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
Giants 400 | Dec 3, 2020
2020 Industrial Sector Giants: Top architecture, engineering, and construction firms in the U.S. industrial buildings sector
Clayco, Jacobs, and Ware Malcomb top BD+C's rankings of the nation's largest industrial buildings sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Aug 28, 2020
2020 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
The 2020 Giants 400 Report features more than 130 rankings across 25 building sectors and specialty categories.
Coronavirus | Aug 25, 2020
Video: 5 building sectors to watch amid COVID-19
RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.
Sustainability | Aug 11, 2020
Sustainability is key for Denver Water’s modernized campus and distribution system
The utility is showcasing a new admin building and a water reuse plan that’s a first for the state.
Industrial Facilities | Jul 8, 2020
BIG designs The Plus, the world’s most sustainable furniture factory
The project is nestled in the middle of the Norwegian forest.
Industrial Facilities | Mar 12, 2020
Cutting cost on flooring could cost your next industrial project big
It’s underfoot, sure, but the floor coatings in your manufacturing facility should be top of mind.
Industrial Facilities | Sep 24, 2019
Katerra’s new mass timber factory will produce the largest volume of CLT in North America
The factory recently opened in Spokane Valley, Wash.
3D Printing | Sep 17, 2019
Additive manufacturing goes mainstream in the industrial sector
More manufacturers now include this production process in their factories.
Giants 400 | Sep 11, 2019
Top 95 Industrial Sector Contractors for 2019
Fluor, Clayco, Jacobs, ARCO, and Gray Construction top the rankings of the nation's largest industrial sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report.
Giants 400 | Sep 11, 2019
Top 85 Industrial Sector Engineering Firms for 2019
Jacobs, Fluor, IPS, CRB, and SSOE head the rankings of the nation's largest industrial sector engineering and engineering architecture (EA) firms, as reported in Building Design+Construction's 2019 Giants 300 Report.