Letter from the President
Our nation and the global market continue to experience many challenges in this economic downturn. Even in these challenging times, TCI is committed to the right kind of growth. To strengthen our presence in both the transportation, and in the local community arenas, we’ve broken grounds on construction of our new facility in east New Orleans. With this new facility, TCI aligns itself to support the aggressive objectives and goals of the Port of New Orleans’ 2020 Plan. Our expansion comes with anticipated economic impact; job growth- numerous direct and indirect transportation, and logistic related jobs; and international trade growth.
Recovery efforts from hurricanes Katrina, Rita, and Gustav are still in progress, and though Louisiana’s population shifted to neighboring states, and around the country, TCI is committed to attracting more shipping lines to the Port of New Orleans, and to efficiently support the business growth. Further, TCI’s intention is to recapture some of the cargo that has gone to Houston (TX), and Mobile (AL). (Baton Rouge Business Report, August 10, 2009, ‘Another tool in the toolbox’ by David Jacobs.)
How will our expansion benefit our customers? TCI has applied for Foreign Trade Zone (FTZ) status with its current expansion, another venue to help maximize our one-stop-shop strategy. We will also be operating a plastics packaging line—a manufacturing business segment that has shown interest in returning to Louisiana ports.
FTZs are considered to be outside of U.S. Customs Territory for the purpose of customs duty payment. Goods entering FTZs are not subject to customs tariffs until the goods leave the zone and are formally entered into U.S. Customs Territory. Merchandise that is shipped to foreign countries from FTZs is exempt from duty payments. This provision is especially useful to firms that import components in order to manufacture finished products for export. There is no time limit on goods stored inside a FTZ and certain foreign and domestic merchandise held in FTZs may be exempted from state and local inventory taxes. This allows firms to minimize their costs while their products are waiting to be shipped. Some restrictions are in some cases waived for items entering a FTZ; however, the restrictions would apply if the items were to enter the U.S. market.
A variety of activities can be conducted in a zone, including assembling, packaging, destroying, storing, cleaning, exhibiting, re-packing, distributing, sorting, grading, testing, labeling, repairing, combining with foreign or domestic content, or processing. Manufacturing and processing require specific FTZ Board approval, however.
We continue to strategize for optimal results, including best practices and innovative ideas. TCI is built on having our leaders help our customers face roadblocks with confidence while delivering results. When you partner with TCI, we deliver.
“Obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it.” – Michael Jordan