West Coast stays on track with ocean cargo industry events

June will feature the AgTC annual conference in San Francisco.

By ·

While the Port of Tacoma is aiming to be a gateway for 3 million twenty-foot equivalent units (TEUs) over the next ten years, it also has ambitious goals set for its bulk and breakbulk facilities. John Wolfe, the port’s executive director, gave a presentation earlier this month at the International Association of Ports and Harbors (IAPH) conference in Los Angeles, that indicated that Tacoma is making a bold move to attract these cargoes.

Over the next decade, he said, the Port of Tacoma hopes to be the transit point for 12 million metric tons of bulk commodities and 200,000 short tons for breakbulk, while boosting it operating margin by 30% and its net income by 50%.

At the IAPH event, Wolfe also outlined plans for the port’s future bulk terminal. The panel, titled “Port Project Decision Criteria: ROI and Beyond,” proved to be a good platform for Tacoma’s value proposition.  He stated that in the first full year of operation, his port’s investment would return $8.6 million in annual revenue.

***
A major upcoming industry conference San Francisco will provide yet more information on West Coast opportunities for bulk and breakbulk shippers, as well as those moving goods by containerload when the Agriculture Transportation Coalition convenes its 25th annual meeting June 13-14 at the Hotel Nikko.
One of the most anticipated sessions is certain to be “U.S. Ag Export Outlook — What Comes Next?” by Walter Kemmsies, chief economist with Moffatt & Nichol. Kemmsies, also gave a compelling talk at the IAPH where he outlined the opportunities and challenges for shippers seeking to break into the South American market.

***
The AgTC event is also likely to showcase the “niche” advantages of the Port of San Francisco, which recently announced the expansion of its Foreign Trade Zone (FTZ) No. 3 service area to include Contra Costa, Marin and Solano Counties, as well as portions of Sonoma and Napa Counties.  The previous service area included San Francisco and San Mateo Counties.  This action will support efforts to strengthen the local economy and attract new businesses to the area.

The FTZ program has allowed American companies to obtain a more competitive position with respect to their counterparts overseas, and subsidizes job growth by deferring, reducing, or eliminating customs duties paid on imported goods by importers, distributors, manufacturers and processors.

“Foreign Trade Zones are one tool to reduce logistics costs, which translates into savings to a company’s bottom line,” said Jim Maloney, Maritime Marketing Manager at the Port of San Francisco, grantee of FTZ No. 3.  “The FTZ program provides an excellent opportunity for Bay Area businesses to enhance their competitiveness in the global economy.”

The program allows existing and new companies in these counties to secure FTZ site status under the streamlined Alternative Site Framework program within approximately 30 days from when an application is accepted.  Without the program the process can take 8-12 months.

A Foreign Trade Zone site is a secured area near a designated customs “port of entry,” and while physically located within the U.S. it is considered outside the U.S. Customs territory.  This allows for foreign goods to be brought into FTZs without formal customs entry for manufacturing, testing, assembly, processing, storage, and distribution.

Maloney said in an interview that the port hopes the development may also lead to a few more ocean cargo vessel calls for San Francisco, and its much larger neighboring port – Oakland.


About the Author

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 pburnson@peerlessmedia.com.

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!

Article Topics

Ocean Cargo · Ocean Freight · All Topics
Latest Whitepaper
Making E-Commerce Logistics Work
Special Digital Issue: Eight feature stories that neatly encapsulate the new technology and processes that are revolutionizing logistics and supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...