California ports face many competitive challenges in 2010, but, quite frankly, many challenges are of the ports’ own creation. We are in an era where politics, as much as the marketplace, is influencing cargo patterns.
Port policies, whether created by port staff or imposed by the local mayor or city council, are creating disincentives for cargo interests, and are doing little to attract job-creating business to the ports.
In contrast, new gateways are being expanded or established in various North America ports, outside of California, and they are offering low-cost and hassle-free business environments. Governments in Canada and Mexico, and elsewhere in the U.S., recognize that the goods movement industry creates jobs, and they are supporting and encouraging port investment because of it.
Whether it is arrogance or a misunderstanding of the marketplace, the basis for policymaking by many state and local officials is that international trade has nowhere to go except through California. When political science trumps real science, the net result is a backward move in terms of improving economic development and solving environmental challenges.
Politics penalizes innovation, limits resources, stifles progress and restricts investment. It brings growth to a screeching halt. While funding is needed for infrastructure, and environmental policy suffers from a lack of uniformity, the real question facing the California ports in 2010 is whether the politics of arrogance or ignorance will continue.
If port governance regains its focus on creating jobs, and balances the needs of the community and the environment, perhaps we can turn things around.
Unfortunately, for our ports, while voters may have a short-term memory, freight is not as forgiving.