Ocean cargo/global logistics: Pacific rim ports and railroads make new bid for China's business
In a unprecedented demonstration of solidarity,
six major U.S. West Coast gateways came together to announce their
collaboration.
Patrick Burnson -- Logistics Management, 11/12/2009
Long Beach—As Trans-Pacific ocean carriers work to restore their rate structure, U.S. West Coast ports are mounting a “charm offensive†to keep and attract new business.
In a unprecedented demonstration of solidarity, six major U.S. West Coast ports came together this week at the World Shipping Summit in Qingdao, China, to announce their collaboration. Joining them in this effort were two major western rail carriers -- BNSF Railway Company and Union Pacific Railroad
According to spokesmen for the Port of Long Beach, the coalition addressed leaders and customers of the maritime industry including ocean carriers, beneficial cargo owners and marine terminal and intermodal operators.
The U.S. West Coast Collaboration – comprising the ports of Seattle, Tacoma, Portland, Oakland, Long Beach and Los Angeles – represent U.S cargo gateways that have seen volume and revenue decline dramatically in recent years.
“Today’s economic conditions have compelled all of us to take a closer look at how we conduct our business to discover new approaches that yield improved results,†said Omar Benjamin, executive director of the Port of Oakland. “Today’s economic conditions have compelled all of us to take a closer look at how we conduct our business to discover new approaches that yield improved results.â€
Conspicuous by their absence were representatives of organized labor, however.
Also curious was the participation of Timothy J. Farrell, the out-going executive director of the Port of Tacoma, who announced his pending resignation a few weeks ago.
But perhaps most noteworthy was the inclusion of the UP and BNSF. This, said analysts, signals a positive shift in marketing strategy.
“Union Pacific has a long track record of investing in its network to support the growth of the West Coast ports and its customers,†said John E. Kaiser, UP’s vice president and general manager.
According to John Lanigan, BNSF executive vice president and chief marketing officer, “BNSF and the other members of the U.S. West Coast Collaboration are committed to helping shippers get more from their supply chains. At BNSF alone, we have invested $30 billion to create a rail network that delivers more goods, to more markets faster and with less environmental impact than all-water alternatives.â€
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