Ports ~ Connecting People and Products

Ports Promote Global Trade

In the United States, ports facilitate the import and export of goods, allowing access to global markets, making them a major part of the nation’s economy.  Nearly [link url=”http://www.infrastructurereportcard.org/a/#p/ports/conditions-and-capacity” title=”60% of all oceangoing vessels were handled at the top ten U. S. ports“], which included Los Angeles, Long Beach, New York, Savannah, and Norfolk.

Here are a [link url=”http://www.infrastructurereportcard.org/a/#p/ports/conditions-and-capacity” title=”some statistics on America’s ports“] as indicated by the American Society of Engineers:

• More than 300 commercial ports
• 600 smaller harbors
• Transfer more than 2.3 billion tons of cargo annually
• Move 76% of international exports
• Handle 70% of imports
• 16,800+ commercial vessels accommodated annually
• Port traffic projected to be at least double by 2021

The Panama Canal Affect

Recently, [link url=”http://www.bloomberg.com/news/articles/2014-01-31/panama-s-5-billion-canal-upgrade-jolts-u-s-ports” title=”ports have been the focus of investments“], receiving major upgrades in anticipation of the [link url=”http://www.usatoday.com/story/money/2015/04/19/panama-canal-expansion-us-ports/25827175/” title=”widening of the Panama Canal“].  The [link url=”http://news.yahoo.com/panama-president-urges-canal-consortium-focus-expansion-020151490.html” title=”widening of the canal was necessary“] due to the increased size of container ships that are being built, post-Panamax ships (PPMX), because they now exceed the size of the current lock system.

As a result, [link url=”http://www.infrastructurereportcard.org/a/#p/ports/conditions-and-capacity” title=”commercial harbors must be at least 50 feet deeper to accommodate“] the [link url=”https://blueprint.cbre.com/the-post-panamax-effect-how-the-panama-canal-expansion-is-reshaping-americas-ports/” title=”new ships which can also carry 3 times the number of containers“] than the ships currently in use.  The expansion has spurred port operators and authorities to begin upgrades on facilities, start dredging in harbors or access water ways, and raise bridges as needed.

A Few of the Port Upgrades Currently Underway or Completed

• The [link url=”http://www.joc.com/port-news/us-ports/port-los-angeles/los-angeles-port-budgets-1988-million-infrastructure_20150609.html” title=”Port of Los Angeles is investing nearly $1 million dollars per day” to upgrade its infrastructure in preparation, but is currently PPMX ready, along with Long Beach
• The [link url=”http://www.nytimes.com/2012/08/22/realestate/commercial/a-650-million-expansion-of-port-newark-spurs-interest-in-its-environs.html?_r=0″ title=”Port Authority of New York and New Jersey also began port improvements in 2014“], including [link url=”http://www.nan.usace.army.mil/Portals/37/docs/harbor/Harborfact/50%20foot_FS_Sep_2014.pdf” title=”deepening the harbors 50 feet“] and [link url=”https://www.youtube.com/watch?v=lW5I6lFFXRU” title=”raising the Bayonne Bridge“] to let the newer, taller container ships pass under.
• [link url=”http://nreionline.com/public-infrastructure/top-10-busiest-us-ports#slide-5-field_images-531171″ title=”Houston has begun upgrading cranes and is currently dredging to be PPMX ready“]
• [link url=”http://www.colliers.com/-/media/A29CE09D816847EF98A99D4B84B47EDF.ashx” title=”Norfolk is already PPMX ready, making it one of the first on the East Coast along with Baltimore“]
• [link url=”http://nreionline.com/public-infrastructure/top-10-busiest-us-ports#slide-3-field_images-531171″ title=”Charleston is currently dredging for PPMX readiness“], but projected completion is sometime in 2018 or 2019 and they are in a [link url=”http://www.timesfreepress.com/news/business/aroundregion/story/2015/sep/14/after-16-years-dredging-begins-706-million-deepending-savannah-harbor/325092/” title=”race with Savannah“] to finish in time.

Expanded Ship Sizes Help Competitiveness

Ports help the United States remain competitive in the global market, and the efficiency of moving the containers into and out of the port is a key piece of this time-sensitive process.  Therefore, the upgrades to the nation’s ports will allow the larger container carrying ships access, along with their efficient loading and off-loading, which means a better edge in global trade.  It also means a likely [link url=”http://www.infrastructurereportcard.org/a/#p/ports/conditions-and-capacity” title=”reduction in shipping costs by 15-20%“], since the larger ships can carry a significantly larger number of containers (12,000+ compared to current ships that hold approximately 5,000).

Intermodal Transport Efficiency

A key component to the efficient movement of goods are the methods of intermodal transport available at the ports, including trucks and trains.  Access to the ports with a robust rail system and/or truck lanes is imperative to the smooth and proficient movement of goods.  Such proficiency reduces delays, which can significantly increase shipping costs, and reduce market competitiveness.  Eventually, continued or increasing delays are likely to have a negative impact on the consumer, and hurt the nation’s exports.