The hurricane-hit Port of New Orleans should be operating at 30 to 40 percent of capacity within a month, and at 80 percent by the end of the year, the Congressional Budget Office (CBO) said on Thursday.
In a special report analysing the economic impact of the two storms, the non-partisan budget agency said the port should be back to normal in four to five months.
New Orleans and the nearby Port of South Louisiana handle about half of all US grain exports. Both have been hampered by a lack of electricity and few workers, the CBO said.
"Efforts are under way to restore power, and the Maritime Administration is working on getting ships in place that could house workers temporarily," it said.
Traffic on the Mississippi River has been difficult because of Coast Guard orders for vessels to operate at a slow speed. "Should the combination of slow orders and delays at terminals persist, barges will be unable to cycle up and down the Mississippi as quickly as usual, and shippers' costs could increase," the CBO said.
"Although Katrina damaged port facilities, and a few facilities may take months to become fully operational, grain shipping is not expected to be a major problem," it said. "Port facilities are expected to be able to handle this year's grain harvest, which will be in full swing in a matter of weeks." The report noted that crop and livestock losses from Katrina were still in flux, and estimates for Rita were not yet available.
Comments
Comments are closed.