2012 will be another critical year as East Coast ports prepare and invest for the Panama Canal expansion, even though the expansion won’t be completed until 2014. For East Coast ports, this means investing heavily in infrastructure and capacity now, during a highly uncertain economic environment, as a strategic positioning for the future.
As larger vessels in the 6,500- to 8,000-TEU range become standard in the all-water services between Asia and the U.S. East Coast trade, customers throughout the supply chain will look to take advantage of the improved transportation economics. These efficiencies will help East Coast ports compete in gaining further inland reach and capturing more cargo already coming to local markets via mini-landbridge.
Yet East Coast ports can offer an enhanced supply chain solution only if they take immediate action to address a multitude of capacity and velocity issues. Getting deeper water at several of our ports, while crucial, is only one component. Larger ships mean East Coast ports have to focus on capacity and the quality of service they provide.
Can the major East Coast ports handle more lifts per call and faster turn times? Can they offer on-dock rail and greater real-time visibility of cargo? In short, East Coast ports must be able to provide the terminal velocity larger ships require if they hope to seize the opportunities the canal expansion will offer.
One final note: With growing East Coast port volume comes a greater responsibility to reduce our carbon footprint. It comes down to doing the right thing, the right way and integrating that strategy by choosing operations solutions that are good for business and good for the environment. Environmental sustainability must become a part of our industry culture.