The economies of scale and the downstream forces they create continue to dominate our short- and long-term plans and strategies. E-retail, 1 million-square-foot distribution warehouses, 14,000-TEU vessels are just some of the drivers.
All ports, including PhilaPort, are deepening their channels and purchasing new super-post-Panamax cranes, improving gate and terminal truck turn times, and investing in information technologies. But, this is not enough.
Yes, new infrastructure, equipment, and technology are important. However, maritime industry organizations will increasingly need partnerships to thrive. They will need partnerships with ocean carriers, inland transportation companies, state transportation departments, and federal regulators. And although information technology is essential to survive in the modern world, human connections will remain important to the top organizations. Your people (and not just the top level) will have to be able to pick up a phone and talk to counterparts at a freight forwarder, ocean carrier, or railroad. And, as on-line purchasing harmonizes prices, human connections will be the key to better service, which will be the differentiator going forward.
On the public side, the goal is to convince decision makers (often located miles inland at the state capital) that investments at the port will positively impact the entire state. Planning organizations play a crucial role “connecting the dots” from pier to inland customer. If the local roads, bridges, and interchanges near the port do not keep up with pier improvements, bottlenecks will occur. If the goal is speedy delivery to inland customer, nothing beats geography.
However, even when a port is closer to a large distribution center hub, that port still needs the right road and rail connections to get the goods there faster than competing ports. Ultimately, BCOs care more about their total landed cost to customer than they do about geography, or how big your port is, or who they used in the past. If congestion occurs at one port, BCOs will find another. To keep and grow a BCO customer base, inland connection improvements have to keep pace with dockside upgrades; only successful public-private partnerships can ensure that the inland improvements are completed.
Port authorities are essential to fostering these partnerships; it is something they have always done, and it will be even more important for the successful supply chains of tomorrow.