The benefits communities enjoy today from maritime trade were founded on the labors and risk-taking of leaders who had the shrewdness to realize a vision that others did not fully appreciate. We must continue that tradition of innovation as we face an industry on the cusp of major change.
The ships being introduced into trade lanes are more than double the capacity of the ones that docked at our ports just a few years ago. Even bigger ships are on the order books. The carriers that own these mega-ships continue to experience financial challenges driven, in part, by overcapacity as a result of the bigger ships. This places great pressure and expectations on ports to step up their operational performance.
Ports are faced with significant capital investments to prepare for the larger vessels. These investments, often at a cost of hundreds of millions of dollars, are made without the guarantee of additional cargo volumes and new business revenue.
Ports are forced to pay much closer attention to operational performance metrics and establish an executable plan to improve upon those metrics. We cannot accomplish this alone. Whether it’s with terminal operators, labor, railroads, trucking companies, or warehouse and distribution centers, we must find ways to align our interests with a strong focus on gateway performance and consistent, reliable service delivery provided to our valued customers.
Following examples within the industry, ports must consider new business models. The ports of Seattle and Tacoma did just that, recently forming The Northwest Seaport Alliance. The NWSA allows us to leverage the strengths of the individual ports and drive toward higher levels of gateway efficiency and productivity to benefit our customers.
John Wolfe, CEO, The Northwest Seaport Alliance