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
Self-Storage Facilities | May 19, 2022
A steady increase in new self-storage space is meeting growing need in large metros and their suburbs
Rent Café’s study projects a 9 percent bump in the nation’s existing inventory.
Adaptive Reuse | May 18, 2022
An auto plant in Detroit to get a retread as mixed-use housing
Fisher 21 Lofts could be the largest minority-led redevelopment in the city’s history.
Industrial Facilities | Apr 30, 2022
CapRock Partners taps into industrial space demand
The investment firm is committed to building 15 million sf of warehouses.
Industrial Facilities | Apr 14, 2022
JLL's take on the race for industrial space
In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.
Industrial Facilities | Apr 6, 2022
Development underway for Missouri’s largest logistics park
Hunt Midwest envisions 27 buildings will be completed over the next 10 years.
Industrial Facilities | Apr 1, 2022
Robust demand strains industrial space supply
JLL’s latest report finds a shift toward much larger buildings nearer urban centers, which fetch higher rents.
Cladding and Facade Systems | Oct 26, 2021
14 projects recognized by DOE for high-performance building envelope design
The inaugural class of DOE’s Better Buildings Building Envelope Campaign includes a medical office building that uses hybrid vacuum-insulated glass and a net-zero concrete-and-timber community center.
Giants 400 | Oct 22, 2021
2021 Industrial Sector Giants: Top architecture, engineering, and construction firms in the U.S. industrial buildings sector
Ware Malcomb, Clayco, Jacobs, and Stantec top BD+C's rankings of the nation's largest industrial buildings sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.
Industrial Facilities | Sep 2, 2021
Design unveiled for new Ferrero Technical Center in Alba, Italy
Frigerio Design Group is designing the project.
Giants 400 | Aug 30, 2021
2021 Giants 400 Report: Ranking the largest architecture, engineering, and construction firms in the U.S.
The 2021 Giants 400 Report includes more than 130 rankings across 25 building sectors and specialty categories.