In response to our questionnaires for our annual North American Port survey we received quite a lot of interesting and mixed responses from ports both on the West and East Coast. Many reported on a positive 2010 and a very positive outlook for the coming year despite warnings that slow steaming by many shipping lines may influence prices further down the supply chain badly affecting retailers. And the retailers were the ones that have made 2010 what is was – very successful for everyone in the industry. With spending on the rise across the country it is expected that 2011 will be a continuation of 2010 with an increase of import containers. So, what else will be in store for 2011? The opening of the Panama Canal in 2014 will have a major influence for the ports on the East Coast. All are investing in dredging and expansion projects in anticipation of the arrival of larger container vessels. Of course, this will also have a knock-on effect on orders for cargo handling equipment.
But we should be cautious despite the positive news. The total container throughput for 2010 remains below the throughput figure reached back in 2008. There are signs for a recovery from the financial meltdown in the US but they are not yet there – furthermore consumer confidence will grow if more jobs are being created in the country – as soon as that happens we will see a huge increase in container traffic.
Los Angeles
In 2010, container throughput at the port of Los Angeles surged 16% compared to 2009, with a record number of exports leading the way. Port exports rose 10.3% to 1,841,274 TEU compared to 1,668,911 TEU in 2009 and surpassed the previous container export record of 1,782,502 TEU in 2008. Meanwhile, imports increased 12.8% in 2010 (a total of 3,973,933 TEU) compared to 2009 (3,524,386 TEU). “With this 16% increase in 2010 container throughput, the Port of Los Angeles is putting people back to work and doing its part to help President Obama meet his goal to double national exports over the next five years,” said LA Mayor Antonio Villaraigosa. “This is good news not only for Los Angeles, but cities across the nation. According to Port Executive Director, Geraldine Knatz, “the 2010 volume gains far surpass our initial estimates, and we’ve been able to facilitate some export opportunities in the past year through our TradeConnect initiative and increased networking with local business stakeholders. We want to continue that momentum and work with local business entities to advance the President’s National Export Initiative agenda.” The Port handled a total of 7,831,902 TEU, including empties, in 2010 and remains the nation’s busiest trade gateway in terms of container volume. In December, the total number of TEU imported and exported through the Port of Los Angeles was 612,651, an 8.82% increase over the 562,989 TEU handled back in December 2009. Loaded container exports were up 5.6% at 299,304 TEU compared to 283,364 TEU in December 2009.
Jacksonville Port
In financial year 2010, container throughput at Jacksonville Port (Jaxport) totalled 826,580 TEU (Oct 1-Sep 30). Bulk cargo amounted to 1,515,161 tonnes, while breakbulk reached 990,353 tonnes and ro-ro traffic notched up 518,880 total auto units. New equipment purchased by Jaxport includes two
new container cranes manufactured by China’s ZPMC. The cranes, which will handle 20’, twin 20’, 40’, 45, and 53’ long containers, are on track for delivery in late summer 2011. In terms of construction projects, work has been completed ahead of schedule on a harbour deepening project. In FY2010, a 5.3-mile section of the St Johns Rivers main shipping channel was deepened from a depth of 38 feet to 40 feet. With this project’s completion, Jacksonville’s entire 21-mile shipping channel is at a 40-foot depth, allowing for water depth requirements of fully loaded cargo vessels and meeting the needs of new, even larger, cargo ships. Jaxport is now more accessible, profitable and safer for its tenants and deeper draught vessels, and can allow tenants to carry up to 600 additional 20-foot cargo containers. The Army Corps of Engineers continues to study a project to deepen the harbour to post-Panamax depth and expects to release a draft study in early 2012. Jaxport officials have agreed with Hanjin Shipping Co of South Korea to amend the schedule for design and construction of their planned USD300 million terminal. The new target of 2016 would match the anticipated completion date of the federal government’s deepening of the ship channel, allowing the post-Panamax ships deployed by Hanjin access to Jaxport terminals. Hanjin and Jaxport’s TraPac terminal together will triple the port’s current container throughput, making Jaxport a top-ten container port in years to come.
Port of Houston
Contracts totalling more than USD2 million to upgrade software at Port Authority terminals and to expand network connectivity are among several matters that were approved by the Port Commission of the Port of Houston Authority. Zebra Enterprise Solutions (ZES), USA has been awarded a nearly USD2.1 million contract from the Port of Houston to upgrade software applications used for terminal operations and billing at Barbours Cut, Bayport and Turning Basin terminals. ZES will upgrade the current Express application with its N4 software technology. Initial implementation of the upgraded N4 terminal operating system is planned to occur in tandem with the new truck entry g
ate at Bayport, which will also enhance efficiency. In his monthly report, Chief Executive Officer Alec G Dreyer noted that January continued the relatively strong performance of December across all sectors of Port Authority business. “While ship arrivals at the container facilities and in the Turning Basin were essentially flat between January of this year and last year, barge traffic was up a stout 30% for the first month of the year,” Dreyer said. “Nevertheless, TEU volumes were up 5% in January while unit counts were up 4%. Container tonnage was up a strong 7%. “Put simply, we had the same number of ships arriving between years, but each ship was moving substantially more cargo,” he said. Steel started the year well with 243,000 tonnes as compared to 154,000 tonnes in January of 2010: a 58% increase. Dreyer said other commodities also showed nice gains for the month, with an overall increase in general cargo of more than 21%. Container revenue was up 8%, reflecting the growth in TEU for the month. Turning Basin revenue was up 24% in January, directly in line with the amount of steel handled this year over last.
Port Everglades
An east coast port that may benefit from the Panama Canal expansion and growth in Latin America and the Caribbean is Port Everglades. The port is one of the nation’s leading container ports and a trade gateway to Latin America and Caribbean. It has direct access to the interstate highway system, is within two miles of the Florida East Coast Railway hub and is just one mile from the Atlantic Shipping Lanes. Ongoing capital improvements and expansion ensure that Port Everglades will have the ability to handle future growth in container traffic. For the first two months of its financial year, the port reported an increase of 9.6% for container traffic in October and November, compared to the same period last year. Container throughput totalled 136,658 TEU for October and November 2010 from 124,693 TEU the previous year. While lower than the number of TEU two years ago when Port Everglades reached an all-time high in container traffic, the recent increase is seen as a positive trend. “This is a significant increase over where we were last year and we are cautiously optimistic that this is a preliminary sign that international trade is rebounding,” says Phil Allen, Port Everglades Director. “Cargo operations at Port Everglades account for more than 5,600 jobs locally and nearly 133,000 throughout Florida, so we keep a close eye on development in this business sector.” Port officials point to a new service from the Far East as partly responsible for the increase. CSAV began its new AMEX service in June 2010, which includes a rotation of ten 3,500 TEU vessels making weekly calls to Port Everglades from Asia, through the Panama Canal, to the US East Coast and the Caribbean. The Port is also moving forward with several capital improvements to foster growth in containerised cargo volumes. It is nearing completion of a 41-acre containerised cargo terminal of which more than half will be used as a new handling facility for SeaFreight. The Port also purchased a new mobile harbour crane that has the capability to load containers and handle heavy lifts up to 100 tonnes. Ongoing are Master Plan projects that include expanding the Port’s Turning Notch by 1,500 feet to allow for four additional berths and deepening the channel to 50 feet.
Port Metro Vancouver
Port Metro Vancouver (PMV), Canada’s largest and North America’s most diversified port recently launched its new Container Capacity Improvement Program, PMV’s long-term strategy to significantly increase container handling capacity in the Lower Mainland to meet future growth and demand in Canadian international trade. Container traffic through Canada’s Pacific Gateway is expected to double over the next 10 to 15 years and nearly triple by 2030. PMV is planning now to meet the forecast growth and increased demand for Canadian imports and exports in the future. Without substantive improvements, a ‘gap’ in capacity could emerge as early as 2017. Port Metro Vancouver must ensure capacity is in place to support Canadian trade. Launching the Container Capacity Improvement Program (‘the Program’) is an important first step in a long-term process to ensure sufficient capacity. The Program will identify opportunities to increase operational efficiencies at the Port’s existing container facilities, with an emphasis on investment and infrastructure improvements at Roberts Bank in Delta. “Our mandate and overarching goal is to support growth in Canadian trade,” said Robin Silvester, President and CEO, Port Metro Vancouver. “Roberts Bank is very well positioned to accommodate future trade growth because it’s an established route that offers excellent access to important Lower Mainland markets as well as major North American transportation corridors.” Port Metro Vancouver’s current economic projections conclude approximately 4 million TEU of additional capacity will be required to meet container demand forecasts in 2030. Following improvements at Centerm and Vanterm in 2005, and the completion of the Deltaport Third Berth Project in 2010, PMV is currently evaluating initial infrastructure improvements at Roberts Bank. The proposed Roberts Bank Terminal 2 project is a multi-berth marine container terminal that would provide additional capacity of more than 2 million TEU per year. The Port is currently undertaking preliminary technical analysis at Roberts Bank to determine ground conditions and suitability for potential future development. Port Metro Vancouver is also preparing a comprehensive, seven-round public consultation process that will take place over six years, between January 2011 and December 2016. A comprehensive First Nations consultation process will run parallel to the public and stakeholder consultation. The scope, scale and particulars of the Program are subject to significant further technical analysis, broad consultation, and rigorous environmental assessment and certification.
Port of Seattle
The Port of Seattle broke its cargo volume record in 2010 with more than 2.1 million TEU. The record breaking year surpasses the previous high in 2005 of 2.08 million TEU. “The cargo volumes are exciting, and we are proud of our record year,” said CEO Yoshitani. “But the thousands of family-wage jobs generated by those 2 million containers are even more important. We are grateful to the customers and labour partners who worked with us to make 2010 so successful.”Several factors contributed to the increase in container throughput. Exports remained strong throughout 2010, and other factors like the addition of Maersk/CMA CGM container ships, increases in the sizes of ships calling at the port, and its ‘fee free’ policies at the terminals contributed to the record success. “The Port of Seattle has worked hard for its competitive advantage, and these numbers reflect that,” said Linda Styrk, Managing Director of the Seaport. The Port of Seattle maintains four major world-class container terminals, with 24 cranes, 11 container berths with up to 50 feet deep alongside, all in close proximity to two major national rail hubs, and two major interstate highways within minutes of all terminals for efficient truck access. In February, the Port of Seattle welcomed a new carrier to its harbour when Mediterranean Shipping Company (MSC), added Seattle to its California Express service. The service calls at Gioia Tauro, Naples, Civitavecchia and La Spezia in Italy; Valencia in Spain; Cristobal and Balboa in Panama; Long Beach and Oakland in California and Vancouver, Canada. The 3000 TEU MSC ships will be calling at Terminal 18, managed by SSA Terminals.
New York/New Jersey
According to a statement by R M Larrabee, Director, Port Commerce Department, at the Port Authority of New York and New Jersey, business in 2010 turned out to be unexpectedly robust. Although throughput figures are not yet available all indications are that it was a stronger than expected improvement over 2009. “The Port Authority remains cautiously optimistic for 2011. However, as competition for business all along the supply chain has increased, cost savings and efficiency improvements are at the forefront of everyone’s mind. Fortunately, over the past decade we have invested more than USD2 billion in the port to help us meet these challenges by reducing the cost of doing business at the Port of NY&NJ,” said Larrabee. Initiatives undertaken by the Port Authority include recent investments in the ExpressRail System which not only add value by reducing costs and congestion but also by reducing the environmental footprint of the port. The port also recently purchased the former Military Ocean Terminal at Bayonne (MOTBY) places 130 acres of vital, dwindling waterfront space under public stewardship. Combined with their acquisition of the 98 acre Global Terminal on the Port Jersey peninsula, which will be expanded by an additional 70 acres from the former North East Auto Terminal, and it is clear that the port is committed to the commerce, jobs, people, and future of the port. The port also pledged of USD1 billion to raise the iconic Bayonne Bridge allowing unhindered passages of larger container vessels to the container terminal facilities west of the bridge. A new Marine Terminal Tariff has been introduced to fund for critical future capital improvements. Money generated by the modest cargo facility charge will be used to continue to improve and modernise port infrastructure, creating an investment in the port’s future. “Despite unforeseen challenges, our commitment to increase capacity and provide for modern and efficient port infrastructure has never wavered: plan wisely, spend thoughtfully, and excel today while planning for an even brighter tomorrow,” Larrabee concluded.
Virginia Port Authority
The Virginia Port Authority (VPA) finished 2010 with an 8.6% increase in cargo volume, surpassing the mark set in 2009 by 149,790 TEU; the VPA completed the year having handled 1,895,017 TEU. “Given the economy, I think we did well (in 2010); we had our ups and downs but it is the nature of the business these days,” said Jerry A Bridges, the VPA executive director. “I am optimistic that we will continue to see interest growth based on our list of assets, but we are going to have to go out there and get it.” In addition to an overall increase in cargo VPA saw growth in several core business areas: rail containers – up 13.1%; the number of containers handled at Virginia Inland Port – up 24.4%; breakbulk tonnage – up 10.9% and ship calls – up 4.7%. In November the Port Authority signed a contract with TTS Port Equipment AB, Sweden for the purchase of cargo handling equipment to be used at the container terminal of APM Terminals. The USD4.1 million contract secures the delivery of 10 Translifters and 220 cassettes, both of which are pieces of equipment used in the terminal’s rail operation. The equipment was scheduled to begin arriving in staggered deliveries early January 2011. Late last year, VPA announced that it would begin the first phase of construction of the foundations for a network of dikes that eventually will support a 600 acre marine terminal on the eastward expansion of Craney Island. The foundation work will be done in several phases as finances permit. “The US Army Corps of Engineers and the VPA have been working on this for more than 13 years, getting all the necessary approvals, permits, environmental impact statements, public input and so forth,” said Bridges. “Now, the real work starts. The benefits of this project, both short- and long-term, are going to be significant.”
Port of New Orleans
According to Port of New Orleans President and CEO Gary LaGrange container throughput at the Port rose 31% in 2010, compared to 2009. In 2010,
the Napoleon Avenue Container Terminal handled 426,091 TEU compared to 325,857 TEU one year ago. “These gains are attributed to a strong export market and the result of non-traditional cargoes, such as steel products and grain, now moving by container,” LaGrange said. “Our terminal operators – Ports America and New Orleans Terminal – are to be commended on the service they provide, as well as our container carriers that serve the Port.” The Napoleon Avenue Container Terminal is served by Mediterranean Shipping Company, Hapag-Lloyd, Maersk, Seaboard Marine and CSAV. Improvement projects at New Orleans include two major contracts that were awarded for the renovation of the Julia Street Cruise Terminal. The Board awarded an USD8.97 million contract to Ryan Gootee General Contractors, for the renovation and expansion of the terminal. An USD3.98 million contract was also awarded to Silverton Construction Company for modifications to the Julia Street Wharf and sub-structure. The estimated USD13.7 million-project will renovate two smaller terminals at Julia Street into one large modern terminal. The project includes the installation of a new climate-controlled articulated gangway, currently under construction in Sweden.