The Port of Virginia and many of its US East Coast peers welcomed their first ship to pass through the new locks of the Panama Canal in the summer of 2016. Since then, we have seen steady growth in vessel sizes and cargo volumes, and in the next 16 months, vessels 12,000 TEUs and beyond will be calling. As the ship sizes increase, the number of ports they call on the US East Coast will decrease.
Ports must be able to provide efficient and innovative services to all customers and stakeholders if they want to remain relevant, competitive, and benefit from the big-ship trend. Data-driven decision-making, long-term planning, and a comprehensive approach to transportation infrastructure will be needed to navigate a competitive field.
Two years ago, the Port of Virginia began studying what it needed to attract more cargo. From that study, our priorities became clear: expand capacity and develop a long-term plan for sustaining business. In November 2016, we began a three-year, $670 million effort to expand annual throughput by 1 million containers.
Ports in Georgia, South Carolina, Pennsylvania and New York/New Jersey are investing as well. Versatile, modern ports supported by outside-the-fence transportation infrastructure investments will ensure viable choices along the East Coast for ocean carriers and cargo owners.
Single port calls to the East Coast are not economically feasible, but multiple options along the coast send a message of stability and a clear understanding of the big-ship trend.
The big ships are here, and cargo must move swiftly, safely, and efficiently to its end-user. To be competitive while building market share and economically serving the end-user of the cargo, there has to be a coastwide, long-term perspective, and corresponding plan for investment and expansion.