It’s still faster and more cost effective to ship to most parts of the U.S. from West Coast ports than through the Panama Canal, according to a report from CBRE. The Journal of Commerce recently noted that West Coast ports have bounced back from last year’s prolonged longshoremen’s strike and have regained their customary share of containerized imports.
An expanded Panama Canal will cap cargo capacity per vessel at 13,000-14,000 TEU (a measure of container capacity), whereas western ports can already accept vessels with capacities up to 18,000 TEU, according to Dr. Noel Hacegaba, PPM, CPE, Managing Director–Commercial Operations for the Port of Long Beach, Calif.
THE PANAMAX EFFECT
Cities lining the East Coast and Gulf Coast are spending big bucks to accommodate the larger vessels that will cross a wider and deeper Panama Canal.
Last year, Long Beach handled 7.2 million containers, the third best year in its history. Hacegaba says that the Panama Canal expansion might even increase the flow of goods from east to west, especially from eastern South America. “The expansion gives suppliers alternatives,” he says.
Long Beach projects a 4% annual increase in container volume over the next several years. The port is in the midst of a $4 billion infrastructure upgrade over the next decade. Improvements include a fully automated, $1.3 billion Middle Harbor terminal capable of handling 3.3 million TEU. The port is also replacing the 50-year-old Gerald Desmond Bridge—over which 15% of the nation’s goods travel—at a cost of $1.5 billion.
Hacegaba says about 30% of containers leave Long Beach by rail. The port wants to increase rail traffic to 50% to take advantage of rail’s efficiency and environmental cleanliness compared to other transport modes. Long Beach is exploring a short-haul rail operation and an inland container yard.
Hacegaba says 18 million sf of warehouse space lies within 100 miles of the Port of Long Beach, and more is being built. “The port is an economic engine for the Inland Empire,” he says.
Related Stories
| Jul 27, 2014
Top Data Center Engineering Firms [2014 Giants 300 Report]
Fluor, Jacobs, and Syska Hennessy top Building Design+Construction's 2014 ranking of the largest data center engineering and engineering/architecture firms in the U.S.
| Jul 27, 2014
Top Data Center Architecture Firms [2014 Giants 300 Report]
Gensler, Corgan, and HDR head Building Design+Construction's 2014 ranking of the largest data center architecture and architecture/engineering firms in the U.S.
| Jul 23, 2014
Architecture Billings Index up nearly a point in June
AIA reported the June ABI score was 53.5, up from a mark of 52.6 in May.
| Jul 21, 2014
Economists ponder uneven recovery, weigh benefits of big infrastructure [2014 Giants 300 Report]
According to expert forecasters, multifamily projects, the Panama Canal expansion, and the petroleum industry’s “shale gale” could be saving graces for commercial AEC firms seeking growth opportunities in an economy that’s provided its share of recent disappointments.
| Jul 18, 2014
Contractors warm up to new technologies, invent new management schemes [2014 Giants 300 Report]
“UAV.” “LATISTA.” “CMST.” If BD+C Giants 300 contractors have anything to say about it, these new terms may someday be as well known as “BIM” or “LEED.” Here’s a sampling of what Giant GCs and CMs are doing by way of technological and managerial innovation.
| Jul 18, 2014
Top Construction Management Firms [2014 Giants 300 Report]
Jacobs, Barton Malow, Hill International top Building Design+Construction's 2014 ranking of the largest construction management and project management firms in the United States.
| Jul 18, 2014
Top Contractors [2014 Giants 300 Report]
Turner, Whiting-Turner, Skanska top Building Design+Construction's 2014 ranking of the largest contractors in the United States.
| Jul 18, 2014
Engineering firms look to bolster growth through new services, technology [2014 Giants 300 Report]
Following solid revenue growth in 2013, the majority of U.S.-based engineering and engineering/architecture firms expect more of the same this year, according to BD+C’s 2014 Giants 300 report.
| Jul 18, 2014
Top Engineering/Architecture Firms [2014 Giants 300 Report]
Jacobs, AECOM, Parsons Brinckerhoff top Building Design+Construction's 2014 ranking of the largest engineering/architecture firms in the United States.
| Jul 18, 2014
Top Engineering Firms [2014 Giants 300 Report]
Fluor, Arup, Day & Zimmermann top Building Design+Construction's 2014 ranking of the largest engineering firms in the United States.
