Continued support for the development and financing of new transportation infrastructure across the nation from all stakeholders is critical. Public-private partnerships provide an opportunity to finance costly infrastructure enhancements, and proper management is a crucial element in the success and value going forward. Notable examples that are experiencing the benefits of infrastructure investments for economic growth are Port Newark Container Terminal and Baltimore’s Seagirt Marine Terminal.
The industry has been going through a significant structural change since 2008-2009, and the formation of the new operational alliances will be taking this to a new phase. Similar to previous years, the formation of these alliances are reshaping and consolidating the container market, with one of the primary objectives being cost management.
The dramatic increase in maximum- and average-sized ships on all trade routes perpetuates the challenge of oversupply in the container shipping industry. This remains a concern and continues to pressure rates and affect carrier financials. Additionally, vessel size will have an effect on port requirements and the need for long-term funding for ports to handle large vessels efficiently.
There is no avoiding the competitive pressure from global automation and productivity. Management and labor in the U.S. need to resolve issues quickly so the U.S. no longer trails in the application of technological advances. Solutions to bottlenecks, adequate chassis, increased equipment capacity, efficient land usage and long-term investments for growth and sustainability are vital.
Companies need to continually demonstrate their commitment to providing a competitive advantage for their customers and stakeholders through such measures as upgrading equipment and investing in infrastructure. Being a good corporate citizen is important to improve the quality of life for surrounding communities with better air quality, resulting from reduced congestion and faster deliveries of products to markets. Providing a safe work environment remains paramount to any operation.
Michael F. Hassing, President and CEO, Ports America