Louisiana Transportation Authority approves Labmar privatization proposal for Cameron Ferry, contingent on agreement

The Louisiana Transportation Authority voted on March 26 to certify that a proposal from Labmar Ferry Services to privatize operations of the Cameron Ferry serves a public purpose and to approve the proposal contingent upon execution of a comprehensive agreement and final cost figures.

DOTD procurement attorney Morgan Kelly and ferry system engineer Steven Sibley briefed the board on the unsolicited proposal and the subsequent 90-day competitive solicitation that closed Dec. 29, 2025, which resulted in Labmar as the sole proposer. Kelly told the board attendees that only the public version of the proposal could be discussed in the open meeting. “We are only at liberty to discuss the public proposal in this meeting,” she said.

Sibley described operational challenges at the Cameron crossing: the primary vessel, Cameron No. 2, was built in 1964 and the service has faced reliability and staffing issues tied to a single terminal pair and lack of spare vessels. He summarized Labmar’s submitted performance data, saying the company “has managed over 99% uptime” on its New Orleans routes and has carried millions of riders since beginning operations.

Under DOTD’s evaluation, an internal committee selected Labmar as the preferred proposer and staff began negotiations after a February notification. DOTD solicited input from local governments: the Cameron Parish Police Jury sent a letter of no objection following a public meeting, and the Cameron Port Harbor and Terminal District provided written agreement in principle.

Board members reviewed the four statutory factors LTA must consider in deciding whether a private-entity proposal serves a public purpose: public need, compatibility with local and state transportation plans, reasonableness of estimated cost, and whether the proposal would result in timely or more efficient operation. Kelly read a public-purpose statement from Labmar emphasizing the route’s role linking Cameron and Holly Beach, its utility during evacuations and post-hurricane recovery, and a goal to achieve “greater than 99% uptime.”

Senator Abraham moved to certify that the privatization proposal serves a public purpose; the motion was seconded by Secretary Ladde and adopted by voice vote with no objections. Abraham then moved to approve the proposal contingent on a comprehensive agreement and final numbers; that motion was also seconded and approved by voice vote with no recorded opposition.

DOTD staff outlined next steps and a tentative schedule: contract negotiations would continue through the spring and early summer, a transition period would occur across 2026, and Labmar could begin full operations in late summer 2026 if an agreement is executed and funding is secured. Two hybrid vessels now under construction—the Motor Vessel Holly Beach (projected delivery May 2026) and the Motor Vessel Cameron (projected delivery August 2026)—were cited as part of the operational plan.

Staff also reviewed site and capital needs. A recently completed stage 0 feasibility study looked at adding two new landing slips and updating existing slips; cost estimates for construction ranged from $30 million to $50 million. DOTD said current state and federal ferry program funds are insufficient to cover that scale of work and that permitting (including dredging) and design would likely take multiple years.

On staffing, DOTD said Labmar has committed to transitioning current DOTD ferry staff at competitive market rates and that the department is coordinating with civil service; a tentative staff plan was expected to be presented to the civil service commission on May 6. DOTD indicated it will return to the LTA board with final numbers and the draft comprehensive agreement before executing any contract.

The meeting adjourned after brief board comments and thanks to staff.