Subscribe to our free, weekly email newsletter!


Port of Oakland moves ahead on dredging

More than 2,000 container ships call Oakland each year, and many leave fully-loaded with California exports
By Patrick Burnson, Executive Editor
October 20, 2011

The Port of Oakland reached a major funding milestone of nearly $350 million for harbor deepening and maintenance, this week, thereby enhancing its position as a leading U.S. ocean cargo export gateway.

“Deeper vessel channels mean that the port can remain globally competitive, support job retention and growth, and drive positive economic impact for the region, state and nation,” noted Congresswoman Barbara Lee, who helped drive the initiative.

Of the nearly $350 million, Lee has ensured that the port received $242 million for harbor deepening and $103 million for maintenance dredging. The U.S. Army Corps of Engineers has already begun its annual maintenance dredging that keeps Oakland’s harbor navigable and at a depth of minus 50 feet.

Lee also co-sponsored H.R. 104, which would ensure that Harbor Maintenance Tax collection is spent every year for dredging. Annually, port customers pay taxes into the Harbor Maintenance Trust Fund with assurances that the money will be available to pay for navigational maintenance and harbor improvements.  Industry observers, note, however, that the revenues deposited in the fund are not always being fully spent.

The Port of Oakland intends to reverse that trend by investing these funds rather than adding to a surplus of over $5 billion.

Port spokesmen noted that 2,000 container ships call Oakland each year, and many leave fully-loaded with California exports.

Indeed, Oakland is the only major container port on the U.S. West Coast that exports more than it imports, with the volume of its export business at 55 percent and imports at 45 percent.

Jock O’Connell, Beacon Economics’ International Trade Adviser, told LM that he expects continued gains in California’s export trade through the remainder of the year, as the U.S. and world economies overcome the negative shocks that hit earlier in the year.

Despite occasional dockside labor disruptions, Oakland has been, and continues to be a premier U.S. export seaport for agricultural goods. Its terminals are relatively new, and uncrowded. The port is also close to California’s Central Valley and the wine country. Furthermore, the port is the only U.S. West Coast gateway that has all top 20 ocean carriers with regular service.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Now that the deal, which had to clear several regulatory hurdles in multiple countries, is official, FedEx executives were able to speak a little bit more freely, albeit being somewhat guarded in regards to certain integration specifics at the same time.

As the July 1st date for complete compliance looms, shippers are seeking help to cope with the mandatory changes instituted by the International Maritime Organization (IMO) to the Safety of Life at Sea Convention (SOLAS).

As of July 1, only containers with a verified gross mass will be cleared to be loaded onto a ship under the International Maritime Organization’s Safety of Life at Sea (SOLAS) Verified Gross Mass (VGM) amendment. Shippers hoping that the implementation of the ruling will be delayed or deferred are whistling in the dark, say industry analysts.

Amid the many worrisome economic indicators kicking around of late, something along the lines of good news came about this week in the form of United States new home sales data, issued by the United States Department of Commerce this week.

In March, the SCI came in at 0.4, which FTR described as “a near neutral reading” on the heels of four months of more favorable market trends for shippers.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA