UPDATE 2-Port of New Orleans resumes limited cargo traffic

(Updates with maximum draft increasing to 42 feet)

NEW YORK, Sept 4 (Reuters) - The Port of New Orleans said Thursday it started working cargo vessels that arrived in the Port before Hurricane Gustav, but operations were limited.

Vessels with a maximum draft of 42 feet (12.8 meters) can now travel from the mouth of the Mississippi River to New Orleans, according to Port spokesman Chris Bonura. Earlier Thursday, vessels were limited to drafts of 30 feet, instead of the normal 45 feet.

Restrictions remain in effect on other parts of the river, but limited commerce has been restored at the Port.

"As sounding and dredging activities take place at the mouth of the river, we hope to restore cargo operations fully in short order so that we can continue to meet the needs of our customers," said Gary LaGrange, Port President and CEO.

Earlier on Thursday, the U.S. Coast Guard said the entire Mississippi River, the most heavily used U.S. commercial waterway, reopened to barge traffic after being closed due to Hurricane Gustav. [ID:nN04297814]

More than 300 miles of the commercial waterway, stretching from New Orleans to the Gulf of Mexico, was closed following landfall of the Category 2 hurricane on Monday.

Cargo activities resumed late Wednesday at the Louisiana Avenue Wharf, operated by Coastal Cargo. A crew of supervisors started loading cargo destined for Brazil.

Coastal Cargo also had a limited crew working cargo on Thursday.