, Including Yarns And Woven Fabric

Thereof

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HS 50-99

51 Wool & Animal Hair, Including Yarn & Woven Fabric

52 Cotton, Including Yarn And Woven Fabric Thereof

53 Veg Text Fib Nesoi; Veg Fib & Paper Yns & Wov Fab

54 Manmade Filaments, Including Yarns & Woven Fabrics

55 Manmade Staple Fibers, Incl Yarns & Woven Fabrics

56 Wadding, Felt Etc; Sp Yarn; Twine, Ropes Etc.

57 Carpets And Other Textile Floor Coverings

58 Spec Wov Fabrics; Tufted Fab; Lace; Tapestries Etc

59 Impregnated Etc Text Fabrics; Tex Art For Industry

60 Knitted Or Crocheted Fabrics61 Apparel Articles And

Accessories, Knit Or Crochet62 Apparel Articles And

Accessories, Not Knit Etc.63 Textile Art Nesoi; Needlecraft

Sets; Worn Text Art64 Footwear, Gaiters Etc. And Parts

Thereof

65 Headgear And Parts Thereof66 Umbrellas, Walking-sticks, Riding-

crops Etc, Parts67 Prep Feathers, Down Etc; Artif

Flowers; H Hair Art

68 Art Of Stone, Plaster, Cement, Asbestos, Mi

ca Etc.69 Ceramic Products 70 Glass And Glassware

71 Nat Etc Pearls, Prec Etc Stones, Pr Met Etc; Coin

72 Iron And Steel 73 Articles Of Iron Or Steel 74 Copper And Articles Thereof 75 Nickel And Articles Thereof 76 Aluminum And Articles Thereof 78 Lead And Articles Thereof 79 Zinc And Articles Thereof

80 Tin And Articles Thereof81 Base Metals Nesoi; Cermets;

Articles Thereof82 Tools, Cutlery Etc. Of Base Metal

& Parts Thereof83 Miscellaneous Articles Of Base

Metal

84 Nuclear Reactors, Boilers, Machinery Etc.;

Parts

85 Electric Machinery Etc; Sound Equip; Tv Equip; Pts

86 Railway Or Tramway Stock Etc; Traffic Signal Equip

87 Vehicles, Except Railway Or Tramway, And Parts Etc

88 Aircraft, Spacecraft, And Parts Thereof

89 Ships, Boats And Floating Structures

90 Optic, Photo Etc, Medic Or Surgical Instrments Etc

91 Clocks And Watches And Parts Thereof

92 Musical Instruments; Parts And Accessories Thereof

93 Arms And Ammunition; Parts And Accessories Thereof

94 Furniture; Bedding Etc; LampsNesoi Etc; Prefab Bd

95 Toys, Games & Sport Equipment; Parts & Accessories

96 Miscellaneous Manufactured Articles

97 Works Of Art, Collectors' Pieces And Antiques

98 Special Classification Provisions, Nesoi

99 Special Import Provisions, Nesoi

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U.S. PORT DISTRICTS

IMPORTS BY HS CODE (2004-2009)

$0

$10

$20

$30

$40

$50

$60

1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2004 2005 2006 2007 2008 2009

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HS 27 - Mineral Fuel, Oil, Etc.; Bitumin Subst; Mineral Wax

HS 87 - Vehicles, Except Railway or Tramway, and Parts, Etc.

HS 85 - Electric Machinery, Etc.; Sound Equip; TV Equip; Pts

HS 84 - Nuclear Reactors, Boilers, Machinery, Etc.; Parts

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SE LOUISIANA PORTS

IMPORTS BY HS CODE (2004-2009)

$0

$2

$4

$6

$8

$10

1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2004 2005 2006 2007 2008 2009

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HS 27 - Mineral Fuel, Oil, Etc.; Bitumin Subst; Mineral Wax

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U.S. PORT DISTRICTS VS. SE

LOUISIANA IMPORT TRENDS

SE Louisiana imports are less diversified than the overall U.S. import market. The SE Louisiana import market is more dependent on HS27 (Mineral Fuel, Oil, Etc.; Bitumin Subst; Mineral Wax). HS27 as a percentage of total imports for years 2004 – 2009 are as follows:

Monthly Average Peak Value (July 2008)

U.S. Port Districts: 18% 29%

SE Louisiana Ports: 53% 68%

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STRATEGY CONCLUSION

Southeastern Louisiana needs a cohesive strategy to attract the importation of non-HS27

commodities.

Successful implementation of such a strategy would have the simultaneous effect of increasing and diversifying imports to Southeastern

Louisiana.

SE Louisiana trade infrastructure (ports, shipping

lanes, etc.) is a key component.

However, in the long run, developing the industrial

infrastructure to attract imports for raw materials

would reap the biggest gains.

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U.S. imports from South America

• Copper

• Iron

• Steel

SAMPLE OPPORTUNITIES

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2008 U.S. IMPORTS

SOUTH AMERICA

In 2008, South America imported over $50 billion (USD) of non-HS27 commodities to the U.S.

The following map highlights the 2008 U.S. non-HS27 import level for each country in South America.

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2008 U.S. IMPORTS (S. AMERICA)

HS74 COPPER

South America imported $3.7 billion (USD) of copper into the U.S. in 2008.

In terms of U.S. copper imports, Chile is the largest player in South America.

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2008 U.S. IMPORTS (S. AMERICA)

HS72 IRON AND STEEL

South America imported $4.6 billion (USD) of Iron and Steel into the U.S. in 2008.

In terms of U.S. iron and steel imports, Brazil is the largest player in South America.

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FINAL CONCLUSIONS

A succinct sample of import opportunities were given for HS72 (Iron and Steel) and HS74 (Copper). A similar global analysis would reveal numerous opportunities for all HS categories from South America as well as globally.

Southeastern Louisiana can diversify and increase imports by enacting a strategy to attract the importation of non-HS27 commodities.

In the short term, Southeastern Louisiana might have to entice these commodities from the standpoint of being a point of disembarkation or pass-through point, perhaps by competing on price.

However, the best long term strategy would be for Southeastern Louisiana to attract the industrial infrastructure (i.e. companies, plants, etc.) to utilize these commodities as raw materials. This would help fuel exports and the regional economy as a whole.

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