In 2015, like many other East Coast ports, the Port of Boston had a record-setting year thanks to our customers and partners. While we are optimistic about the fundamentals of the U.S. and New England economies, it is clear that 2016 will usher in a new era in the container shipping industry, with unprecedented challenges – and opportunities – on the horizon.
The most obvious change impacting East Coast ports in the near future is the advent of a new-Panamax reality. The expanded Panama Canal will allow a roughly threefold increase in the capacity of ships calling East Coast ports directly, and such ships will greatly reduce the cost of transporting goods. However, these larger ships are already putting significant pressure on ports to deepen their channels, expand their terminals, and make other landside improvements. Ports have already started to work with their state and local partners to lay the foundation for such improvements. It is imperative that the Federal government also do its part to recognize and respond to the infrastructure needs of East Coast ports so that the economic benefits of direct all-water service can be fully realized.
We will also see additional industry consolidation as a major potential change. While good for the core economics of the industry, further consolidation will almost certainly produce winners and losers. The overall value proposition that individual ports offer their customers in terms of productivity, reliability and quality of service will serve as the principal differentiator.
Finally, maritime security, environmental stewardship, and community engagement will all grow in importance in 2016 as global and local issues continue to intersect in increasingly complex ways. Ports are at the heart of these intersections so collaboration across the entire supply chain to ensure the safe, sustainable, and equitable movement of goods will be a priority for all ports in the coming years.