U.S. Pacific Rim ports need makeover

Last week, top managers from the six largest U.S. West Coast ports converged on Washington to bring attention to lawmakers and Obama administration officials on the negative impacts that the economic recession has had on their ability to continue improving their container transport operations.

“All ports are challenged with getting major infrastructure projects done,” said Richard D. Steinke, executive director for the Port of Long Beach, during a press conference.

As reported in LM, West Coast ports have experienced 15 percent to 25 percent drops in container freight volumes during the first quarter of 2009, after experiencing significant annual growth from 2001 to 2007. While struggling through this crisis, Steinke noted that ports in many other countries can sustain such losses due to better coordinated national goods movement policies.

Canada’s new container port at Prince Rupert has seen its container traffic increase 158 percent from March 2008 to March 2009, and Mexico’s Lazaro Cardenas had a 110.2 percent increase in containers over the same period. “Alternative gateways will have the ability to take jobs from the West Coast,” cautioned Tay Yoshitani, chief executive officer for the Port of Seattle.

Yes, but lost in the discussion was the market share being taken from U.S. cargo gateways on the West Coast from U.S. ports on the East Coast and Gulf where dockside labor costs are not nearly as dear.

Before another attempt is made to persuade lawmakers, Critical Cargoes suggests that ports get their houses in order with the ILWU and its affiliates.